Experts Say Return-To-Work Mandates May Backfire On Employers, Lead To Talent Loss

The shift toward remote work from workers has roots in the COVID-19 pandemic, which has changed how Americans want to work.

Feb 3, 2025 - 16:00

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Experts Say Return-To-Work Mandates May Backfire On Employers, Lead To Talent Loss

A recent Pew Research Center survey indicated that workers are resistant to returning to a physical office full time, particularly if they have been working in fully remote or hybrid work arrangements.

But, according to CNBC, return-to-work mandates also carry an increased risk of losing top talent, and the employees who stay after a mandate has been issued are typically employees who are resigned to do just enough to keep their jobs.

A study from the University of Pittsburgh, which analyzed companies listed on the Standards & Poor 500, (S&P 500) discovered that firms that eliminated workplace flexibility often suffered high turnover rates, especially in regards to women and senior skilled employees. Those companies also took significantly longer to fill vacancies and their hire rates also went down.

According to Mark Ma, an associate professor of business and administration at the University of Pittsburgh, the employees who stay aren’t necessarily committed to staying at the company.

“I might try to do the minimum so I won’t be fired, then start looking for the next job. And once I find a better position, I will leave,” Ma told CNBC. “So it’s not an ideal situation for the employer. ”Ma also indicated he expects “some form of hybrid” to be the dominant work setting instead of the typical office arrangement.

“Based on the data we are observing, I do not think the majority of companies will do that (institute a mandatory return to office),” Ma added. “Most firms have already figured out their hybrid policy by now. Unless something goes wrong, I don’t think they will try to change that position.”

According to Kim Parker, the director of social trends research at the Pew Research Center, workers who indicated that they would quit once they were essentially forced to return to the office place a premium on flexibility, something that smaller employers can use to their benefit.

“It shows how much they (workers) really do value the flexibility that comes with hybrid work,” Parker said.

According to SHRM, the shift toward remote work from workers has roots in the pandemic, which has changed how Americans want to work. They have seen what is possible from employers.

According to a report from Oyster HR, the adoption of remote work post-COVID-19 pandemic also led to a marked improvement in the diversification of workplaces, leading to the employment of more disabled individuals, women, and underrepresented minorities. The report also said that workers believe that the return-to-office mandates are a way for employers to artificially decrease the number of employees at a company, which some corporate leaders have admitted to.

According to Prithwiraj Choudhury, a professor at Harvard Business School, it has become clear that “we are in a very stable hybrid work arrangement.” He told Inc. in December 2024 that “about 27 to 30 percent of the workdays across the economy, including all jobs, are being done in a remote way. The data doesn’t lie.”

Shiloh Butterworth, the principal and chief people officer at PAE, an engineering firm in Portland, Oregon, agreed with the assessment that the flexibility of hybrid work is a boon for his employees.

“By having a more flexible arrangement, we can actually tell our staff and potential candidates…‘We are less rigid than a lot of other firms. We actually provide a lot of trust in your ability to decide what works best for you,’” Butterworth said. “A lot of our candidates and a lot of our current employees really enjoy that flexibility.”