Redefining Employee Value Propositions Amidst Return to Office Policies

Speaking about remote work in 2021, Jamie Dimon, CEO of JP Morgan Chase declared: “It doesn’t work for people who want to hustle. It doesn’t work for culture. It doesn’t work for idea generation.” What should leaders do when they believe that remote and hybrid business isn’t working anymore?

As organizations navigate a post-COVID workplace, return-to-office (RTO) mandates have emerged as a significant topic of debate. While some companies have embraced hybrid or fully remote models, others are opting to incorporate a complete return to traditional in-office work. These decisions not only influence operational dynamics but also have far-reaching implications for leadership, company culture, and the Employee Value Proposition (EVP). 

Paul Marshall, Principal at Signium Ireland, comments: “Understanding the various work setups and how strict RTO policies affect the employee value proposition is crucial in today’s talent market – especially at a C-Suite level. In 2020, the pandemic forced our hand. We went remote out of necessity. Now, it’s a matter of making a decision quite freely – one that affects people’s everyday lives. It’s not a glib matter, and the manner in which companies implement RTO procedures will have consequences, for better or worse.”  

No more ‘new normal’. No more ‘normal’.  

In the last year, numerous large organizations have introduced RTO policies that require employees to return to the office on a full-time basis. This shift toward obligatory in-office work is often met with mixed reactions from employees who have grown accustomed to the flexibility of remote or hybrid work.  

According to a 2024 study by Bamboo HR, which surveyed a combination of US-based employees and HR leaders, more than half of employees (52%) prefer to work completely remotely, while only 39% want to go to the office daily. A separate study found that 70% of companies will increase or maintain the number of days employees are required to be in the office by 2025 and, perhaps most alarmingly, 8 in 10 companies have lost talent due to their RTO directives. 

​​​For employers, incorporating changes like this within a competitive EVP becomes a critical challenge, and organizations find that they must consider various work models before shaping their RTO strategy. At the beginning of the pandemic, “new normal” was the buzzword for remote work. Now, what we’re seeing is that there is simply no “normal” – every organization gets to define what works for them. 

Fully on-site (RTO) 

Traditional five-day, in-office workweeks have become the new default for many companies. While this arrangement may increase teamwork and cohesion, it also limits flexibility, which has become a key component of modern EVPs over the last few years.  

Hybrid arrangements 

Combining remote and in-office days offers a balance between flexibility and face-to-face collaboration. Hybrid models are popular among employees who value flexibility but still appreciate some level of in-person interaction. 

Fully remote 

In a fully remote setup, employees work entirely from home, often with flexible schedules. This model has gained traction, particularly in tech and creative industries, as it provides maximum flexibility and autonomy. However, leaders may find it difficult to track production or create engaging online environments that stimulate inventive collaboration.  

Exploring the benefits of in-office environments 

Marshall clarifies the real reasons that companies are eager to bring their people back into full-time in-office employment: “While affected employees might suspect that returning to the office is intended purely to police performance and drive micro-management agendas, there are a variety of legitimate advantages to five-day in-office work arrangements. Whichever way you look at it, it’s a very delicate decision to make.”  

​​​​​Some of the benefits of full-time in-office work include: 

1. Working in the office encourages people to work together and solve problems creatively. It allows for more spontaneous conversations that can spark new ideas and strengthen company culture by promoting face-to-face interactions. 

2. Being in the office also promotes accountability and fast decision-making since managers can see what’s happening as it happens and give immediate feedback. 

3. Being physically present offers more chances for mentorship and career development, especially for newer employees. It also helps leaders connect better with their teams through meaningful day-to-day engagement.  

4. For those who find it hard to balance work and home life, being back in the office can help set clearer boundaries and reduce burnout.  

5. Companies that own large office spaces might prefer people to return to make better use of office facilities and cybersecurity features. Client-focused businesses can enhance professionalism and responsiveness by working together in person. 

6. Finally, returning to the office can show stability and commitment to stakeholders, helping to build trust and confidence in business continuity, especially in fields where in-person interactions are still important. 

One company that recently took the return-to-office leap is Amazon. The RTO policy was implemented under CEO Andy Jassy in February 2023, with a full rollout to five-day in-office weeks expected to conclude by January 2025. The initial announcement faced significant employee pushback. Internal polls indicated that over 90% of Amazon workers were unhappy with the decision, and 73% considered leaving the company.  

