Aiming for Attrition, RTO Policies Erode Diversity

As organizations navigate the shifting dynamics of the post-pandemic workplace, some have controversially used return-to-office mandates as a strategy to induce voluntary turnover. Recent surveys reveal that this approach has led to unintended and significant consequences, including higher-than-expected attrition rates and a disproportionate loss of women and underrepresented employees.

Data on RTO Policies and Attrition

Bamboo HR's findings show that about one-quarter of vice presidents and C-suite executives implemented RTO policies with the hope of prompting voluntary resignations. Similarly, around 20% of HR professionals indicated that their in-office policies were designed to make workers quit. Bamboo HR's report suggests that these RTO mandates are essentially "layoffs in disguise," aiming to reduce headcount without the costs associated with formal layoffs. 

Potentially aligning with this controversial strategy, recent actions by House Republicans have intensified the push against telework for federal employees. For example, House Committee on Oversight and Accountability Chairman James Comer and Subcommittee on Government Operations and the Federal Workforce Chairman Pete Sessions have been pressing federal agencies for detailed data on telework practices and their impacts, while pushing legislation to limit such telework. In turn, Comer recently accused the Biden administration of allowing telework for federal employees to secure their votes, saying that “Biden’s main objective with the federal workforce, in my opinion, is to keep them happy at all costs so they’ll go vote for him.” This scrutiny aligns with the findings by Bamboo HR, suggesting a broader motive to decrease the federal workforce headcount as part of a larger effort to reduce government bureaucracy and the so-called "deep state."

However, the fallout of the strategy by Bamboo HR has proven more complex and challenging than anticipated. Unispace's research highlights that nearly half (42%) of companies with enforced RTO mandates experienced higher employee attrition than expected. This significant attrition rate points to a critical miscalculation by employers, who underestimated the attachment employees have to the flexible work arrangements established during the pandemic. Thus, even if plenty of bosses wanted attrition, the data shows many leaders got substantially more attrition than they wanted. Moreover, nearly a third (29%) of these companies are now facing substantial recruitment challenges, as the scale of resignations created serious operational and staffing problems. This misalignment between expectation and reality has left many companies struggling to fill the gaps left by departing employees.

RTO Policies and Diversity

The exodus triggered by RTO mandates has not been evenly distributed across the workforce. Upwork’s recent survey reveals that nearly two-thirds (63%) of C-suite leaders acknowledged that their RTO policies led to a disproportionate number of women resigning. This gender disparity in attrition underscores a significant oversight in policy implementation. The same share of executives reported difficulties in filling these vacant roles, and the loss of women employees has had a pronounced impact on company productivity. This suggests that these departures are not just numerical losses but also qualitative ones, affecting team dynamics, institutional knowledge, and overall performance.

Greenhouse's research further highlights the adverse effects of RTO mandates on workforce diversity. Employees from historically underrepresented groups are 22% more likely to consider leaving their companies if flexibility is withdrawn. This statistic is alarming, especially in light of ongoing efforts to foster more inclusive and diverse workplaces. The inclination of underrepresented employees to leave under stringent RTO policies indicates a broader issue with how these mandates may exacerbate existing inequities. Flexible work arrangements have been a significant factor in supporting diverse talent, and their removal could reverse progress made in creating more equitable workplaces.

We’ll likely see similar problems if House Republicans succeed in their efforts to limit telework for federal employees. A study presented to the National Capital Planning Commission adds to this growing body of evidence, showing that mandated returns to the office in the federal sector will lead to a workforce that skews older and less diverse. The study highlights the risk of the federal workforce becoming out of touch with the dynamic, diverse society it aims to serve. Young talent, more inclined toward flexible work arrangements, may view federal employment as an unattractive option, leading to a significant loss of fresh perspectives and innovative ideas. This is a clear indication that the implications of reduced telework policies extend beyond immediate organizational concerns, impacting broader societal goals of representation and inclusivity.

Cautionary Tales Around RTO Policies

The data from all of these sources converges to tell a cautionary tale for employers considering or enforcing RTO mandates. While the intent behind using these policies to drive voluntary turnover - among at least some organizations - might seem straightforward, the actual outcomes reveal a complex web of consequences that can undermine the very objectives they aim to achieve. Organizations have faced higher-than-expected resignation rates, leading to operational disruptions and recruitment challenges, especially among underrepresented groups, highlighting the importance of accurately gauging employee sentiment and the potential impact of policy changes.

To navigate the complexities of modern workforce management, organizations - and government agencies - must adopt a more nuanced approach to RTO policies. This involves not only considering the immediate logistical and operational needs but also understanding the broader implications for employee well-being, diversity, and inclusion. Embracing flexible and hybrid work models can mitigate the adverse effects of strict RTO mandates by offering a middle ground that accommodates both organizational needs and employee preferences. Hybrid models, where employees can split their time between working remotely and in the office, provide a solution that can maintain productivity while also supporting employee well-being.

While the intention behind RTO policies as a tool for voluntary turnover might appear pragmatic, the real-world implications suggest a need for a more thoughtful and inclusive approach. By learning from the unintended consequences highlighted in recent surveys, companies and agencies can better navigate the delicate balance between operational efficiency and employee satisfaction. A careful, inclusive, and flexible approach to RTO policies can help retain talent, maintain productivity, and foster a more diverse and inclusive workplace.

Key Take-Away

RTO policies aimed at inducing voluntary turnover have led to higher-than-expected attrition, disproportionately affecting women and underrepresented groups, and causing recruitment challenges… >Click to tweet

Image credit: Cedric Fauntleroy/Pexels

Originally published in Disaster Avoidance Experts

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