The Return to Office: The Mismatch between Employer Demands and Worker Preferences

The Covid pandemic led to a significant shift in the work landscape, with remote work becoming the most sought-after job perk. Employers offered remote work options to attract and retain talent, and many implemented hybrid-working policies.

Studies show that employees value flexible work arrangements for reduced burnout and improved work-life balance while companies believe that productivity increases when workers are physically present and are prioritising in-person interaction and collaboration. According to a survey conducted by Slack, a mere 12% of individuals expressed a preference for working in the office on a full-time basis but 50% of leaders are insisting that their employees return to the office on a full-time schedule.

Dubbed “The Great Mismatch”, research conducted by Adzuna, published by Forbes, revealed a rising number of job roles explicitly stating they are “office-based” reached a 19-month high of 4.2%. In the past five months, there has been a gradual increase in the proportion of job vacancies specifying an “office-based” requirement, reflecting some employers' growing emphasis on returning to the office.

Redundancies and job cuts have decreased workers' confidence in finding alternative roles and some companies are taking strict measures, such as tracking attendance or threatening termination for non-compliance. Some experts even suggest that companies accept that they may lose some workers and that this may be part of a covert downsizing strategy.

According to a report from Resume Builder, 90% of companies surveyed stated that they will require employees to return to the office at least part of the week by the end of 2023. Additionally, one-fifth of the companies mentioned that they would terminate workers who do not comply with the return-to-office requirement. The report also highlighted that 77% of companies with hybrid work policies plan to change those policies in the next year. While less than one-fifth of the companies will require full-time in-office work, 40% will require employees to come in four days a week, and 31% will require three days a week. Notably, nearly three-quarters of the surveyed companies still intend to hire remote workers in the future.

A study called “Returning for Good” conducted by Unispace Global Workplace Insights surveyed 9,500 employees and 6,650 employers from 17 countries. The study found that 72% of companies worldwide have implemented a return-to-office policy. Among those companies, 42% reported higher employee attrition rates than anticipated, and nearly one-third (29%) were struggling to recruit new staff. The study also revealed that 74% of employers experienced difficulties in keeping their employees happy. Some experts expressed concerns about potential talent loss if flexible working options are taken away and emphasized the importance of considering the evolving needs of a diverse workforce.

Two-thirds of UK employees say workplace anxiety has increased on return to office. A study conducted by Showpad for People Management surveyed 1,001 UK office workers and found that 69% of them observed an increase in workplace anxiety among their colleagues upon returning to the office post-lockdown. The study identified several reasons for this increase, including the overall decline in mental health since lockdown (cited by 50% of respondents), difficulties readjusting to in-person interactions and presentations (37%), and increased tension due to redundancies or the business's performance (36%). The research highlighted the need for businesses to create open cultures, provide training, and foster dialogue around mental health to address this hidden crisis.

According to Business Insider, some of the major companies requiring employees to return to offices are Amazon, Apple, Chipotle, Citigroup, Disney, Goldman Sachs, Google, IBM, JPMorgan, Meta, Salesforce, Snap, Starbucks, Twitter, and Uber. These companies have implemented different policies, such as mandating a specific number of days per week in the office or shifting from remote-first approaches. While some employees have expressed resistance to these mandates and organised protests, the companies continue to enforce their return-to-office policies.

It is likely that remote work will remain more prevalent than before the pandemic, as many companies are settling for a mix of office and remote work. While a mass return to the office for all workers is not yet definitive, experts suggest that productivity and innovation will be assessed as employees are brought back. The coming year will shed light on whether companies truly benefit from employees working together in the same physical space, potentially reshaping the balance of power between employers and workers.

Further reading: https://www.bbc.com/worklife/article/20230206-the-companies-backtracking-on-flexible-work