Since Covid-19 fundamentally reshaped the way we work, return-to-office (RTO) policies continue to spark debate among business leaders. Balancing a spectrum of perspectives – from concerns about productivity to the benefits of inclusivity – is no small task.
Imposing strict return-to-office (RTO) mandates may feel like a straightforward way to quickly bring people back together, but we urge leaders not to be hasty. Amazon executives recently saw the impact of their January 2025 RTO mandate on employee engagement when it faced significant backlash from staff who criticised it as “non-data-driven” and “silencing critical perspectives.”
Many employees are not happy about having to return to the office. According to a Pew Research Center survey, almost half (46%) of remote workers said they might quit if they lose the option to work from home.
The RTO debate highlights an ongoing challenge: bridging the gap between top-down decisions and the needs of employees. In this article we’ll examine why blanket RTO mandates may fall short, and explore how businesses can embrace hybrid working to unlock its opportunities and address any challenges productively, with empathy.
Understanding the costs of attrition
The measurable cost of attrition is inextricably linked with discussions of RTO mandates. Organisations risk significant financial and cultural losses when people leave, with studies by Gallup suggesting the replacement cost of a single employee can reach 50%–200% of their annual salary.
Many modern employees place a high value on the flexibility and work-life balance that hybrid working offers, and if businesses aren’t careful, they risk losing out on top talent. Strict RTO mandates can send a message of mistrust, which will likely turn off many employees, especially high performers who may feel undervalued and look for new opportunities. The Candidate Experience Report by Greenhouse also discovered that inflexible businesses may struggle to hire top talent in the first place, as more than 40% of candidates will not apply for a role that does not offer their preferred working mode.
Preserving a diverse workforce
Strict RTO policies could unintentionally undermine some of the diversity gains businesses have worked so hard to achieve. For working parents, neurodivergent individuals, disabled people, and those on lower incomes, hybrid work has been transformative. Flexible arrangements ease the financial and emotional strain of commuting, support caregivers juggling family responsibilities, and help create environments where all employees can excel.
Mandating full office attendance risks reversing these gains, making it essential to adjust policies based on employee feedback.
Outcomes > office
Sometimes, businesses get caught in what you may call, a bout of ‘executive nostalgia’, pining for the pre-pandemic days when everyone gathered in one place. But today’s workforce is more diverse and dynamic than ever, and rose-tinted memories risk treating office time as a quick fix for more complex challenges. Instead, why not flip the script? We recommend putting a laser focus on measurable outcomes – what do you want your teams to achieve, and how can you support them in getting there?
Once these outcomes are in place, leaders can tackle challenges head-on, no matter where the team is located. For example, if your team is finding it tricky to innovate or keep up with the latest tech, they might need a bit of training and upskilling, rather than more hours in the office. On the other hand, if they’re acing the admin tasks but lacking creative spark, a regular brainstorming session could ignite fresh ideas.
Make hybrid work, work
Hybrid models aren’t a ‘one-size-fits-all’ solution, they need to be rolled out with care and collaboration to work well. Research from the Harvard Business Review points out that experimenting thoughtfully is key.
Here are a few lessons from companies already fine-tuning their hybrid approaches:
- Purposeful in-office time: Office days should have a clear focus – think workshops or labs that truly benefit from face-to-face interaction.
- Managerial training: Giving managers the tools to build trust and psychological safety is vital. This is especially important for encouraging innovation, as strong team connections are the foundation of great collaboration.
- Test and learn: A/B testing policies on things like productivity, retention, and employee satisfaction help you find the right hybrid mix for your team’s unique culture.
- Flexibility with structure: Employees value autonomy. Offering a framework that balances organisational goals with individual needs can empower teams to perform at their best.
The bottom line
The RTO debate isn’t just about where we work, it’s about how we lead. Hybrid work isn’t a black-and-white issue; the real answer to finding what will work for your unique team and people lies in the grey areas. We encourage leaders to challenge assumptions and create a workplace that works for everyone, not just those who thrive in traditional office settings.
Looking to empower your leaders to take on this challenge? Coaching may be the place to start. If you’d like to find out more about how NKD can help your teams get in touch today.