Ensuring your team turns a profit doesn’t mean it has to be in your line of sight all day, every day – to the contrary, writes Sibongiseni Kumalo
For many companies, the appeal of a bustling office and a return to pre-pandemic routine led to the implementation of strict return-to-office mandates. However, a growing body of evidence suggests that these one-size-fits-all approaches might be backfiring.
Amazon, for one, made its hybrid approach – three days a week in the office – mandatory, and made clear promotions would be unlikely for those who did not comply, while others could be fired.
Sixty-five percent of US companies permit working from home in one form or another, with a third allowing staff to choose where they want to work, says research company Scoop, which tracks more than 8,000 companies’ work location trends via its Flex Index. Almost a third (32%) that offer hybrid location require office presence for a set number of days a week, or on set days of the week. Analysis by Boston Consulting Group (BCG) of the financial results over three years of 554 public companies listed on the index shows the most successful approach seems to be that of companies that are fully remote, or permit their staff to choose their own in-office schedules. Those that offered staff choice achieved revenue growth of 21%. Those with mandatory in-office days, or that required full time in-person attendance, saw revenue increase a mere 5%.
BCG’s Debbie Lovich suggested that the trust in remote teams, as well arrangements that keep staff happy and make them feel appreciated, may have a lot to do with the difference in results.
Workforce equilibrium expert Jan Bruce, CEO of MeQ, says rigid back-to-office policies often disregard individual preferences and work styles, spurring frustration and resentment. Being ordered back to the office may make staff feel they are no longer trusted to work from home, and this perception may well erode the social contract with their employers.
According to a ResumeBuilder.com survey, 37% of employees forced back to the office are unhappy, and nearly 30% are actively seeking new jobs. This translates into potential talent loss, and hinders companies’ ability to attract and retain top performers. Twenty-three percent noted that their managers weren’t physically present in the office as often as they were. But this generally suited staff, as this absence contributed to their productivity.
The productivity conundrum
Career strategist Julia Toothacre told ResumeBuilder: “Worker productivity might improve if the boss isn’t in the office for a couple reasons: one is that workers aren’t being interrupted or micromanaged, so they can focus on their tasks. Another reason could be if you don’t have a great relationship with your boss, you might be more comfortable and experience less anxiety if they aren’t there, which can lead to being more productive.”
Contrary to expectations, studies haven’t shown a clear link between return-to-office mandates and increased productivity. A survey by software company Atlassian found that only 33% of executives with back-to-office mandates believe their policies have benefited productivity. This lack of tangible benefit weakens the case for strict mandates.
While CEOs who want to see bums occupying seats in their expensive office suites cite a decline in collaboration and innovation among teams working from home, alongside diminished camaraderie, knowledge-sharing and culture-building, their concerns about working from home revolve mainly around “productivity, collaboration, and tracking progress against goals”. These problems, notes Atlassian, are not solved by office attendance but by tackling the “how” of work.
More than 40% of Atlassian’s workforce, which has grown from 3,000 to 10,000 strong since 2020, uses its offices in 13 countries to foster a sense of belonging and reinforce relationships through “intentional” gatherings, both social and work-related.
Atlassians tend to work longer days, which co-CEO Mike Cannon Brooks says is a trade-off: “People work about 40 minutes extra per day and they commute two hours less per day. That’s a pretty good tradeoff. We get about a third of that time for us as a business. And Atlassians get all the lifestyle benefits that come with flexibility.”
Irrevocable
The pandemic altered the landscape of work irrevocably. Many employees have adapted and thrived in remote environments, demonstrating their ability to be productive and engaged outside the traditional office setting.
Rigid return-to-office policies fail to acknowledge this reality and may hinder companies from embracing a more flexible future, not to mention missing out on talented job candidates who would rather work for companies that have embraced hybrid or remote work.
While the complete abandonment of physical offices might not be the answer, a more nuanced approach is undoubtedly necessary.
Companies should consider implementing hybrid models that offer flexibility, cater to individual needs, and prioritise factors like collaboration and team dynamics when determining optimal work arrangements.
Ultimately, a successful return-to-office strategy should focus on fostering a positive work environment, maximising employee satisfaction, and driving genuine business results, not simply replicating pre-pandemic norms.
How Atlassian makes it work
To create more focus time, drive clear goals, and co-ordinate work, the company encourages teams to:
- Accommodate colleagues in different time zones – have at least four overlapping work hours a day.
- To boost productivity, set clear goals and track progress. Clarify team direction by planning and prioritising key work quarterly, using learnings from the previous quarter to correct course if needed
- Optimise for accountability to documented goals and a culture of feedback.
- Use synchronised time for creativity, navigating complexity, driving momentum, and bonding.
- Use asynchronous time for focused work, creating clear, crisp documentation, and sharing status updates and other information.
- Structure time around priorities, giving a maximum of 30% to meetings (decline those that are not mission-critical), 10%-20% to open collaboration, 30%-40% to focus time, and 20% to responding to messages.
- To avoid confusion, agree on collaboration norms.
- Be transparent, even when it might feel uncomfortable.
- Make progress visible.
- Give kudos where deserved, and make each person feel appreciated.
- Don’t just work as a team – play as a team too.
- Use in-person time when initiating something or to solve a creative or complex problem.
- In-person time is critical. It just doesn’t need to happen every day.