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Returning to the office? What's the impact on retention?

  • October 16, 2024

We will all have no doubt heard the news that the likes of Amazon and Dell have scrapped their hybrid, flexible workplace policies for staff in favour of a return-to-office mandate.

Up to this point, the return-to-office conversation had largely fallen silent for most of this year. Hybrid work arrangements were generally being accepted as the norm for office workers, while the number of options for ‘fully remote’ work has dropped in recent times.

Where once company employees held the cards, with businesses desperate for talent as they tried to navigate the post-pandemic bounce back, the dynamic has shifted back in favour of employers.

In fact, despite multiple studies suggest that flexibility regarding where they work boosts job satisfaction, work-life balance, health, morale, productivity and ultimately, the bottom line, KPMG’s 2024 CEO Outlook report, which surveyed 1,300 CEOs around the world, indicated that 83% of UK CEOs expect to see a full return to the office within three years.

However, for those businesses hoping to make a full-time return to the office, there is plenty to consider and get right if you’re to retain your employees.

The potential impact of return-to-office on retention:

Whether it’s greater collaboration and innovation, a company culture to be proud of or a boost to your productivity, the rationales and arguments behind a decision to return to the office are understandable.

 Yet, if not managed correctly, mandating a full-time return could have several ramifications for employee engagement and retention:

  1. Resistance and Resentment

Many have grown accustomed to the flexibility of remote work. For them, it has improved work-life balance, reduced commuting stress, and allowed for a more suitable work environment.

If staff believe their preferences and needs are being disregarded, feelings of resentment or resistance could set in.

  1. Talent Exodus

If workers feel that their employer is not accommodating their desires for flexibility, they may seek opportunities elsewhere.

Companies that mandate a return to the office risk losing top talent to companies that offer hybrid or fully remote work arrangements.

  1. Decreased Morale and Engagement

Mandatory returns can lead to decreased morale, especially if employees feel that their input on work arrangements isn’t valued.

This in turn can result in lower engagement levels, which can impact overall productivity and the quality of work.

  1. Diversity and Inclusion Challenges

The push for a full return to the office can disproportionately affect employees with specific needs, such as those with disabilities, or those who live far from the workplace.

This can create a sense of exclusion and inequity, further driving down morale and increasing turnover rates.

Navigating the transition to a full-time return to the office.

For employers, who feel that a return to the office will be beneficial, reluctance from employees can be tricky to navigate.

It’s vital that any strategies chosen to be adopted to mitigate the potential negative impacts and ensure a happy workforce are well thought out and created with retention front of mind.

Every company and its culture are different, but here are some key things to consider:

1. Open Communication

Effective and positive communication of your plans and why they’re beneficial is a crucial first step.

Involving your staff in the conversation about your return-to-office policies can lead to better outcomes. Conducting internal surveys, hosting focus groups, or facilitating open forums can provide valuable insights into employee preferences and concerns.

2. Allow Time for the Transition

It’s important not to rush into any changes, but instead, give your teams time to come to terms with the changes and support them with what they need to feel more comfortable.

Perceived knee-jerk changes or not allowing sufficient time to integrate new policies will not endear you to your employees.

3. Emphasising Purpose and Connection

Companies should communicate the reasons behind their decisions clearly and highlight the value of in-person interactions.

By emphasising the purpose of returning to the office – whether it’s for team building, culture, innovation or collaboration – if you can help your teams see the benefits of the changes, they are more likely to feel more positively about them.

4. Investing in the Office Experience

If you’re asking your employees to return to the office, make it a place they want to be.

Whether it’s collaborative spaces, social events, providing them with the right tools and tech, it’s important the office environment is welcoming and an atmosphere that promotes engagement and well-being.

So, it’s clear then that the decision to bring employees back to the office full-time isn’t one that should be taken lightly.

Alongside any reasons you have for this shift, your employees will have several of their own as to why they don’t see it as such a good idea.

By fostering open communication and investing in a positive office environment, it’ll be easier to navigate this transition thoughtfully and retain your people.

In the end, the key to success lies in balancing business needs with employee well-being and preferences.