As businesses worldwide increasingly introduce return-to-office (RTO) mandates, we look at the potential leadership motivations and employee impact of RTO policies.
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Summary
As businesses worldwide increasingly introduce return-to-office (RTO) mandates, we look at the potential leadership motivations and employee impact of RTO policies based on Omdia data and insights.
Balancing traditional and evolved ways of working
RTO mandates are ramping up and garnering mainstream media attention, but why is this happening given the progress and success many businesses have experienced with more flexible work styles over recent years? After all, remote work practices and the technologies that enabled them have helped keep many organizations operational during the COVID-19 pandemic. Despite the technological advancements and success of remote work over this period, many business leaders are rolling out RTO mandates with the intention of advancing employee productivity and collaboration.
Beyond these anticipated benefits, the view among business leaders and policy makers is often that the physical presence of employees fosters a sense of accountability and allows for better supervision. This perspective is perhaps rooted in the traditional belief that productivity can be more easily monitored in an office setting. Furthermore, those championing RTO mandates often highlight the spontaneous collaboration that occurs when colleagues are physically together, which can lead to innovative ideas and quicker problem solving. Furthermore, there is a belief that strong and collaborative cultures are difficult in a remote work setup.
The reality is that, independent of work location, many businesses have struggled to build the digital-centric cultures and operating models needed in the modern age of work. Organizations have often brought legacy ways of working and processes into the digital age without a clear long-term strategy for leveraging new ways of working or innovative tools that can transform how culture, productivity, and collaboration are developed and measured.
Activities such as employee sentiment sensing, appraisal processes, and even coaching, have remained largely unchanged for years in many businesses. Employee appraisals and feedback initiatives are only annual occurrences in many organizations. With the range of new employee engagement tools that have emerged over recent years, it is now possible to have significantly shorter feedback loops that are more richly embedded into regular working and collaboration patterns.
What does the data show?
Omdia has been tracking the impact of changing work styles on employee productivity and experience for five years now via its annual Future of Work study and surveys supporting it (see Further reading). The most recent results indicate how several important factors are negatively impacting employee productivity.
Among respondents, 39% cited too many manual and legacy processes as being the most significant factor hampering productivity – more than any other element. This highlights the need for organizations to modernize their workflows and adopt more efficient technologies, independent of work location.
Additionally, 38% of respondents identified difficulties in collaborating and communicating as a major issue. This underscores the importance of developing robust communication strategies and tools that facilitate seamless collaboration ‒ whether employees are working remotely or in the office. Interestingly, in-office distractions completed the top three productivity concerns here, with 37% ranking it as a top issue. This suggests that simply moving employees back into the office may not resolve productivity challenges. On the contrary, remote working distractions were less impactful, with only 25% ranking it as the primary negative productivity factor.
Omdia data also shows that as work styles have changed over the past few years, employee experience and productivity have improved. 59% of business leader respondents noted improved employee experience, while 52% reported enhanced productivity with more flexible work styles. Only 9% of business leaders felt employee experience had deteriorated, while 15% felt productivity had deteriorated.
These findings suggest that while in-office work may offer certain benefits, remote work has also brought significant advantages that should not be overlooked.
The future of work needs to strike a balance and be focused on outcomes, not locations
There are some important practices that businesses need to consider going forward, regardless of whether their approach will be mandating RTO or taking a more balanced work-style approach.
For leaders, assuming that in-office work will resolve productivity and collaboration issues without addressing underlying problems is not constructive. Organizations must consciously evolve processes, invest in modern tools, level-up digital training and education, and change employee habits to ensure success. Successful RTO mandates often involve gradual implementation, allowing employees to adjust and providing ample notice. This approach helps mitigate resistance and ensures a smoother transition back into the office.
Engaging employees in the decision-making process is also crucial. Soliciting feedback and incorporating their insights into any planned RTO strategy can enhance buy-in and improve overall satisfaction. A one-size-fits-all approach to work styles is rarely effective. Instead, organizations should consider the unique needs and preferences of their workforce, in addition to the dynamics of different roles, when designing work-style policies.
The future of work is likely to be a blending of in-office and remote work styles to cater to diverse employee needs. Organizations that embrace this approach will attract and retain the best talent in the long term. To successfully navigate work-style changes, organizations must prioritize clear communication, employee feedback, and investment in modern tools and technologies. This will help create a balanced work environment that optimizes productivity and employee experiences. It’s not about favoring one work style over another but rather about supporting and enabling employees to thrive in diverse work environments tailored to their preferences and job responsibilities. Developing in-person and digital-centric work environments that complement each other is essential for future success.
Appendix
Further reading
To find out more about Omdia’s 2024 Employee Collaboration and Productivity Survey (n=1,521; supporting the Future of Work study) please contact [email protected]
Author
Adam Holtby, Principal Analyst, Workplace Transformation
