Return-to-Office: How to Manage RTO in 2024

Ten Thousand Coffees Team -
October 24, 2023

The return-to-office trend has undeniably arrived, and a quick Google search will tell you that people have some strong feelings about it.

Whether you’re embracing the return-to-office trend or advocating for the continuation of remote work, there are compelling arguments on both sides of the table that are worth considering. 

Let’s dive in and see what it all means for your organization going into 2024. 

What is the return-to-office trend?

The return-to-office (RTO) trend is a surge in companies transitioning remote employees back into the office. Ranging from hybrid approaches to full-time returns to the office, RTO looks different from company to company. But it’s a noticeable departure from the remote-first workplaces that have dominated the last few years.

It seems like just yesterday that the COVID-19 pandemic forced employees and employers out of their corporate offices and into their homes. Some organizations, like Shopify, embraced the remote shift. While others reluctantly let employees stay home for the greater good. Despite many employees working off their dining room tables or living room couches, it was a welcome shift for much of the workforce.

Now that the pandemic is past its peak, more and more companies are pushing for employees to come back to the office. 

Companies returning to office in 2023

There are still many companies that have maintained their stance on remote-first work. But in 2023, it’s becoming apparent that organizations have a desire to see their teams back in physical office spaces.

Notable adopters of the RTO trend in 2023 have included:

  • Meta: In September 2023, Facebook and Instagram’s parent company Meta called employees who were assigned to an office in a hybrid model, requiring attendance 3 days a week.
  • Zoom: As of August of 2023, video conferencing company Zoom, has required employees who live within 50 miles or 80km of their offices to work in person 2 days a week.
  • Amazon: Following previous attempts to bring employees back to the office, Amazon put out a memo in 2023 that employees would be required to return to the office at least 3 days a week.
  • Disney: The House of Mouse originally returned to the office with a 3-day-per-week in-person policy in 2022. But as of 2023, the organization has shifted to requiring in-person presence for corporate employees 4 days a week.
  • Starbucks: After encouraging employees to come back to the office in 2022, Starbucks doubled down on hybrid work in early 2023, requiring employees to come into the office at least 3 days a week.
  • Goldman Sachs Group: The Wall Street giant has asked that employees return to the office full-time 5 days a week.

These major companies represent just a fraction of those embracing the return-to-office trend. With 9 in 10 companies expecting to have some form of return-to-office plan by 2024, it’s clear that many more will follow suit.

What’s a return-to-office mandate?

When a company decides to call employees back to the office, there’s usually a formal notice or request, often referred to as a return-to-office mandate. While some mandates are more comprehensive than others, they typically outline the specific policies and guidelines that have been established for employees around returning to the office.

Return-to-office mandates have commonly included:

  • Reasoning behind the return-to-office decision
  • Which employees are required to return to the office
  • How frequently employees are expected in the office
  • Timelines for returning to the office
  • Consequences for non-compliance

For some organizations, return-to-office mandates are less mandatory and more words of encouragement to incentivize in-office engagement. But other companies have more stringent and specific guidelines around time in the office. For example, real estate company Redfin’s return to work policy specifies that employees living within 20 miles of their offices must come in on Tuesdays and Wednesdays. Their policy goes as far as outlining how the distance will be measured.

4 key return-to-office statistics in 2023

As the media rushes  to cover the evolving return-to-office phenomenon, it’s evident  that the conversation is just getting started. 

You might assume that transitioning back to the office is a straightforward issue, but it’s actually more nuanced than you might think. These stats shed some light on why it’s such a complex challenge for employees and employers to navigate.

1. 56% of full-time employees in the U.S. say their job can be done remotely from home

Regardless of what the future holds, the last few years have proven that for a large number of workers, remote work is possible. According to a Gallup study, over 70 million workers in the U.S. can do their jobs remotely.

But out of those employees currently working at home…

2. Almost half of employees say they would quit or look for a new job if their employer mandated a full-time return-to-office policy

An IBI study found that 47% of employees say returning to the office full-time is a deal breaker in their current role. Which means many organizations already facing high turnover may experience challenges around retaining top talent with a full-time RTO push.

