Rethinking RTO: Why return-to-office mandates often backfire

When the COVID-19 pandemic sent employees home to work from their guest bedrooms, kitchen tables, couches, and other makeshift offices, it fundamentally shifted the way they think about work.

Seemingly overnight, work became something people do rather than a place they go – and that attitude hasn’t changed post-pandemic.

Nearly 30% of employees with remote-capable jobs say they prefer fully remote work, while another 60% prefer a hybrid work arrangement. That leaves only 10% who say they prefer to work on-site full-time.

Yet, employers – left with underutilized or vacant workspaces and the challenges that come with a distributed workforce – want employees back where they think they belong: the office. According to recent research, 61% of U.S. companies have rolled out a formal policy that requires employees to be in the office for a minimum number of days each week.

What’s driving this desire to have employees back on-site? And, more importantly, is it the right choice for your organization? This guide explores the pros, cons, and everything you need to know about the transition back to in-office work.

What is RTO?

RTO is an acronym for “return to office.” You’ll often hear it in the context of an RTO mandate.

What’s an RTO mandate? It’s when a company ends or significantly alters the remote or hybrid work arrangements that became prevalent during the pandemic by issuing a formal rule that requires employees to work within the company’s office space.

Some companies (Amazon, for example) have rolled out full-time office mandates, meaning employees must be in the office five days a week. Other companies (like Uber) offer a little more wiggle room, requiring employees to be present in the office a set number of days each week.

Why are companies forcing a return to the office?

Ask workers what they want from their jobs, and flexibility ranks near the top of the list. Issuing firm policies about where they can work directly conflicts with that. So, why are companies making employees return to the office? What’s the motive here?

In some cases, employers simply want more control and closer employee supervision. During the pandemic, some organizations started actively monitoring employees while they worked from home, signaling a lack of trust. These employers worry that performance will slip without constant oversight, and they believe there’s no better place to keep a watchful eye than in the office.

Beyond micromanagement, companies cite several other key points when justifying their RTO mandates: productivity, engagement, collaboration, and culture. Let’s take a closer look at each.

1. Doubts about employee productivity and performance management

Productivity is hard to quantify, which makes the impact of remote work challenging to measure. Some research shows that productivity decreases when people work from home. Other studies conclude that remote workers – free from the distractions and disruptions of the traditional office environment – are actually more productive.

Regardless, when leaders and managers can’t actively see work happening, it’s hard for them to feel confident that it actually is. Bringing people back into the office makes leaders feel like workers are accomplishing more, even if it ends up harming output and morale.

Organizations aren’t just concerned about how remote work affects business outcomes but also about remote workers’ career development. That fear is rooted in proximity bias, the idea that managers favor employees who are physically near them in the office. However, one study found no difference in performance ratings or promotion rates for remote employees.

Our data here at Culture Amp echoes those findings, showing that remote employees respond most positively to questions about whether the right people are rewarded and recognized, their performance is evaluated fairly, and they receive appropriate recognition.

2. Fears about dipping engagement levels

Employee engagement has been an ongoing challenge for most organizations post-pandemic. Engagement levels dipped in 2021 and fell to a 10-year low by 2024.

When employees feel disconnected and uncommitted, employers assume the solution is straightforward: Wrangle everybody back into the same physical space to fuel a sense of enthusiasm, purpose, and belonging.

That approach is oversimplified and misguided. The things that actually drive engagement – like leadership, learning and development, and company performance – have nothing to do with an employee’s work location. Further, mounting research shows that RTO mandates damage engagement and increases attrition.

According to our data, remote employees are actually the most engaged compared with in-office and hybrid workers. Remote employees also report feeling more connected to their managers and leadership.

3. Desire for collaboration and innovation

RTO mandates often cite these two buzzwords, but what do collaboration and innovation look like in action? Some leaders assumed that more real, meaningful work was happening when employees huddled together in conference rooms, hashing out problems on a shared whiteboard.

In Amazon’s RTO mandate, CEO Andy Jassy told employees, “You need to be joined at the hip with your teammates when inventing and solving hard problems.”

Many employers share his belief that workers need to come back for the sake of innovation and collaboration, citing studies that claim remote work harms the ability to innovate and create (studies that have since been debunked).

But, here’s the reality some employers don’t want to acknowledge: Solid collaboration and innovation happen remotely, too. Our data shows that remote employees feel more positively about collaboration, consultation, and communication than their in-office or hybrid peers.

Additionally, 72% of remote workers agreed with the statement, “At [Company], we act on promising new or innovative ideas,” compared to 68% of office workers and 67% of hybrid workers. The “good ideas only happen in the office” argument simply doesn’t hold water.

4. Concerns about company culture

Culture is another common battle cry of executives who want to see desk chairs and cubicles occupied again.

For so long, company culture was synonymous with company-wide chili cookoffs, themed dress-up days, and a keg of local craft beer in the break room. When workers are no longer co-located, leaders struggle to understand the role culture plays in the modern world of work. After all, what’s culture if we’re not all together?

It may help to think of company culture as less of a place and more of a personality. It’s a shared set of values, attitudes, and practices that characterize how your company operates both internally and externally. Those elements can be established and reinforced regardless of where people work.

Is an RTO mandate a good idea for your organization?

Should employers mandate a return to the office? There’s not one “right” answer here, because there will always be nuances and outliers. But if your organization is considering an RTO mandate, it’s important to understand the needs and expectations of your workforce.

Employee surveys and even informal conversations can help you identify the work arrangements your employees prefer – and bear in mind that these preferences can vary across roles, departments, experience levels, and life circumstances.

When making your decision, think through the potential consequences, including negative outcomes, of a sweeping, full-time RTO mandate. Plenty of research and real-world case studies prove that RTO mandates often fail to deliver the results leaders expect – and they sometimes even backfire:

• 42% of companies that have mandated office returns experienced higher-than-normal attrition
• 29% of the companies in that same study are now struggling to recruit new employees
• JP Morgan saw a quantifiable drop in employee morale after issuing an RTO mandate

These statistics don’t mean an RTO mandate is inherently a bad idea for your company. But, to manage any transition well – regardless of the specifics – our people scientists recommend that you:

• Ensure clear alignment with your broader organizational strategy. Confirm that the reasons behind it are well understood and genuinely support business goals.
• Encourage leaders to ask why an RTO mandate is under consideration. They can challenge whether the organization is prepared to accept and address any consequences, especially those that impact culture, morale, retention, and recruitment.
• Commit to thorough change management. Focus on how the transition will be planned and communicated – not just the details of the RTO mandate itself.
• Regularly measure employee sentiment throughout the transition and promptly address any issues that arise.

Finally, keep in mind that RTO mandates are not quick fixes for deeper challenges related to employee engagement, productivity, and company culture. Bringing employees back to the office is not a panacea for all that ails your organization.

Improving your engagement, productivity, and culture lies in setting clear expectations, providing relevant and meaningful support, and offering benefits that actually matter to employees. Mandating office attendance alone won’t fix the underlying problems – much like moving your car to a different parking spot won’t fix your faulty transmission.

Strengthen what matters (and forget where it happens)

Productivity, engagement, collaboration, and culture aren’t built on office floors – they’re built on trust, clear expectations, and meaningful support. While RTO mandates might feel like a shortcut to success, they run the risk of being constricting and even counterproductive, especially if they aren’t implemented thoughtfully.

For your company and your employees to thrive, you need to invest in the elements that truly matter. Focus on your organization’s foundation – not your location – and watch your team succeed from their desks, couches, kitchen tables, and everywhere in between.

What motivates your employees?

For a better understanding of your people and what drives them, request a Culture Amp demo.

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