Most successful RTO policies are ‘structured hybrid’

Traditional offices are facing a seismic shift as flexible and remote work take hold. Though companies are trying various options, simply returning to the office isn't enough. Data from the Flex Index shows fully flexible companies see 16% higher revenue growth over 3 years compared to those with strict return mandates, argues Jennifer Dulski, CEO of Rising Team (used by Google, Intuit). 

Dulski, a former executive at Facebook, Google, and Yahoo!, brings over two decades of experience to her work and shares some profound insights on the benefits of flexible work and the pitfalls of rigid return-to-office policies.

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Here are the edited excerpts.

How do flexible or remote work options benefit companies in terms of talent acquisition, employee experience, and diversity?

From a talent perspective, remote and hybrid work widen the talent pool, allowing companies to hire top talent without geographical constraints. This flexibility lets companies bring on board exceptional individuals who might be inaccessible with a traditional 5-day in-office work week. Embracing diverse locations and part-time remote work enables teams to reflect varied perspectives, such as new parents, proven to enhance innovation and productivity. McKinsey data shows more diverse teams perform better in terms of innovation and productivity.  Rising Team's survey shows remote and hybrid employees consistently rate their experience higher than in-person counterparts, expressing greater effectiveness, trust, connection, and belonging. Remote satisfaction stands at 37%, surpassing hybrid (26%) and in-person (17%) counterparts. 

On the flip side, what tangible drawbacks or challenges do companies insisting on a full return to the office face in terms of talent loss?

In today’s world flexible work is not just valued but also often expected.  Individuals have grown accustomed to the flexibility remote or hybrid work provides, and many have designed their lives around these arrangements–so insisting on a full return-to-office (RTO) can decrease morale and employee engagement. Companies rigidly sticking to RTO arrangements can also prompt the highest performers to seek opportunities elsewhere.  

What are the common mistakes in implementing hybrid work policies, and how can companies avoid them?

Communication: Inconsistent leadership communication, particularly shifting from endorsing flexible work to reversing the policy, breeds uncertainty and undermines employee trust. Companies that monitor office attendance–such as requiring employees to badge into the office–introduce an unnecessary sense of surveillance, further undermining trust.

Misguided incentives: This includes the all-too-common free lunches or happy hours, which may not resonate with the workforce's genuine desire for flexibility in work arrangements. Leaders need to be much more intentional about building connections and trust between colleagues. 

How can companies find the right balance between strict return-to-office policies and complete flexibility?

The most successful return-to-office (RTO) policies are what is known as “structured hybrid,” where employers require some in-office time and give flexibility to workers to decide when they come into the office. In particular, companies that let teams choose their schedules see the highest satisfaction, because the team can benefit from time together and still maintain the flexibility they need at the individual level.

Regardless of which in-office strategy companies choose, just putting people back in the office together is not sufficient to boost company performance, as seen in data from Flex Index that fully flexible companies achieve 16% higher revenue growth over a three-year period compared with companies that have strict RTO mandates. To boost employee engagement and company performance, employers need to be intentional about using time in the office.

Does the allure of flexible work extend beyond the tech sector, and is the talent acquisition advantage universally significant?

The allure of flexible work isn't confined to the tech sector. Although tech has championed flexible practices, the benefits extend broadly across non-tech industries. Professionals in finance, healthcare, and various sectors appreciate autonomy and work-life balance, making flexibility a sought-after trait. Job seekers, spanning diverse industries, now prioritize workplaces that provide flexible work arrangements.

Looking forward, do you anticipate flexible work becoming the norm across all industries, or will traditional office setups persist in specific sectors?

The new normal is overwhelmingly remote and hybrid. Flexible work arrangements span all types and sizes of organisations.  This global shift towards remote and flexible work, accelerated by tools like Zoom and pandemic-induced lessons, isn't limited to a specific sector; it's becoming a universal expectation. The realisation that employees can remain productive and engaged while working remotely has prompted a reevaluation of work norms across sectors.