RTO Mandates in 2025: A Culture Boost or a Backward Step?
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Return-to-Office (RTO) mandates gained momentum throughout 2024, with major corporations advocating for in-person work under the premise of boosting productivity and strengthening workplace culture. Heading into 2025, tensions were rising, employee backlash was growing, and yet another wave of resignations seemed inevitable.
This shift comes after nearly five years of remote and hybrid work becoming the norm. During this period, employees embraced flexibility and autonomy, while organizations adapted by developing new work models to meet evolving needs. Yet, as companies like Amazon, X (formerly known as Twitter), and JPMorgan enforced stricter RTO policies, requiring employees to be in the office full-time or for a set number of days per week, one question remains: Are these mandates genuinely focused on strengthening workplace culture?
RTO Policies: Culture-Driven or Control-Based?
A Society for Human Resource Management (SHRM) survey found that the stated top drivers of RTO include the need for in-person teamwork (75%), workplace culture and engagement (69%), leadership preferences (65%), restoring normalcy and routine (54%), and concerns about productivity (41%). Similarly, a Resume Builder study revealed that among the companies increasing office days, 86% believe it will boost productivity, 71% see it as essential for company culture, 57% aim to improve employee well-being, and 55% seek to enhance retention.
Despite these justifications, many employees remain resistant to RTO, seeing it as a disruption to flexibility rather than a cultural benefit. Making matters worse, a research study published in the S&P Global Market Intelligence Research Paper Series found that many managers admit they based RTO decisions more on intuition rather than data, further weakening employee buy-in. The consequences are already visible.
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Several studies have examined the impact of RTO mandates on employee satisfaction, corporate culture, and business outcomes. The same research study found that RTO mandates negatively impact employee satisfaction in areas such as work-life balance, perceptions of top management, and overall corporate culture. In fact, the decline in employee perception of corporate culture challenges the claim that RTO policies strengthen it.
Moreover, the study found no significant improvements in firm performance, whether measured by profitability or stock market valuation, following the implementation of RTO policies. If the goal of RTO is to drive better business outcomes, the evidence does not support its effectiveness.
Beyond culture and performance, another analysis from the same research series reveals that RTO mandates also directly impact talent retention. On average, companies enforcing RTO see a 13% increase in turnover, with women leaving at nearly three times the rate of men. More senior employees are also more likely to exit, and it now takes firms 23% longer, or approximately 12 extra days, to fill positions post-RTO.
These results highlight the growing concern that RTO policies may cost firms their most valuable talent instead of strengthening their culture.
Productivity Focused on Performance, Not Presence
Delving into productivity, despite the push for RTO, data does not support the notion that in-person work equals better productivity. According to Microsoft’s Work Trend Index, 85% of business leaders say that the shift to hybrid work has made it difficult to assess employee productivity. Yet, there is a significant disconnect between leaders’ confidence in their teams’ productivity (only 12%) and employees’ self-assessment (87% feel productive).
Furthermore, many managers struggle with remote work dynamics, expressing doubts about their ability to effectively oversee employees outside the office. This so-called “productivity paranoia”, as mentioned in Microsoft’s Work Trend Index, has led organizations to focus on tracking visibility rather than actual impact. However, in organizations with worldwide ecosystems, I believe managing productivity through visibility is an outdated management mindset that no longer holds up.
To move past performative work habits, such as the “green status effect” or “productivity theater“, organizations need to shift toward results-driven performance management systems. Frameworks like the balanced scorecard (BSC) or objectives and key results (OKRs) provide structured ways to set clear expectations. When productivity is measured by outcomes, employees are empowered to be more accountable, engaged, and focused on achieving results.
Similarly, leaders must recognize that simply mandating a return to the office won’t automatically improve culture or engagement. Instead, intentional efforts are required to foster a strong company culture that boosts productivity, engagement, and job satisfaction, regardless of the teams’ work settings.
Some companies have successfully redefined their work models to balance flexibility with cultural cohesion. Airbnb’s flexible work model is a great example of how a company can adapt to the evolving work landscape without sacrificing culture or productivity. Airbnb has embraced flexibility by allowing employees to work from home or the office—and even relocate within their country without a pay cut. Rather than enforcing rigid office attendance, the company prioritizes meaningful in-person interactions through regular team gatherings, offsites, and social events designed to foster collaboration, connection, and creativity. These interactions are not about physical presence for its own sake but about creating valuable connections and deepening the sense of belonging.
Similarly, Dropbox’s Virtual First model strikes a balance between a remote-first approach and strategic in-person collaboration. While the company primarily operates remotely, it schedules quarterly sessions for team-building, brainstorming, and strategic planning. This approach ensures that creativity and community-building remain strong, even in a distributed workforce.
The aforementioned models show that with strategic in-person touchpoints, companies can maintain a strong culture without sacrificing flexibility. The evidence so far suggests that RTO mandates have not produced the cultural and productivity improvements many leaders expected. While it is still too early to predict the long-term impact of these policies, one thing is clear: returning to the traditional office model disregards the progress made in workforce management in the past five years.
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A one-size-fits-all approach no longer aligns with the modern workforce. Organizations that recognize this shift and offer employees the flexibility to choose how they work best will be better positioned for long-term success. Moreover, fostering a strong company culture requires more than just physical presence—it demands intentional efforts to build engagement, trust, and a sense of belonging.
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Editor’s Note: This article was originally published in Performance Magazine Issue No. 32, 2025 – Employee Performance Edition.
