Tales of Return-to-Office: Lessons from Leading Corporations

The workplace landscape has undergone dramatic changes in the last few years. Initial enthusiasm for return-to-office (RTO) strategies has seen a sobering reality check.

Many managers think working remotely could stifle career progression, whilst employees champion the benefits of remote working, including a better work-life balance and the elimination of commuting hassles.

Yet, the advantages of office-centric roles, particularly for budding professionals, can't be denied. The office environment offers invaluable networking, mentorship opportunities, and spontaneous interactions that can't be replicated virtually.

So, there's good arguments on all sides, so the question is how do we arrive at a hybrid strategy that everyone's on board with?

80% of business leaders now question their return-to-work choices

Leading corporations like Disney, Starbucks, BlackRock, and surprisingly, Zoom, are urging employees back to the physical office. The reasons range from fostering face-to-face collaboration to addressing financial overheads from vacant office spaces.

However, a significant 80% of leaders express dissatisfaction with their initial decisions regarding office returns. They believe that a deeper insight into employees' office attendance, utilisation of workplace facilities, and other relevant aspects would have led them to different choices, as revealed by recent research from Envoy.

“Many companies are realising they could have been a lot more measured in their approach, rather than making big, bold, very controversial decisions based on executives’ opinions rather than employee data,” Larry Gadea, Envoy’s CEO and founder, tells CNBC Make It. 

Shifting power dynamics

A noteworthy change in the balance of power between employees and employers has emerged. Throughout 2021 and into 2022, employees were sought after as companies scrambled to staff up while the economy reopened.

However, the atmosphere quickly shifted. Factors like soaring inflation, coupled with other global and economic challenges, led to widespread layoffs, hiring halts, and revoked job offers.

Employees are now navigating a more frugal era. As this unfolds, the relationship between employees and companies is poised to undergo significant transformations. A primary focus for businesses will be re-establishing in-office work protocols.

Research by the Society for Human Resource Management (SHRM) indicated that many supervisors view the work-from-home model skeptically and would rather have their teams work in an office.

The feedback from the surveyed managers was strikingly candid. Almost 70% believed that remote employees were "more expendable than those working on-site." Around 62% felt that "consistent remote work could hinder an employee's career trajectory," and a significant 72% expressed a desire for their team members to work from the office.

A showdown is coming

There's some evidence that a showdown is on the horizon. Recent surveys highlight employees' strong preference to resign rather than return to office commuting.

The appeal of home-based work isn't just about comfort; it’s about improved work-life balance, autonomy, and undeniable productivity.

However, the surge in inflation has escalated commuting costs in major cities. Essentials like fuel and maintenance, coupled with the devaluation of pay checks, make returning less appealing.

The gruelling and costly commutes, especially into places major cities, aren't just about time; people are also expressing concern about their safety, something executives often overlook.

Plus, as well as sometimes lengthy commutes, there's the unpredictabilities like train delays or bus breakdowns, leaving commuters drained by the end of the day.

Who’s winning the good fight?

Rapid implementation of RTO initiatives, without adequately gauging employee sentiment, resulted in unforeseen complications. The shift from the 'great resignation' era to the 'great regret' period underscores the challenges in navigating between hybrid models and complete office-based models. Research from WFH highlights that as of July 2023, office occupation is only at half of what it was before the pandemic.

Companies that involve their employees in decision-making regarding the return to the office seem to be experiencing the most success.

Consider the case of Ernst & Young.

In June 2021, the global accounting and consulting giant faced some backlash from its employees following its announcement urging them to spend 40-60% of their time at the office.

However, as Covid-19 cases began to rise again in the U.S., the firm halted its return plan for the remainder of the year. During this pause, EY's leadership took the opportunity to understand employees' reservations about returning.

Frank Giampietro, EY’s chief wellbeing officer for the Americas, noted recurring concerns among employees, particularly regarding pet and child care.

Addressing these concerns, EY unveiled a fund in February 2022 offering up to $800 annually to cover commuting, pet care, and dependent care expenses for all its 55,000+ U.S. staff.

Giampietro highlights that this initiative made a marked difference. Since its introduction in February 2022, there has been a substantial 150% surge in office attendance throughout the U.S. for EY.