It’s not just employees who have strong feelings; some companies are also taking a hard stance. When discussing RTO and remote work with employees, Amazon CEO Andy Jassy bluntly said, “It’s probably not going to work out for [employees who can’t commit to the office] at Amazon.”  

Not all executives feel as strongly as Jassy, but it seems a large number of employers still have a preference toward in-office employees.

3. 22.5% of U.S. employers with remote-capable employees want their employees back in the office full-time

On the other hand, only 15.1% of remote-capable employees expressed a desire to return to the office full-time. This is a clear mismatch between what employers and employees want.

However, working location may not be the biggest factor for many workers…

4. 95% of employees want schedule flexibility

A FutureForum survey found the overwhelming majority of employees value schedule flexibility, even more than location flexibility (78%). This means there may be some wiggle room for many employees to return to the office, assuming there is some flexibility with in-office schedules and working time.

Supercharge employee development during RTO with 10KC's connectivity-driven career development solutions. Book a demo.

The case for RTO: why employers are calling in their workers

The data shows that the primary champions of the return-to-office trend are employers and executives. While some employees are enthusiastic to return and socialize with colleagues, many others are much more hesitant to let go of their remote work. 

So, why the push to return-to-office despite employee hesitancy?

Many critics attribute the employer RTO eagerness to concerns with office space investment and lack of employee trust. There may be a glimmer of truth there, but more often than not, leaders have highlighted valid reasons why they want to see their employees more often. These reasons can also benefit the employee just as much as the organization. Let’s dive into it. 

Collaboration and employee belonging

One of the core arguments for the return-to-office has included more opportunities for employee connection, both with their peers and with the company culture as a whole. 

In his RTO memo, Amazon CEO Andy Jassy highlighted that  "Collaborating and inventing is easier and more effective when we’re in person." Former Starbucks CEO, Howard Schultz’s memo had a similar sentiment, stating that the goal of the return to office was to “rebuild our connection to each other and synchronize teams and efforts.”

It’s no secret that employee connectivity just hasn’t been the same since teams shifted to remote work. While a strong virtual culture is certainly possible, it requires a bit more effort to build strong employee relationships behind a screen. In fact, studies have found that only 1 in 4 workers feel connected to their organization’s culture.

10KC connectivity solution. See how 10KC helps organizations build connectivity experiences that drive engagement and retention. Download now.

Skills development and growth opportunities

Career development is a top priority for many employees, and a return to the office might bring them one step closer to their professional goals. 

In a memo to employees at investment company BlackRock, executives said: "Career development happens in teaching moments between team members, and it is accelerated during market-moving moments when we step up and get into the mix. All of this requires us to be together in the office."

Their claims are backed by studies that have found people get more feedback when they're in the same space as their coworkers, leading to more opportunities for advancement.

Productivity

Almost as controversial as remote work itself, concerns around productivity have also surfaced in the case for returning to the office.

Productivity has declined for 5 straight quarters in the U.S., which is understandably a cause for concern within many enterprises. While we can’t attribute the decline entirely to working from home, some studies have found that remote work may not be as productive as it once was.

Plus, a survey from Microsoft of 11 countries found that 85% of business leaders find it difficult to have confidence in their employee’s productivity levels.

So while a return to the office may not solve the productivity problem, it might help leaders and organizations better pinpoint areas of improvement.

The case against RTO: why employees don’t want to return

For many organizations, RTO announcements are met with groans, eye rolls, and even petitions.

Many employees don’t want to return to the office. While some may unknowingly call these employees entitled, their concerns are certainly valid.

Cost of commuting

Money talks, and the reality is that returning to the office costs employees time and money. 

But it’s not just the employees who moved out of the city during the pandemic who are bearing the expense of office life. When factoring in gas, parking, and public transportation costs, it can add up to as much as $51 a day for employees to go into the office. And that doesn’t include the time it takes to get to and from the office or considerations for employees who need to relocate to accommodate their new commute.

When a return to the office costs employees out of pocket, and they aren’t being compensated for the difference, it’s not surprising that they’re pushing back.

