The Impact of Mandated Return-to-Office (RTO) on Diversity and Job Satisfaction

There has been a lot of noise around return-to-work efforts. The decision that “all” employees need to return to the office three to five days per week is either being driven by:

  1. A Board of Directors may be crossing the line between governance and management or is out of touch with what the needs of the employees are.
  2. One or more senior executives that “believe” people are more engaged, collaborative, and productive if they are in the office.
  3. The board or leadership team sees a need to fill office space that they need to fill, or because they are so proud of their office, they think everyone should want to be there.

Regardless of the reason, I have yet to see the performance of these companies has deteriorated because of a remote workforce. Where there is evidence of poor performance, it is an isolated situation that should be handled through performance management and coaching, not wholesale mandates.

Today, companies have a complicated mix of local and remote workers. Many of these workers, whether they are remote or local, were hired and, in many cases, took the job because of the flexibility and work empowerment remote work provided them. I recently heard about a company with over 900 employees. The CEO announced all “local” employees must return to the office four days a week from 8 to 5, with no exceptions. Of course, like most larger employers, they also have a significant remote workforce that doesn’t live in the same state but was hired with the understanding they would work remotely. Does anyone see the inequity of this mandate? This RTO mandate is causing severe personal and financial hardship for the employees. When RTO mandates are announced, I have not seen any data to support the RTO decision. The only reasons given are opinions (pick one:) we will collaborate better, it is necessary for the company culture, we will be more innovative, or we will be more productive.

We know that when a company mandates an RTO, those employees who don’t buy into it will leave. When they go, the replacement cost impacts business expenses and productivity. Plus, these employees who are leaving take a lot of organizational memory and history that cannot be replaced. For those remaining, there are two negative consequences the company must live with, job satisfaction and workplace diversity. Let’s look at both of these consequences:

Job Satisfaction

  • Flexibility and Autonomy: One of the key drivers of job satisfaction in the modern workplace is the flexibility to balance professional and personal life. Remote work has given employees autonomy over their schedules, contributing significantly to job satisfaction. Returning to the office erodes this flexibility, impacting overall job satisfaction. A mandated RTO can disrupt these benefits, potentially leading to a decline in job satisfaction as employees lose the flexibility they have come to value.
  • Commuting Stress: The prospect of daily commuting can lead to increased stress and reduced job satisfaction. Long commutes can negatively impact employees’ well-being, consuming valuable time that could be spent on personal activities or work-related tasks. There is also a significant cost to commuting that the employee must bear.
  • Work-Life Balance: Remote work has allowed employees to create a better work-life balance, fostering a positive mental health environment. The mandated return to the office will disrupt this balance, affecting job satisfaction and overall well-being. For instance, caregivers, individuals with disabilities, or those living in geographically distant areas may find it challenging to comply with a strict in-person attendance policy. This could lead to a loss of these individuals’ diverse perspectives and talents, hindering the organization’s ability to innovate and adapt to an ever-changing market. Remote work has been associated with improved work-life balance, reducing commuting time and allowing for more family and personal time. Mandating a return to the office will erode these gains, impacting employee satisfaction and leading to increased stress and burnout,
  • Financial Hardship: Remote work does not require the cost of transportation, the cost of daycare, or a wardrobe. These cause financial burdens the employee must bear when needed to go into the office daily.
  • Employee Wellbeing: Employees who have grown accustomed to the autonomy and flexibility of remote work may feel a loss of control and empowerment over their schedules and work environment. This shift could contribute to increased stress levels, a decline in mental well-being, and a negative impact on overall job satisfaction. Remote work improved employee well-being by reducing stress associated with commuting and fostering a more comfortable work environment. A mandated RTO would reintroduce stressors and negatively affect well-being and job satisfaction.

