TRENDS, TOPICS & VIEWS

Remote Work and Return-to-Office Policies: How Best to Avoid Risks

Author: Alliant

 

Remote work has remained a popular option in the years following the COVID-19 pandemic when it proliferated to protect the health and safety of workers. Many employees favor remote work due to the reduced commute, less time spent on appearance and the flexibility to allow for doctors’ visits, family obligations, etc. Employers, on the other hand, have in comparison been less inclined to continue remote work polices post-pandemic, with some adamant about requiring employees to return to their offices for work, or in hybrid roles.

 

In June 2022, McKinsey & Company released the results of the third edition of the American Opportunity Survey (AOS)i, which questioned 25,000 Americans among a cross section of workers, jobs and employment types  on flexible work. According to results of the AOS, which was conducted in spring of 2022, 58% of those surveyed--equivalent to 92 million people--reported having the opportunity to work from home at least one day a week. This represents a major shift in the workplace and in society as well, with 35% of the respondents reporting they can work from home full time and another 23% able to work from home one to four days a week. Only 13% of employed respondents replied that although they can work from home, they opt not to do so. 41% of survey respondents reported they do not have the option to work from home. This may be attributed to the fact that some work cannot be performed outside of the workplace or because some employers are insistent that employees work on site.ii Another important confirmation from the AOS is that employees overwhelmingly choose remote work; 87% of employees choose remote work when given the option and are spending an average of three days a week working from home.iii

 

The AOS results show great consistency on the matter of remote work among employees of different genders, ethnicities, ages and educational and income levels. People  seek more flexibility in how they work with 65% of respondents agreeing they would be willing to work remotely all the time. However, there are discrepancies of opportunity revealed in the AOS with 61% of men stating they are offered remote work and only 52% of women being given the opportunity. Younger workers report more remote work opportunities than older workers.iv

 

Job seekers highly value autonomy as to where and when they work; therefore, it is an important factor for employers to understand as they face the need to hire. The AOS respondents replied that when hunting for a job recently or when planning to do so, the third most popular reason for the job hunt was looking for a flexible work environment, after seeking greater pay and better career opportunities. According to McKinsey research, those who left the workplace during COVID-19 say that workplace flexibility was the top reason they accepted new employment. Employers need to be aware that when a candidate is considering multiple job offers with similar pay, flexible work opportunities can become the deciding factor in their decision.v

 

A Clash in Perspectives on Remote Work

Beginning in 2022-2023, conflict arose as employers began to issue return-to-office (RTO) policies. Business leaders are encountering strong resistance to these polices from employees and are forced to reevaluate old approaches. In 2023, JP Morgan, for example, issued a staff memo to its managing directors to be in the office five days a week “to lead by example.” This directive arose from the fact that workers were failing to satisfy their employer’s target of being in the office three days a week, a hybrid work from home schedule. In the memo, managers were encouraged to consider “corrective action” against employees failing to show up three days of the week as required. Following issuance of the memo, JP Morgan staff began a campaign on the company’s internal messaging board that was highly critical of the directive which led to the company’s placing a lock on further comments.  Among the employee criticisms were messages that the directive was “tone deaf” and “divisive.”vi

 

In September of this year, Tik Tok introduced a tool to track office attendance of its employees and threatened to discipline employees who failed to comply with its new RTO mandates. The new tool is an app built into the company’s internal software that monitors badge swipes and asks employees to explain any failure to be present at the office in accordance with the RTO policy. Tik Tok’s new policy requires many of its employees to work in the office three days of the week as of October 1, while some teams are required to be in the office all five days of the work week. According to an expert on hybrid work, it is “exceedingly rare” for a company to monitor badge swipes so closely and threaten discipline for noncompliance.  Technology companies like Zoom and Meta have begun to require employees to report to the office two to three days per week during this past summer and fall to interact with their teams.vii Some of the companies have encountered pushback including Amazon where there was a walk out of employees in May.viii

 

Navigating the Future of the Workforce

A writer on leadership has analogized this moment in the workforce to the paradigm shift that took place after World War II when leaders had to adapt to a world in which employee deference and obedience could not be assumed given the shattering and equalizing experience of the war.  According to this expert, the current environment demands leaders who will be “great at enabling and anticipating—more a coach at the side than a player on the pitch—and fabulous storytellers to create culture and loyalty.” Since employees proved during the pandemic they can be trusted working remotely even under great duress, they want to be trusted to do so now.ix

Nonetheless, according to an August 2023 report by Resume Builder based on a survey of 1,000 company leaders, 90% plan to implement an RTO policy by the end of 2024, with 30% saying their companies will threaten to fire employees for noncompliance with their RTO requirements.x

 

