What has the impact of Return to Office policies been on employees? It’s almost impossible to tell definitively, because there are hundreds of thousands of companies making this decision, and almost as many variations of the policy as there are organizations grappling with it. One recent study, though, suggests that it’s having a negative impact on retaining top leaders.
A joint study by the University of Chicago and University of Michigan looked at three top tech companies (Apple, Microsoft, Space-X) to determine if new policies about time in the office had an impact on turnover and retention. It said, in part that, “our findings imply that return to office mandates can imply significant human capital costs in terms of output, productivity, innovation, and competitiveness for the companies that implement them."
For the record, Microsoft’s internal statistics don’t agree with the study. And yes, it’s only three companies. But why is this considered a bell-weather study?
- These three companies are huge- they represent thirty percent of tech industry’s revenue
- They also make up two percent of the tech workforce
- Other companies benchmarked their own policies against these industry giants
Why are top leaders the most likely to rebel against strict return to work policies? According to an article on Arstechnica.com, it is because many of them have direct reports who are already dispersed, so remote and hybrid work is more appropriate for those levels of the organization. They also know their jobs and require less daily coaching and collaboration with their peers. (Editors note: allegedly.)
Finally, senior leaders are more attractive to recruiters and an organization’s competition. Unhappy leaders are more prone to leave the organization if their requests for flexibility or full-time remote work aren’t accommodated. Keeping them happy is often more of a priority than it is keeping rank-and-file employees content.
This comes at a time when the pendulum seems to be swinging back towards more time in the office. Some organizations have gone so far as to track “door swipes” or VPN usage to ensure workers report to the office as often as they should.
At the Kevin Eikenberry Group, we aren’t zealots for one kind of work or another. We believe that each company and team should do what works best for them. But those choices need to be informed, and leaders should develop the skills to manage their people in whatever environment they find themselves.
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