Workforce Diversity

  • Accessibility and Inclusivity: Remote work has allowed individuals with diverse backgrounds, abilities, experiences, cultures, and life circumstances to participate in the workforce more actively. Mandated RTO policies pose challenges for employees with diverse backgrounds, especially those with disabilities or caregiving responsibilities. Remote work has provided a more inclusive environment for underrepresented groups.
  • Gender Disparities: Research has shown that women have benefited the most from remote work, as it helps them manage work-life balance more effectively. Mandated RTO will widen gender disparities as it could disproportionately affect women’s ability to maintain the flexibility in their schedules that they require.
  • Underrepresented Groups: Employees from underrepresented groups often face difficulties commuting or adhering to a rigid office schedule, potentially hindering their career growth. Mandated RTO will inadvertently contribute to the exclusion of individuals from marginalized communities. Remote work has been a boon for promoting inclusivity, allowing individuals from underrepresented groups to participate in the workforce without facing traditional barriers. A mandated RTO creates barriers for these groups, preventing the company from fostering a diverse and inclusive workplace.
  • Geographic Diversity: Remote work breaks down geographical barriers, enabling companies to tap into talent pools worldwide. A mandated RTO limits geographic diversity by compelling employees to work from specific locations, hindering the organization’s ability to harness diverse perspectives and the best talents and minds.

How Do We Mitigate the Impact of RTO?

  • Hybrid Work Models: Organizations can adopt hybrid work models that combine in-office and remote work. This approach allows employees to enjoy the benefits of both worlds, maintaining flexibility while fostering collaboration in a physical workspace. I worked with a $1B credit union with a hybrid policy before COVID. They learned that employees engaged in the workplace in the way that they felt most productive and empowered. Some chose to come in daily, even when they could work remotely; some chose based on meeting schedules or family needs, and some decided to be remote most of the time but opted to come into the office when they needed to reconnect with their team. We learned our staff wanted to do their best to meet the company’s mission and vision regardless of where and when they did their job. They also respected and appreciated the dependencies others had on them or that they had on others. This proved that organizations could adopt hybrid work models that blend in-person and remote work, striking a balance that accommodates individual preferences and organizational needs.
  • Inclusive Policies: To ensure workforce diversity, organizations need to implement inclusive policies that consider the needs of all employees, including those with caregiving responsibilities, accessibility requirements, and commuting challenges, without regard to race, religion, gender, or sexual orientation.
  • Technology and Infrastructure: Investing in technology and infrastructure to facilitate seamless collaboration is vital. The tools for online collaborations are robust and ensure employees working remotely or in the office have equal access to meetings, collaborations, resources, and opportunities. I’ve worked with some organizations that tolerate employees working on their home computers and telephone lines, often having to share computer and phone lines with working spouses or their children’s homework needs. The first requirement of any company is to ensure the employee has the tools they need to succeed in their job.
  • Flexibility Policies: Implement flexible policies that consider individual circumstances, allowing employees to effectively balance their work and personal commitments. People want to be successful at work and will do what they must do when empowered to make choices in their work efforts.
  • Employee Feedback: Listen to employees and not just at the top of the pyramid. Be willing to listen to all levels of the organization from entry-level up. They will tell you what you need to know to make good decisions that affect your work and life. This information is crucial in tailoring policies and practices that enhance job satisfaction and diversity.

Organizations that fail to consider the well-being and preferences of their workforce risk losing talented employees to competitors who embrace a more flexible approach. Companies must strike a balance. Organizations recognize the benefits of collaboration and face-to-face interactions and that these foster team cohesion, creativity, and innovation. But this balance can be found with the communication and collaboration tools available to the remote worker.

Implementing a hybrid policy with this open-minded approach allows organizations to maintain workforce diversity and accommodate various workstyles and preferences. By adopting flexible and inclusive practices, companies will navigate the challenges associated with a workforce that values the autonomy, flexibility, and empowerment of remote/hybrid work.

The Impact of Mandated Return-to-Office (RTO) on Workforce Diversity and Job Satisfaction

There has been a lot of noise around return-to-work efforts. The decision that “all” employees need to return to the office three to five days per week is either being driven by:

  1. A Board of Directors may be crossing the line between governance and management or is out of touch with what the needs of the employees are.
  2. One or more senior executives that “believe” people are more engaged, collaborative, and productive if they are in the office.
  3. The board or leadership team sees a need to fill office space that they need to fill, or because they are so proud of their office, they think everyone should want to be there.

