2024 employee benefits & workplace predictions: RTO policies
Industry leaders share their thoughts, comments, and concerns about RTO mandates and how it will affect their 2024.
The debate about whether to return to the physical office or not has been a hot conversation in 2023. Many employers think that fully being in-person will create more productive employees. On the other hand, employees think that a hybrid work model is the sweet spot.
Industry leaders share their thoughts, comments, and concerns about RTO mandates and how it will affect their 2024.
The hybrid model
Despite a number of companies pushing for RTO, recent research shows that workers have a strong preference for a hybrid model – with two or three days of remote work per week being the most popular choice (37%). In 2024, we can expect leaders to more readily accept that hybrid work is here to stay. EY’s Belonging Barometer 3.0 shines a light on the benefits of hybrid work, finding that more than half of workers (64%) reported that it led to a greater sense of belonging, as they appreciate the organization becoming more flexible and feel encouraged to share opinions on needs and preferences. Moreover, in the coming year we’re likely to see further advancements in AI and technology, which will make hybrid working even more seamless – 44% of employees believe generative AI will have a positive effect on flexible working, according to findings from EY’s 2023 Work Reimagined Survey.
Karyn Twaronite, Global Vice Chair for Diversity, Equity & Inclusiveness, EY
Flexibility and trust will win out in 2024
As the RTO debate continues, flexibility will ultimately win out in the end. But not just any flexibility, equitable flexibility. For those who need to be onsite for their positions (e.g., hourly frontline workers), organizations will need to find ways to integrate more flexibility into those types of roles while simultaneously offering more predictability.
Trust issues are at the core of the flexibility debate – companies that are monitoring keystrokes/hours at the computer are doing it wrong. As organizations strive for more equitable flexibility, they need to rethink how they’re looking at performance management and refocus on outcomes.
Dean Carter, Chief People and Purpose Officer, Guild
To return or not to return?
The disadvantages of return-to-office (RTO) mandates will become more apparent, while voices in favor of RTO grow louder.
RTO has been debated ad infinitum. For those of you tired of the back-and-forth, I’m sorry to say it’s going to continue, and perhaps grow more cacophonous in 2024.
First, the data: Gallup’s report on remote and hybrid work arrived in October, and it is tellingly titled, “The Future of the Office Has Arrived: It’s Hybrid.” Of note, “9 in 10 remote-capable employees prefer some remote work flexibility, with the majority preferring hybrid work.”
Remote- and hybrid-capable employees see no reason to return to the office if it does not materially impact their productivity, and will correspondingly seek workplaces that align with this perspective. For organizations that double-down on RTO mandates, the consequence will be difficulty in recruiting and retention. At the same time, those that embrace malleable remote and hybrid options will see a larger pool of potential employees, reduced quit and burnout rates, and increased employee flexibility relative to base pay. RTO proponents, particularly those with extensive holdings in business real estate, aren’t going to go quietly – I’d guess they’ll grow even louder and bolder as the scales continue to tip in the other direction – but this is their new reality. The genie is not going back into the bottle.
Scott Cawood, CEO, WorldatWork
Employers will make more of an effort to provide equitable flexibility to ALL employees to boost balance and fulfillment
Employees not only crave flexibility, but also need flexible work environments that allow them to better balance their lives and greatly improve their sense of fulfillment. This means creating a work culture where equitable flexibility is a priority. In 2024, more leaders will put in the effort to learn their employees’ unique needs and work with them to find a level of flexibility that works for all. In turn, the employees involved will feel more connected, engaged, and will want to stay.
Mindi Cox, chief people officer, O.C. Tanner.
The future of work landscape continues to evolve
I think many employers tempered their remote working arrangements for a return to office or hybrid work, and learned that flexibility remains a significant employee value proposition that must remain top of mind for employers.
More than ever, employers will be pressured to deliver a positive employee experience and should continue to listen to their own workforce to determine what strategies work best for the business. With so many emerging technologies, employers will also find their must continue to lead through change as they make organizational decisions.
Alison Stevens, Senior HR Director, Paychex.
The office is no longer a workplace – it’s the new offsite reality we must embrace
As we progress into 2024, we will continue to witness the transformation of the office into an offsite event space designed for enhanced collaboration among employees. With the workforce scattered across different locations and the increasing cost of commuting placing a financial burden on workers, companies are reevaluating the purpose and functionality of the office. It is essential to prioritize the creation of functional and flexible rooms with high-quality audio while also ensuring remote workers are equipped with the necessary technology to participate from their location. Simplicity is key in finding the perfect balance between functionality and flexibility.
Troy Jensen, Senior Manager of Global Accounts, Shure
Flexible, culture-forward organizations
Even as many employees have transitioned from remote to hybrid environments, providing flexibility around schedules will remain a valuable touchstone for culture-forward organizations. Those who recognize the value of this flexibility and that great work doesn’t have to happen between 9-5 every day will continue to retain employees at a higher-than-average rate. That said, one of the benefits of having employees in the office more often now than before is the more significant opportunity for collaboration, which only occurs when the majority of people can reliably be present in the office. The flexibility around schedules will likely come with more guidance than it did over the past couple of years regarding what days/hours are flexible vs. what is non-negotiable.
Aaron Rubens, Co-Founder & CEO, Kudoboard
Individual dynamics
In 2024, the conversations that are most likely to influence workplace trends are around communications, the end of remote work and the integration of technology and AI. For all of these subjects, organizations should apply the golden rule: never assume, always ask. Failing to do so may put companies at risk of losing valuable talent. Given the diverse preferences and motivations of individual workers, what proves effective in communication for some may not hold true for others. Amidst the global conflicts, it is crucial for employees to perceive their workplace as a secure and receptive environment where they can freely discuss topics that hold significance for them and that impact their professional lives. Organizations should actively stay attuned to these concerns and address them thoughtfully, avoiding the implementation of broad, one-size-fits-all policies.
The same principle holds true for efforts aimed at bringing employees back to the office. Companies should only create return-to-the-office policies if they have an excellent reason to do so. Recognizing the varied requirements for optimal performance, employers should be mindful that mandating full-time or even partial in-office attendance can impact satisfaction and productivity levels. Delving deeply into understanding these individual dynamics is the preferred approach to formulate a successful strategy for reintegrating people into office settings.
John Hackston, Head of Thought Leadership, The Myers-Briggs Company
Make the physical space meaningful
We’ll see employees prioritize spending time in the office when it delivers clear value. And the onus is on the employer to make these physical spaces meaningful — not just a row of desks for people to silently work in the same room. Leaders, from line managers all the way to the C-suite, must reimagine the purpose of the office and provide opportunities for employees to be at the right place at the right time to foster connections, with both peers and team members outside their work groups.
It’s not enough to announce that the doors are open. Leaders need to be intentional about creating moments that matter. From syncing up calendars to overcommunicating engagement opportunities, leveraging soft skills like social intelligence and collaboration will elevate the value of the office to far more than the sum of its parts.
Michelle Day, VP of HR, Pearson
Companies will struggle with retention
RTO policies will be detrimental for companies to recruit and retain underrepresented talent – particularly caregivers, who just lost federal subsidies, lower-income families, and those with disabilities. The unconscious bias that remote workers are less committed or productive further hinders DEIB, as it limits career advancement for those unable to access networking, mentorship, and skills development opportunities, which typically take place in the office. Companies that fail to incorporate commuter perks, flexible schedules, and childcare support into their benefits packages will struggle with attrition and lose out on quality talent.
Sam Friedman, SVP of People Strategy, Hired