The Great Return – Is it Working?

Companies forcing employees back to the workplace face a dilemma. Associate Professor Mark Ma’s at Pitt Business and Yuye Ding, a Ph.D. student, studied Standard and Poor’s 500 firms that mandated a full return to the office. Findings revealed no significant changes in financial performance or company valuations post-mandate, but a sharp drop in employee satisfaction .“Before the pandemic, going to the office was automatic. Now, people know remote work is a viable option with many benefits.”

Ma and Yuye Ding looked at Standard and Poor’s 500 firms — the largest companies listed on U.S. stock exchanges — that had implemented return to work mandates, requiring employees to be in the office five days a week. The results showed that while many of the companies said they were bringing employees back to the office to improve the bottom line, there were no significant changes in financial performance or company valuations after the mandates were implemented. But there was a sharp decrease in employees’ job satisfaction.

Companies forcing office returns face dilemmas.  CEOs blaming remote work for poor performance have created some conflicts. “Backtracking now means admitting a huge mistake,” Ma said. For example, Yahoo’s CEO Marissa Mayer, mandated office work, resulting in a 30% employee loss and her later resignation. The new CEO reversed the policy.

“I don’t think we are going back to fully in-office work,” Ma said Ma acknowledged pushback from leaders on training remote new hires. He suggested bringing new employees in for training and incentivizing experienced workers to mentor in the office.

Ma noted cost savings from minimizing office space and benefits like reduced burnout and higher productivity with less commuting. Commercial real estate companies, often the biggest resistance, are now seeking government help to convert offices to apartments.

“Many firms ignored the environmental implications,” Ma said. “Reducing commutes lowers carbon emissions and benefits the environment.”

Quarmans has extensive experience in designing hybrid work arrangements. We can advise on, and help manage, the many legal and employee relations risks that can arise.

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