Why companies are willing to risk losing staff to bring employees back to the office

There’s no doubt that the transition is happening, Ravin Jesuthasan, a renowned expert on the future of work and author of “The Skills-Powered Organization,” told Business Insider.

However, some organizations are showing a certain inertia when it comes to adapting to the new work culture.

“When you’re trying to improve efficiency and productivity, you naturally tend to gravitate toward the mechanisms that give you the most control and oversight.

“That’s true of any evolution we go through as a species,” he said.

Hybrid and remote work is probably one of the most visible areas where that control can seem compromised, Jesuthasan explained.

“This requires radically different leadership capabilities,” he said. “In many organizations, many leaders feel they don’t have the visibility to make this happen.”

Rapid changes in the labor market are giving employers more leverage in the battle over hybrid work.

“We have gone from the COVID years, where there was a real seller’s market, to today, with the current economic situation in many countries, where there is a buyer’s market,” Jesuthasan said.

This allows organizations to return to the processes they know rather than requiring managers to devote time and attention to restructuring work.

Use harsh policies

Many organizations are very progressive in how they manage their workforce, finding the right balance between flexibility and employee alignment.

However, other companies have implemented punitive policies, such as limiting bonuses and promotions or monitoring their employees, as part of strict return-to-office policies.

The strict management style has left some employees feeling looked down upon and infantilized. For others, the lack of flexibility at work has become a red line that should not be crossed.

These companies calculated that they had the leeway to implement stricter policies, perhaps lose some key talent, but for the most part, everything would be fine.

“Some organizations might say, ‘You know what? We have a really deep talent pool. There are a lot of people who want to come work here, so this is our culture and this is how we’re going to maintain it,’” Jesuthasan said.

“There may be unintended consequences to adopting some of these more punitive measures, but it’s really going to vary,” he added.

It is often the case that companies are not only looking to control workers.

Organizations are, for the most part, extremely thoughtful about these decisions and should be given the benefit of the doubt, Jesuthasan said.

“I don’t think that companies that do this or that don’t value people or anything,” he told BI. “I think a lot of these organizations have actually tried different things to make it work.”

“The most important thing is that people understand the logic behind why you are creating these rules,” said the future of work expert.

“Just because I don’t trust you doesn’t mean that’s the message I want to convey. Because whether that’s the explicit or implicit message, it really starts to destroy the organizational culture.”

Back-to-office mandates could have negative effects

While the conflicts around returning to the office seem largely settled at this point, Gen G’s growing importance of automation and AI in the workplace means this conversation isn’t going away.

Although bosses now have the upper hand, the labor market could well swing back toward sellers, creating challenges for organizations that continue to dictate employees’ work habits, Jesuthasan said.

As the skills shortage in these new technologies becomes even more pronounced, it is the organizations that meet the needs of people that will be in the best position.

“Having the flexibility to meet a variety of different needs without forcing everyone into one way of working is going to become even more important,” he said.

Employees must be rational

There is a need for rationality both on the part of employees and the organization, Jesuthasan told BI.

“I’m not sure there’s a single scenario where flexible working has been presented as a right for employees,” he said. “It’s become a new norm, but I don’t think it’s a right.”

“Unfortunately, when you work for an organization, it’s not just about making them work for you.

“You are the guarantor of the overall culture of the organization. You are there to collaborate and help others improve as well,” he said.

As this cultural shift continues, the most important thing is finding the right balance.

If it’s intense work, employees should have the opportunity to do it from the comfort of their homes. But there’s value in coming together to innovate, collaborate and build real trust and empathy, Jesuthasan said.

“The more astute will understand why it is important and why it must be preserved in one way or another.”