How Return-To-Office Policies Are Impacting Company Structure and Employee Relations

After the decline of the COVID-19 pandemic, many companies began to question if they would stick with a remote work structure or reimplement a requirement for employees to work in the office. This is because during the pandemic, companies realized that working remotely caused some issues, such as drops in productivity, decreased collaboration, and a loss of connection. In contrast, when working in person, employees bounce ideas off one another, experience fewer distractions, and have a higher accountability to be productive, which leads to increased creativity, innovation, and company success [1].    

While many corporations have decided to implement a return-to-office (RTO) requirement, they were likely unaware that they would be met with so much controversy. This conflict has continued years after the pandemic has slowed, and the following question remains unanswered: How do companies achieve this productive in-person work environment when many individuals do not want to return to the office?  

At many companies, RTO policies have been challenging to accept, mainly because employees have become comfortable with remote work. This is specifically prevalent in the younger generation and individuals who have recently graduated, as remote work is all they are familiar with and know. While working from home, employees have found numerous benefits such as no longer having to commute, being able to work on their own schedule, having more time with their families, or time for personal hobbies. While employees might be benefitting from at-home work, company culture has suffered at its expense. For example, 64% of employees have admitted to constantly keeping their messaging apps always open to create the illusion that they are constantly working [2]. Additionally, 58% of employees admit to “coffee badging,” where they badge into work and make a quick office appearance before returning home, simply to meet the requirement for the number of days they need to “work” in the office [1]. These are just a couple of examples of how individuals are exploiting the opportunity to work remotely, which has caused huge drops in productivity and ultimately decreased company success.

As seen above, 51% of companies have already implemented RTO policies, and 39% of companies intend to implement RTO policies by the end of 2024, whether that be 100% in-person work or a hybrid structure [3]. Companies that have already returned to the office have reported an increase in revenue and productivity, pointing to RTO policies having a positive impact on company structure and success. As in-person work is becoming more and more common, students who are looking for internships or post-graduation jobs should realize that it might be less likely for them to be able to obtain a remote position, even if that is what they are looking for.   

One of the other major reasons why RTO policies have been unsuccessful is that employees want concrete reasons to return to the office and consistently work in person [4]. Many companies that have been met with adversity when implementing RTO policies have positioned it as an ultimatum, telling employees they must come back to work, or they will face consequences such as pay cuts or being fired. On the other hand, when companies suggest that it is important for employees to return to in-person work for activities such as in-person brainstorming sessions and meetings with executives, they are more likely to be understanding and accepting of the change [4]. However, when companies are deciding whether to implement a hybrid work structure or a full-blown RTO requirement, they need to be aware and accept the fact that they might be losing talented workers due to their decision.   

Current students should begin to consider what type of environment they think they would enjoy working in: some individuals might thrive in an office environment, while others may have certain circumstances that allow them to be a better employee working at home. While remote work opportunities might become rarer and more challenging to find in the coming years, it is helpful to determine what is important to you when searching for a job to find a position that is best suited to your interests and work preferences.

All content is the intellectual property of the Virginia Undergraduate Business Review.

REFERENCES

[1] Dennison, K. (2024, July 19). How return to office policies are impacting employees in 2024. Forbes. https://www.forbes.com/sites/karadennison/2024/07/10/how-return-to-office-policies-are-impacting-employees-in-2024/. 

[2] Behbahani, N. (2023, September 2). The majority of employees (90%) will return to office by the end of 2024. LinkedIn. https://www.linkedin.com/pulse/majority-employees-90-return-office-end-2024-nicolas-behbahani/.

[3] Rumage, J. (2024, March 21). Return to office: Is it A good idea for companies?. Built In. https://builtin.com/articles/return-to-office.

[4] Munk, C. W. (2024, February 5). The CEO “return to office or else” is having limited success in 2024. CNBC. https://www.cnbc.com/2024/02/04/the-ceo-return-to-office-or-else-is-having-limited-success-this-year.html#:~:text=A%20critical%20mass%20of%20workers,otherwise%20good%20workers%2C%20Putnam%20said.