AT&T's Mandate: 60,000 Managers to Return to the Office in 2023

AT&T is asking its 60,000 managers to return at least three days every week beginning July in nine locations, such as Dallas and Atlanta. CEO John Stankey noted employees can make decisions that best suit them in making life choices.

Starbucks, Amazon, and Walt Disney are among many companies who have implemented return-to-work policies; many workers oppose such moves which could potentially harm their health and well-being.

Cost Savings

World's leading telecom company is consolidating its wide footprint into nine core offices, including two main hubs in Dallas and Atlanta, and asking its 60,000 managers to report at least three days per week for office work. CEO John Stankey told Bloomberg that most affected managers live near at least one of these nine locations so many will make decisions that suit their lives best.

The telecom's in-person requirement marks a dramatic departure from its pre-pandemic work policy, leading many to speculate it is a covert effort at layoffs. Managers can either opt out voluntarily or accept buyout packages averaging about $300,000. A company spokesperson stated.

Return-to-office policies have seen widespread adoption across industries as companies seek to foster collaboration and morale during an era in which workers are increasingly disgruntled with their jobs and employers. But such policies don't guarantee this outcome on their own, according to Cali Williams Yost, an expert on flexible work strategies.

She contends that these types of measures may actually contribute to more frustration and burnout - and in some cases even lower productivity levels. "Many employees feel forced back into work but without fully engaging," she states, and this wastes resources.

AT&T's move may prove controversial given office occupancy rates have stagnated; but its timing fits in line with other corporate efforts to promote facetime such as tightening remote-work policies and tracking employee badge swipes. Executives such as AT&T's Stankey, Google's Sundar Pichai and Meta's Mark Zuckerberg are using their leverage to place greater focus on in-person collaboration despite opposition from workers.

AT&T spokesman Walter Murphy indicated that top executives have yet to set a target number for reductions, nor have they decided whether AT&T will seek to trim managers from its Business Markets Group, which provides long-distance service and computers to large businesses at discounted rates. Although a major source of operating expenses, AT&T remains committed to cutting costs by studying how its workforce is distributed to identify any unnecessary managerial fat.

Collaborative Workplace

AT&T, one of the world's largest telecom giants, is taking steps to reduce office footprint and tighten return-to-office policies, instructing managers in Dallas and Atlanta - their two primary hub markets - to report in person at least three days each week starting this July in person for at least three days each week starting July 1. This move marks one of the more aggressive approaches taken by companies to get employees back into offices as occupancy rates remain flat since pandemic's peak in 2023, according to data provided by Kastle Systems.

Many businesses once avoided flexible work from home policies out of fear that productivity and creativity would suffer without physical teams to collaborate with, however, collaborative working has demonstrated that by gathering team members into one room with appropriate tools it can maximize both productivity and collaboration, even among remote workers.

Collaborative working can provide many advantages. Team members work faster and more efficiently together with greater innovation and creativity as a result. Collaborative working has thus become an integral component of modern workplace culture.

By inviting managers to the office, a business can foster strong employee relationships and improve communication throughout its organization, thus improving morale, productivity, loyalty and retention of its workforce. Offering benefits such as free meals or other rewards can further bolster these positive effects.

Return-to-office mandates have long been used by companies as a cost-cutting strategy, but this hasn't necessarily enhanced company culture or employee morale. Instead, they simply moved offices closer to where work gets done most frequently, making it harder for employees to justify leaving family commitments or other commitments behind in order to go into work when their work can be accomplished remotely.

Some companies have attempted to mitigate the negative repercussions of office return-to-work policies by providing workers with benefits that can help ease some of the discomforts of commuting and working in an office, such as gym memberships or other perks; but its success remains uncertain; ultimately if employees cannot justify an extra commute or expenses related to it they will likely relocate or abandon their job position altogether.

Flexibility

An organization's decision to require its managers to come into the office can have serious repercussions for employees. It could force them into an uncomfortable decision between long commutes or finding another job; and disrupt their work-life balance. Thankfully, companies offer flexible work arrangements tailored to employees' individual needs and lifestyles.

John Stankey, CEO of AT&T, sent out a memo to thousands of managers announcing that the U.S. tech giant would require most employees to be present three days per week beginning July in Dallas and Atlanta and September elsewhere in the U.S. This new policy forms part of AT&T's effort to consolidate offices; some managers may need to relocate or find another job with AT&T as a result of this new rule, reports IBTimes.

This move reflects a growing trend within corporate America to restore offices as central workplaces, with companies like Starbucks, Amazon and Walt Disney demanding additional on-site time for employees. While some workers may oppose return-to-office policies, others likely embrace them as ways of improving collaboration and company culture.

But the presence of managers in the office may have little impact on productivity, particularly for call centers. AT&T workers have long opposed return-to-office measures; many claim they cannot afford relocation or giving up flexible schedules. Furthermore, companies which mandate work-from-home schedules for employees haven't seen productivity increase as a result.

AT&T is providing their managers with flexibility, and some of its competitors are permitting employees to continue working remotely in response to the pandemic. According to Fierce's sources, Comcast managers are working closely with their teams in negotiating a hybrid schedule that makes sense for the business; this schedule varies based on team needs.

Cox Communications also recently encouraged its managers to return to its Atlanta HQ and other administrative buildings nationwide "as needed, in accordance with our flexible work (hybrid) team agreements". These team-specific schedules vary based on business needs.

Workplace Culture

AT&T managers say requiring them to return in person to work could be seen as part of an attempt to cut staff numbers. While AT&T operates 350 offices nationwide, CEO John Stankey wants all 60,000 managers reporting back to nine locations across Los Angeles; San Ramon; California; Seattle; St Louis; Washington and Middletown and Bedminster (New Jersey), where some 9,000 will face long commutes or must relocate altogether.

At AT&T, during a pandemic they decided to assess their workplace culture and prioritize employees by cultivating an emotional safety zone and inclusive work environment, according to DiversityInc. This included programs and practices such as mentoring and coaching as well as emphasizing social connections through employee engagement scores as well as an emphasis on philanthropy.

An inclusive workplace that promotes inclusion and empathy for all employees will make any business an appealing place to work, with higher levels of trust leading to increased collaboration, innovation, productivity gains and employee retention - attributes which AT&T was recognized for by DiversityInc as one of its Top Employers for Diversity 2021 Survey.

AT&T may be trying to reduce real estate costs and boost collaboration among its managers, but many feel like they're being punished for an overpaying leadership that overpaid for DirecTV and Time Warner before embarking on an extensive divestment strategy that cost billions on major acquisitions. One manager who spoke anonymously out of fear of reprisal described AT&T's move to force all employees back into offices as an attempt by AT&T "to disguise layoffs as RTO changes."

As workers who were previously forced back into the office return, many have questions and queries for their managers about how this decision will impact them as they search for promotions or new roles in the future. Others wonder whether returning could signal an ongoing change to company policies regarding remote working.