Amazon’s return-to-office rollout led to increased resignations, as well as potential candidates and executive search opportunities dropping out of the company’s hiring pipeline. Even so, Amazon maintained that in-office work is essential for optimal customer service and better innovation. In a candid letter addressing the company’s decision, Jassy outlined how returning to the office would foster collaboration, improve relationships, generate faster ideas and more frequent inventions, and offer more promising coaching and career development opportunities.  

“There was technically nothing false or misleading in Amazon’s RTO memorandum,” says Marshall. “However, the policy had mixed implications for their EVP. While the decision reinforced Amazon’s commitment to in-person productivity, it also led to major discontent among employees who valued remote work flexibility. They overlooked the needs of their people and, like so many other organizations, lacked empathy on how the RTO impacts employees. Some have family responsibilities; others are disabled; some find work-life balance at home; others still might face unbearably long commutes to reach the office. Amazon’s call back to the office might have been better received had the original announcement acknowledged all this, and provided more incentives to cooperate.” 

Practical considerations for return to office policies 

Leaders will need to be willing to change how they manage their teams to effectively support employees who are required to return to in-office work. This means encouraging teamwork in person, treating all employees fairly based on their different needs, and ensuring clear communication every step of the way. A sudden move back to the office can cause tension, so leaders should be more understanding of the challenges employees might face after a long time working from home. 

The effects of a strict RTO go beyond leadership; they also influence company culture. While some leaders believe that working in the office improves teamwork and creativity, there’s a chance that such rules could lead to resentment and form a divide between management and employees. The goal is to build a culture that keeps the advantages of being in the office while also recognizing the flexibility many employees have come to value. 

Organizations that are in the consideration phase of RTO implementation should spend ample time finding a balance to keep employees engaged and happy in the changing workplace. 

1. Assess organizational needs VS. employee needs  

Before implementing a strict RTO policy, it’s essential to assess both organizational and employee needs and preferences. Business leaders must consider the specific tasks and roles that benefit most from in-office work, while also trying to understand employees’ preferences for flexibility. Finding this balance is key to maintaining a strong EVP. 

2. Decide using data, not speculation or trends 

Organizations can leverage data from employee surveys, performance metrics, and collaboration tools to inform their RTO strategies. This data-driven approach ensures that decisions are based on actual business needs and employee feedback rather than assumptions. 

3. Test-drive different models 

Before implementing a full-scale return to office, companies could consider piloting various work models, such as hybrid arrangements or adaptable working hours. This allows them to test different formats, gather feedback, and refine their approach. Piloting also provides a more flexible transition, reducing resistance from employees who might be feeling anxious about a full return to the office. 

4. ​​​Understand RTO impact on executive search 

“For leadership positions in regions with almost 100% employment, the war for talent is more acute, and language should be tempered,” says Marshall. “You catch more flies with honey than with vinegar”.   

Prospective candidates may acknowledge that ‘migration’ back to a five-day office-based working week is happening and view it in a positive light. They may even be looking for an office-centric role but will balk at being ‘mandated’. Applicants for the humblest roles will draw negative conclusions about an organization’s culture where the use of dictatorial language is concerned.  

For most, individual freedom and exercising personal choice is an important factor when selecting where to live and work. Authoritative or even dictatorial language from a prospective employer is unhelpful, even where other opportunities are scarce. 

Taking brave first steps toward a full return-to-office 

Understandably, company leaders may have reservations about how to best approach the topic of a full return to office with their employees. “People have become accustomed to the flexibility and freedom that comes with remote and hybrid working setups,” says Marshall. “They’re able to make decisions pertaining to work-life balance, and they have more freedom when it comes to family demands. An RTO policy disrupts this ‘new normal’ completely, which is what makes it such an uncomfortable situation.” 

Engaging employees in the process by seeking input and feedback helps ensure that their well-being is considered and allows for adjustments to the policy as needed. To further support employees during the transition, companies could also explore flexible working hours, wellness programs, and mental health resources. Initiatives like these demonstrate a commitment to employee well-being and help ease the shift back to in-office work. 

“Yes, it’s a business decision,” says Marshall. “But business relies on people, and a decision of this scale must be taken with care and a commitment to make it work as smoothly as possible for all concerned.”