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To RTO, or Not RTO

By: Krissy Fuller

Returning to the office policies are still making headlines. If you’ve been on LinkedIn lately, or perhaps read some journals you’ve probably noticed a growing trend of companies reassessing their workplace strategies post-pandemic.   Some are considering eliminating hybrid or remote work policies in favor of a full return to the office. While there are many aspects that go into making this decision, I thought it would be fun to look at how this one decision can have significant impacts on employee satisfaction, productivity, and the overall business. (Yes… this is FUN for me – fascinating really) 

To keep it brief (because I could nerd out on this all day)  I’ve made a nice little list of the perceived pros and cons of making such a move.  

Pros of Eliminating Hybrid or Remote Work:

  1. Enhanced Collaboration: Face-to-face interactions can foster spontaneous collaboration and creativity that may be lacking in virtual environments.

     

  2. Stronger Company Culture: Physical presence can reinforce company culture and values, creating a more cohesive workforce.

     

  3. Improved Communication: In-person communication may  reduce misunderstandings and increase the speed of decision-making.

     

  4. Better Mentoring and Training: New employees may benefit from in-person guidance and observation of experienced colleagues.

     

  5. Increased Visibility: Managers may be able to more easily monitor productivity and employee engagement in an office setting.

Cons of Eliminating Hybrid or Remote Work:

  1. Reduced Employee Satisfaction: Many employees have grown accustomed to the flexibility of remote work and may resist a full return to the office. The “carpet commute” has provided many with the ability to be MORE productive, due to lack of constant interruptions or distractions.

     

  2. Potential Talent Loss: Some employees may leave for companies that offer more flexible work arrangements. Have you heard about the walkouts in Seattle at Amazon trying to get the CEO to reconsider, or SpaceX completely abolishing remote work and losing 15% of Senior Employees.

     

  3. Increased Costs: For employers (see #2, replacing employees can be quite costly, especially with the loss of senior employees) you can expect that the cost to replace an employee is equivalent to 9 months of their  salary (depending where you look – it can be a range from 50% up to 213%).  Let’s do some generic math here: 1 senior employee, who earns $100,000/yr.  To replace that one employee, on average it will cost the company around $75,000.  That’s ONE employee.  Now consider 15% of your senior employees.  That adds us FAST.  Also, a study by FlexJobs surveying 8,400 people in 2023 showed that 63% of those surveyed would take a reduction in pay to keep their remote work status.

     

  4. Reduced Productivity: There are MANY resources available that actually show that remote teams are more productive, and have higher engagement.  I’ll just leave this here for you to peruse as one example:

     


    5. Limited Talent Pool: Requiring in-office presence may restrict hiring to local candidates, potentially missing out on national/global talent.

    6. Work-Life Balance Challenges:  Remember that carpet commute I mentioned earlier, employees may struggle to maintain work-life balance without the flexibility of remote work.  Drop-off for schools, afterschool programs, workouts – these all factor in to not having to commute on average 30 mins each way. 

    7. Environmental Impact: Increased commuting can lead to a larger carbon footprint for the company.

    The decision to eliminate hybrid or remote work policies is complex and depends on various factors including what matches with your specific company culture, industry norms, and employee preferences. While there are potential benefits to a full return to the office, companies must carefully weigh these against the possible drawbacks. A thoughtful approach that considers employee feedback and business needs is crucial in navigating this significant workplace shift.

    Remember, there’s no one-size-fits-all solution. What works for one company may not work for another. It’s essential to assess your unique situation and make a decision that aligns with your organizational goals and values.  ANDDDDD just to throw this out there what if we all followed suit to the UK companies paving the way with a 4 day work week.  Say whattttt????    Who’s with me?!

    *In 2022, 61 companies in the UK took part in an experiment that moved their employees to a four-day workweek with no reduction in pay. They began it as a six-month experiment,  but today, 54 of the companies still have the policy with just over half having declared it permanent. 

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