NextGen

More Companies Mandating More Time in the Office

As layoffs and a recession loom, companies are increasingly demanding that their employees return to the office, Bloomberg reported.

Companies such as BlackRock Inc., Walt Disney Co. and Chipotle Mexican Grill Inc., and law firms Davis Polk and Skadden, are all mandating that their employees come to the office four days a week, starting in September. JPMorgan Chase & Co. is requiring managing directors to be in the office five days a week.

More may follow.

“I wouldn’t be surprised if some organizations take their peers’ lead if they wanted to increase the frequency of on-site work,” Caitlin Duffy, research director in the human resources practice at consulting firm Gartner Inc., told Bloomberg. “They may have not wanted to be an outlier.”

Many workers have made major life changes around their hybrid work policies, rearranging everything from child care to where they live, and return-to-office mandates could cause disruption, she added.

Disney has encountered pushback from employees, 2,300 of whom signed a petition urging reconsideration of the policy. They maintained that the mandate will result in “forced resignations among some of our most hard-to-replace talent and vulnerable communities” while “dramatically reducing productivity, output, and efficiency.”

A Gallup survey of more than 16,000 full-time U.S. employees conducted last year found that remote-capable employees who don’t work in their preferred location are more prone to burnout and a desire to quit.

Only about 5 percent of hybrid companies that require a minimum number of days in the office mandated four days as of early June, according to Scoop Technologies Inc.’s Flex Index, which tracks the remote work policies of more than 4,500 companies. Two or three days remains the norm, accounting for roughly 90 percent of hybrid arrangements.

At Davis Polk, “The key driver behind our in-office attendance philosophy is a desire to provide all members of our community with best-in-class professional development opportunities,” Managing Partner Neil Barr wrote in an internal email seen by Bloomberg. “In a creative business like ours, nothing can replace the ability to connect, observe, and create with peers that comes from being physically together,” Disney CEO Bob Iger said in an internal memo seen by Bloomberg.

Chipotle’s moving to a Monday through Thursday schedule “preserve[s] our unique, collaborative culture and achieve our aggressive growth plans,” Chief Corporate Affairs Laurie Schalow wrote in a statement to Bloomberg.

Gartner’s Duffy advised executives to consider what they’re trying to achieve with in-office requirements.

“‘What do you really want from your hybrid model?’ is a question I always ask every leader who's grappling with this kind of decision. What outcomes are you trying to drive?” she said. “If the outcome is just, ‘make your leaders happy because they want employees on-site,’ that might not be necessarily the best rationale.”