Research from Gartner’s HR practice, released on January 30, suggests that companies enforcing inflexible return-to-office (RTO) policies risk losing top talent, particularly among women and millennials. The study, based on surveys of 2,080 knowledge workers conducted in May and June 2023, indicates that high-performing employees are 16% less likely to remain with organizations imposing strict RTO mandates, compared to the average attrition rate of 8%.
Similarly, among women and millennials, the intent to stay drops by 11% and 10%, respectively, in companies with stringent RTO requirements. A separate survey of 3,500 employees in June 2023 revealed that nearly half felt their company prioritized leaders’ preferences over employees’ needs regarding RTO mandates.
Caitlin Duffy, Director at Gartner’s HR practice, emphasized the high costs associated with mandated on-site requirements, particularly in terms of talent attraction and retention. Duffy highlighted that the value of flexibility often outweighs the moderate benefits of increased employee engagement and effort.
As 2024 progresses, organizations are grappling with evolving RTO and hybrid work models. Some have successfully transitioned from mandatory RTO policies to hybrid approaches, citing employee feedback and the need for flexibility as key drivers. For instance, Global Payments revamped its policy after identifying inflexibility as a top reason for employee turnover.
Embracing inclusivity, The Coven, a Minnesota-based organization, offers co-working spaces designed to foster community and psychological safety, enhancing focus and productivity among members.
While remote work remains preferable for many, professionals prioritize office-based roles for career growth opportunities. The Gartner survey underscores the positive impact of flexibility, especially among high-performers, women, and millennials. However, rigid RTO mandates can signal a lack of trust in employees’ autonomy and decision-making abilities, potentially leading to talent attrition and productivity losses.
To formalize in-office work requirements, HR leaders can adopt four best practices:
- Motivate rather than mandate, by creating office environments and hybrid policies that promote autonomy and connectivity.
- Focus on yearly, not weekly, attendance requirements.
- Involve employees in shaping policies.
- Provide a clear rationale for in-office work requirements.
Ultimately, increased flexibility during the pandemic has facilitated better work-life integration for women and reduced biases and microaggressions in the workplace. However, millennials, often balancing caregiving responsibilities, may experience lower performance in organizations with rigid RTO mandates.
