a new report has revealed that return-to-office mandates, implemented by many of the world's most influential companies in the months and years following the pandemic, are not actually driving greater profits.
As the world began to return to normal, CEOs shared the many benefits attributed to working in the office, not least because impromptu meetings could improve collaboration and productivity (a keyword used by executives which ultimately means profit).
However, according to an analysis of 500 companies by researchers at the University of Pittsburgh, profits are not growing as expected.
Return to Office mandates don't work
Despite managers' claims that remote work hinders productivity and decreases company performance, the study found that employees were opposed to this view.
Greater flexibility and the elimination of commuting have the opposite effect in many cases, not only giving workers more time to do their jobs but also making them more likely to work extra hours. Remote and hybrid work has also been found to be beneficial for worker well-being.
The report summarizes: “The results of our determinant analyzes are consistent with managers using RTO mandates to assert control over employees and scapegoat them for poor company performance.”
Challenging the belief that office work would improve corporate profits, Ding and Ma of the University of Pittsburgh's Katz Graduate School of Business found no significant changes in profitability and stock market valuation after that companies implemented their new rules.
In addition to the financial implications, the study also revealed growing worker dissatisfaction among those asked to return to the office.
Corporate headlines calling for workers to return to the office have continued in recent months, but they are now accompanied by another wave of layoffs attributed to difficult economic conditions.
