RTO mandates see a rise – but are they worth the risk?
8 minute read | Jennifer Dillon | Article | Leadership Managing a team People and culture | General
If you’re a business leader, the chances are you’ve had to grapple with the return-to-office (RTO) question at some point. Many notable organisations have already made the move, with Amazon just one of the latest multinationals issuing a return to office mandate to staff this year – a list that keeps growing.
Whether it’s the wasted rent of an empty office, the perceived lack of productivity, or a desire to build collaboration, RTO mandates have been growing in momentum. But employers should consider whether the risk of alienating their workforce – and potentially undermining their talent attraction and retention efforts – is worth the gamble.
The reality of RTO mandates
The past year or so has seen employer sentiment shift back to office-based work, with research from the employer group, Ibec, showing that the application of compulsory attendance for all or certain days had risen from 6% to 26% between 2023-2024. But business leaders predict this is just the beginning: KPMG’s latest survey of 1,325 CEOs worldwide revealed that 83% expect a full return to office over the next three years, with this figure being even higher for Ireland (90%).
Despite these predictions, hybrid working still has a strong presence. Approximately 750,000 Irish professionals – nearly a third of the country’s labour force – work from home at least one day a week or more, according to CSO data. Many employees expect flexible working arrangements that accommodate a more favourable work-life balance and help contend with financial pressures. And if faced with an RTO mandate, some employees may vote with their feet.
The impact of losing staff in a skills-short job market can’t be overlooked, yet it’s the specific employee profiles at risk of flight that should cause employers concern. Team performance and diversity could be at stake, with Gartner revealing that women, millennials and high-performers are the most likely to leave when mandated to return to the office.
But talent retention is not the only consideration for organisations contemplating RTO policies. With employees now offered the statutory right to request remote working, enshrined by the Work Life Balance Bill, there’s greater onus on employers to provide flexible working where the request is reasonable.
Key actions for employers
It’s clear that choice and flexibility matter to employees, and for employers continuing to struggle with skills gaps, balancing the value of enforcing office-based work with the talent and attraction benefits associated with offering flexible working will be imperative.
If you’re looking to draw staff back into the office, it’s worth considering the following key actions:
1. Foot the RTO bill
The time and resources required to regularly reach the office can be an added burden; whether it’s hiked commuting and food costs or budget-draining child and pet care, the expenses of office life can quickly accumulate. And amid ongoing cost-of-living concerns, there’s an argument that employers should be providing financial support to offset the day-to-day costs of working from the office.
While a flat salary increase is one option, broader support – such as retail discounts, expensed travel, or complementary financial advice – could also help ease the burden. Organisations should also consider enacting equitable polices, such as those promoting fair wages and comprehensive childcare plans, to mitigate the chance of certain demographics being disproportionately impacted.
2. Prioritise flexible policies – not mandates
Office-based work will almost always limit flexibility, but you can still ensure your people are enabled to work how and where they feel most productive. For example, as a trade-off to working in the office, you might consider offering your staff more choice over their start and end times. Additionally, you could consider implementing a minimum number of office days per year, as opposed to per week, to grant staff extra autonomy over their work routines.
By placing the choice back in the hands of your people, you’re more likely to create a collaborative solution rather than a source of conflict.
3. Clearly communicate your RTO reasoning
Dropping an RTO mandate on your employees out of the blue will only have them seeing red. It’s vital that you give staff adequate time to prepare for a more traditional working routine, and clearly communicate the decision and your expectations. Better yet, try creating a two-way dialogue and allow staff to help shape RTO policies.
In this vein, make sure that you are bringing people back into the office for the right reasons – such as a drive to increase collaborative thinking. Remember though – even the most virtuous of these reasons will ring hollow without the right office policies and company culture to back them up.
4. Review your Employer Value Proposition (EVP)
All organisations must ensure that their benefits align with employee expectations, and an RTO policy will almost always necessitate an even stronger EVP offering across the board.
But this means looking beyond the usual nice to haves and office gimmicks historically used to attract staff back to workplaces (looking at you, ping-pong table), and instead focusing on intangibles that add greater value and purpose to employees’ professional lives. This might include in-person mentoring and upskilling, or perhaps paid volunteering opportunities local to your office.
Looking ahead – when RTO becomes OTT
The new wave of RTO mandates coincides with a growing conversation surrounding employee rights, and the latest legislation might mean that employees have the stronger bargaining position. Having been shown a work routine free of long commutes and office formalities, an RTO mandate is unlikely to elicit a positive response, and organisations risk losing crucial talent and damaging their organisational culture.
The RTO decision ultimately lies with your organisation’s goals and unique circumstances. But no matter which direction you choose to take, it’s clear that now’s the time to review your EVP and ensure it’s fit for purpose in an ever-evolving world of work.
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About this author
Jennifer Dillon, Director of Enterprise Solutions, Hays Ireland
Jennifer Dillon is the Director of Enterprise Solutions at Hays Ireland, having joined in 1999. She started her career in Hays Technology and is now responsible for the successful delivery and relationship management of a portfolio of Enterprise Customers, leading the strategy and client teams. Her expertise includes Total Talent Management and Outsourced Solutions such as RPO, MSP and CMO.