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CEOs Are Tricking Employees Into Spending More Time In The Office — But Here's Why They're Only Fooling Themselves. Traditionalist CEOs seem to be turning up the heat to trick employees into spending more time in the office — but at what cost?

By Gleb Tsipursky Edited by Maria Bailey

Key Takeaways

  • Many traditionalist companies — that once implemented a hybrid work model — now appear to be slowly chipping away at this work arrangement with the intention of making an office-centric schedule the new norm.

Opinions expressed by Entrepreneur contributors are their own.

Why are CEOs intent on killing the golden goose that is hybrid work? Remember the fable of boiling the frog? Well, it seems traditionalist CEOs are turning up the heat to trick employees into spending more time in the office, but at what cost?

In a dramatic shift, companies like Chipotle and BlackRock are nudging their in-office mandates from three days a week to four. Nike, not to be left behind, has pivoted its return-to-office strategy, insisting that employees "just do it" and be in the office four days a week, up from the previous three. The rationale? A spokesperson from Nike expressed a yearning for "the power and energy that comes from working together in person."

Let's talk about Amazon for a moment. The tech behemoth's three-day in-office requirement hasn't exactly been smooth sailing. With a senior executive conceding it hasn't "been perfect" and 30,000 workers signing an anti-return-to-office petition, the company still thought it wise to empower managers to fire those who refuse to comply with its hybrid mandate. Are these changes a natural evolution or a regression into an antiquated working model?

Related: Workers Are Disengaged. Here's How Employers Can Win Them Back.

CEOs' mirage of a pre-pandemic world

According to KPMG's 2023 CEO Outlook survey, 64% of CEOs at large companies see a return to pre-pandemic office routines in the next three years. Staggeringly, 87% aim to use financial rewards and promotion opportunities as carrots to lure employees back to their cubicles. But the question looms large: Are these CEOs out of touch with what their employees actually want?

It's not like we don't have data. A recent BCG survey laid it bare: nine in 10 global office-based workers consider flexible work crucial when job-hunting. Employees disenchanted with their current work model are 2.5 times more likely to consider leaving within the next year. So why are CEOs choosing to ignore these glaring signals?

The employee's sacrifice for flexibility: A wake-up call for CEOs

Now, let's layer in some more compelling data that amplifies just how much employees value flexibility. According to a recent report, a staggering 62% of employees would accept a pay cut of 10% or more just to maintain the ability to work remotely or in a hybrid setting. And if you think that's eye-opening, consider this: 4% would go so far as to quit their job if this flexibility were revoked.

These figures should be a siren call for any CEO orchestrating a retreat to office-centric work. When a majority of your talent pool is willing to take a financial hit to preserve their work-life balance, it's more than a trend — it's a clarion call for a new social contract between employers and employees. Ignoring this can have real-world consequences, ranging from a hollowed-out talent pipeline to a disengaged workforce. So, who's really winning when companies decide to turn the dial back on flexible work arrangements?

The data-backed optimum for employee engagement

Before CEOs rush to imprint their will on company policies, they should pay close attention to a revelatory study from Gallup. The data doesn't just suggest — it lays bare that the sweet spot for employee engagement lies in a two to three-day on-site workweek.

Beyond this balanced approach, the numbers reveal an alarming drop in engagement rates. For highly collaborative jobs that benefit from real-time interactions, engagement plunges from 49% to a lackluster 40% when the office time goes from three to four days a week. Engagement for more independent roles takes a dive from 39% to 34% when these roles are confined to an office setting for four days instead of three days.

This is not merely a numbers game; it's a psychological dynamic that can ricochet through the corridors of an organization, well-known by now through the term "quiet quitting." When engagement dips, so does productivity, creativity, and, ultimately, profitability. The Gallup data serves as a glaring red flag that increasing time in the office beyond a balanced threshold can lead to burnout and a higher intent to leave the organization. Are CEOs really prepared to stake their companies' future on policies that actively erode the foundations of employee engagement and organizational health?

It's not simply retention and engagement that are endangered: it's innovation and progress. The EY Technology Pulse Poll recently revealed that an overwhelming 78% of high-ranking technology executives contend that remote work environments are actually conducive to sparking innovation. Ken Englund of EY suggested that's because remote work not only obliterates geographical limitations in talent acquisition but also recharges the workforce by eradicating the grind of daily commuting.

