The pros and cons of RTO mandates—what’s the right approach for YOUR company?

Recently, prominent companies such as Amazon—and even the U.S. government—have implemented RTO mandates.

Return to office mandates are policies that require employees to work on-site instead of remotely and come as a response to the widespread remote work adoption that followed the COVID-19 pandemic.

Some see this as an inevitable return to normal, while others argue it represents a step backward for employee flexibility. In this blog post, we take a closer look at this heated topic and explore the pros and cons of return to office mandates to help your organization make the most informed decision about its work model.

RTO mandates: How we ended up here

During the COVID-19 pandemic, companies were pretty much compelled to allow flexible work arrangements to keep things running. The balance of power, effectively, shifted toward employees, granting them more autonomy in their work preferences.

While the transition to this new reality was not without its challenges, it generally proved successful. For example, a 2023 survey of U.S. companies operating remotely or in a hybrid model revealed that only 5% reported a decline in performance. Given the benefits to employees, such as improved work-life balance, one might reasonably ask: why is there now a debate about RTO mandates?

The same survey posed that question to around 150 U.S.-based CEOs. Common reasons for wanting employees back in the office include:

• Loss of innovation: Some leaders worry that remote work environments limit the spontaneous interactions that fuel creativity and innovation. With more limited in-person brainstorming, employees may struggle to exchange ideas. 
• Leadership effort: For some managers, leading remote/hybrid teams may demand more time and effort to ensure effective communication, work distribution, and relationship-building. Leaders may need to adapt their management styles to address the diverse ways employees approach work.
• Company culture at risk: It can be more challenging to maintain a strong company culture with a remote/hybrid workforce. With fewer in-person interactions, employees may feel disconnected from the company’s mission and values. 
• Collaboration challenges: Integrating remote employees into team projects and real-time collaboration can be difficult, when, for example, team members are spread across different time zones. The lack of immediate access to colleagues can slow down decision-making and problem-solving. 
• Productivity concerns: While employees may even log more hours, some companies report declining productivity and efficiency in hybrid and remote work models. Leaders worry that without direct supervision, employees might struggle with time management. 

While these are valid concerns, it is worth asking whether the potential downsides of remote work really warrant a full RTO mandate. Evidence suggests that hybrid work might be a better solution—let’s explore this in more detail.

Hybrid work: No need for return to office mandates?

It’s easy to see how a hybrid work model combines the best of both worlds. It offers employees much-appreciated autonomy while still delivering the benefits of in-person interactions that companies and leaders value. A properly implemented and supported hybrid work model effectively mitigates the risks we mentioned earlier—and also provides other tangible benefits.

Research highlights the benefits of hybrid work

A recent study took a close look at Trip.com, an online travel agency, to compare two employee groups—one in a hybrid setup and the other fully in-office. After six months, the experiment revealed some intriguing insights:

• No decrease in productivity

Before adopting hybrid work, Trip.com managers assumed it would lead to lower productivity. However, after six months, they reported a slight 1% increase in productivity instead. This shows that concerns about flexible work hurting performance are unfounded. Most employees maintain the same efficiency as in a traditional office, and some even perform better.

• Improved employee satisfaction

Employees with the option to work remotely part-time reported higher job satisfaction. More control over their schedules, avoiding long commutes, and working in a comfortable environment all contribute to a better experience.

Hybrid work gives employees the flexibility to balance personal needs, like childcare or medical appointments, alongside their work. Better work-life balance can lead to more engagement, higher-quality work, and a stronger company culture.

• Better employee recruitment and retention

Happier employees, in turn, mean lower turnover. Fewer resignations reduce the costs of recruiting, onboarding, and training new hires. Trip.com’s quit rates fell by over a third for hybrid employees, saving the company millions annually.

Hybrid work also makes companies more attractive to job seekers. In a competitive job market, flexibility is a key factor, with many candidates prioritizing hybrid or remote options. Companies that offer this can access a wider talent pool—for example, top candidates unwilling to relocate or commit to full-time office work.

How to develop a successful approach to work

While the Trip.com study makes a strong case for hybrid work, its success hinged on several factors. The company implemented an effective performance management system, alongside vocal leadership endorsement for a flexible environment where everyone can thrive. 

The lesson here is that any decision about a work model—whether you want to adapt a new strategy or improve your current one—should be informed by reliable data and supported by the right tools.

Here are three things you should pay attention to.

1. Data-driven approach

Rather than relying on outdated assumptions, make your stance on remote and hybrid work data-driven. 

DeskTime provides valuable insights into how employees spend their time. Time tracking allows managers to monitor team performance and ensure accountability, while also helping people improve their individual time management habits.

With DeskTime, you can continuously evaluate and refine your work policy to maximize effectiveness and long-term success. Try the free demo to get started. 

2. Leadership support

As we discussed, the success of Trip.com’s hybrid model was reinforced by strong leadership backing. The CEO and executive team actively supported the policy, recognizing that leadership buy-in is essential for driving change. 

This principle applies to any work model—whether you are also considering a hybrid transition or something different. Full leadership commitment—from the CEO to managers—helps reinforce the chosen approach to work as a core part of the company’s culture.

3. Consider long-term resilience

The COVID pandemic certainly caught many businesses (and governments) off guard, revealing just how unprepared some were for such a large-scale disruption. This highlights the importance of considering how resilient your approach to work truly is. 

How would it hold up in the event of another pandemic or other unexpected global challenges? Hybrid work, in particular, stands out as more adaptable and resilient because it by design allows for flexibility in how and where employees work. In contrast, a strict RTO mandate would be far more difficult to reverse or adjust quickly.

Adapting to a new reality

The key takeaway from the return to office mandates debate is that the success of any work model depends on how it’s implemented. The pandemic-driven shift to remote work showed that poor practices—not the policy itself—led to struggles for some companies.

As we’ve seen, companies like Trip.com have successfully implemented the hybrid model. Others, such as Amazon, seem determined to bring their employees back to the office. Although some major players are also making similar moves, experts believe that work from home is here to stay. 

We will have to see how this plays out in the long term—whether businesses with less flexible work arrangements will be able to maintain employee satisfaction and prevent brain drain through other incentives.

The hard truth for leaders is that current RTO mandates are not due to inherent remote/hybrid work failures. It’s more about some companies finding it easier to go back to what they know—the familiar 9-to-5 in the office—rather than making the effort to adapt to a new reality.