Over the past few years, remote and hybrid work arrangements have been commonplace in many industries. Forcing employees to return to the office can create significant challenges. Today’s executive leadership must have the right skills to navigate and overcome these challenges.
The return to office (RTO) movement is accelerating. 93% of business leaders believe employees should be in the office and work on-site. This stands in direct contrast to what employees want. A Microsoft survey across industries revealed that 73% of employees want flexible work options to continue.
While there are ongoing debates about what strategies are best to deploy, it’s clear that an RTO mandate can create upheaval in an organization. Executives need to proceed cautiously.
Today’s Workforce Environment
The Evolution of Work survey of more than 4,100 full-time employees in the United States, United Kingdom, Ireland, and Canada gives us insight into the current situation.
In Canada, less than half of employees are working full-time on-site. 13% are fully remote while 38% have hybrid arrangements, balancing on-site and work at home.
In the US, 54% are working on-site, 13% remotely, and 33% in hybrid positions.
| LOCATION | ON-SITE | FULLY REMOTE | HYBRID |
| Canada | 49% | 13% | 38% |
| United States | 54% | 13% | 33% |
RTO Mandates Rolling Out
Many large companies have already implemented RTO mandates, including Amazon, Disney, UPS, Microsoft, Apple, Boeing, Starbucks, and a long list of other major employers. Yet, return to office is also causing concerns about talent retention and recruitment, especially for top talent in competitive industries. A joint study by the University of Chicago and the University of Michigan showed a negative effect on the tenure and seniority of workforces, most notably in the executive ranks at tech companies.
Public Sector Push for Return to Office
In both Canada and the US, governmental agencies are pushing for RTO. Canada’s 282,000 employees in the public sector are required to work in the office at least three days a week, yet there is considerable resistance and frustration from workers affected.
In the US, the new administration is signaling a complete return to office for all government workers.
Executive Leadership Must Navigate RTO Carefully
Boards and executive leadership must navigate these challenges carefully, especially when it comes to talent retention and recruitment.
RTO Impact on Retention
Are you willing to risk losing employees over RTO policies? About eight in ten companies report losing talent due to return-to-office policies.
These aren’t all in lower-paying jobs either. Many executives are committed to working remotely. A 2024 Gartner study showed that 36% of senior-level job seekers said the decision to leave their company was influenced by a return mandate.
RTO Impact on Recruitment
The majority of workers looking for a new job want remote or hybrid work. 63% of professionals said that the opportunity for remote work was the most important requirement in taking a job — more important than a higher salary, having a good boss, or achieving a work-life balance. In fact, 27% of those surveyed said they would even take a 20% or greater pay cut to work remotely.
Best Practices for Executives Considering Return to Office Policies
If the job of executive leadership wasn’t challenging enough in today’s business climate, leaders now have to navigate a complex environment of employee expectations and organizational needs — trying to balance productivity, employee satisfaction, and hitting revenue targets.
Some best practices include:
Making Careful Decisions
Executives should conduct thorough analyses that go beyond gut feelings or traditional workplace models. This involves gathering comprehensive data about team productivity, employee preferences, and organizational goals.
Your decisions can have adverse effects, so you need to weigh the consequences and make the right decisions.
Creating Transparent Policies That Explain the Logic Behind Decisions
Transparency is crucial in building trust and gaining employee buy-in.
If you choose a return to office policy, you should clearly articulate the reasoning behind your decisions. Explain how the new approach will benefit both the organization and employees.
It will help to outline specific objectives, such as improved collaboration, team building, or maintaining company culture, and provide concrete examples of how the proposed policy will benefit the company and employees.
Communicating Decisions and Anticipating Push-back
Develop a comprehensive communication strategy that addresses potential concerns proactively. This might include hosting town halls or video meetings, creating FAQ documents, and providing multiple channels for employee feedback.
You should plan for potential resistance and prepare thoughtful, empathetic responses that demonstrate you’ve carefully considered employee perspectives. Be prepared to listen actively and engage directly with employees.
Being Consistent in Your Approach
Ensure that return-to-office policies are applied uniformly across the organization, with minimal exceptions. If some flexibility is necessary, establish clear, objective criteria for your decisions to avoid the appearance of favoritism.
Giving Employees Time to Adjust
Recognize that returning to the office represents a significant transition for many employees. It’s best to implement a phased approach that gives employees time to rearrange their lives.
In some cases, this may require flexibility, such as requiring office attendance on certain days or offering flexible working hours. You can help ease the transition by also offering support, including mental health resources.
Being Prepared for Turnover
Acknowledge that some employee turnover may be inevitable when implementing return-to-office policies. You will want to develop retention strategies, including competitive compensation, professional development opportunities, and meaningful workplace experiences that make your organization an attractive place to work.
Ensuring You Have the Right Executive Leadership
As you can see, these are murky waters. Navigating them requires careful consideration and a wide variety of skills. Organizations must have the right executive leadership in place to do so effectively and position the company for success.
PIXCELL’s executive search process can find you the right executives to lead your organization. We specialize in mid-level and senior executive search, blending strong national and regional expertise with global reach.
At PIXCELL, we take the time to learn about your business to ensure we find the right fit for your culture and corporate strategy within your unique environment. We provide comprehensive strategies to source executive candidates and assess their leadership styles, skills, and potential to find the perfect fit for your role.
Article written by: François Piché-Roy, CFR Global Executive Search Canada
Photo source: Pexels