Return-to-office mandates 'layoff in disguise' for some employers: survey

'This level of dissatisfaction could lead to a further drain of talent, affecting not just morale but the stability and innovation potential of the workforce'

Return-to-office mandates 'layoff in disguise' for some employers: survey

Employers’ return to office (RTO) mandates are not just meant to bring workers back into the workplace – they are meant to make some workers quit, according to a recent survey.

Over one in four (28 per cent) of remote workers in the U.S. fear they'll be laid off before their in-office coworkers, and 37 per cent of managers, directors, and executives believe their organization enacted layoffs in the last year because fewer employees than they expected quit during their RTO.

Both groups are right, reports BambooHR: One in four (25 per cent) VP and C-suite executives and one in five (18 per cent) HR pros admit they hoped for some voluntary turnover during an RTO.

Using office mandates as layoff tool

Using RTO as a layoff tool is bad for business as “companies are losing talent and morale among their employees,” according to BambooHR.

“Nearly half (45 per cent) of the employees who have experienced RTO report significant talent loss within their organizations — talent that was highly valued and wished to be retained,” it says.

“Moreover, the discontent with return to office policies is strong among employees, with more than one in four (28 per cent) stating they would consider leaving their positions if subjected to such mandates. This level of dissatisfaction could lead to a further drain of talent, affecting not just morale but also the stability and innovation potential of the workforce.”

Most Canadian workers are OK with heading back to the office – but employers do not seem to be ready to meet their needs, according to a previous Cisco report.

Compensation and RTO mandates

Over two in five (42 per cent) of workers also believe that companies might enact RTO to justify spending on office spaces and help local businesses, according to BambooHR’s survey of over 1,500 workers in the US, including over 500 HR professionals, conducted in March 2024.

Nearly six in 10 (59 per cent) employees say that compensation in comparison to inflation is the biggest influence on their happiness at work. And many employees also expect different compensation based on being called back to the office.

However, 43 per cent of workers say that in the last year, their employer has consistently asked more employees to come in-person despite not increasing compensation.

More than half (52 per cent) of workers would be willing to take a 20% pay cut in order to achieve their desired quality of life, according to a recent study by Ford

“Employers should consider these factors before implementing a return to office policy,” says BambooHR. “Even just some time in the office as a hybrid employee can cost $408 per month, with commuting and associated expenses, and more than $1,000 per month for full-time office workers, according to CNBC.”

More than eight in 10 (81 per cent) Canadian professionals are on the hunt for new job opportunities this year, driven by the quest for better pay, according to a previous report from Robert Walters.

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