Diversity and inclusion

A more flexible, remote work environment has elevated the work experience for employees who might have faced barriers in a traditional work environment. A significant concern around the return-to-office trend is that it disproportionately impacts employees from underrepresented backgrounds.

For example, remote work:

  • Improves belonging for people of color: A Future Forum study found that only 3% of Black workers wanted to return to full-time in-office work, compared to 21% of their white counterparts, citing better belonging and stress management in a virtual workplace.
  • Creates safer spaces for LGBTQ+ employees: With over 50% of LGBTQ+ employees experiencing some form of workplace discrimination within the last year, many have found it easier to take control of their own identity in a virtual workplace. For example, sharing pronouns is much easier with videoconferencing, meaning employees aren’t left with the burden of correcting others and introducing themselves.

Work-life balance

A FutureForum survey found 72% of employees weren’t satisfied with their level of flexibility at work. For most employees, eliminating the commute offers opportunities for better work-life balance. It allows them to create a work experience that fits better with the responsibilities of their personal lives, whether that includes scheduling doctor appointments or balancing childcare.

Removing that flexibility is a challenge for employees, and many pros agree.

“It has a positive effect on our routines, our family relationships, productivity, and creativity. And having that taken away is painful,” says Melanie Prengler, an assistant professor at the University of Virginia Darden School of Business studying changing work arrangements.

Productivity

Depending on where you look, there’s an argument for productivity on both sides of the RTO debate. But many employees firmly believe that eliminating workplace distractions makes them better and more productive at their jobs. 

They’re concerned that the stressors of in-person work and commuting will impact their quality of work. And they might be right. A recent EY-Parthenon study using the Bureau of Labor Statistics found a direct correlation between return to office and plummeting productivity. But it’s worth noting that the office may not be the only factor that’s impacting productivity.

How to manage RTO in 2024

While even the biggest critics of remote work have admitted that a full-time return to the office is unlikely for most of the workforce, some version of office life is definitely in the cards for many organizations.

Here are some things to consider as you navigate a potential RTO in 2024:

1. Get employee buy-in

For a return-to-office plan to be successful, you need to make it clear why in-person work will bring better value to your employees and give them a reason to be excited about in-person experiences. This includes everyone from senior leaders down to junior employees. 

If your team isn’t on board, you’ll quickly find yourself with some disgruntled employees looking to jump ship.

Remember: There are many valid reasons to request that employees come back to the office, but it needs to be transparent and equitable. 

2. Focus on the employee experience

It will take time for employees to adjust to the new in-office normal. Focusing on improving the employee experience will keep them engaged and connected, throughout the transition and beyond. 

Improve employee engagement and experience during RTO by:

  • Fostering in-person connections: Instead of relying on spontaneous coffee chats, help expand networks and relationships with structured connectivity programs. According to the Institute of Leadership and Management, 77% of respondents listed genuine relationships as the most important factor in determining job satisfaction.
  • Creating opportunities: Implement mentorship or sponsorship programs to help employees reach their career goals.
  • Build belonging: Help diverse employees (and beyond) feel connected to their peers—no matter where they work—through DEI development programs.
10KC mentorship solution. Accelerate career development, facilitate engagement, and break down traditional barriers to networking with 10KC’s mentorship program. Download now.

3. Measure success

With most business decisions, there should be a clear “why.” The same holds true for implementing a return-to-office plan. It’s important to establish key metrics that help you identify success. And in most cases, your only metric shouldn’t be in-office attendance.

Let’s say that your goal with a return-to-office strategy is to improve productivity and employee advancement. You should have KPIs in place to measure the impact before and after your return to office.

It’s also worth identifying any metrics that might be worth keeping a close eye on. For example, if your employee turnover suddenly skyrockets after a return to office, it could be a sign that there’s room to address the employee experience post-transition.

4. Listen to employee feedback

Finally, your employees are your greatest asset. So when it comes to something as contentious as returning to the office, it’s important to do it right.

Take the time to listen to their concerns and feedback, before and after the RTO. Making adjustments based on feedback can make a big impact when it comes to putting together a return-to-office strategy that genuinely puts your employees first.

