Companies issuing RTO mandates “lose their best talent”: Study

Still, the study provides insight into how employees respond to RTO mandates and the effect it has on corporations and available talent at a time when entities like Dell, Amazon, and the US government are getting stricter about in-office work.

Higher turnover rates

The researchers concluded that the average turnover rates for firms increased by 14 percent after issuing return-to-office policies.

“We expect the effect of RTO mandates on employee turnover to be even higher for other firms” the paper says.

The researchers included testing to ensure that the results stemmed from RTO mandates “rather than time trends.” For example, the researchers found that “there were no significant increases in turnover rates during any of the five quarters prior to the RTO announcement quarter.”

Potentially alarming for employers is the study finding that senior and skilled employees were more likely to leave following RTO mandates. This aligns with a study from University of Chicago and University of Michigan researchers published in May that found that Apple and Microsoft saw senior-level employee bases decrease by 5 percentage points and SpaceX a decrease of 5 percentage points. (For its part, Microsoft told Ars that the report did not align with internal data.)

Senior employees are expected to be more likely to leave, the new report argues, because such workers have “more connections with other companies” and have easier times finding new jobs. Further, senior, skilled employees are “dissatisfied” when management blames remote work for low productivity.

Similarly, the report supports concerns from some RTO-resistant employees that back-to-office mandates have a disproportionate impact on certain groups, like women, which the researchers said show “more pronounced” attrition rates following RTO mandates:

Importantly, the effect on female employee turnover is almost three times as high as that on male employees … One possible reason for these results is that female employees are more affected by RTO mandates due to their greater family responsibilities, which increases their demand for workplace flexibility and work-life balance.

Trouble finding talent

RTO mandates also have a negative impact on companies’ ability to find new employees, the study found. After examining over 2 million job postings, the researchers concluded that companies with RTO mandates take longer to fill job vacancies than before: