Return to the Office – The Big Debate
The debate over returning to the office (RTO) has reignited as companies increasingly call their employees back on-site. The post covid narrative around “the new normal”, a mix of highly connected hybrid and remote working, is under scrutiny as employers battle to understand what truly works for their business. A KPMG survey found that 64% of CEOs around the world think everyone will be back in the office by 2026.
This shift has triggered a mix of reactions across industries, with global brands such as Amazon and Spotify taking drastically different positions on what’s best for big ticket items on the People agenda such as productivity and workplace culture.
Amazon’s CEO, Andy Jassy, recently announced that all employees would be required to work from the office full-time starting in January 2025, signalling an end to the hybrid work model that had become common during and post pandemic. The decision, intended to foster collaboration and connectivity, has met significant resistance, with more than 500 employees (10% of Amazon’s workforce) signing a letter urging the company to rethink a mandated RTO. Matt Garman, Chief Executive at Amazon’s Web Services division, told colleagues that “those who don’t work well in that [office] environment and don’t want to, that’s okay, there are other companies around”. However intentioned, Garman’s comments have been heavily criticised, and it’s an interesting take. Garman states that the mandate is about “working together”; Jassy says it’s about creating a culture where “collaborating, brainstorming, and inventing are simpler and more effective”. I get it. I do. But there’s a question around whether culture should be more than what’s trending. Whether it should be so easily influenced by what’s happening in our economy (i.e. who has the most power at the time) or something more evidence-based and removed from social power struggles.
Spotify is aggressively at the other end of the spectrum. Katarina Berg, Spotify’s Chief Human Resources Officer, has said that while she understands why some companies are returning to office, that “you can’t spend a lot of time hiring grown-ups and then treat them like children”. While Spotify acknowledges the challenges of virtual collaboration, Spotify’s attrition rates have been 15% lower than before they implemented their ‘work from anywhere’ policy. Essentially, it’s helping them keep their talent. As the biggest music streaming platform in the world, it’s decided to let people choose their own working location…but interestingly is also retaining its office footprint. The company hosts music sessions with popular artists and schedules core weeks to bring staff together for strategy discussions, allowing employees to experience the benefits of in-office collaboration without enforcing it. Berg recognises that, “it’s different to being on a screen… We know what happens when people sit down, and you can actually look each other in the eye.”
So, what’s the answer? Mandates might backfire. Flexing your muscles is rarely received well and what’s worse, RTO mandates can be seen as a way to downsize the workforce via back-channel layoffs. Software company, Bamboo HR, found that a quarter of VP and C-Suite executives in their research admitted that they hoped their mandates would increase voluntary turnover.
Whatever you decide, clear communication, an openness to feedback, and a willingness to compromise are essential. By fostering a dialogue, companies can better understand how RTO policies impact employees’ lives, work-life balance, and financial well-being. Companies that respect employees’ autonomy and embrace flexible models are more likely to build lasting trust and retain talent. As the workplace continues to evolve, organisations that prioritise employee-centric policies will be well-positioned to thrive in the long term.