Discover how 10KC can elevate employee engagement during your return-to-office. Book a free demo today.
Webinar

Return-to-Office: How to Manage RTO in 2024

The return-to-office trend has undeniably arrived, and a quick Google search will tell you that people have some strong feelings about it.

Whether you’re embracing the return-to-office trend or advocating for the continuation of remote work, there are compelling arguments on both sides of the table that are worth considering. 

Let’s dive in and see what it all means for your organization going into 2024. 

What is the return-to-office trend?

The return-to-office (RTO) trend is a surge in companies transitioning remote employees back into the office. Ranging from hybrid approaches to full-time returns to the office, RTO looks different from company to company. But it’s a noticeable departure from the remote-first workplaces that have dominated the last few years.

It seems like just yesterday that the COVID-19 pandemic forced employees and employers out of their corporate offices and into their homes. Some organizations, like Shopify, embraced the remote shift. While others reluctantly let employees stay home for the greater good. Despite many employees working off their dining room tables or living room couches, it was a welcome shift for much of the workforce.

Now that the pandemic is past its peak, more and more companies are pushing for employees to come back to the office. 

Companies returning to office in 2023

There are still many companies that have maintained their stance on remote-first work. But in 2023, it’s becoming apparent that organizations have a desire to see their teams back in physical office spaces.

Notable adopters of the RTO trend in 2023 have included:

  • Meta: In September 2023, Facebook and Instagram’s parent company Meta called employees who were assigned to an office in a hybrid model, requiring attendance 3 days a week.
  • Zoom: As of August of 2023, video conferencing company Zoom, has required employees who live within 50 miles or 80km of their offices to work in person 2 days a week.
  • Amazon: Following previous attempts to bring employees back to the office, Amazon put out a memo in 2023 that employees would be required to return to the office at least 3 days a week.
  • Disney: The House of Mouse originally returned to the office with a 3-day-per-week in-person policy in 2022. But as of 2023, the organization has shifted to requiring in-person presence for corporate employees 4 days a week.
  • Starbucks: After encouraging employees to come back to the office in 2022, Starbucks doubled down on hybrid work in early 2023, requiring employees to come into the office at least 3 days a week.
  • Goldman Sachs Group: The Wall Street giant has asked that employees return to the office full-time 5 days a week.

These major companies represent just a fraction of those embracing the return-to-office trend. With 9 in 10 companies expecting to have some form of return-to-office plan by 2024, it’s clear that many more will follow suit.

What’s a return-to-office mandate?

When a company decides to call employees back to the office, there’s usually a formal notice or request, often referred to as a return-to-office mandate. While some mandates are more comprehensive than others, they typically outline the specific policies and guidelines that have been established for employees around returning to the office.

Return-to-office mandates have commonly included:

  • Reasoning behind the return-to-office decision
  • Which employees are required to return to the office
  • How frequently employees are expected in the office
  • Timelines for returning to the office
  • Consequences for non-compliance

For some organizations, return-to-office mandates are less mandatory and more words of encouragement to incentivize in-office engagement. But other companies have more stringent and specific guidelines around time in the office. For example, real estate company Redfin’s return to work policy specifies that employees living within 20 miles of their offices must come in on Tuesdays and Wednesdays. Their policy goes as far as outlining how the distance will be measured.

4 key return-to-office statistics in 2023

As the media rushes  to cover the evolving return-to-office phenomenon, it’s evident  that the conversation is just getting started. 

You might assume that transitioning back to the office is a straightforward issue, but it’s actually more nuanced than you might think. These stats shed some light on why it’s such a complex challenge for employees and employers to navigate.

1. 56% of full-time employees in the U.S. say their job can be done remotely from home

Regardless of what the future holds, the last few years have proven that for a large number of workers, remote work is possible. According to a Gallup study, over 70 million workers in the U.S. can do their jobs remotely.

But out of those employees currently working at home…

2. Almost half of employees say they would quit or look for a new job if their employer mandated a full-time return-to-office policy

An IBI study found that 47% of employees say returning to the office full-time is a deal breaker in their current role. Which means many organizations already facing high turnover may experience challenges around retaining top talent with a full-time RTO push.

