The Return to Office Trend in Ireland and the UK: What’s Happening?

Since the COVID-19 pandemic drastically reshaped how we work, the discussion about remote, hybrid, and in-office working arrangements has remained at the forefront of employment trends. In the UK and Ireland, a notable shift is occurring. Several large companies, including Amazon, Tesco, Boots, and Santander, have reversed their flexible work policies, mandating that employees return to the office for a specified number of days per week. This move, signalling the end of the remote-first mentality, is stirring conversations globally and across industries.

Companies justify these mandates for various reasons, such as the need for better collaboration, reinvigorating corporate culture, and boosting productivity. However, these arguments often conflict with the desires of employees who have grown accustomed to the benefits of flexible work. Many employees, particularly those who have found a healthier work-life balance or prefer the autonomy that remote work offers, are resisting the return-to-office (RTO) drive. They argue that these policies ignore employee preferences and may not result in the productivity gains employers are expecting. This tension is raising concerns about higher turnover, especially among women, millennials, and top performers, as well as fears that RTO could mask a more strategic attempt to downsize the workforce.

As the UK and Ireland navigate these changing dynamics, the long-term consequences of forcing employees back into offices are still unfolding. In this blog, I am examining the arguments for and against RTO, explore the "Green Status Effect" and its impact on remote employees, and consider whether companies are using RTO as a strategy to reduce their workforce.

The "Green Status Effect" and Its Relevance to Remote Work

The pressure to appear active and engaged while working remotely has given rise to a phenomenon known as the "Green Status Effect." In platforms like Microsoft Teams or Slack, employees often feel compelled to keep their status indicator green, signalling they are available, even when they aren’t actively working. This behaviour stems from the perceived need to demonstrate productivity and presence in a virtual environment, where visibility is harder to measure compared to the traditional office.

This phenomenon highlights a broader anxiety surrounding remote work. For many, the lines between personal time (Start of work, breaks, lunch and the end of the day) and work have blurred, creating a culture of always being "on." Employees, particularly those in organisations with strong RTO mandates, feel the need to constantly prove their worth through virtual visibility, even if that doesn’t equate to genuine productivity. The Green Status Effect can lead to burnout and diminish actual performance as employees prioritise appearing busy over-delivering meaningful results.

As companies push for a return to the office, one underlying justification is to mitigate the need for such habits. They argue that in-person interactions eliminate the need for constant online presence indicators and foster a more authentic, collaborative atmosphere. However, critics suggest that the solution lies in rethinking performance metrics rather than forcing employees back to a traditional office setup. Ultimately, addressing the root cause—how productivity is measured and rewarded—could alleviate the pressure that remote employees face.

Arguments For and Against Returning to the Office in Ireland and the UK

The return-to-office trend is being debated extensively, with both proponents and opponents making valid points.

Arguments in Favour of RTO

1. Improved Collaboration and Communication: One of the strongest arguments in favour of returning to the office is the belief that face-to-face interactions enhance collaboration and communication. Companies like Amazon claim that physical proximity fosters innovation and strengthens teamwork, which is essential for problem-solving and creative thinking. Tesco has echoed similar sentiments, emphasising the role of office spaces in building a collaborative work culture.
2. Strengthened Company Culture: Several organisations argue that maintaining a cohesive company culture is difficult when employees are scattered and working remotely. Boots, for instance, attributed its shift back to office-based work to a decline in shared company values and employee engagement during the remote period. Physical presence, they believe, helps in reinforcing a shared sense of purpose, camaraderie, and belonging among employees.
3. Enhanced Productivity: While data around productivity in remote work environments varies, some business leaders insist that being in the office boosts focus and output. Manchester United’s Jim Ratcliffe noted a drop in email traffic on Fridays when employees worked from home, suggesting a dip in engagement or activity levels. Advocates for RTO argue that managers have greater oversight in an office, ensuring that employees are consistently productive.

