5-day RTO: why and why not?
14 Nov 2024 | Channel NewsAsiaTHE CASE FOR AND AGAINST MANDATORY RTO POLICIES. The debate over mandatory five-day return-to-office (RTO) policies has become a hot topic as companies like Amazon and Grab implement stricter work arrangements. While some argue that these policies foster collaboration and team cohesion, others believe they may have unintended negative consequences, particularly for talent retention and productivity.
During a recent CNA podcast, Karen Teo, Country Manager at Quess, and Dr Issac Lim, Founder of Anthro Insights, shared their perspectives on this pressing issue. Karen presented a balanced viewpoint, acknowledging the value of in-office interactions, especially for new employees assimilating into organisational culture. She highlighted how informal "water cooler" chats help employees build relationships and a sense of belonging that remote work often lacks. Karen’s company implements a five-day RTO policy but allows flexibility for employees to work from home when necessary. This approach strikes a balance between fostering a collaborative environment and accommodating personal needs.
Karen also pointed out that not all roles require the same level of in-office presence. For example, front-office employees with clear, measurable deliverables can adapt well to hybrid or remote arrangements. However, support roles often lack concrete metrics, making it harder to assess their productivity outside the office. For Karen, flexibility depends on trust and communication between managers and employees, with policies tailored to job functions rather than a blanket mandate.
From left: Crispina Roberts, Steven Chia, Karen Teo, and Dr Issac Lim.
Dr Issac Lim, however, took a more critical stance on mandatory RTO policies. He argued that while face-to-face interactions can be beneficial, a strict five-day policy is not backed by evidence. According to Dr Lim, companies that enforce rigid office returns may alienate their workforce, particularly high performers and senior employees, who are often the first to leave for more flexible competitors. He emphasised that flexibility is not just a "young person’s preference" but a universal demand across generations. This observation challenges stereotypes and underscores the need for policies that reflect the realities of a modern workforce.
Dr Lim further unpacked the motivations behind strict RTO policies, suggesting that some companies use them as "soft layoffs" to reduce staff without direct redundancies. By mandating full-time office attendance, organisations hope employees will voluntarily resign, saving the company from legal and reputational risks associated with layoffs. However, this strategy is risky. Dr Lim warned that companies might lose their best talent to competitors, ultimately harming their long-term performance. He also pointed out that organisations enforcing five-day RTOs have not shown significant improvements in productivity, innovation, or stock prices—highlighting the lack of empirical evidence supporting such policies.
One of Dr Lim’s most compelling points was his call to rethink the purpose of office spaces. He noted that while offices are valuable for collaborative tasks, they are often disruptive for deep, focused work. Employees commuting long hours to sit at noisy open-plan desks may feel frustrated, further diminishing their satisfaction and productivity. Instead, Dr Lim advocated for hybrid models that align work location with the nature of tasks, creating a balance between collaboration and independent work.
At Anthro Insights, we specialise in evidence-based approaches. Flexibility is no longer a luxury but a necessity for attracting and retaining top talent. As organisations navigate the complexities of post-pandemic work, the focus must shift from rigid policies to adaptive, employee-centred strategies that foster trust, innovation, and growth. The future of work depends on it.