New research from the University of Pittsburgh suggests that return-to-office (RTO) mandates may not only dampen employee satisfaction but also fail to enhance a company’s performance. The study indicates that permitting high-performing employees to work remotely could bolster productivity and retention rates.
According to Mark Ma, associate professor of business administration, and Yuye Ding, a PhD student at the University of Pittsburgh’s Joseph M. Katz Graduate School of Business and College of Business Administration, RTO mandates might be perceived by employees as power plays by managers and attempts to shift blame for poor performance.
The researchers analyzed RTO mandates across a sample of S&P 500 firms, evaluating their impact on employee satisfaction using data from Glassdoor. They employed difference-in-difference tests to gauge changes in overall job satisfaction, work-life balance, and perceptions of senior management following the implementation of an RTO mandate. They also assessed the mandate’s effects on financial performance and firm values.
Their findings suggest that RTO mandates may be deployed by companies to reassert control and scapegoat employees for underperformance, rather than to genuinely enhance profitability or productivity through in-office work.
Instead, Ma and Ding advocate for a flexible approach, where high-performing employees are allowed to continue working remotely if they demonstrate productivity. They propose that occasional in-person team-building activities could foster company culture and facilitate problem-solving in hybrid work arrangements.
Current trends indicate a mixed response to RTO mandates, with some employees returning to the office while others consider seeking out virtual out-of-state jobs. A substantial portion of workers surveyed by iCIMS indicated they would contemplate changing jobs if faced with a full-time RTO mandate.
Employers are advised to avoid RTO pitfalls by prioritizing employee trust and creating flexible plans that align with both workforce preferences and organizational needs as workplace dynamics continue to evolve.
