Rigid Return-to-Office Mandates Harm Retention and Productivity, Research Shows

Greater flexibility and the increasing demand for better work-life balance have become influential factors for employee satisfaction and retention across the workforce. 

Research published by Great Place To Work reveals employees who have the option to choose between onsite, remote, or hybrid work are 14 times less likely to “quit and stay” — a term used to describe employees who remain at their jobs but are disengaged. 

The study, which surveyed 4,400 U.S. employees, reveals the detrimental impact of rigid return-to-office (RTO) mandates on employee retention, productivity, and engagement.  

Employees with flexible work options were found to be three times more likely to want to stay with their organization and significantly more likely to “report giving extra effort on the job.”  

Moreover, these employees reported better relationships with their managers and healthier work environments both psychologically and emotionally. 

The data also highlights the fact that different sectors face unique challenges and opportunities when it comes to remote and flexible work. For instance, remote employees in the finance sector were found to often struggle to connect with their purpose and find meaning in their work. Meanwhile, those in the tech industry reportedly enjoy a better work-life balance but demand more communication about their company’s future. 

In healthcare, remote employees feel more understood and valued by their managers, whereas onsite employees were more likely to need more recognition and support for their lives outside of work. Manufacturing and production sectors also see hybrid employees reporting that they “have fun at work, receive special recognition, and have a voice in decisions that affect them.”  

Despite the clear benefits of flexible work arrangements, the study reveals that 70% of U.S. employees still face mandates dictating where they must work. These kinds of policies are being linked to higher turnover risks and increased rates of employee disengagement. Employees in high-trust workplaces, however, fare much better, with 83% reporting a psychologically and emotionally healthy work environment. 

To address these issues, Great Place To Work recommends several strategies to improve workplace flexibility and culture. These include offering flextime, condensed work weeks, generous paid time off policies, predictable schedules for hourly workers, and increased opportunities for part-time work.