As more big name firms pursue return-to-office policies, Gartner’s Caitlin Duffy answers questions over the implications for productivity, talent retention, leadership and collaboration. She argues there could be more to lose than gain by imposing rules on employees over attendance.
What are the factors influencing some business leaders to reintroduce mandatory return-to-office policies?
Concerns about productivity, collaboration, and employees’ connection to organisational culture are the prime drivers for organisations that want employees to return to the office. As leadership’s anxieties increase, they often lean further towards increasing visibility into employees’ day-to-day work, leading them to implement requirements to work onsite.
Some leaders are choosing to prioritise office familiarity over the potential long-term impacts on employee retention” – Caitlin Duffy
Moreover, there’s a nostalgia for the “serendipity” of traditional office settings, where physical proximity made spontaneous idea-sharing commonplace. Some leaders worry that such opportunities for innovation may be slipping away in a remote or hybrid set-up. Many business leaders also hold a deep belief about how work should be conducted, often rooted in their personal career journeys in traditional on-site environments. This entrenched perspective presents a significant challenge to change, and in the current economic climate, some leaders are choosing to prioritise that familiarity over the potential long-term impacts on employee retention.
What potential challenges do you foresee in implementing a mandatory return-to-office policy?
Hybrid and remote work have been very beneficial to multiple employee groups, including women who typically take on more childcare responsibilities alongside their work commitments; 53% of employees who have “radical flexibility” report a high degree of connectedness to the organisation, and employees are better able to feel authentically themselves in a remote work environment.
If organisations intend to implement return-to-the-office mandates, they should expect two key workforce challenges. Firstly, they are likely to see pushback from current employees. Many workers have adapted to and enjoy flexible working patterns, which have enhanced productivity, inclusivity, and work-life balance. Employees may see this as an attempt by employers to micromanage by increasing visibility, and this can undermine employees’ trust in their employer.
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Secondly, organisations must be prepared for how return-to-the-office policies will impact their ability to attract top talent. Gartner’s Voice of the Candidate Survey from Q2 2023 showed that while 41% of candidates said higher compensation was a key factor in their decision to accept a job offer, 56% of candidates wanted greater flexibility in when or where they work. While some businesses have typically attracted talent by offering higher salaries, compensation can no longer be solely relied upon to achieve recruitment goals.
How do you anticipate the return-to-office trend developing?
It’s difficult to predict whether these mandates will continue; organisations may walk back requirements in response to employee pushback, damage to performance, and challenges attracting and retaining talent. However, given the business benefits and firm employee expectations for flexible work, we don’t expect the wider economy to fully return to office and on-site work. If there is no real evidence for in-person work increasing productivity, strengthening organisational culture or fostering better collaboration, for example, then leaders have little rationale to revert to outdated ways of working.
Some business leaders may look to their peers to evaluate how their chosen strategy is working, especially if they are in the same industry competing for the same talent. However, businesses that do choose to stick with hybrid will have an advantage on the talent market, as candidates are more likely to look for opportunities at organisations offering greater flexibility.
Could businesses do more to make hybrid working fit for purpose and what do you think the role of HR will be in getting the most out of the hybrid model?
There is no doubt that hybrid work is here to stay. However, the challenges we hear from organisations looking to reintroduce full-time on-site working patterns often stem from failure to design a hybrid working policy in an intentional, human-centric way that meets both organisational and employee needs. There are many different configurations of flexible work, but regardless the policy itself must be flexible enough to accommodate the nature of the work and the preferences of the employees doing it – which often varies across teams, business units, and functions.
Business leaders are leaving it to the managers of teams to operationalise hybrid work for their teams, but very few are giving managers any training on how to do this”
Addressing this diverse range of needs across all levels takes a concerted effort. One of the biggest gaps we have seen is that organisations and business leaders are leaving it to the managers of teams to operationalise hybrid work for their teams, but very few are giving managers any training on how to do this. This represents a significant disconnect between leaders, managers and employees.
To create a system that accommodates everyone, businesses must proactively empower managers with clear guidance and support to navigate hybrid dynamics effectively – specifically, equipping them to establish hybrid work norms that best suit their team’s unique needs. This allows managers to accommodate different working styles, but still leverage on-site collaboration when it truly benefits the work. Employees must feel that they have a say in the process, so transparent communication is vital at every stage, and HR leaders must seek out and incorporate employee feedback into the design of hybrid work policies that impact them.
HR plays a pivotal role in establishing a baseline of guidance and providing managerial support. By equipping managers to navigate hybrid work in the context of their teams, HR enables them to engage employees in constructive dialogues, facilitating a deeper understanding of the optimal work setups to drive productivity and performance.
If companies are to return to five days per week in the office, how can leaders ensure there is no employee fall out and what steps can they take to successfully engage staff around the working model?
If companies implement a return to the office five days per week, then HR leaders will find it extremely difficult to avoid any employee fallout – including attrition. Gartner research has found that employees whose organisations implemented an return-to-office mandate reported statistically significantly lower intent to stay compared to employees whose organisations did not, even more so for high-performing employees. In addition, 48% of employees believe a mandate prioritises what leaders want over what employees need to do good work, so employee trust and buy-in for these requirements are low.
HR leaders must seek out and incorporate employee feedback into the design of hybrid work policies that impact them”
To navigate these challenges and mitigate employee fallout, HR leaders must articulate a clear rationale for implementing a return-to-office policy. This involves communicating openly and transparently, establishing a two-way dialogue with employees so that they have opportunities to ask questions and share feedback – they want to be heard and understood. Most importantly, leaders must showcase the benefits employees and teams might experience from working onsite and motivate, rather than mandate, a return to the office. Organisations will struggle to make a compelling case for a full-time return to the office if they fail to develop a deep understanding of employees’ day-to-day work and design a policy that enhances, rather than undermines, their experience.
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