Over the past several months, major companies including Amazon, AT&T, Boeing, Dell, and Walmart have issued mandates for some employees to return to the office five days a week. This shift back to in-person work has reached the White House, where former President Donald Trump signed an executive order directing heads of departments to revoke remote work arrangements and ensure that employees report to offices full time as soon as possible. Shortly thereafter, his administration proposed a severance payout for nearly all civilian government workers willing to resign by February 6.
Experts warn that this trend could lead to waves of resignations and disengagement, particularly among high-performing workers. According to a study conducted by the Pew Research Center in October 2024, 46% of hybrid and remote employees indicated they would not stay with their employers if they returned to strict in-office requirements. This reluctance stems from a desire for the flexibility that remote work offers.
Some companies appear to be banking on the likelihood that remote workers might resign rather than comply with return-to-office (RTO) mandates. Research from ZipRecruiter suggests that companies planning to significantly reduce their workforce are more inclined to implement RTO policies while simultaneously reporting higher rates of resignation. The trend shows that employees that are most likely to leave after the introduction of RTO are the excellent performers with strong skill sets, as documented by research from the University of Pittsburgh.
This study of S&P 500 companies found that businesses that have curtailed flexibility in workplace arrangements experience higher-than-average turnover, particularly among women, senior employees, and skilled workers. These companies take significantly longer to fill vacancies and see substantial declines in their hiring rates.
As the job market has become more challenging than in previous years, potential leavers are more likely to remain in their positions but with lower employee engagement. Mark Ma, an associate professor at the University of Pittsburgh, noted that some employees may only stay to avoid being fired while actively seeking better opportunities. When those workers find promising options, they are likely to leave, creating an unstable environment for employers.
Data from October 2024 shows that a majority of employees—53%—believe that finding new jobs will be more challenging compared to previous years, a significant increase from 37% in 2022. However, this perception of difficulty in job searching isn’t enough to deter nearly half of the workforce from contemplating departures, especially if their companies reintroduce stringent RTO policies. Kim Parker, director of research at the Pew Research Center, emphasized that this illustrates how much they value the flexibility afforded by hybrid working arrangements.
Companies that maintain flexible schedules seem more likely to thrive in this evolving landscape. Overall, researchers believe that a hybrid model will remain a prominent approach instead of mandating a full return to the office. A 2024 study of S&P 500 companies reveals that only about ten announced any full-time return-to-office policies throughout the entire year.
Further analysis of hiring managers conducted by ZipRecruiter indicated that larger companies possess a greater advantage in enforcing RTO policies, owing to their ability to offer higher salaries and attract candidates more efficiently. Smaller firms, which often cannot compete on salary, may need to rely on their flexibility as a distinct advantage to retain employees in an increasingly competitive job market.
