Return-to-Office Mandates Highlight Post-Pandemic Tensions, Says UT Management Expert

KNOXVILLE, Tenn., Nov. 11, 2024 /PRNewswire/ -- Return-to-office (RTOs) mandates have become a hot topic, with major corporations like Amazon Web Services (AWS) and Dell insisting employees work onsite. However, Amazon's hardline policy on returning to the office or else is being met with resistance, and other companies are considering their options. In a recent Q&A, Tim Munyon, Ergen Professor in Business and Janet and Jeff Davis Faculty Fellow at the University of Tennessee, Knoxville, Haslam College of Business, discussed the ramifications of RTOs for businesses and employees.

What are the main factors driving executives to mandate a return to the office?

There is a tension between productivity and positive culture that occurs with remote work. Emerging data suggests that remote workers are more productive than their in-office counterparts, but it's difficult to maintain a positive workplace culture with a virtual workforce. Data-breach concerns also manifest for certain virtual roles, and in-person work can often lessen these problems. Finally, there is some evidence that accountability is more difficult with virtual employees, even with tracking software.

Do you anticipate other companies will follow in the footsteps of Dell and AWS regarding RTO policies?

These workplace policies are often cyclical, so I expect other companies will follow suit. In-office modalities are useful for interdependent and creative work, but these can also be accomplished simply by asking employees to be in the office a certain number of days each month with others on their team. Finding the "happy middle ground" may be the solution here.

Do you think the push for a return to office will lead some employees to seek opportunities at other companies?

Roughly one-third of voluntary turnover is caused by some work- or non-work-related shock or change. Depending on how they are implemented, RTO policies have the potential to catalyze additional turnover in the workforce, beginning with the high performers who are most mobile. These individuals are also disproportionately important to the firm and difficult to replace, an important caveat on RTO's value. Astute companies will resist the urge to do "all-or-nothing" RTO policies and work with their employees to find creative and actionable solutions.

During the pandemic, many employees relocated for remote work. Do you foresee a significant number of them relocating for in-office work?

Interest rates and slowing home sales are going to keep many of these remote workers from moving closer to the office. The allure of freedom is strong, and I suspect many will be reluctant to give it up. Some employers also downsized their physical office footprints during and after COVID, which negatively impacts space allocation once employees are asked back.

How might RTO policies impact different demographics within the workforce?

Those with children and other dependents are going to be most negatively impacted by these policies. Those who can afford childcare will do so, but at great expense. We also know from the literature that women often bear a disproportionate burden in terms of non-work-related responsibilities, so I think this will exacerbate these inequity issues. RTO is also difficult for some workers with disabilities who cannot readily get into the office without significant effort.

We don't think of them nearly enough, but many in rural communities have a real opportunity to participate in enterprise organizations because of virtual work. RTO policies literally cut these people out of the equation, meaning organizations artificially limit their labor pool by restricting work modalities, and remove economic opportunities from communities who desperately need high-quality jobs.

In your view, what does the future hold for remote and hybrid work models in the evolving workplace landscape?

Remote and hybrid work models are the future. Synchronous communication technologies enable us to work in real time with colleagues anywhere in the connected world. Ultimately, companies will need to offer flexible virtual work options — potentially including dedicated in-office time — to attract and retain top talent and enable them to produce at a high level. The companies that figure this out will effectively differentiate themselves on the labor market.

SOURCE University of Tennessee, Knoxville's Haslam College of Business