Elon Musk and Vivek Ramaswamy’s plan to eliminate work-from-home options for 94% of federal employees may backfire, according to new research from the University of Pittsburgh. A working paper found that companies implementing return-to-office (RTO) mandates lost their most skilled and senior employees, who are harder to replace than entry-level workers.
The study analyzed data from 54 companies in the S&P 500 that implemented RTO mandates between April 2020 and June 2023. It found that these companies saw a 14% jump in employee departures following the implementation of RTO policies. The people who left were more likely to be women, mid- to top-level managers, and those with more skills listed on their LinkedIn profiles.
In contrast, workers who already have extensive resumes—and female employees with childcare responsibilities—have other flexible options available. According to University of Pittsburgh professor Mark Ma, “Who will leave? It’s just the people who have other opportunities,” he said.
The impact of RTO policies on employers is also significant. The study found that it took companies an average of 23% longer to fill job vacancies compared to pre-RTO baselines. This increase in employee churn comes with a cost, as employers must pay new hires more than existing workers and invest time and money into training.
Amazon and Walmart, among other companies, have recently implemented RTO policies, despite denying that they are designed to push out employees. Amazon CEO Andy Jassy said the policy is about enhancing company culture, while Walmart’s chief technology officer Cheryl Ainoa resigned after refusing to relocate due to the RTO mandate.
The findings of this study suggest that RTO policies may not be as effective in reducing government waste as proponents claim. Instead, they may lead to increased turnover and costs for employers.
Source: https://fortune.com/2024/12/11/return-to-office-mandate-employees-study