Many business executives are of the view that physical presence at work brings better results.  Studies of productivity in remote and hybrid work arrangements have produced varied results, however. Some link remote work with productivity declines of 8-19%xi and others claim only a 4% drop in productivity.xii Finally, some studies have found gains in productivity of 13%xiii and even 24%.xiv 

 

Experts in remote work say that the variety in productivity study statistics are the result of differing employer approaches. For example, managers who are well trained in supporting remote employees and providing opportunities for remote workers to attend employee meet ups significantly affect productivity outcomes. According to experts with these views, it “all comes down to how workers are managed. If you set up remote workers with good management and incentives and people are meeting in person, it can work. What doesn’t seem to work is sending people home with no facetime at all.”xv

 

Given the attitudes of many employees as discussed above, however, it will also take the right tone and message from leadership to bring employees along. According to Roger Steare, an adviser to corporate executives, a desire on the part of management to establish authority misses the point. He believes the best work happens when strong human relationships exist in the workplace. He warns that it can come across as “slightly narcissistic and self-important” for CEOs to act in a militaristic manner. “Great work is a team effort.  If someone is looking to have authority, they’ve got a problem. You can’t impose it: People choose to follow you-or not.  Talented people will vote with their feet and leave,” according to Steare.xvi

 

Employer Liability Considerations and Recommendations

Management should also be aware that in some cases remote work and mandatory RTO polices have resulted in the filing of employee litigation against the company. The types of lawsuits filed against employers range from claims seeking reimbursement for costs and expenses associated with remote and home work during the pandemicxvii to failure to create a safe workplace and make reasonable Americans with Disability Act (ADA) accommodations for an employee, thus endangering employee health, when RTO directives are issued.xviii In light of the potential for litigation, experts advise that employers contemplating implementation of RTO policies take the following steps to minimize potential risks and to ease the return process for employees and employers alike:

 

  • Make fact-based decisions about which employees/positions are needed physically at the office and how many days a week they should be required to be present;
  • Establish and implement proper COVID-19 safety protocols for returning employees to provide healthy workplaces and ensure the policies are followed and enforced;
  • In the absence of a clear, comprehensive ADA accommodation policy to address employee concerns about returning to work, develop a plan and train managers and supervisors on it, including its consistent application;
  • Explain to employees the RTO policy and why decisions were made, the safety protocols in place and how certain disabled employees may request an ADA accommodation; and
  • Anticipate areas of potential employee pushback and complaints and be ready with a plan to handle them.

[i] https://www.mckinsey.com/industries/real-estate/our-insights/americans-are-embracing-flexible-work-and-they-want-more-of-it.  The survey was based on a 25-minute, online only poll conducted for McKinsey by a polling company and included adults aged 18 and older in the United States.

[ii] https://www.mckinsey.com/industries/real-estate/our-insights/americans-are-embracing-flexible-work-and-they-want-more-of-it

[iii] https://www.mckinsey.com/industries/real-estate/our-insights/americans-are-embracing-flexible-work-and-they-want-more-of-it

[iv]  https://www.mckinsey.com/industries/real-estate/our-insights/americans-are-embracing-flexible-work-and-they-want-more-of-it

[v] https://www.mckinsey.com/industries/real-estate/our-insights/americans-are-embracing-flexible-work-and-they-want-more-of-it.

[vi] https://www.reuters.com/business/finance/jpmorgan-employees-gripe-about-dimons-return-to-office-edict-2023-04-27/

[vii] https://fortune.com/2023/08/08/zoom-orders-employees-back-to-office-remote-work/; https://www.ragan.com/the-week-in-comms-meta-zoom-four-day-work-week/

[viii] https://www.computerworld.com/article/3698268/amazon-workers-walk-out-to-protest-return-to-work-policy-climate-change.html

[ix] https://www.nytimes.com/2023/05/11/business/dealbook/back-to-office-battles-underscore-a-change-in-workplace-authority.html.

[x] https://www.cnbc.com/2023/09/11/90percent-of-companies-say-theyll-return-to-the-office-by-the-end-of-2024.html

[xi] https://bfi.uchicago.edu/wp-content/uploads/2021/05/BFI_WP_2021-56.pdf

[xii] https://drive.google.com/file/d/1TxnxFVFgGabyloq_6TAmQ3wRwP7Exmt8/view?pli=1

[xiii] https://www.nber.org/papers/w18871

[xiv] https://www.anthonydiercks.com/presentation_WFH_2023_Stanford.pdf

[xv] https://www.nytimes.com/2023/10/10/business/remote-work-effects.html

[xvi] https://www.nytimes.com/2023/05/11/business/dealbook/back-to-office-battles-underscore-a-change-in-workplace-authority.html.. 

[xvii] https://www.latimes.com/business/story/2022-04-07/covid-work-from-home-lawsuits-pandemic-business-expenses-litigation

[xviii] https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/eeoc-telework-covid-19.aspx.