A day after taking office, President Trump issued an executive order mandating a federal return to office for government employees. This is the latest indicator of a trend toward in-person work.
This move reinforces the growing trend toward in-person work, as major corporations like Amazon, JPMorgan and the Washington Post have also implemented RTO policies.
With Amazon’s return to office strategy making headlines, businesses across industries are reconsidering their remote work policies.
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Large companies and the federal government are prioritizing RTO because they believe in-person work fosters stronger collaboration, boosts productivity and reinforces company culture. The latest return to office news highlights a shift away from remote work.
While remote work’s flexibility has undeniable benefits, some business leaders contend that it comes at the expense of other critical workplace dynamics.
Here's what's driving the push for RTO:
Employers who favor RTO often cite how hard it is to replicate the natural exchange of ideas that happens in physical workspaces. Impromptu conversations by the coffee machine or spontaneous brainstorming sessions in conference rooms can lead to innovative solutions, and those interactions are harder to recreate over scheduled video calls.
In the case of Amazon’s return to office policy, leadership sees RTO as a way to strengthen teamwork and improve decision-making. With multiple departments working together under one roof, Amazon aims to streamline collaboration and productivity.
Another key driver of RTO is the belief that in-person work helps maintain a strong company culture. Some employers argue that shared office experiences foster a sense of belonging and alignment with company values.
Culture is especially critical for newer employees who may struggle to integrate into teams in fully remote environments. Federal employees returning to office settings may benefit from better mentoring, professional development, and workplace camaraderie.
While many employees thrive in remote environments, some employers feel that in-person oversight is necessary to ensure consistent performance.
Physical offices allow managers to observe workflows, address issues in real-time and provide hands-on guidance where needed.
For organizations mandating RTO, the expected benefits often align with operational efficiency and strategic goals.
Businesses anticipate that bringing employees back together will:
Teams can align more easily on shared goals and timelines when communication flows naturally in person.
Physical offices offer opportunities for spontaneous recognition and face-to-face interaction, which can boost morale and teamwork.
In-person collaboration often leads to innovative problem-solving, as diverse perspectives come together in real time.
Shared office spaces can centralize resources, simplifying logistics and processes.
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Despite potential benefits, RTO mandates present significant challenges:
Surveys reveal that rigid RTO policies drive increased turnover, particularly among women and high-performing employees. For instance, the freelancing platform Upwork found that 63% of C-suite leaders reported losing female talent due to such mandates.
Research from Great Place to Work found that mandated RTO policies contribute to “resenteeism,” where employees remain in roles but disengage due to dissatisfaction. This disengagement negatively affects productivity and workplace relationships.
RTO policies may reduce access to top talent by alienating candidates who seek work-from-home options. A report from Unispace found that one-third of companies enforcing RTO mandates struggle with recruitment.
Given these challenges, RTO may not be the best fit for every organization. Smaller businesses considering RTO should consider:
Employees increasingly value flexible schedules and the ability to work remotely at least some of the time. Ignoring these preferences can lead to higher attrition and lower engagement.
Maintaining physical office spaces can be expensive, and remote work may offer cost-saving opportunities for businesses.
Studies show that employees are willing to make sacrifices, including pay cuts, to retain flexibility in their work schedules.
If you’re a small business owner considering an RTO policy, it’s crucial to approach the decision thoughtfully. Collaborative decision-making, rather than top-down mandates, leads to better outcomes in employee satisfaction and productivity.
At Axcet, our award-winning HR group can help you assess whether an RTO policy aligns with your business goals. Whether you’re inspired by Amazon’s RTO approach or hesitant about federal return to office mandates, we can provide expert guidance to develop a strategy that supports both your employees and your bottom line. Contact us today to start the conversation.