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Return-to-Office Mandates Surge in 2025, But Could Backfire on Companies
Major corporations are kicking off 2025 with stricter return-to-office (RTO) policies. Companies including Amazon, AT&T, Boeing, Dell, and Walmart have recently mandated five-day in-office weeks for certain employees. This trend has even reached the federal government, with President Trump ordering executive branch employees to end remote work arrangements and report to offices full-time. The administration subsequently offered buyouts to nearly all civilian federal workers with a February 6 deadline.
However, experts caution these mandates could have unintended consequences. According to a Pew Research Center survey from October, 46% of hybrid and remote workers would likely leave their jobs if forced to return full-time. Research from ZipRecruiter suggests some companies may be counting on this, as those planning significant hiring cuts are more likely to implement strict RTO policies.
A University of Pittsburgh study of S&P 500 companies found that reducing workplace flexibility led to "abnormally high turnover," particularly among valuable employees - women, senior staff, and skilled workers. These companies struggled to fill vacancies and saw decreased hiring rates.
For workers who can't easily find new jobs in today's tighter market, the impact may be more subtle but equally problematic. Mark Ma, associate professor at the University of Pittsburgh, suggests these employees might "do the minimum" to avoid termination while job hunting. As of October 2024, 53% of workers reported difficulty finding desirable new positions, up from 37% in 2022.
Despite these high-profile RTO mandates, the overall trend toward flexible work appears stable. Of S&P 500 companies studied in 2024, only 10 announced full-time return requirements. While 31% of businesses reduced remote work options in 2024, 33% actually expanded them, according to ZipRecruiter's survey of over 2,000 hiring managers.
Ma predicts hybrid work will remain dominant, with different approaches based on company size. Larger corporations may leverage their higher salaries to enforce stricter RTO policies, while smaller companies might offer greater flexibility to compete for talent. As Ma notes, "Not many small firms are following" the full-time return trend.