Regardless of the reason, I have yet to see the performance of these companies has deteriorated because of a remote workforce. Where there is evidence of poor performance, it is an isolated situation that should be handled through performance management and coaching, not wholesale mandates.

Today, companies have a complicated mix of local and remote workers. Many of these workers, whether they are remote or local, were hired and, in many cases, took the job because of the flexibility and work empowerment remote work provided them. I recently heard about a company with over 900 employees. The CEO announced all “local” employees must return to the office four days a week from 8 to 5, with no exceptions. Of course, like most larger employers, they also have a significant remote workforce that doesn’t live in the same state but was hired with the understanding they would work remotely. Does anyone see the inequity of this mandate? This RTO mandate is causing severe personal and financial hardship for the employees. When RTO mandates are announced, I have not seen any data to support the RTO decision. The only reasons given are opinions (pick one:) we will collaborate better, it is necessary for the company culture, we will be more innovative, or we will be more productive.

We know that when a company mandates an RTO, those employees who don’t buy into it will leave. When they go, the replacement cost impacts business expenses and productivity. Plus, these employees who are leaving take a lot of organizational memory and history that cannot be replaced. For those remaining, there are two negative consequences the company must live with, job satisfaction and workplace diversity. Let’s look at both of these consequences:

Job Satisfaction

  • Flexibility and Autonomy: One of the key drivers of job satisfaction in the modern workplace is the flexibility to balance professional and personal life. Remote work has given employees autonomy over their schedules, contributing significantly to job satisfaction. Returning to the office erodes this flexibility, impacting overall job satisfaction. A mandated RTO can disrupt these benefits, potentially leading to a decline in job satisfaction as employees lose the flexibility they have come to value.
  • Commuting Stress: The prospect of daily commuting can lead to increased stress and reduced job satisfaction. Long commutes can negatively impact employees’ well-being, consuming valuable time that could be spent on personal activities or work-related tasks. There is also a significant cost to commuting that the employee must bear.
  • Work-Life Balance: Remote work has allowed employees to create a better work-life balance, fostering a positive mental health environment. The mandated return to the office will disrupt this balance, affecting job satisfaction and overall well-being. For instance, caregivers, individuals with disabilities, or those living in geographically distant areas may find it challenging to comply with a strict in-person attendance policy. This could lead to a loss of these individuals’ diverse perspectives and talents, hindering the organization’s ability to innovate and adapt to an ever-changing market. Remote work has been associated with improved work-life balance, reducing commuting time and allowing for more family and personal time. Mandating a return to the office will erode these gains, impacting employee satisfaction and leading to increased stress and burnout,
  • Financial Hardship: Remote work does not require the cost of transportation, the cost of daycare, or a wardrobe. These cause financial burdens the employee must bear when needed to go into the office daily.
  • Employee Wellbeing: Employees who have grown accustomed to the autonomy and flexibility of remote work may feel a loss of control and empowerment over their schedules and work environment. This shift could contribute to increased stress levels, a decline in mental well-being, and a negative impact on overall job satisfaction. Remote work improved employee well-being by reducing stress associated with commuting and fostering a more comfortable work environment. A mandated RTO would reintroduce stressors and negatively affect well-being and job satisfaction.

Workforce Diversity

  • Accessibility and Inclusivity: Remote work has allowed individuals with diverse backgrounds, abilities, experiences, cultures, and life circumstances to participate in the workforce more actively. Mandated RTO policies pose challenges for employees with diverse backgrounds, especially those with disabilities or caregiving responsibilities. Remote work has provided a more inclusive environment for underrepresented groups.
  • Gender Disparities: Research has shown that women have benefited the most from remote work, as it helps them manage work-life balance more effectively. Mandated RTO will widen gender disparities as it could disproportionately affect women’s ability to maintain the flexibility in their schedules that they require.
  • Underrepresented Groups: Employees from underrepresented groups often face difficulties commuting or adhering to a rigid office schedule, potentially hindering their career growth. Mandated RTO will inadvertently contribute to the exclusion of individuals from marginalized communities. Remote work has been a boon for promoting inclusivity, allowing individuals from underrepresented groups to participate in the workforce without facing traditional barriers. A mandated RTO creates barriers for these groups, preventing the company from fostering a diverse and inclusive workplace.
  • Geographic Diversity: Remote work breaks down geographical barriers, enabling companies to tap into talent pools worldwide. A mandated RTO limits geographic diversity by compelling employees to work from specific locations, hindering the organization’s ability to harness diverse perspectives and the best talents and minds.