Arguments Against RTO

1. Negative Impact on Employee Morale and Trust: RTO mandates are seen by many employees as an erosion of trust. By requiring a physical presence, companies are sending a message that they doubt their employees’ ability to manage their tasks remotely. This has already led to pushback from employees at companies like Deutsche Bank, where staff have criticised the RTO policy as damaging to morale and unnecessary.
2. Increased Turnover: Studies show that employees, especially women, millennials, and high performers, are more likely to quit when forced to return to the office. ResumeBuilder found that 8 out of 10 employers implementing RTO policies lost talent as a direct result. With a significant portion of the workforce valuing flexibility, RTO policies can lead to higher turnover, harming productivity and disrupting operations.
3. Performative Productivity: Some critics of RTO argue that mandating office attendance shifts the performative productivity seen in remote work to an in-office context. Employees may feel the need to be visible in the office, spending time on unnecessary meetings or "walking the floor" instead of engaging in meaningful work. This focus on presence rather than outcomes can diminish overall productivity, similar to the Green Status Effect we have discussed.
4. Challenges for Recruitment and Inclusion: Organisations with rigid RTO policies may struggle to attract diverse talent, particularly those who value or require flexibility. Unispace reports that nearly one-third of companies enforcing RTO face recruitment challenges, as many skilled employees now expect flexible work options. Additionally, limiting remote work opportunities can disadvantage those with disabilities or those living far from major office hubs, potentially hindering diversity and inclusion efforts.

Reducing Workforce Through RTO Mandates

Some critics suggest that RTO mandates could be a way for companies to reduce their workforce without resorting to formal layoffs. By forcing employees back into the office, companies may expect that some will choose to resign rather than comply, effectively thinning the workforce through voluntary turnover. A survey by BambooHR found that 25% of executives admitted they hoped for some degree of voluntary attrition when implementing RTO policies.

This tactic, while subtle, allows organisations to reduce headcount without facing the financial and reputational fallout that comes with mass layoffs. By encouraging some employees to leave, companies can cut costs, save on redundancy payments, and streamline operations. This approach does carry significant risks, including eroding employee trust and damaging the company’s long-term reputation (Glassdoor and Indeed).

Future Implications of Return-to-Office Trends

Looking ahead, the return-to-office trend in the UK and Ireland could have several implications for both companies and employees.

1. Continued Employee Resistance and Turnover: If businesses continue to enforce rigid RTO policies, resistance will likely persist. This could result in higher turnover, especially in industries where remote work has become the norm, leading to talent shortages and difficulties in recruitment.
2. Rise of Alternative Work Models: With the growing demand for flexible working arrangements, companies may need to adopt hybrid work models or experiment with alternative structures, such as compressed workweeks, to retain talent.
3. Emphasis on Employee Well-being: The mental health implications of RTO mandates are already becoming a talking point. Companies that prioritise employee well-being, offering flexibility and support, are likely to attract and retain top talent in the long run.
4. Shift in Performance Metrics: Organisations may need to move away from measuring productivity based on attendance and instead focus on outcomes and impact. This could lead to a more equitable and results-oriented work culture.
5. Impact on Office Spaces: As remote and hybrid work continues to evolve, demand for traditional office spaces could continue to decline. We may see a return towards smaller, more flexible workspaces designed for collaboration rather than daily attendance like WeWork2.0.

The return-to-office trend presents challenges and opportunities for companies in the UK and Ireland. While businesses navigate this evolving landscape, balancing flexibility with the need for collaboration and innovation will be critical for long-term success. At Amach we have a remote-first mentality, impact and results are the priority and with that comes flexibility and a positive attitude (Very rarely have I been changed by interviewers asking to do more interviews!).

My advice would be to balance the RTO by engaging in open conversations with employees and gauging their feelings before making decisions. Communication is key, a trial period would be a genuine way to build momentum while embedding new performance indicators and ease the "Green Status Effect" while being inclusive.

I personally feel that Hybrid work will prevail (2 days onsite), and my hope is that a future four-day compressed working week will become common and will provide the best work-life balance.