By Jennifer Collins | LINK
The Data Is In: Return-to-Office Mandates Aren’t Worth the Talent Risks
Nearly three-quarters of executives say return-to-office (RTO) mandates are a source of leadership conflict.
Lack of work-life balance ranks among the top five reasons employees quit.
Lack of work-life balance ranks among the top five reasons employees quit.
Return-to-office mandates carry steep costs
Over the last 12 months, 63% of HR leaders report an increase in expectations for employees to return to the office. Many organizations who have encouraged onsite work, but see low compliance, are resorting to RTO mandates. But 74% of HR leaders cite these mandates as a source of conflict.
The benefits prove to be modest at best, and amid a rising well-being crisis, waning trust between employees and their employers, and a competitive talent market, it's high time to ask whether the benefits of RTO mandates are worth the risks.
The benefits prove to be modest at best, and amid a rising well-being crisis, waning trust between employees and their employers, and a competitive talent market, it's high time to ask whether the benefits of RTO mandates are worth the risks.
Return-to-office mandates are high-risk
Issues with work-life balance ranks among the top five reasons employees give for leaving a previous employer. And, on average, employees at organizations that implemented a RTO mandate report lower intent to stay compared to those whose organizations did not.
High-performers, women and millennials, three groups that prize flexibility, are the biggest flight risks.
High-performers may feel especially resentful about mandates, particularly if they maintained performance or over-delivered during the pandemic. They may perceive RTO mandates as a signal of mistrust from management.
Neither performance nor inclusion improve in-office
Certain talent segments — women and millennials — whose organizations had implemented mandates were actually negatively impacted compared to those at organizations that had not.
Nearly two-thirds of employees report they work best in a remote environment. They also report higher feelings of inclusion in a remote environment versus on-site.
Nearly two-thirds of employees report they work best in a remote environment. They also report higher feelings of inclusion in a remote environment versus on-site.
High-performing employees report a 16% lower intent to stay in the face of on-site work requirements.
Mandated RTO offers modest benefits
RTO mandates carry some small, positive impacts:
Employees may put in more effort in the office, where they feel closely monitored.
Others may be more inclined to help colleagues with their workloads as their struggles are more visible, or because closer proximity makes it easier to ask for support.
Employees may put in more effort in the office, where they feel closely monitored.
Others may be more inclined to help colleagues with their workloads as their struggles are more visible, or because closer proximity makes it easier to ask for support.
Managers, who have arguably experienced the most significant change in their day-to-day work with the shift to hybrid and remote work — and likely the most anxiety — saw the greatest benefits from RTO mandates.
More time in the office likely provides managers with a sense of familiarity with their employees and gives them greater visibility into their direct report’s workflows.
A flexible approach yields the best results
The benefits of in-office time are real — after all, in-person connection can be energizing. However, flexible, human-centric hybrid models yield more positive results than a one-size-fits-all approach.
Gartner recommends HR leaders co-develop policies, not mandates. Best practices include:
Gartner recommends HR leaders co-develop policies, not mandates. Best practices include:
Consider focusing employees’ on-site attendance around specific regular activities (e.g., brainstorming) and occasional events (e.g., offsites). Organizations that took this approach saw the best talent outcomes.
Allow employees to influence the policy. Employees who had an opportunity to shape their teams’ hybrid work arrangements demonstrated higher engagement and effort.
Provide a clear “why” for requirements to work on-site. Companies that did saw positive impacts on engagement, effort and retention.
From the desk of Caitlin Duffy, Gartner Senior Director, Research:
“With only a few years’ experience operating in a remote and hybrid environment, organizations continue to learn which work-design characteristics best support their employees’ performance, well-being, engagement and retention. We expect the understanding of the strongest hybrid, on-site and remote models will evolve as organizations adapt their work model approaches in response to business outcomes, environmental shifts and employee feedback.”
3 things to tell your peers
1
The benefits of in-office work aren’t worth the risks of a rigid mandate. With minimal data to support the merit of strict RTO requirements, the steep negative impacts outweigh potential gains.
2
Give employees an opportunity to shape, adapt or customize policies and you’ll likely see improved employee engagement and effort.
3
Don’t derail your long-term talent strategy with the wrong RTO approach. Aim to maximize talent and business outcomes with intentional, transparent decision-making and avoid a one-size-fits-all implementation.
- Caitlin Duffyis a Research Director in the Human Resources practice, developing insights and best practices on Employee Experience. Her team covers topics such as employee experience design and delivery, engagement, EVP strategy, hybrid work, and culture. Her work extends into broader talent management topics such as DEI and the future of work. Prior to joining the Employee Experience research team, Ms. Duffy conducted research on leader and manager effectiveness, including topics such as high-potential talent management, succession, and leadership development.