- Return-to-office (RTO) is expanding. Most employers anticipate implementing RTO by the end of 2024, but there will be greater flexibility regarding how many employees return and how many days they are onsite.
- Hybrid work will be key. Requiring only several days of onsite work a week may be the most common and successful setup for many companies moving forward.
- Consider employees' needs. Returning to the office can be costly, while working from home may impede promotions. A successful hybrid structure will take all employees' situations into account.
More workers can expect to be back in the office this year as return-to-office (RTO) policies continue to be implemented — but RTO likely will never return to its pre-pandemic structure. In fact, the new consensus about RTO policies seems to be that there is no consensus. Even as more employers say they intend to call employees back into the office this year, many future RTO policies will specify not every employee, and not every day.
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“In our experience, strict mandates tend to be viewed less favorably by employees, as opposed to setting expectations and guidelines that allow for some flexibility and choice for employees — in other words, freedom within a framework,” said Lauren Mason, senior principal, career, at Mercer.
A Hybrid Outlook
Hybrid work is emerging as the answer to both employer needs and employee preferences, as having 100% of employees onsite five days a week is no longer the reality for most businesses whose employees' tasks could potentially be done remotely.
“I think the five-day commute-to-work is dead. Wanting employees back in the office full-time is dead,” said Shekar Nalle Pilli Venkateswara, senior director, work and rewards, at WTW. “We're seeing more companies wanting employees back for just a few days a week, and I think that's what we're going to continue to see.”
As evidence, Mercer's recent Inside Employee Minds study noted that 92% of 749 surveyed organizations have adopted a hybrid model. Jobs with at least a partial remote aspect are expected to continue to increase in prevalence.
Younger employees may be more enthusiastic about in-person work, as it often affords them more opportunities to learn from coworkers early in their career. Conversely, experienced employees may resent once again having to contend with transportation and other RTO logistics after they have delivered successfully in a remote environment for the past few years. That factor is key for employers who want to avoid losing talent.
The Mercer study found that while only 18% of 4,505 employees work remotely, 38% of them want to. By comparison, 48% work onsite, but only 11% prefer to.
“Despite these large gaps in preferences, nearly 80% of employees said they are satisfied with their employers' flexible and remote working arrangements,” Mason said. “So, in many cases, while they prefer more remote environments, most employees appreciate the compromise of hybrid work.”
Mercer further found that employees working at least some of the time onsite in a flexible arrangement were more engaged and satisfied in their roles.
“Human beings prefer personal connection,” Nalle Pilli Venkateswara said. “That is why I strongly believe hybrid is the way to go, because it is meeting the needs of so many different stakeholders in a flexible way.”
Successfully Implementing a Hybrid Structure
Employers with a hybrid environment will need to reconsider how they onboard employees, and take into account employees' needs in a variety of circumstances.
“The key is to ensure that employees have a consistent and compelling employee experience, whether they work remotely, in-person or hybrid — and that employees that choose to take advantage of their employers' flexible working programs are not disadvantaged for choosing to participate,” Mason said.
Prior to the pandemic, remote workers were often more likely to be passed over for promotions or increased compensation. Since more women today opt for remote work than men, employers need ensure that offering remote or hybrid arrangements does not impede women's advancement at their company, Mason said.
Notably, a recent KPMG global survey of 1,325 CEOs found that traditional office-centric thinking persists among top leadership. Challenging a less detrimental and more flexible mindset is the fact that 87% of CEOs polled admitted they are likely to reward employees who make an effort to come into the office with favorable assignments, raises or promotions, the KPMG report showed.
Removing RTO Obstacles
For workers who are returning to the office, businesses may consider subsidizing some of the associated expenses and offering benefits to ease the transition — with transportation passes or reimbursement, free parking, on-site childcare, ensuring the availability of a wide variety of food options, or in-office gyms.
“If companies take the approach of making sure they remove some of the barriers for people to come in, I think it'll go a long way,” Nalle Pilli Venkateswara said.
For remote employees, employers need to decide whether to base their compensation on the office location, the employee's location or a national rate of pay, Mason noted.
Settling into a rhythm with flexible work means an adjustment on both the employer and employee ends — but successfully implementing a hybrid structure will pay dividends.
“Flexibility must be a key factor in an organization's value proposition, as it has become table stakes for most employees,” Mason said. “Rather than a return-to-office policy led by strict rules and mandates, employers should strive toward building a culture of flexibility that allows for time spent in the office on purposeful collaboration.”
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