Insight-Backed Flexibility: Why Return-to-Office Mandates Falter

Over 7 in 10 U.S. workers in fully remote (79%) or hybrid (73%) work arrangements said their current work arrangement was one of the primary reasons they work for their current employer, according to recent SHRM research. Remote workers are committed to staying out of the office, even if that means changing jobs in the wake of a return-to-office (RTO) mandate.  

With employees having strong preferences for remote work, employers are at a crossroads where they need to not only find ways to offer flexibility for workers but also understand why these desires persist. In doing so, they can better position themselves to attract and retain talent in a volatile labor market.

Labor Market Pressures 

Organizations will continue to think differently when it comes to work arrangements as pressures on the labor market impact talent retention and acquisition. While the labor market may have cooled from the sizzling pace of the past few years, there are headwinds up ahead from a complicated immigration system and predictions for slow workforce participation growth over the next decade. Flexible work arrangements, including fully remote, will be key.

The State of Return-to-Office 

While many workers hold tightly to their remote work status, many organizations are moving forward with RTO plans. Almost a third (32%) of U.S. firms now require employees to report to the office full time, according to the Axios Flex Index Q4 report. Many of these organizations are concentrated in the tech and banking sectors, including Amazon and JP Morgan Chase.

These plans are not without flexibility in benefits and perks for employees to help smooth the transition back into the office. However, it’s not enough to simply cater a weekly lunch or bring day care options onsite. 

“Highly productive employees will be seeking evidence that working onsite is more beneficial than working at home,” explained Allison Vaillancourt, vice president at HR and benefits consulting firm Segal. “Commuting to the office to be in Zoom meetings all day is not likely to be perceived as useful.” Some workers are open to returning to the office, but they want to ensure their productivity is intact. Workers say they ideally need to spend 63% of the workweek at the office to maximize productivity, according to a 2023 survey from Gensler.

Checklist: Return to the Office

How Some Organizations Are Doing It Differently 

Some employers are finding ways to ensure productivity at the office while supporting employees who value the flexibility of working remotely through hybrid work arrangements. A majority (63%) of employers in 2023 offered hybrid work opportunities for most employees, according to the SHRM 2024 Employee Benefits Survey. A hybrid arrangement brings flexibility to employees while still ensuring in-office collaboration. Other organizations are choosing remote-first arrangements, including Calm, a sleep and meditation platform. As it went fully remote in late 2020, it focused on employee onboarding and training to ensure new hires fully understood the mission and joined tenured employees in a shared culture.

Looking at the “Why?” of Flexibility

Employers face mounting pressure to attract and retain talent in a volatile world. Labor market pressures, leadership calls to return to the office, and a rooted desire to work from home all converge. To make sense of the multilateral pressures and make the best decisions for the business and its employees, leaders need to think outside of the box. Why do workers hold tightly to remote and even hybrid work arrangements?  

A simple answer is that workers want flexibility. In fact, flexible work is the fourth most important benefit, behind only health care, retirement, and leave, according to the SHRM 2024 Employee Benefits Survey. This desire for flexibility stems from the unique lifestyles of many workers, including caregivers, contemporaries, and workers with disabilities. These workers value their contributions to an organization and see remote work as a key to delivering merit. Employers who dive into these motivations for remote work and find ways to accommodate employee preferences while still supporting business goals will be in a stronger position to meet economic headwinds and fuel growth.  

Toolkit: Managing Flexible Work Arrangements