Return to Office (RTO) Mandates
The good news is that the old way of life is starting to seep back in, replacing the “new normal” lifestyle that originated in 2020. Masks are no longer mandated, and people feel safer out in public. However, the bad news is business owners like you have to make a difficult decision: bring workers back into the office or keep allowing remote positions.
What’s Happening in the Work Force?
Before the pandemic, a mere 2% of American employees worked full-time in a remote space. However, as in-person activities became limited in early 2020, business owners ordered up to 50% of workers nationwide to work from home until further notice. It wasn’t until 2023 that employers started asking workers to return to their desks. Still, according to WorkLife, workers ignored these requests.
The tug-of-war between business owners and employees has only strengthened, with both sides sticking to their preferences. According to a ResumeBuilder survey that polled 1,000 companies, roughly 72% claimed a return-to-office policy would increase revenue. On the flip side, only a mere 2% (the same amount as before the pandemic) plans to make remote work permanent.
Why Are Employees Fighting Back?
Are you one of those employers working to get everyone back into their cubicles? If so, you should know what employees think and what that means for your business.
Remote positions allow employees to find a work/life balance now more than ever. They have more flexibility during work hours, allowing more time for errands, household chores, and childcare, to name a few. Many also prefer to choose their working environment, whether at their favorite coffee shop, a scenic park, or their living room couch, rather than a conference room or cubicle.
Furthermore, there’s no commute to the office. That saves employees hours getting ready in the morning, driving to work, and driving back. They also don’t have to pay for gas, parking, or public transportation.
How Does This Translate to RTO Failure?
So, what does that mean? Since the RTO mandates took effect, fully in-person companies have seen the highest turnover rates of 56%, according to a Gallup survey. In comparison, hybrid companies have a 50% turnover rate, while mostly remote businesses have a lower 41% rate.
These rates are about 14% higher than they were before the mandate. Those leaving their current positions are highly skilled and trained employees alongside those at senior company levels. Not only are these individuals harder to replace, but rehiring also means retraining, which costs the company time, money, and energy.
What Action Should You Take?
Worst of all, even with rehiring, the RTO mandate makes this process take 23% longer than usual. This has also affected hiring rates, which are down 17%.
Meeting in person has led many employees to ignore or even leave their employers, searching for greener (remote) pastures. So, instead of filing their resignations, consider the pros and cons of an office workspace and remote positions. That can be the difference between higher turnover rates, employee retention, and productivity!
Additional Information for You
Forbes: Why Return To Office (RTO) Mandates Will Backfire
Forbes: Asking employees to come back to the office...
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By Denis Wilson
Thanks for reading this post. I always take into mind that your time and attention are precious. And these posts need to be timely, to the point, and short. For more tips on thriving with small business technology, check out the other blog posts at DWPIA Blogs. You can also find me on LinkedIn, YouTube, and Facebook.
I am also a published author and speaker on cloud computing, remote-work, cybersecurity, and AI. I work extensively with business and professional associations to provide small business technology education programs.
Contact me if you have any questions about the subject. I'd be happy to spend 15 minutes discussing it with you.
