How To Master The New RTO Policies Like A Pro

The Controversial Shift: Employers Mandating A Return To The Office Post-Pandemic

With remote work being the new norm post-pandemic, companies are weighing the potential benefits and drawbacks of bringing employees back to physical workspaces. According to a survey by PwC, 68% of executives believe that remote work has been successful during the pandemic but are also concerned about its long-term effects on productivity and company culture. Without consideration for employee willingness and perceptions surrounding a push for return-to-office (RTO) policies, companies may face detrimental blows to their business, including talent shortages, cost implications, and a perceived unwillingness to adapt to a new working world.

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The Productivity Debate

In a current business environment where economic instability is still met with investor expectations to grow and remain more profitable than ever, companies are no longer willing to leave productivity unchecked. While remote work has demonstrated its viability, there is a growing perception that it may not be sustainable in the long term. Yet, according to a recent eLearning Industry survey, over half (57%) of employees agree that return-to-office mandates are more about leaders wanting to micromanage their teams and not about increasing productivity or improving company culture. Seemingly, questioning employees’ productivity (i.e., their time spent in the office) is the newest scapegoat and reason being used as to why companies aren’t able to compete in an economically unstable business environment.

Whether companies’ motivation for returning to the office is truly about productivity or not, this demonstrates that proximity bias—the tendency of leadership to show favoritism toward employees physically present around them—has not wavered in its chokehold on modern management structures. Managers must be trained in effective ways to assess the productivity of remote and hybrid teams, such as micro-evaluation, to separate themselves from archaic, stale managerial styles. Micro-evaluation gives employees a clear performance review on a weekly/biweekly basis while allowing managers to keep a finger on the pulse of their team’s productivity. At its core, proximity bias is the root of all RTO policies, and companies must prioritize training on a variety of management styles to ensure all employees feel properly evaluated and appreciated.

The Mental And Fiscal Cost Of RTO Policies

According to a study by Mental Health America, 83% of employees reported feeling emotionally exhausted due to pandemic-related stress. Almost four years since the onset of COVID-19, many workers have forgotten what it’s like to work in person on a consistent basis. Or, with over a third of Gen Z being remote workers their whole professional career, some workers have never stepped foot inside an office setting.

Additionally, the return to office adds up financially as workers expect to spend up to $500 a month in additional costs, including commuting, food, childcare, and more, if they are mandated to return to the office. Employers, too, can expect to face expenses related to office space maintenance, utilities, and employee amenities. Businesses must take action to avoid a well-being crisis as workers return to offices and address employee concerns, including the erosion of boundaries between home and work, the impact of loneliness in a remote environment, and additional costs burdening their personal budgets.

Talent Acquisition Challenge

With an already established talent shortage, companies have begun introducing new and creative benefits that did not exist as broadly pre-pandemic. Ranging from wellness stipends and pet insurance to four-day work weeks, the power structure has shifted into the hands of the employees, which brings about a new set of expectations when applying for jobs. One of the key benefits gained from the pandemic was flexible work. With many employees already proving their ability to work remotely or hybrid over the past three years, the sudden demand to return full-time to the office comes with pushback.

According to a 2023 eLearning Industry survey, over a quarter (25%) of employees have considered quitting their jobs over RTO mandates. Organizations need to recognize that flexibility in work arrangements is a powerful tool for attracting and retaining talent in today’s competitive job market. Failing to adapt to these changing preferences may lead to talent drain and recruitment difficulties. Striking the right balance between in-person collaboration and remote work will be essential for businesses to attract and retain top talent in this changing landscape, as is the acknowledgment that they trust their employees to get their work done without constant monitoring.

RTO Policies For Millennial Vs. Gen Z Employees

The diversity of the modern workforce requires companies to approach the return to office movement in various ways. Data shows that a typical US company consists of about 20% baby boomers, 35% Gen X, and 38% millennials, leaving only a small percentage of Gen Z employees. However, these numbers are consistently changing, as Gen Z is set to make up about 30% of the workforce by 2030. This information is important because each generation has a different view of the RTO mandates. Surprisingly, Gen Z and baby boomers seem to view the return to the office more favorably than millennials, who are particularly reluctant to let go of the numerous perks of the WFH model. Specifically, younger employees prefer hybrid working models that give them the freedom to work remotely while also letting them experience the office environment and face-to-face interaction with colleagues.

It is crucial for leaders to keep these generational preferences in mind when developing their RTO policies, as they can significantly help them identify suitable motives to attract employees back to the office. For example, while flexible hours and well-being perks may be particularly appealing to Gen Z employees, millennials might be more appreciative of WFH days and options for childcare stipends and alternatives.

Best Practices For Setting RTO Policies

Regardless of your employees’ initial reaction to a return-to-office mandate, it is important to remember that a solution that works for all parties can be found as long as you follow a set of best practices.

First, you need to prepare the office, ensuring comfortable and quiet office spaces, fast internet connections, and up-to-date devices. If employees have to struggle with office raucous and outdated computers, they will quickly return to remote work. Then, you must demonstrate to your employees that you value their opinions. A company-wide survey may clarify what your employees need to be motivated to return to the office and how you can make this transition as smooth as possible. Moreover, remember that moving from remote to in-office or hybrid work is a significant change for your employees, and they might need time to adjust. Finally, don’t forget that flexibility is a nonnegotiable element of the modern workspace. Whether that means hybrid work, flexible schedules, or work-from-home days to accommodate personal responsibilities, these will all make your RTO policy easier to accept.

Conclusion

While there are compelling reasons for in-person collaboration, employees’ concerns underscore the potential consequences for productivity, mental health, and attrition. The future of work will likely be shaped by those who can find an equilibrium, ensuring a thriving, motivated workforce while harnessing the benefits of in-person interactions.