It’s not just employees who have strong feelings; some companies are also taking a hard stance. When discussing RTO and remote work with employees, Amazon CEO Andy Jassy bluntly said, “It’s probably not going to work out for [employees who can’t commit to the office] at Amazon.”  

Not all executives feel as strongly as Jassy, but it seems a large number of employers still have a preference toward in-office employees.

3. 22.5% of U.S. employers with remote-capable employees want their employees back in the office full-time

On the other hand, only 15.1% of remote-capable employees expressed a desire to return to the office full-time. This is a clear mismatch between what employers and employees want.

However, working location may not be the biggest factor for many workers…

4. 95% of employees want schedule flexibility

A FutureForum survey found the overwhelming majority of employees value schedule flexibility, even more than location flexibility (78%). This means there may be some wiggle room for many employees to return to the office, assuming there is some flexibility with in-office schedules and working time.

Supercharge employee development during RTO with 10KC's connectivity-driven career development solutions. Book a demo.

The case for RTO: why employers are calling in their workers

The data shows that the primary champions of the return-to-office trend are employers and executives. While some employees are enthusiastic to return and socialize with colleagues, many others are much more hesitant to let go of their remote work. 

So, why the push to return-to-office despite employee hesitancy?

Many critics attribute the employer RTO eagerness to concerns with office space investment and lack of employee trust. There may be a glimmer of truth there, but more often than not, leaders have highlighted valid reasons why they want to see their employees more often. These reasons can also benefit the employee just as much as the organization. Let’s dive into it. 

Collaboration and employee belonging

One of the core arguments for the return-to-office has included more opportunities for employee connection, both with their peers and with the company culture as a whole. 

In his RTO memo, Amazon CEO Andy Jassy highlighted that  "Collaborating and inventing is easier and more effective when we’re in person." Former Starbucks CEO, Howard Schultz’s memo had a similar sentiment, stating that the goal of the return to office was to “rebuild our connection to each other and synchronize teams and efforts.”

It’s no secret that employee connectivity just hasn’t been the same since teams shifted to remote work. While a strong virtual culture is certainly possible, it requires a bit more effort to build strong employee relationships behind a screen. In fact, studies have found that only 1 in 4 workers feel connected to their organization’s culture.

10KC connectivity solution. See how 10KC helps organizations build connectivity experiences that drive engagement and retention. Download now.

Skills development and growth opportunities

Career development is a top priority for many employees, and a return to the office might bring them one step closer to their professional goals. 

In a memo to employees at investment company BlackRock, executives said: "Career development happens in teaching moments between team members, and it is accelerated during market-moving moments when we step up and get into the mix. All of this requires us to be together in the office."

Their claims are backed by studies that have found people get more feedback when they're in the same space as their coworkers, leading to more opportunities for advancement.

Productivity

Almost as controversial as remote work itself, concerns around productivity have also surfaced in the case for returning to the office.

Productivity has declined for 5 straight quarters in the U.S., which is understandably a cause for concern within many enterprises. While we can’t attribute the decline entirely to working from home, some studies have found that remote work may not be as productive as it once was.

Plus, a survey from Microsoft of 11 countries found that 85% of business leaders find it difficult to have confidence in their employee’s productivity levels.

So while a return to the office may not solve the productivity problem, it might help leaders and organizations better pinpoint areas of improvement.

The case against RTO: why employees don’t want to return

For many organizations, RTO announcements are met with groans, eye rolls, and even petitions.

Many employees don’t want to return to the office. While some may unknowingly call these employees entitled, their concerns are certainly valid.

Cost of commuting

Money talks, and the reality is that returning to the office costs employees time and money. 

But it’s not just the employees who moved out of the city during the pandemic who are bearing the expense of office life. When factoring in gas, parking, and public transportation costs, it can add up to as much as $51 a day for employees to go into the office. And that doesn’t include the time it takes to get to and from the office or considerations for employees who need to relocate to accommodate their new commute.

When a return to the office costs employees out of pocket, and they aren’t being compensated for the difference, it’s not surprising that they’re pushing back.

