December 4, 2025
December 4, 2025
Photo by Redd Francisco on Unsplash
As 2026 sits on the horizon, the return-to-office debate clunks along. Meanwhile, global employee engagement levels fell to around two in 10 last year, according to Gallup’s 2025 report—only the second decline in 12 years. The drop cost the world economy $438 billion in lost productivity.
Many companies are closing out 2025 by rolling out hard-line return-to-office mandates; think four- or five-day office weeks. But with compliance lagging and employee satisfaction slipping, the move is sparking backlash. Big names like Paramount and JPMorgan Chase are leading the charge. Paramount, for example, told staff to return five days a week or take severance, a strategy that cost the company $185 million in Q3.
On the other hand, companies that stick with full flexibility often struggle with collaboration, cultural cohesion and the cost of unused real estate.
But the workplace challenge runs deeper than where people sit. Employee wellbeing is declining alongside engagement, creating what Deloitte research identifies as a critical gap: Eighty percent of organizations say worker wellbeing is important for success, yet only 12% feel ready to address it effectively.
A growing number of organizations are testing a different path: Stop mandating. Start designing work that employees want to do, and workspaces that employees actually want to use.
“We’ve seen a couple of approaches in the marketplace—you have to be in three days a week or you have to be in five days a week. Well, how well is that working?” says Bob Cicero, who leads workplace experience at Cisco and has spent seven years rethinking how the tech company uses its offices. “Our view was, how do we make space a magnet?”
It’s a simple question with complex implications for HR leaders. If the office must compete with the comfort and convenience of working from home, what does it need to offer? And who in the organization should own that challenge?
The answers emerging from organizations tackling this question suggest HR leaders may need to rethink not just office design, but organizational structure, data sources and what “workplace experience” really means.
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