The Cost of Strict RTO Policies
The RTO trend is not just affecting employee morale but also increasing the time it takes for companies to fill open roles. A recent study indicates the time to fill positions has increased by 23%, or an additional 12 days because it is more difficult willing, or able, to do the daily office commute, While some companies still enforce these policies, the resulting employee churn and hiring difficulties are becoming evident.
The mandates also highlight a disconnect between employers and employees. Many workers, have grown accustomed to the flexibility of remote work and are unhappy about returning to the office. One candidate I spoke with summed it up in a brief, yet telling, response: “I can’t say this more clearly. I will never go back into an office. Good luck.” I chuckled at the response, I couldn’t help but wonder if he will be changing his tune in the coming months when there are fewer remote roles with top employers.
The Hybrid Work Model Gains Traction
While many employees express dissatisfaction with returning to the office, more candidates I speak with are leaning toward hybrid roles, preferring to avoid the daily commute while enjoying the flexibility of working from home. But they acknowledge the importance of face-to-face interactions and the benefits these offer for career development and team dynamics.
Interestingly, the shift to hybrid work isn’t just about convenience. It’s also about recognition and career advancement. LinkedIn’s Workforce Confidence survey recently revealed that remote workers in the U.S. were less likely to receive pay increases compared to their in-office counterparts. About 56% of fully remote workers received a raise this year, compared to 59% of those who commuted daily and 64% of hybrid workers who were in the office one to four days a week.
As a result, many companies are reassessing their policies, and it’s clear that a one-size-fits-all approach doesn’t work anymore. There are pros and cons on both sides of the debate, but companies are now balancing remote flexibility with the need for physical collaboration.
The Hidden Impact on Recruitment
Strict RTO policies can significantly hinder recruitment efforts, as top talent increasingly prioritizes flexibility.
- Smaller Talent Pool: Companies with strict RTO policies limit their pool of potential candidates, particularly those with childcare responsibilities, disabilities, or those who live far from the office.
- Impact on Diversity: Caregivers and workers with disabilities are often impacted by RTO policies.
- Employer Brand: Strict RTO mandates impact employee engagement, retention and attraction because there are perceptions that a strict in-office policy is outdated, and indicates a lack of trust.
In my own network, I’ve spoken with several people recently impacted by RTO mandates. Just this month I have spoken to 3 differently people who had been remote for years but found themselves looking for new roles after their companies instituted strict office attendance policies. These employees lived just outside the required commutable distance, making it nearly impossible for them to comply with the mandates. For them, the shift back to the office was a deal-breaker.
This trend is not isolated. As we move into 2024, we are seeing a noticeable decline in fully remote roles, with many companies leaning toward hybrid models—typically requiring 2-3 days a week in the office. Additionally, there has been a marked increase in the number of fully in-office roles available.
One thing remains clear: attracting top talent for fully in-office roles is becoming increasingly difficult. The talent pool is often limited, particularly for specialized skillsets. There is a real challenge in finding candidates who are willing and able to work under strict RTO policies. In the coming months, it will be interesting to see how companies adjust their strategies to compete for the best talent while balancing the need for in-person collaboration.
Employee-Centric Approach
Flexibility and transparency are essential as we navigate the shifts and try to mitigate the impact on talent retention and attraction. Being up front and transparent about your expectations is imperative. And be honest about where discussions are today, and if there is a chance things will change on your policy in the future. While there are certainly some roles that can be done more easily remotely, I recognize there’s a management challenge allowing some people to work remotely, but not ithers. But there are solutions that can ease the impact. Allow flexibility for commute times. If your team is coming in to spend all their time on Zoom anyway, shift accordingly. Consider offering a certain number of flexibility days during the year so your team can deal with personal situations at home while working, without needing to take a day off.
Michelle Holahan is VP, Head of Employer Brand. She specializes in digital marketing, media and analytics recruiting for CPG, eCommerce and retailers. She serves as a consultant to employers in understanding the nuances of the market and how employer brand and processes impact talent attraction and retention.