RTO doesn’t improve company value, but does make employees miserable: Study::Data is consistent with bosses using RTO to reassert control and scapegoat workers.

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    59 months ago

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    When the acute aspects of the pandemic receded, some who at first struggled began to settle into a work-from-home (WFH) groove and appreciated the newfound flexibility.

    Many made the argument that the return-to-office (RTO) policies and mandates were better for their companies; workers are more productive at the office, and face-to-face interactions promote collaboration, many suggested.

    Overall, the analysis, released as a pre-print, found that RTO mandates did not improve a firm’s financial metrics, but they did decrease employee satisfaction.

    Drilling down, the data indicated that RTO mandates were linked to firms with male CEOs who had greater power in the company.

    Although CEOs often justified RTO mandates by arguing that returning to the office will improve the company’s performance, “Results of our determinant analyses are consistent with managers using RTO mandates to reassert control over employees and blame employees as a scapegoat for bad firm performance,” the researchers concluded.

    Specifically, after an RTO mandate, employees’ ratings significantly declined on overall job satisfaction, work-life balance, senior management, and corporate culture.


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