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The 411 on RTO

Just when I thought I had read my last RTO (return-to-office) policy article, Amazon announced that employees would be required to be in the office 5 days per week come January 2025. That announcement has created a subsequent backlash of articles with headlines such as “Amazon’s Return to Office Mandate is a Huge Mistake” and “Why Amazon Should Fold Its 5 Day Return-To-Office Card”. The general sentiment is that Amazon is taking a giant step backwards. The authors argue that after years of working remotely/hybrid and producing results; to take away an employee’s autonomy just so leadership can see the whites of their eyeballs Monday through Friday is both unfair and unnecessary.

On the other side of the argument, leaders are trying to foster a culture of collaboration and that can be hard to do when employees aren’t in the office. Disney was an early adapter to a more aggressive in-office approach. They’ve required four days in the office per week since January 2023. Disney CEO Bob Iger was quoted as saying, “In a creative business like ours, nothing can replace the ability to connect, observe and create with peers that comes from being physically together, nor the opportunity to grow professionally by learning from leaders and mentors.” Well said, Bobby boy.

What Bob gets right in his message, is that he’s explaining the “why” and tying it back to the needs of Disney’s unique business. And despite the backlash against RTO policies, there are some employees that agree with him, especially when it comes to his comments on mentorship. In Joblist’s 2024 United States Job Market Trends Report, it was found that nearly 60% of Gen Zers prefer in-person jobs. Why? They value in-person connection and the learning opportunity it provides. That’s worth paying attention to considering Gen Z will make up 27% of our workforce by next year.

Over the course of 2024, I’ve seen a lot of companies settle into their new policies, many landing on a flexible, 3-days per week in the office requirement. It’s the happy medium that provides employees with the opportunity to socialize, collaborate and innovate, while still giving them balance, flexibility and choice. It’s also a safe approach. According to Gallup 2-3 days in the office is what the majority of employees prefer. In companies with highly engaged employees, that number is often higher. I was recently chatting with a customer about their positive workplace culture. This leader asks employees to come in 3 days per week and often finds them coming in 4-5 because they want to be there. They have such a dynamic, support environment that not being there actually causes office FOMO.

With large corporations making the shift to more in-office days, there will inevitably be a wave of followers. Research is already indicating that. The most recent KPMG CEO Outlook Survey showed that just 17% of CEOs said they envision traditional office roles being hybrid over the next three years – a substantial drop from 46% earlier this year.

The thing is – it doesn’t matter what Amazon is doing. Or what Disney is doing. Looking at how other companies handle policies isn’t necessarily the best indicator of what you should be doing for your business. Every organization is unique, and decisions should be made based on the work that you do, the individual roles on your team and what your employees need. Once you decide on a policy, take a cue from Bob Iger and make sure your employees understand the purpose and how it will support the business goals. Engaging with employees and clearly communicating will be the key to your success.

 

Inc.com: https://www.inc.com/joe-procopio/amazons-return-to-office-mandate-is-a-huge-mistake.html

Forbes: https://www.forbes.com/sites/danpontefract/2024/09/20/why-amazon-should-fold-its-5-day-return-to-office-card/

Joblist: https://www.joblist.com/jobs-reports/2023-trends-united-states-job-market-report

Gallup: https://www.gallup.com/workplace/511994/future-office-arrived-hybrid.aspx

KPMG: https://kpmg.com/us/en/media/news/us-ceo-outlook-survey-2024.html

 

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