Does Mandating Return to Office Really Improve Your Bottom Line?

First you asked your staff to come back to the office after COVID-19 lockdowns were lifted. Many came back, but not all did.

Then you encouraged them to come back. You offered commuting stipends, childcare support, and professional development opportunities. A few more returned to the office, but the rest stayed working from home.

Now you’re mandating a return to office (RTO), yet you have about the same percentage of employees working in the office as you did when lockdowns were lifted. What gives? And what should you do about it?

Recently companies have been taking a strong stance on getting employees to return to the office and it’s backfiring. You’ve seen the headlines. Big companies like Google, Meta, and Zoom are struggling to coax their employees back. Some employees are quitting rather than being mandated to return.

How are midsized businesses supposed to succeed where large companies are failing? Should you even try to sway your workforce to come back?

RTO Mandates Are Hurting Companies

A University of Pittsburgh study looked at a sample of Standard and Poor’s 500 firms, finding that the percentage of people working in their companies’ offices is holding steady at 78% to 81%. That’s most of a company’s staff, but for some bosses that’s not enough. So they issue mandates that everyone has to work in the office.

Of those companies that mandate a RTO, 99% experienced a drop in employee satisfaction and no financial improvement.

99%.

In the same study, employees who were forced to return to the office were less happy, making them less productive and more prone to quitting. Some employees, according to The Washington Post, view this demand as a passive way to encourage employees to quit so the company can reduce staff numbers or hirer cheaper employees.

Managers aren’t happy about the mandates, either. According to an Envoy report, 80% of managers who enforced RTO mandates regretted their decision. They said they were unaware of what their staff wanted. If they had known, they reported, they would have made a different decision. Some are allowing their staff to work at home, despite mandates, in an effort to keep employees happy.

Why are we trying so hard to get people back into the office? Is it really imperative to a company’s success to have everyone in the same space every day? Or are there benefits to a flexible work arrangement for your employees and you?

Benefits of Work at Home for Employees

There’s no question that the office environment works well for some people. It offers them a community and feeds their energy. It creates a distinct separation between work and home, which they value. Some even like their commute, using it as alone time.

But the office environment doesn’t work for everyone. An office full of people drains some of your employees. This is especially true for introverts and neurodivergent people. No matter how skilled they are at it, introverts spend energy in social interactions. A work at home (WAH) situation allows an introvert to recoup their energy in between interactions. Some neurodivergent people react to social situations differently from their neurotypical colleagues, while others can become quickly overstimulated by their environment. Again, being able to have a break between interactions helps them to manage the interactions, and being able to control their environment can help prevent overstimulation.

There are other reasons your employees might prefer a WAH option. The costs of office attire, transportation, and commuting can be a strain for some employees. By working from home, they can stay in jobs they like.

For others, the time away from home is a burden. That could be because it’s too much time away from caregiving duties or a drain on their health. Allowing your employees to better manage their health and care for others lets them bring more focus and energy to their work.

And even the most thoughtfully designed office spaces and most updated technology will have limitations. You can follow all of OSHA’s rules and standards and still struggle to give an employee the setup that works best for them. Their home setup may be far more customized and usable for them.

Employees have clearly said that having a choice about where they work makes them happier. For many people, WAH lowers their stress, gives them more time for a personal life, and increases their comfort with their workspace. Giving your staff agency over their work location leads to happier, healthier staff.

Benefits of Work at Home for Companies

Allowing your employees to choose where they work makes them happier, but will it make you happier? Will it help make your company more profitable?

Yes.

Happier employees are more productive—up to 20% more productive, according to a Social Market Foundation study. Who doesn’t like more productive employees?

Happier employees are also healthier employees. When people are happy, they’re more likely to engage in healthy habits, such as eating a balanced diet and getting regular exercise. They’re also better able to handle stress.

Healthier employees are also more productive than less healthy employees. They take fewer sick days, creating less disruption in the workflow. And healthcare costs for healthier employees are lower for them and you.

Don’t discount the savings of a steadier workforce, either. Every employee who quits causes a disruption to the workflow, sometimes derailing projects for good. Even if you’re willing to replace unhappy employees who leave, you’ll spend time and money searching, hiring, and onboarding them.

Having a more flexible policy on where employees work will get you happier, healthier employees and that benefits your bottom line.

Reconsider Your RTO Mandate

If you’ve been mandating an RTO or considering one, consider why. The downsides of such a mandate can harm your company in terms of employee engagement, productivity, and workflow and at least one study shows that it doesn’t help you financially.

Allow employees to determine how they work best, on their own and with others. Authorize managers to make day-to-day decisions about when individuals or entire teams might need to be in the office or would benefit from a day at home.

You’ll have a workforce that’s more productive. You’ll experience less disruption and less turnover. You’ll benefit from a steady workforce rather than spend time and money trying to replace those who leave. Your employees will be happier and more loyal as a result.

Your bottom line will thank you.

Has your company implemented an RTO mandate?  If so, what does it look like:  A full five-day in office setup, or something more flexible?

How has it gone so far?  Are employees happy?  Still as productive?

Leave your comments below!