Return to office policies: What makes them work?

When COVID-19 struck, millions quickly adapted to remote work, ditching the commute for home offices and discovering perks like flexibility, time saved and a better work-life balance. 

Many companies responded by offering hybrid models that blend in-office and remote work. While some have embraced this new way of working, others are doubling down on stricter return-to-office (RTO) policies. Companies like Amazon and Dell are making headlines by mandating employees return to the office three to five days a week. 

But Dave Cairns, a "Future of Work" strategist at workplace software company Kadence, said most companies are taking another approach. 

"According to a Flex Index study, 79% of tech companies in North America allow employees to decide when they work in the office (56%) or are fully remote (23%), 18% have a ‘structured’ hybrid mandate (specific days are mandated) and only 3% are fully in-office," Cairns said.

Proponents of RTO policies, however, cite collaboration, productivity and company culture as their drivers. Companies like Amazon and Dell argue in-person interaction is critical to productive teamwork.

Others, like Spotify, prove building strong, effective teams without a physical office is possible. Spotify has fully embraced remote work as part of its culture, trusting employees to manage their time. “You can’t spend a lot of time hiring grown-ups and then treat them like children,” Spotify claims, placing respect for employee autonomy at the center of its approach.

Here is a closer look at what might be behind the push to bring people back to the office and why using data and employee feedback is essential to ensuring that RTO is the right choice.

Keeping power in check

Historically, office culture centered around managers who could easily “swing by” desks and oversee their teams face-to-face. This reinforced a clear power structure with a physical presence-based hierarchy. Managers who relied on in-person oversight found themselves managing from afar during the pandemic, which some perceived as a loss of control.

RTO allows companies to reestablish this dynamic. Physical presence becomes a tool for control, making it easier to track arrival and departure times and establish accountability through visibility. For these companies, RTO is more about restoring traditional power dynamics than productivity gains.

Justifying real estate investments

Office space is costly, and remote work has left some companies paying for empty desks and meeting rooms, unused utilities and building maintenance. An RTO mandate can help justify these costs.

Some companies are also influenced by pressure from local businesses that rely on office workers. As cities have seen drops in tax revenue, public transit use and local business profits, some companies face pressure from local governments to “help bring people back.” In these cases, RTO mandates are as much about supporting the local economy as company culture.

Reducing headcount, subtly

RTO mandates can also be a strategic way for companies to reduce staff without layoffs or severance. For employees who value remote work for personal or practical reasons, RTO mandates may push them to resign and seek other opportunities.

Implementing the RTO policy allows companies to trim headcount without the costs or reputational risks of traditional layoffs. By paying severance or unemployment, companies save money and avoid the backlash often associated with workforce cuts.

As CNN reports, President-elect Donald Trump’s new Department of Government Efficiency, a nongovernmental entity led by his allies Elon Musk and Vivek Ramaswamy, is expected to push for an end to remote work across federal agencies as a way to help reduce the federal workforce through attrition.

Why some take a different route

While some companies enforce RTO, others allow employees to choose where they work best. Spotify, for example, has committed to a remote-first model, trusting employees to manage their time and priorities. Their philosophy is simple: People work best when given autonomy and respect, balancing their work and personal lives without restrictions.

Companies like Spotify prioritize cultivating relationships and productivity, regardless of where their teams are. A 2023 Gartner report that employees are often more productive and satisfied when they control where and when they work. Flexible workplaces are also more inclusive, supporting women, people of color, caregivers and those with chronic health conditions.

"Don't try to recreate the old world. Imagine what can be.” According to Phil Libin, co-founder and CEO of mmhmm and All Turtles, co-founder and former CEO of Evernote.

From Libin's perspective, the focus should be on managing distributed teams well. It is less about choosing a side and more about how to work more effectively regardless of companies’ 'work from' policies.

What makes an RTO strategy work?

Salvatore Affinito, assistant professor of management and organizations at NYU Stern School of Business, said it's important for companies ending remote work "to make a compelling case to employees for why being in the office is important to company leadership."

"I think what many employees are hungry for is a clear rationale behind these initiatives and widespread role modeling from company leadership of using time in the office effectively," Affinito said.

Successful RTO strategies are not based on assumptions or executive preference but on complex data and employee feedback, experts said. Companies must genuinely listen to their teams to understand how RTO policies affect different groups. With flexibility and an open mind, leadership can reduce the turnover and disengagement that often result from enforcing rigid policies.

“Leadership must prioritize supporting middle managers," Phoebe Gavin, a career and leadership coach, said. "[They] face pressures from multiple angles: their supervisors, who may push them to enforce policies they didn’t create; their lives, which are affected by the changes; and their direct reports, who may be unhappy with the new direction.”

A flexible RTO strategy helps companies retain talent by addressing challenges like long commutes and childcare costs, which stricter mandates often overlook, experts said.

The best RTO policies respect individual needs, allowing employees to work in ways that suit them best. Companies can build a culture that fosters growth, inclusivity and productivity by focusing less on mandates and more on flexibility and trust.