“It didn’t take a complete overhaul of our return-to-office policies to make employees happy,” he says. “We just needed to listen to our people and understand what, specifically, was problematic for them, and offer resources to address that.” Frank Giampietro, EY’s chief wellbeing officer for the Americas

Example case studies

Amazon's Office Return Policy In April 2021, Amazon began its return to office initiative with a hybrid model, allowing a two-day work-from-home schedule. By February the following year, the policy was revised to require corporate staff to attend the office at least three times weekly from May onwards. This change was contested by many employees who petitioned against it, but Amazon remained firm.

Apple's Approach to Return Despite Apple CEO Tim Cook's initial positive remarks on the potential for future flexible work options due to pandemic-driven successes, by June 2021, Apple decided on having its teams at the office for three set days each week. While there was resistance to this, the company later decided that employees should come in on Tuesdays and Thursdays, letting them pick their preferred third day. Employees have since raised their voices for greater flexibility.

Google's Back-to-Office Strategy Google, after initially embracing a flexible work approach in 2020, shifted its stance in 2021. The company introduced a policy requiring employees to live within a commutable distance from their offices and hinted at potential pay cuts for those working remotely. With several employees reluctant to return, Google has been proactive in sending reminders urging regular office visits.

Meta's Return to Office Approach Interestingly, for a company at the forefront of the Metaverse, Meta has imposed a stringent office attendance rule. Employees are now mandated to be at the office for a minimum of three days weekly. Moreover, hiring managers are barred from onboarding purely remote staff. Coupled with recent sizeable layoffs, Meta's approach could affect its talent acquisition and retention.

Salesforce's Updated Policy For 2023, Salesforce has revamped its return-to-office guidelines and hiring norms. Under the leadership of CEO Marc Benioff, there's a plan to annually phase out the bottom 5% of underperforming employees. Most employees are now required to be at Salesforce locations for multiple days, with general staff attending three days and client-facing staff four days weekly.

Twitter's Office Policy Evolution Twitter stood out in 2020 with its promise of perpetual remote work options for its employees. Yet, following Elon Musk's acquisition of the platform in 2022 and the subsequent layoff of half its workforce, there was a significant shift. Musk mandated a full week's presence at the office for the remaining staff and was assertive in communicating that working from the office was non-negotiable.

Ten key lessons

Here are the top actionable lessons that companies can adopt to make their return-to-work policies more effective and attuned to the needs and concerns of their workforce:

1. Employee Input: Prioritise gathering feedback from employees. Understanding their concerns and preferences is key to creating a policy that addresses their needs.
2. Flexibility: Offer flexible working options. Hybrid models that allow for both in-office and remote work can address employees' desires for work-life balance and reduce commuting pressures.
3. Financial Incentives: Consider subsidies or reimbursements for commuting expenses, especially in areas affected by high inflation. This can help alleviate some financial burdens related to returning to the office.
4. Safety First: Ensure the workplace and commute are safe. If offices are located in areas with rising crime rates, consider security measures, or potentially, relocation.
5. Transparent Communication: Keep lines of communication open. Addressing genuine concerns and not glossing over real issues can build trust and increase buy-in from employees.
6. Wellbeing Programs: Consider wellbeing initiatives, like EY’s example, to support aspects of employees' lives affected by the return to the office, such as pet or childcare.
7. Regular Updates: Continuously review and update policies. As situations change, whether due to economic factors or other events, return-to-work strategies should evolve accordingly.
8. Acknowledge Commute Challenges: Understand the commuting realities and develop strategies to alleviate them. This could include flexible hours to avoid peak commuting times or offering tech support for efficient remote work.
9. Career Development: Assure employees that remote or hybrid work will not hinder their career growth. Reinforce this by offering equal growth opportunities to all, regardless of their work setting.
10. Training for Supervisors: Equip supervisors with the skills and understanding to manage hybrid teams effectively. Address biases that might exist towards in-office vs. remote workers.

References and related articles

• CBNC: '80% of bosses say they regret earlier return-to-office plans: ‘A lot of executives have egg on their faces’'
• Forbes: Bosses Are Winning The Battle To Get Workers Back To The Office
• Entrepreneur.com: Why Employers Forcing a Return to Office is Leading to More Worker Power and Unionization
• Uctoday.com: Why Return to Office Mandates are Failing
• BBC.com: The companies backtracking on flexible work
• Theguardian.com: ‘It’s just not worth it’: why employers still can’t get staff back to the office
• Openaccessgovernment.org: The re-imagined office: Making hybrid work a success