Business leaders are increasingly asking employees to return to their desks, believing that this will increase teamwork and productivity. However, new research suggests that the move could be achieved at a high price. Large companies that re-enter employees into physical offices are seeing more top talent leave, especially experienced, skilled and female employees.
Researchers led by Dr. John Yang from the University of Pittsburgh and the University of Hong Kong China, conducted the study, which carefully examines how these offices return decisions affect companies. Their findings are published in the journal Management Science, a peer-reviewed publication covering research in business and economics.
The study carefully examines millions of career changes from public profiles on LinkedIn, focusing on dozens of major technologies and financial companies. The number of resignations increased significantly after the company announced that employees had to return to the office. Those who leave are usually women, senior team members or employees with strong skills and experience – groups that companies usually work hard.
During the pandemic, many workers adapted to working from home. They save time by skipping their daily commutes and can better manage their family life. Now, as companies set office returns rules, employees will feel the pressure and commitment to loss of flexibility. Long travel time and less control over personal schedules have prompted many to look for jobs that offer more freedom.
“After the introduction of the back-to-school rules, employees began to leave at a higher rate,” Dr. Yang explained. They noted that these resignations were not random, but often included the most valuable workers who had difficult to replace experience, connections and skills. While companies may expect office attendance to improve unity and supervision, it is apparently causing some employees to look elsewhere.
It is not easy to find replacements for these workers. Due to these changes, it took companies longer to fill open work, and they had fewer new employees than before. On average, it’s nearly a quarter more time to fill the position now than before. This means more time and money recruitment, and fewer people are willing to accept jobs with strict attendance requirements.
The gender differences are also obvious. Women are larger than men. This can be linked to increased family responsibilities and the need for a better work-life balance – remote or hybrid roles help to provide. Mixed roles are jobs that allow working from home and in the office. Those in higher positions or with more expertise are also more likely to quit, probably because they have strong options and demand is high elsewhere.
“This study shows how expensive it can be when companies force employees to return to the office,” Dr. Yang notes. Losing trusted, talented workers can lead to problems with performance, innovation and overall work climate. Innovation is the ability to develop new ideas, products or processes that maintain business competitiveness. It’s not just about filling the seat, it’s about who leaves and how difficult it is to find the same ability.
Companies are encouraged to think twice before they can fully return to traditional office settings. In the case of meetings in person, the drawbacks can be even greater, especially if it pushes away the people who help the business succeed. Keeping flexible job choices is not only popular among employees; it may also be a smart long-term business move.
Such research helps companies understand the actual impact of policy decisions. For any business wondering about the workplace in the future, the information becomes clearer: forcing workers to return to the office can create more problems than solutions, especially when it expels the most capable people.
Journal Reference
Ding Y., Jin Z., Ma M., Xing B., Yang Y. Management Science, 2024. doi: https://dx.doi.org/10.2139/ssrn.4675401
About the Author
Dr. John Young is a researcher specializing in organizational behavior, labor economics, and workplace dynamics. He is currently affiliated with the University of Hong Kong and his work focuses on how company policies affect employee behavior, workforce stability and talent management. Dr. Yang holds a PhD in business-related research and contributes to several high-profile research projects to study the impact of return authorization, employee turnover and recruitment practices in large enterprises. His expertise lies in using large-scale data and realistic employment trends to attract insights that help organizations make better management decisions. Dr. Yang is known for his collaborative work on the intersection of business strategy and human capital, bringing a unique perspective to the challenges of modern workforce. His research continues to impact academic and corporate dialogues about employee well-being, retention, and the evolving future of working in a pandemic world.
