Research Insights: The Future of the Flexible Workplace

The rise of remote work since the COVID-19 pandemic has significantly shifted workforce expectations. While companies initially embraced flexibility, many are now enforcing Return-to-Office (RTO) policies, citing productivity and company culture as primary motivations. However, these mandates have faced resistance from employees, with negative reviews about RTO policies increasing five-fold since mid-2021, with many attributing these changes to management decisions.

Enforcing RTO policies has considerable implications for employee sentiment, attrition, workforce growth, and diversity. RTO mandates are linked to higher attrition rates and slower workforce growth, and they disproportionately affect women, particularly those managing care giving responsibilities—groups that greatly benefited from remote work.

Additionally, RTO policies can significantly impact employee sentiment and engagement. While often framed as essential for improving company culture, the evidence suggests otherwise. For example, Amazon's recent RTO announcement triggered immediate backlash from workers accustomed to flexible arrangements. Data shows that sentiment among remote-suitable employees—such as software engineers and economists—dropped sharply the week the policy was announced and remained low in the following months. In contrast, sentiment among employees in roles that require physical presence remained stable, showing no significant reaction to the policy change.

While remote work provides flexibility and access to a wider talent pool, it also introduces unique challenges that organizations must address to maintain productivity and engagement. These include higher attrition rates, particularly among employees outside metro areas or internationally, as well as the high coordination costs of remote work, which often result in long and unpopular meeting hours.

Remote and in-office work policies are not one-size-fits-all. In this full-length report, we include further insight into considering and measuring your workplace’s flexible work policy.