Diversity and inclusion

A more flexible, remote work environment has elevated the work experience for employees who might have faced barriers in a traditional work environment. A significant concern around the return-to-office trend is that it disproportionately impacts employees from underrepresented backgrounds.

For example, remote work:

  • Improves belonging for people of color: A Future Forum study found that only 3% of Black workers wanted to return to full-time in-office work, compared to 21% of their white counterparts, citing better belonging and stress management in a virtual workplace.
  • Creates safer spaces for LGBTQ+ employees: With over 50% of LGBTQ+ employees experiencing some form of workplace discrimination within the last year, many have found it easier to take control of their own identity in a virtual workplace. For example, sharing pronouns is much easier with videoconferencing, meaning employees aren’t left with the burden of correcting others and introducing themselves.

Work-life balance

A FutureForum survey found 72% of employees weren’t satisfied with their level of flexibility at work. For most employees, eliminating the commute offers opportunities for better work-life balance. It allows them to create a work experience that fits better with the responsibilities of their personal lives, whether that includes scheduling doctor appointments or balancing childcare.

Removing that flexibility is a challenge for employees, and many pros agree.

“It has a positive effect on our routines, our family relationships, productivity, and creativity. And having that taken away is painful,” says Melanie Prengler, an assistant professor at the University of Virginia Darden School of Business studying changing work arrangements.

Productivity

Depending on where you look, there’s an argument for productivity on both sides of the RTO debate. But many employees firmly believe that eliminating workplace distractions makes them better and more productive at their jobs. 

They’re concerned that the stressors of in-person work and commuting will impact their quality of work. And they might be right. A recent EY-Parthenon study using the Bureau of Labor Statistics found a direct correlation between return to office and plummeting productivity. But it’s worth noting that the office may not be the only factor that’s impacting productivity.

How to manage RTO in 2024

While even the biggest critics of remote work have admitted that a full-time return to the office is unlikely for most of the workforce, some version of office life is definitely in the cards for many organizations.

Here are some things to consider as you navigate a potential RTO in 2024:

1. Get employee buy-in

For a return-to-office plan to be successful, you need to make it clear why in-person work will bring better value to your employees and give them a reason to be excited about in-person experiences. This includes everyone from senior leaders down to junior employees. 

If your team isn’t on board, you’ll quickly find yourself with some disgruntled employees looking to jump ship.

Remember: There are many valid reasons to request that employees come back to the office, but it needs to be transparent and equitable. 

2. Focus on the employee experience

It will take time for employees to adjust to the new in-office normal. Focusing on improving the employee experience will keep them engaged and connected, throughout the transition and beyond. 

Improve employee engagement and experience during RTO by:

  • Fostering in-person connections: Instead of relying on spontaneous coffee chats, help expand networks and relationships with structured connectivity programs. According to the Institute of Leadership and Management, 77% of respondents listed genuine relationships as the most important factor in determining job satisfaction.
  • Creating opportunities: Implement mentorship or sponsorship programs to help employees reach their career goals.
  • Build belonging: Help diverse employees (and beyond) feel connected to their peers—no matter where they work—through DEI development programs.
10KC mentorship solution. Accelerate career development, facilitate engagement, and break down traditional barriers to networking with 10KC’s mentorship program. Download now.

3. Measure success

With most business decisions, there should be a clear “why.” The same holds true for implementing a return-to-office plan. It’s important to establish key metrics that help you identify success. And in most cases, your only metric shouldn’t be in-office attendance.

Let’s say that your goal with a return-to-office strategy is to improve productivity and employee advancement. You should have KPIs in place to measure the impact before and after your return to office.

It’s also worth identifying any metrics that might be worth keeping a close eye on. For example, if your employee turnover suddenly skyrockets after a return to office, it could be a sign that there’s room to address the employee experience post-transition.

4. Listen to employee feedback

Finally, your employees are your greatest asset. So when it comes to something as contentious as returning to the office, it’s important to do it right.

Take the time to listen to their concerns and feedback, before and after the RTO. Making adjustments based on feedback can make a big impact when it comes to putting together a return-to-office strategy that genuinely puts your employees first.

Discover how 10KC can elevate employee engagement during your return-to-office. Book a free demo today.

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