2024 may have been the year of the dragon, but in the business world, it felt like the year of return to office (RTO) mandates.
With more and more companies ordering staff back to the office, the days of remote working and flexible arrangements that defined the pandemic era seem to be fading.
RTO policies aren’t here just to fill office space though. Rather, companies have implemented them to address concerns about declining employee engagement. But will they actually have an effect on productivity, or will the demand for flexible working arrangements only cause more resistance?
RTO mandates: could they improve productivity?
In 2024, many big-name employers enforced RTO mandates, including, Asda, Boots and ASOS.
And now, it seems some small businesses are on the same page. According to results from the Startups 100 for 2025 survey, 43% of businesses that believe flexible working is hindering productivity plan to increase the number of required office days.
Companies that have rolled out RTO mandates have also taken significant measures to ensure the policy is being properly implemented as well. For example, ecommerce giant Amazon has reportedly been tracking the amount of hours workers spend in the office. It was reported that this was carried out to tackle “coffee badging” where employees would enter the office only to get coffee and leave in an attempt to bypass its RTO policy.
Meanwhile, Starling Bank introduced its own RTO policy in November, which faced significant backlash from staff, with many resigning from the company as a result. Starling’s CEO, Raman Bhatia, argued that “working in the office is important for creativity, collaboration, problem solving, performance and engagement”.
However, a study by the University of Pittsburgh revealed that there had been no improvements in financial performance after RTO mandates had been implemented and that employee satisfaction had declined. Meanwhile, 44% of UK bosses admitted that returning to the office is more about keeping up appearances than anything else.
Could Work From Anywhere policies compensate for RTO mandates?
Our research also found that 43% of businesses that believe flexibility hinders productivity plan to introduce work-from-anywhere (WFA) policies.
Much like how RTO mandates are on the rise, WFA policies have gained significant popularity among both businesses and employees, particularly for giving employees the freedom to work and travel at the same time, without needing to take annual leave.
But considering that the percentage of businesses planning to introduce RTO mandates and those preparing for WFA policies are the same, it could suggest that companies might be trying to encourage employees to come into the office more while offering work-from-anywhere opportunities as a way to compensate and keep staff happy.
This means that if businesses want to introduce WFA for selected periods, the future of work could possibly see a transition from “office days” to weeks or months on site, with the rest of the time spent working from wherever employees choose.
Flexible work debate to continue in 2025
When surveyed about flexible working, 31% of extremely optimistic businesses believe that it contributes well to productivity. On the other hand, 20% of non-optimistic businesses believe that flexibility negatively impacts productivity.
This suggests that businesses with a positive growth outlook see flexible working as a valuable tool for productivity and employee satisfaction, while those with a more cautious view tend to worry that it might undermine performance and focus.
Still, the demand for flexible working arrangements remains high, with 87% of people looking for flexibility in their next role.
Terry Payne, Managing Director at hubbul, also commented that employers are “shooting themselves in the foot” by not offering flexible working opportunities for roles that allow it.
“It’s no secret that businesses are struggling with skills shortages, so to overlook the growing demand for flexible working seems short-sighted, particularly in this economic climate,” he said.
Given the popularity of flexible working and the lack of real results from RTO mandates, we can expect this demand to grow in 2025, with more businesses recognising the need to offer flexible working to attract and retain their staff.
Hybrid working models in particular are expected to become more common, helping employees maintain a good work-life balance and the ability to engage in both in-person and online social activities. However, based on past reactions from employees, the push for RTO mandates is likely to cause more resistance, though if businesses plan to compensate for this by allowing employees to work from anywhere for a set period, it could help ease tensions and make the transition more manageable.