How Do We Mitigate the Impact of RTO?

  • Hybrid Work Models: Organizations can adopt hybrid work models that combine in-office and remote work. This approach allows employees to enjoy the benefits of both worlds, maintaining flexibility while fostering collaboration in a physical workspace. I worked with a $1B credit union with a hybrid policy before COVID. They learned that employees engaged in the workplace in the way that they felt most productive and empowered. Some chose to come in daily, even when they could work remotely; some chose based on meeting schedules or family needs, and some decided to be remote most of the time but opted to come into the office when they needed to reconnect with their team. We learned our staff wanted to do their best to meet the company’s mission and vision regardless of where and when they did their job. They also respected and appreciated the dependencies others had on them or that they had on others. This proved that organizations could adopt hybrid work models that blend in-person and remote work, striking a balance that accommodates individual preferences and organizational needs.
  • Inclusive Policies: To ensure workforce diversity, organizations need to implement inclusive policies that consider the needs of all employees, including those with caregiving responsibilities, accessibility requirements, and commuting challenges, without regard to race, religion, gender, or sexual orientation.
  • Technology and Infrastructure: Investing in technology and infrastructure to facilitate seamless collaboration is vital. The tools for online collaborations are robust and ensure employees working remotely or in the office have equal access to meetings, collaborations, resources, and opportunities. I’ve worked with some organizations that tolerate employees working on their home computers and telephone lines, often having to share computer and phone lines with working spouses or their children’s homework needs. The first requirement of any company is to ensure the employee has the tools they need to succeed in their job.
  • Flexibility Policies: Implement flexible policies that consider individual circumstances, allowing employees to effectively balance their work and personal commitments. People want to be successful at work and will do what they must do when empowered to make choices in their work efforts.
  • Employee Feedback: Listen to employees and not just at the top of the pyramid. Be willing to listen to all levels of the organization from entry-level up. They will tell you what you need to know to make good decisions that affect your work and life. This information is crucial in tailoring policies and practices that enhance job satisfaction and diversity.

Organizations that fail to consider the well-being and preferences of their workforce risk losing talented employees to competitors who embrace a more flexible approach. Companies must strike a balance. Organizations recognize the benefits of collaboration and face-to-face interactions and that these foster team cohesion, creativity, and innovation. But this balance can be found with the communication and collaboration tools available to the remote worker.

Implementing a hybrid policy with this open-minded approach allows organizations to maintain workforce diversity and accommodate various workstyles and preferences. By adopting flexible and inclusive practices, companies will navigate the challenges associated with a workforce that values the autonomy, flexibility, and empowerment of remote/hybrid work.

About rich@leading2leadership.com

Rich Jones is the Founder/Principal of Leading2Leadership LLC. Before starting his strategic planning agency, he spent over 20 years in leadership roles in the financial services sector. Before becoming an executive in the financial services sector, Rich was an entrepreneur, building and selling two businesses and working for early-stage start-up companies in executive roles in marketing, business development, and seeking investment partners. With more than three decades of experience, he brings innovative thought to companies and executives. Rich published “Leading2Leadership, a Situational Primer to Leadership Excellence.” The book is available on Amazon.com and was designed to be used as a book study for leadership development programs; it breaks leadership skills into manageable situations for discussion and reflection. Rich works with credit unions, CUSOs, and vendors, designing digital, data, culture, marketing, and branding transformation strategies. In 2014, Chosen as a Credit Union Rock Star by CU Magazine, and in 2018, Rich received the Lifetime Achievement Award from CUNA Marketing and Business Development Council. A Marine and graduate of Colorado State University, Jones shares his expertise at www.leading2leadership.com.

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