This insight couples alarmingly well with the previously discussed Owl Labs report. Employees don't just want flexibility — they're empirically proven to work better within its confines. It stands to reason, then, that any deviation towards old-school, rigid work schedules isn't merely ignoring employee preferences; it's actively undermining the data-proven pathways to a healthy, robust and engaged organization. CEOs must ask themselves: Is enforcing greater in-office attendance worth the cascading repercussions it triggers, including eroding trust, diminishing engagement, and ultimately, draining talent?

Boiling the frog: A losing strategy

The notion of boiling the frog represents a stealthy but dangerous approach. Laszlo Bock, former Google HR chief and current CEO of Humu, suggested that this method is designed to subtly erode hybrid mandates, aiming to make the office-centric schedule the new normal. But here's the kicker: It might be a pyrrhic victory for CEOs, as Bock warns that this approach could actually destroy trust and morale.

It's becoming increasingly evident that by reverting to pre-pandemic norms, CEOs may be sacrificing the long-term well-being of their organizations for immediate gains. Fostering a culture that doesn't adapt to the changing work landscape is a gamble. Is it worth rolling the dice when employee satisfaction, productivity and even mental health are at stake?

While another day in the office might seem trivial to some, it's a significant shift in policy that ripples across various facets of organizational dynamics—from employee engagement and trust to talent retention. If we assess the costs holistically, it's not just about losing a day of remote work; it's about disregarding the preferences of a workforce that has tasted the freedom and effectiveness of a more flexible model.

Related: Our Brains Will Never Be The Same Again After Remote Work. Forcing Your Employees To Readapt to The Office Is Not The Answer.

Seizing competitive advantage

It's time for companies to buck the trend. Some forward-thinking organizations are already embracing permanent remote work or extremely flexible hybrid models, and they're reaping the benefits in employee satisfaction and productivity. CEOs clinging to the past need to ask themselves: Is the temporary thrill of control worth the long-term sacrifice of losing the talent wars, a company full of quiet quitters, and the decimation of innovation?

Traditionalist CEOs may think they're boiling the frog slowly, but my clients who have veered off that well-trodden path are showcasing that embracing a modern hybrid work environment is not just possible but remarkably rewarding. One of my clients, a Fortune 500 company in the tech sector, took the plunge by committing to a flexible hybrid model, and the dividends have been remarkable. Despite initial resistance from upper management, they decided to trust the data over gut instinct. Not only did they see a 15% increase in overall productivity within the first six months, but they also noticed a 22% boost in employee engagement metrics. They've become a magnet for top-tier talent who are fleeing more rigid competitors.

Consider another case: a mid-size financial services firm in the New York City area was feeling the heat of high attrition rates. They decided to counter the trend of Goldman Sachs and JP Morgan and adopt a flexible hybrid model. The result? They not only reversed the attrition trend but also increased quarterly profits by 11%, an upswing they directly attribute to heightened employee engagement and innovation.

Lastly, the largest law firm in a Midwestern city became a surprising torchbearer. Skeptical at first, they conducted a six-month trial period of a flexible work model. The outcome was unambiguous: a 35% drop in the use of sick days, a 17% boost in retention, and a 20% uptick in billable hours, effectively quashing every preconceived notion about the inefficacy of remote work in the legal sector.

So, while traditionalist CEOs are stuck playing checkers, my visionary clients are playing 4D chess. They're not only responding to employee needs but also using the hybrid and remote work models as strategic assets. The results speak for themselves: higher employee satisfaction, greater innovation, and, yes, a healthier bottom line. If that's not future-proofing a company, I don't know what is.


So, are we going to let the frog boil? It's time for corporate America to recognize that what seemed like a temporary disruption in the work environment has paved the way for transformative, sustainable change. CEOs — take note: Turning back the clock could very well be a ticking time bomb for your organization's future.

Gleb Tsipursky

CEO of Disaster Avoidance Experts

Dr. Gleb Tsipursky, CEO of Disaster Avoidance Experts, is a behavioral scientist who helps executives make the wisest decisions and manage risks in the future of work. He wrote the best-sellers “Never Go With Your Gut,” “The Blindspots Between Us,” and "Leading Hybrid and Remote Teams."

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