Return-to-Office policies raise questions over productivity, employee retention
Many companies are revisiting return-to-office mandates, citing data that suggests in-person work leads to better outcomes. Earlier this month, Microsoft announced all of their employees will begin working at least three days a week in the office starting in February of 2026.
A 2024 study of S&P 500 firms found that return-to-office policies frequently followed drops in stock prices, as companies sought to boost productivity and financial performance. However, the benefits remain unclear.
In cities such as Atlanta, some employees spend two to three hours a day commuting. Employees argue that time could be used for work. By the time they arrive to the office, the now outdated environment leads to stagnant or even decreased productivity.
Research from Stanford indicates hybrid models can be effective when implemented intentionally. Employees who work from home two days a week are as productive as full-time office workers. They are also just as likely to be promoted — and 33% less likely to resign. Additional studies show remote and hybrid employees take fewer sick days, ultimately increasing work satisfaction.
Some workers quit when faced with in-office mandates — a trend that may be intentional. When companies tighten up, layoffs typically follow. The Federal Reserve reported in August that some employers are “reducing head counts through attrition — encouraged, at times, by return-to-office policies.”
“This is a cheap way to reduce head count, there’s no disguising that,” said Stanford economist Nicholas Bloom. “The problem is, you don’t get to choose who leaves.”
According to Bloom, most companies do not rigorously enforce attendance by reviewing badge swipes, Wi-Fi logins or time-off records. He added HR departments typically investigate only when workers miss at least half of their required days.
Office attendance varies by region. In New York City, banks including JPMorgan and Goldman Sachs have pushed for full-time office work. This has led to subway traffic reaching pandemic highs. City foot traffic also surpassed 2019 levels for the first time in July.
While large companies’ mandates attract attention, smaller firms mostly maintain some remote work, according to Work Forward data.
Compliance falls as mandates rise. Employers requiring one day a week see near-perfect attendance, but those mandating three or more days get less than 75% compliance, a CBRE survey found, up from less than two-thirds a year ago.
While the return seems inevitable in some fashion many are clinging on to at least some sort of hybrid. In a recent survey, 40% reported that if hybrid options were taken away, they would start looking for another job. There were 22% who said they would expect a raise, and 5% said they’d quit on the spot.
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Ella Rae Greene, Editor In Chief
