As Amazon Announces 5-Day RTO, Are Other Employers Rethinking Their Stance?
By Bryan Robinson, Ph.D. | September 23, 2024 | Article Link
In a bold shift from its previous remote-friendly policies, Amazon’s CEO has announced that the company is reinstating a five-day workweek in the office for its employees. This move comes amid growing debate over the effectiveness of remote work, which raises critical questions about the future of hybrid and remote work models.
As companies navigate a rapidly changing business landscape, I wondered how this decision impacts the strategies of other CEOs to follow suit on remote work. I spoke with several other business leaders like Keith Giarman, president of private equity practice at DHR Global. He told me that Amazon’s move to a five-day in-office schedule will likely create an uptick in CEOs reassessing whether their hybrid and remote work models are decreasing productivity.
Whatever the outcome, Giarman insists that this shift doesn’t mean remote work is going away any time soon. “Companies are still navigating the post-pandemic workplace which means that while some companies are back in the office, others have fully embraced remote environments based on their cultural preferences and approach to serving their employees,” he points out. “This has created increased pressure for the C-suite to balance employee autonomy while also making sure employee productivity is in line with expectations.”
More Harm Than Good
Guy Thornton, founder of Practice Aptitude Tests, told me he believes the RTO policies could prove to do more harm than good for businesses. Thornton cites a 2024 study showing that the hybrid working model increased productivity in the workplace by 48.8%, in addition to lowering business costs and increasing employee retention. He questions why employers are choosing to revert to pre-pandemic work models.
“When employees feel they are constantly being watched, it can erode trust between them and their employers,” he asserts. “A lack of trust can then lead to disengagement amongst employees as well as reduced motivation and lower overall morale, which ironically can affect productivity. It can also blur the line between work and personal life. If employees are being micromanaged consistently, they may feel significant pressure to meet targets and get tasks done as a means to try and please their managers.”
Risk Of Alienating Gen Z
Avery Morgan agrees. “Amazon’s new mandate for a full return to the office risks alienating Gen Z and stifling productivity,” she told me. “The productivity expert and chief communications officer at EduBirdie, continues, “Forcing employees back to the office full-time is likely to lead to higher quit rates, as evidenced by a 116% increase in Google searches for ‘Companies with remote work’ over the past day following the announcement.”
Morgan underscores that flexibility isn’t just a perk but a major draw for top talent and Gen Z, who will make up 27% of the workforce by 2025, and companies need to adapt to these needs. “EduBirdie’s recent research shows that Gen Z values flexible hours and the option to work from home even more than traditional career progression, highlighting their desire for a healthy work-life balance,” Morgan notes. “Additionally, remote work is crucial for individuals with disabilities and those with caregiving responsibilities, who depend on flexibility to manage their daily lives effectively.”
Morgan points out that while some argue that in-person work fosters productivity, numerous studies, including one involving 800,000 employees at Fortune 500 companies, confirm that remote work can match or even enhance productivity.” Morgan offers three key tips for companies:
- Adopt a hybrid work model with flexible hours. “This approach allows employees to benefit from the flexibility they value while still accommodating the occasional need for in-person collaboration. It can help companies balance productivity and employee satisfaction.”
- Develop remote work policies. “Create clear guidelines for remote work by defining eligibility, performance expectations, and communication protocols. Include details on equipment, tech support, and data security to ensure consistency and address potential challenges.”
- Regularly assess employee needs and preferences. “Conduct regular surveys and feedback sessions to understand employees’ evolving needs and preferences regarding work arrangements. This ongoing dialogue can help companies stay agile and responsive to their workforce’s expectations, thereby reducing turnover and enhancing job satisfaction.”
Employee Well-Being
While Amazon calls its employees back to the office five days a week, some industry leaders maintain their remote status, leveraging employee well-being as a retention strategy. DrFirst’s 2024 Employee Engagement Survey shows that remote work is still the future:
- 87% of employees say remote work significantly enhances their overall well-being.
- 86% said they feel empowered to own their productivity and outcomes while working remotely.
- 83% say their work motivates them.
- 82% indicate that remote work gives them flexibility to balance the demands of their professional and personal lives.
Diverse Talent Pool
As demand for flexibility, work-life balance, and autonomy continues to grow, Cheryl Swirnow, CEO of CMS Consultants, argues that Amazon’s shift is out of touch with the future of work, sparking concerns, especially among women. Swirnow emphasizes that remote work is crucial for companies aiming to thrive in the future of work and build company culture inclusivity. Remote work allows hiring from various locations, fostering inclusivity.
- Impact on Women: Remote work helps women better manage personal responsibilities and reduce stress, as studies show
- Higher Satisfaction and Retention: Remote options lead to happier employees, boosting retention and job satisfaction
- Stronger Organizations: Remote setups help ensure business continuity during disruptions.
A Final Wrap-Up
Giarman suggests that if companies ask employees to return to the office, the C-suite should also be thinking outside the box on how they can provide flexibility elsewhere. “For instance, flexible start times or increased PTO can help employees feel better about being required to work in the office,” he explains. “This way companies are meeting productivity levels needed in the workplace, while also being understanding of employees’ wants and needs.”
At the end of the day, Giarman argues that it’s about striking the right balance that creates the desired culture consistent with financial performance “Whenever the C-suite decides on a firm policy where all employees return to the office, they must accept the inevitable fact that they will lose some employees in the short-term,” he concludes. “This is likely part of their calculus when thinking about the culture they prefer longer-term and its benefits. If not, it should be.”