COMP NEWS – A trio of new studies has shed light on the damaging effects of return-to-work mandates. Companies that force their employees back into the office see higher employee attrition and more difficulty recruiting new talent.

We’re now finding out the damaging consequences of the mandated return to office. And it’s not a pretty picture. A trio of compelling reports—the Greenhouse Candidate Experience report, the Federal Reserve’s Survey of Household Economics and Decisionmaking (SHED), and Unispace’s Returning for Good report—collectively paint a stark picture of this brewing storm.

Unispace found that nearly half (42%) of companies with return-to-office mandates witnessed a higher level of employee attrition than they had anticipated. And almost a third (29%) of companies enforcing office returns are struggling with recruitment. In other words, employers knew the mandates would cause some attrition, but they weren’t ready for the serious problems that would result.

Meanwhile, a staggering 76% of employees stand ready to jump ship if their companies decide to pull the plug on flexible work schedules, according to the Greenhouse report. Moreover, employees from historically underrepresented groups are 22% more likely to consider other options if flexibility comes to an end.

In the SHED survey, the gravity of this situation becomes more evident. The survey equates the displeasure of shifting from a flexible work model to a traditional one to that of experiencing a 2% to 3% pay cut.

One of the reports found that nearly half of job candidates would reject a role that lacked flexibility, and another half say that increased compensation is their most important priority.

Flexible work policies have emerged as the ultimate edge in talent acquisition and retention. The Greenhouse, SHED, and Unispace reports, when viewed together, provide compelling evidence to back this assertion.

Greenhouse finds that 42% of candidates would outright reject roles that lack flexibility. In turn, the SHED survey affirms that employees who work from home a few days a week greatly treasure the arrangement.

The Greenhouse report has ranked employees’ priorities as:

• Increased compensation (48%)
• Greater job security (34%)
• Career advancement opportunities (32%)
• Better flexible work policies (28%)
• A more positive company culture (27%)

In other words, excluding career-centric factors such as pay, security, and promotion, flexible work ranks first in employees’ priorities.

Interestingly, Unispace throws another factor into the mix: choice. According to its report, overall, the top feelings employees revealed they felt toward the office were happy (31%), motivated (30%), and excited (27%). However, all three of these feelings decrease for those with mandated office returns (27%, 26%, and 22%, respectively). In other words, staff members were more open to returning to the office if it was out of choice, rather than forced.

To read more about the downside of return-to-office mandates, click here.

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