Strategic ‘Return-to-Office’(RTO): What employers and employees need to know.

As companies start asking people to return to the office (RTO)(1), many employees are feeling stressed. Since COVID-19, the way we work has changed a lot, and now businesses and workers are trying to agree on how to move forward—whether to work from home, the office, or a bit of both.

When the pandemic hit in 2020, many workers had to quickly adjust to working from home. But as the world recovered from the pandemic, many companies began bringing people back to the office.

KPMG’s 10th annual CEO Outlook 2024, which surveyed 1,325 CEOs across 11 top economies including Australia, offers insights into the strategic direction and concerns of today’s CEOs. It’s reported that 82% of respondents forecast a full return to the office within three years.

What started small in 2022 soon became a big movement in 2024. (2)

Why companies want people back in the office.

Companies have several reasons for pushing employees to return to the office.

They believe that in-person work improves collaboration, helps maintain company culture, and boosts productivity.

Being in the same physical space fosters mentorship and career growth, especially for junior staff who benefit from learning directly from experienced colleagues and expanding their networks.

The spontaneous interactions that happen in an office setting can also spark creativity and innovation, something that’s harder to replicate in remote environments.

From a financial standpoint, companies want to make the most of their real estate investments by filling office spaces.

Additionally, from a security perspective, working in the office provides a safer, more controlled environment for protecting sensitive information and maintaining cybersecurity. Offices offer more secure data protection systems compared to the potential risks of remote work on less-secure networks.

However, some reports suggest that RTO mandates could also be a cost-saving measure for companies, encouraging voluntary staff turnover without having to pay large severance packages (3).

How this has Impacted employees.

A BambooHR survey of U.S. employees found that only 39% of workers prefer to be in the office. And of those who have returned, 42% feel like they are going back just to “be seen.” This has added pressure on employees to be visible at work, making them feel less comfortable.(4)

The same report shows that worker happiness hit a low point at the end of 2023. One of the main reasons is that wages haven’t kept up with rising costs. Many people are being asked to return to the office without getting a raise, making life more expensive during tough financial times. This has led to more frustration and distrust between employees and their companies.

Gartner reports that “Return-to-Office mandates aren’t worth the risks”. Issues with work-life balance ranks among the top five reasons employees give for leaving a previous employer. And, on average, employees at organisations that implemented a RTO mandate report lower intent to stay compared to those whose organisations did not. (5)

Many employees are pushing back on return-to-office policies because they’ve grown used to the flexibility and balance that remote work offers.

Working from home allows people to save time and money on commuting, spend more time with family, and manage personal responsibilities more easily.

For some, remote work has improved their mental health by reducing stress, giving them more control over their day, and offering a quieter environment to focus.

Additionally, with inflation and rising living costs, returning to the office without any increase in pay feels like a financial burden. Employees worry that losing the flexibility they’ve come to rely on will negatively impact their wellbeing and work-life balance.

What Employers Can Do

Train managers: One of the biggest challenges of return-to-office (RTO) policies falls on managers who had no say in creating these policies but are expected to enforce them with little flexibility. This is a major oversight by companies. To ensure successful implementation, businesses must provide managers with proper training and tools, helping them roll out RTO policies smoothly and gradually while supporting their teams through the transition.
Listen to employees: Every worker has a different situation. Some need to work from home because of commuting issues, childcare, or personal reasons. Employers should ask for employee feedback—through surveys or group discussions—to inform their decisions about RTO policies.
Offer flexibility: Allowing employees to split their time between home and the office can work for everyone. For example, team meetings can happen in person, while focused tasks can be done from home. Offering flexible work hours is another way to help employees balance work and life.
Communicate clearly: Companies that explain their decisions build more trust. Keeping employees updated regularly and providing ways for workers to share their thoughts helps maintain a strong relationship between management and staff.
Adapt company culture: With more people working remotely, companies need to put effort into keeping the culture strong. This could involve team-building activities, training managers to avoid favouring in-office workers, and finding ways to make everyone feel included, no matter where they work.
Make office time worth it: Unsurprisingly, employees get frustrated when they come to the office only to spend the day on Zoom calls. To make office days valuable, employers should focus on building relationships, giving useful feedback, and offering opportunities for upskilling
Prioritise employee health and wellbeing – post-covid employees are more self-aware and their newfound will to improve their health and wellbeing is driving their major life decisions including work. According to Mental Health at Work report 2023, 81% of employees worldwide would prioritise good mental health over a high-paying job, and 64% admit they would take a pay cut for a job that better supports their mental wellness. (6)

What employees can do.

Think about your needs: Change is hard, especially when it feels forced. Take time to think about how going back to the office will affect your life. Decide what parts of your current work-life setup are important to you and you would like to keep.
Talk to your manager: If you’re worried about returning to the office, speak with your manager. Be ready to share ideas on how the company could help make the transition easier, such as working from home part-time, adjusting hours, or providing better support for childcare or commuting.
Plan ahead: Going back to the office might mean changing your routine. You may need to wake up earlier, prepare meals in advance, or figure out new childcare arrangements. Planning ahead can make these changes less stressful.
Use office time wisely: When you’re at the office, make the most of it. Focus on the meetings and tasks that help you be more productive and avoid wasting time on unnecessary distractions. Try to build meaningful connections with colleagues or find mentors who can help you grow in your career.
Plan and prioritise what matters: Whether it’s your health, career, finances, or personal connections, think about what’s most important to you. Plan ahead and make decisions that will improve your life in the long run.

Returning to the office may be challenging, but with the right approach, both employers and employees can find a way to work together that benefits everyone.

Roots Health Academy offers live expert-led masterclasses providing clear, science-backed insight and actions. Passing on the wisdom employees need to tackle the root causes of poor wellbeing.

Strategic ‘Return-to-Office’(RTO): What employers and employees need to know.