As organizations plot their workplace strategies for 2025, the return-to-office debate shows no sign of cooling, with companies splitting into two camps: those doubling down on in-office mandates and those embracing flexibility as a competitive advantage.

One thing is certain: Several companies that botched the shift to in-office arrangements over the past year are something of a master class in how to not execute RTO plans.

Recent data suggests that 70% of employers plan to tighten their grip on remote work policies in the coming year, according to Resume Templates. However, this hardline approach may come at a significant cost to talent retention and recruitment.

“Companies forcing employees to return full-time to offices will do so at their own peril,” warns Ray Grady, CEO of freelance management platform Worksuite. “The best companies will be the ones who can get the most out of their workforce regardless of where they sit.” Grady predicts that strict RTO mandates will fuel growth in the freelance economy, as workers at major companies seek alternatives that offer more flexibility.

The productivity paradox

The push for an in-office presence usually stems from leadership’s belief that it drives better business outcomes. A WeWork survey of 500 business leaders found that 86% think the office will play an increasingly critical role in driving profitability and enhancing organizational culture over the next five years. The same survey reported that 82% of fully in-office and 76% of hybrid companies saw positive impacts on employee productivity, compared to just two-thirds of remote organizations.

However, workplace experts caution against oversimplifying the relationship between office presence and productivity. “The real issue isn’t where employees work but how they work and how they are led,” said Leena Rinne, global head of coaching at learning platform Skillsoft. “A stifling and unsafe culture won’t foster creativity, no matter how many people are in the office.”

Companies have grappled with the RTO issue since the pandemic wound down, with much of the debate coming to an abrupt halt over the past year as company leaders took a hard line on making employees come back.

Apple’s RTO policy has been an evolution, to say the least, with the company initially empowering team leaders to determine policy but most recently demanding that all employees return five days a week beginning in January 2025. Conversely, Airbnb, which issued a liberal work-from-anywhere policy two years ago, has since doubled down, allowing employees to work from wherever in the world they choose. JPMorgan Chase, on the other hand, famously went from a more flexible work policy during the pandemic to a stricter in-office mandate, while Amazon serves as a virtual case study in how not to do RTO.

The talent attraction equation

The impact on talent acquisition and retention remains a crucial consideration, experts agree.

Steve Knox, vp of global talent acquisition at HR tech company Dayforce, reports that “remote work flexibility has become the number one thing that our candidates are looking for.” His company’s commitment to virtual work has significantly aided its recruitment efforts, he said, even as many peer organizations mandating a five-day RTO are struggling with employee satisfaction.

James Zhong, COO at retailer RJ Living, reinforces this view. “Competitors with flexible work models will undoubtedly have an advantage because flexibility has become somewhat of a non-negotiable for employees,” he said.

Apple, SpaceX and Microsoft are among the companies to lose top executives over their demands that employees return to the office.

Meanwhile, remote work opportunities for jobs that pay $250,000 or more jumped more than 18% in Q3, according to research by careers site Ladders. It reported that more than 10% of all opportunities that pay $250,000 or more are now available as fully remote. “This is not just a trend — it’s a shift that’s redefining what work looks like in high-paying markets,” said John Mullinix, director of growth marketing at Ladders. “Despite headlines screaming about return-to-office commands at some big companies, the data shows remote work isn’t dead.”

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