RTO Mandates Lead to Higher Turnover, Recruiting Challenges

Companies experienced “abnormally high” employee turnover and a longer time-to-hire after implementing return-to-office (RTO) mandates, according to new research from the University of Pittsburgh.

The study authors tracked more than 3 million technology and finance workers’ employment histories on LinkedIn to analyze the effect of RTO policies across S&P 500 firms. The increase in attrition was more pronounced among women, senior employees, and more skilled workers, the researchers found. Further, employers face greater difficulty with talent attraction after RTO mandates.

“Our study highlights brain drain as a significant cost of RTO mandates even for the largest firms in the world,” the study authors wrote.

“The research confirms the simple fact that adults don’t respond positively to being told what to do, especially when that directive runs counter to what they believe has been working,” said Cali Williams Yost, a nationally recognized expert on workplace flexibility and the CEO and founder of the consultancy firm Flex+Strategy Group in New York City.

“The most straightforward way to avoid this outcome is to engage, not mandate. Engage the workforce in a change process that looks at the activities of their job and the outcomes that need to be improved and involving them in determining ‘how, when, and where do we do this best?’ ”

The result, Yost said, will be a flexible work model that is centered on performance and adapted to the unique realities within different jobs and departments.

“But employers continue to believe a one-size-fits-all policy enforced by tracking badge swipes is the better option because it’s easier and faster, when really it ends up being much harder,” she said.

“RTO mandates are absolutely a recruitment challenge, cutting down your candidate pool,” said Terry Terhark, CEO at NXTThing RPO, a recruitment process outsourcing company in Columbus, Ohio. “I find this shift to be largely CEO-driven. Workers have clearly spoken on this topic, and they prefer to be hybrid or remote. I think we will see this trend move back and forth depending on the pressures put on the labor market.”

Stephanie Manzelli, chief people officer at recruitment technology company Employ, based in Denver, said the company’s latest customer data shows a marked shift toward full-time in-office work, with fully remote work fading as an option. 

“Offering remote and hybrid work goes a long way to supporting a more flexible hiring process and hands down edges out the competition,” she said.

Finding the Right Balance for Hybrid Work

Half of the 308 U.S. organizations surveyed in September 2024 that implemented hybrid RTO arrangements have not provided rules regarding which days employees should work onsite, according to management and human capital consulting firm WTW’s latest Flexible Work Models Pulse Survey.

That lack of clear structure around designated office days hinders progress toward improved team collaboration, said Russ Wakelin, senior director of rewards data and intelligence at WTW.

Previous studies have found that coordination among team members is crucial to keep workers engaged and that, while workers have repeatedly said they value the office for socialization and collaboration, the workplace logistics matter in promoting these factors.

“Instead of asking the question, ‘How many days onsite and how many days remote?’ lead with, ‘What do we need to do?’ at the organizational and team levels,” Yost said. “Let performance determine the parameters of a flexible work model where the activities and outcomes that benefit from being in person dictate the number of days onsite.”

She said that, for some organizations, everyone may prioritize the same days for in-person work and that in-person work may be more team-specific for others.

“That upfront intention to make the most of the time together to achieve a defined outcome will likely lead to the collaboration that doesn’t happen just showing up to an office,” Yost said.

Additionally, workers overall still prefer remote work—over half (53%) of employees whose work can be done remotely said they would change jobs if they were forced to be in the office full time, WTW found.

“There will be a competitive advantage for those organizations able to create and sustain a balance that achieves their business objectives and employees’ desire for choice,” said Jill Havely, managing director of employee experience at WTW. “Organizations must take a holistic look at the entirety of the employee experience to truly make hybrid working effective and to meet the needs of employees and employers. This includes looking at the work environment, talent and reward programs and policies, leader and manager effectiveness, and culture.”

People want flexibility to be intentional, Yost said.

“They want the time they are onsite, in person, to have a purpose—whether it’s a business outcome or socialization—and they want it to be coordinated with others to achieve that purpose efficiently and effectively. They also want the time they work remotely to be coordinated, effective, and efficient as well. Trying to shortcut the process by mandating more days onsite doesn’t automatically translate into coordination or socialization, often only frustration.”