The End of Hybrid Work: is this the right move?

As we inch closer to 2025, some major companies—like 亚马逊 —are drawing a line in the sand: it's time to come back to the office. Amazon CEO Andy Jassy recently announced that starting January 2025, employees will be required to be in the office five days a week. He’s emphasizing that in-person work strengthens culture, helps with learning, and makes collaboration easier.

But honestly, I don’t get it. Amazon has thrived under hybrid and flexible working. From 2021 to 2024, the company grew its profits from $197 billion to over $270 billion. That’s a 33% increase while offering flexibility. It’s hard to reconcile this success with the claim that collaboration or productivity is somehow lacking under remote work.

While some industries and jobs require on-site work, it's estimated that 35% of all roles can be fully remote or hybrid. We work with clients in fields like retail, manufacturing, and engineering—industries where hands-on supervision and in-person interaction are often essential. Even in these sectors, many companies have found ways to successfully integrate hybrid models where possible.

Let’s break down why pushing for the end of hybrid work by the end of the year could cause serious problems in Q1 2025.

1. The Rigid Office Approach is Outdated

The pandemic opened up new ways of working that made employees more productive and happier. But now, it seems like some CEOs are stuck in the past, insisting that face-to-face work is the only way to foster collaboration and growth. According to a KPMG survey , 79% of CEOs believe their teams will be back in the office full-time soon, hoping it will lead to better mentoring and development.

But that approach may be short-sighted. Employees don’t need to be in the office every single day to thrive. Hybrid work lets people balance their personal lives while still collaborating when needed. CEOs pushing for a full return risk alienating their workers—especially younger generations who value flexibility and control over their schedules.

Paul Knopp from KPMG even mentioned that while CEOs see value in returning to the office, it hasn’t yet translated into better results.

We need to stop pretending that in-office work is the only way for employees to grow and develop.

2. Hybrid Work Drives Growth, So Why Cut It Off?

McKinsey’s data makes it clear: hybrid work leads to higher revenue growth . Companies with hybrid setups are seeing a 35% boost in their top line, compared to just 28% for those with rigid work structures.

That might sound like a small difference, but when you're competing in a tight market, it’s huge.

Flexible work helps teams respond faster to market changes and customer needs. Sales teams, in particular, thrive in hybrid settings where they can engage with clients both in-person and digitally. When companies lock their employees into a fixed location, they lose that flexibility—and that agility. As we head into Q1 2025, businesses that abandon hybrid work could see a drop in productivity, creativity, and ultimately, sales.

3. Younger Generations Aren’t Interested in Leadership Roles

Here’s another challenge: Gen Z and younger millennials are increasingly rejecting traditional leadership roles. A recent 德勤 survey showed that 40% of #GenZ workers aren’t interested in leadership due to stress, burnout, and the lack of work-life balance. Hybrid work has given them some breathing room, allowing them to lead without sacrificing their personal lives.

By pushing for a full return to the office, companies risk further shrinking the leadership pipeline. Younger employees are already wary of traditional management roles, and this will only push them away. If companies aren’t careful, they’ll find themselves scrambling for talent at key management levels just when they need strong leadership the most—right at the start of 2025.

4. Losing Trust, Losing Talent

Employee trust is everything. And if you force people to come back to the office full-time, you’re going to break that trust. According to Gartner , 1 in 3 senior-level employees say they’d leave their job if they were forced back to the office full-time . Even when companies provide what they believe are good reasons for RTO (return to office), many employees still don’t buy it. They want the option to choose how and where they work.

As we roll into Q1 2025, companies that don’t offer flexibility will face a huge turnover problem. The cost of losing top talent, finding replacements, and onboarding new hires can wreak havoc on a company’s productivity. Not to mention the hit to employee morale. Losing experienced employees because of rigid office policies is the last thing businesses need going into a critical business period.

5. Hybrid Work Isn’t Just a Trend—It’s a Competitive Advantage

Hybrid work is more than just where people sit—it’s about how work gets done. McKinsey’s research points out that hybrid work enables companies to meet customer demands faster and more effectively, blending in-person and digital interactions seamlessly.

Companies that lock into a rigid office schedule will lose this competitive edge. Hybrid work models allow employees to be more agile, productive, and responsive, which will be crucial as businesses navigate the challenges of 2025. The key is flexibility—not forcing employees into outdated, one-size-fits-all work models.

Conclusion: A Strategic Misstep

Forcing the end of hybrid work at the close of 2024 is a risky move.

While CEOs may believe that bringing everyone back to the office will improve collaboration and culture, it’s likely to have the opposite effect. It will erode trust, harm employee retention, and negatively impact productivity—just when businesses need to be performing at their best in Q1 2025.

Instead of ditching hybrid work, companies should embrace it as a driver of growth, flexibility, and engagement. Businesses that hold onto this model will be better positioned to succeed not only at the end of 2024, but well into the future.

#Leaders, what are your thoughts on return to the office (RTO)?

About Me

Michael Saterman, Chief Customer Officer of Saterman Connect is an entrepreneur, keynote speaker, and strong promoter of "Arrive. Drive. Thrive.: For Aspiring, Emerging, and Growing Leaders" available at Amazon and described by the former CEO and President of Chico's as "a go to resource for emerging leaders to be picked up and referenced over the course of your leadership journey."