RTO mandates reveal a widening cultural divide between employees and employers

Enterprise leaders continue to grapple with determining return-to-office (RTO) policies, citing productivity concerns, employee well-being, and the need to build and sustain culture. However, mounting evidence indicates that these mandates might have been driven more by organizational power struggles than genuine concern for employee well-being or company success. The evidence implies a larger problem beyond the RTO policies—it signals a widening cultural gap between employees and employers that must be addressed.

Remote work left employees isolated, impeding the natural flow of face-to-face interactions

The rise of remote work presented several challenges, including the difficulty of face-to-face interaction and communication barriers. Suddenly, office chatter and impromptu brainstorming sessions became relics of a bygone era, replaced by the sterile glow of computer screens. While technology bridged the physical gap, it failed to fully replicate the richness of in-person collaboration and connection, leaving employees feeling disconnected and disengaged.

As employees felt disconnected from their work, a dramatic shift in corporate culture occurred. Employees prioritized their well-being and workplace flexibility and felt more disconnected from their corporate environment. Thus, the “Great Resignation” era took hold, where employees replaced the traditional pursuit of the American dream and a sense of belonging within the workplace with a quest for purpose and fulfillment in their personal lives.

As a result, employers listened and prioritized employee experience and satisfaction. However, this lasted only a short time.

The cultural gap between employees and employers has widened, and RTO has become a tool of control

Over the last two years, the focus on employee satisfaction has waned amidst global economic challenges, increased competition, and technological advancements. Instead, the pendulum swung back to employers as they prioritized their financial survival, often hyper-fixating on productivity and efficiency and shifting the blame for poor performance onto employees. Employees, too, have shifted their priorities—moving far beyond a corporate culture that once gave them a sense of purpose to one that provided stable income and shielded them from instability (see Exhibit 1)—particularly as the threat of job displacement with AI increased.

Exhibit 1: 67% of respondents cited predictable income as the main reason to be a full-time employee

Sample: February 2024, LinkedIn poll with 619 respondents
Source: HFS Research, 2024

As employers attempted to regain control, they weaponized RTO mandates. One research study examining RTO mandates in Standard and Poor’s 500 firms revealed that managers often utilized RTO mandates to regain control over employees. This led to a significant decline in employee experience and job satisfaction. However, these mandates also showed no substantial financial performance or firm value changes.

We ran our own LinkedIn poll around the expected benefits of RTO and found a split between those who found it compelling and those who saw no difference (see Exhibit 2).

Exhibit 2: 46% of respondents found that RTO mandates provided some benefit, while 40% saw no noticeable benefits

Sample: 463 respondents who had received a return-to-office mandate, February 2024 LinkedIn poll
Source: HFS Research, 2024

Rather than fostering collaboration and engagement, RTO mandates have been wielded as top-down directives, sowing seeds of resentment among employees.

RTO could help stabilize corporate culture, but its purpose should be to reenergize employees, not control them

Corporate culture remains in flux, lacking a stable foundation as the needs and expectations of employees and employers continue to diverge. This lack of stability is evident in the evolving dynamics within workplaces, particularly among younger generations who often seek different values and work-life balance compared to traditional corporate structures.

Return-to-office initiatives have emerged as potential solutions to bridge the growing cultural gap by providing a structured environment for face-to-face interactions. However, implementing RTO policies is not enough to ensure success, particularly when inspired or led by the need for control.

As we find stability amidst so much change in the workplace, leaders and employees need to recognize that it ultimately takes two to tango to reshape culture and find balance.

Advice to enterprise leaders

• Avoid the blame game: Leaders should refrain from solely blaming remote work for poor performance. Instead, they should take responsibility for creating an environment where employees can thrive, regardless of their location.
• Reevaluate the intention of RTO: If mandating a return to the office, ensure that there is a clear purpose for doing so and that leadership is actively involved in driving conversation and creating a sense of purpose for having a physical workplace.
• Embrace community-centric leadership: Shift your leadership paradigm from the traditional focus on individual achievements to community building. Recognize that strong community bonds drive culture, collaboration, innovation, and organizational success. Find ways to reward and recognize community-building efforts.
• Lead by example: As leaders, your actions speak louder than words. Lead by example—be present, engaged, and actively involved. And if you ask your employees to show up to an office and collaborate, be present and model these behaviors yourself.

Advice to employees

• Invest in relationships: Dedicate time and effort to nurturing relationships with your colleagues, both within and beyond the confines of the office. Strong support networks foster community, collaboration, teamwork, and a sense of belonging.
• Encourage transparent communication: Embrace openness and transparency in your interactions with peers and leaders. Share your thoughts, ideas, and concerns candidly, contributing to a culture where everyone’s voice is valued and respected.
• Embrace a growth mindset: Adopt a mindset of continuous learning and exploration. Stay receptive to new initiatives and opportunities that enrich your work environment and drive personal and professional growth.

The Bottom Line: Enterprise leaders must prioritize genuine collaboration over control, empower employees, and foster a culture of mutual respect to bridge the widening gap between employees and employers.

Return to office (RTO) mandates, once seen as a solution for rebuilding corporate culture, now reveal a widening gap between employees and employers. What began as an effort to boost collaboration has become a tool of control, sparking worker resentment.

To address this, leaders must empower employees, find ways to value teamwork and collaboration, and reward community building. Employees, in turn, should nurture relationships, communicate openly, and embrace learning. Achieving a positive work environment requires collaboration and mutual respect amid ongoing change.