Welcome to WorkplaceBytes – January 2025, a rundown of articles and reports on the future of work, office occupancy trends, and how workplace leaders like you are blazing new trails as teams adjust to the new workplace.
What’s making news this month?
While some big players in tech and finservs push for a full return to the office, most companies are satisfied with hybrid. CBRE data shows that 3 days in the office is the norm and that fostering better interpersonal relationships is executive leadership’s top priority.
Many companies want managers to set an in-office example for their teams, imposing stricter in-office policies and enforcement on these team leaders.
A major new global research study reveals the hidden costs of 5-day office mandates—higher employee turnover and greater challenges in attracting new talent. The verdict? Some rigid policies drive talent away.
Companies are zeroing in on two key goals for their CRE teams: enabling teams to work more effectively and trimming costs. Tech and AI expertise are in high demand to drive these objectives.
AI is poised to reshape the layout and resources needed in the modern office, according to Propmodo. The workplace of the future is smarter, more flexible, and powered by quality workplace data.
Let’s dig in.
The RTO vs hybrid dilemma: Where do we stand?
For months, WorkplaceBytes has been tracking the evolving debate of return-to-office (RTO) policies and the sharp divide on how companies approach it. While hybrid work continues to gain traction and deliver strong results for most organizations, some industry giants are taking a hard line, mandating employees back to the office five days a week. Axios has just published a list of leading companies that want their employees back throughout the week.
The latest data from CBRE show that 45% of companies favor a 3-day-per-week in-office policy, with 13% offering full flexibility.
A key motivator behind employers’ push for RTO is the desire to strengthen interpersonal relationships. In addition, goals like improving onboarding, enhancing training, and boosting employee satisfaction are major factors driving the desire for in-office time.
The biggest hurdle to increased workplace attendance? Data shows there’s often a lack of a clear policy or mandate.
Companies get tougher on manager attendance
More than half of companies are setting different attendance expectations across teams, and the trend is clear: managers are expected to lead by example with more in-office days. Many praise this shift, especially since one of the top complaints from employees about RTO policies is that their managers don’t observe the guidelines.
A Forbes article also highlighted this trend, analyzing new policies at 3M as a case study. With these new rules, managers face stricter in-office requirements than their teams.
5-Day office mandates fuel attrition and stall recruitment
A global university study has revealed that 5-day policies drive significantly higher attrition rates, especially among the most skilled workers. The research tracked the LinkedIn profiles of 3 million tech workers across 51 companies that mandated 5-day RTO.
The trend was even more pronounced among women. From ARS Technica:
“Importantly, the effect on female employee turnover is almost three times as high as that on male employees … One possible reason for these results is that female employees are more affected by RTO mandates due to their greater family responsibilities, which increases their demand for workplace flexibility and work-life balance.”
The latest research also shows workplaces with a 5-day office mandate are experiencing a 23% increase in the time it takes to fill the role, and their hire rate is 17% lower.
Despite the research, many execs still want a 5-day RTO
While much research shows that hybrid workplaces offer the optimal balance of flexibility and in-office time, many business leaders still want stricter policies. According to a NY Times article, there are four key reasons why:
- They think that research on the benefits of hybrid is primarily anecdotal and flawed
- They’re just “over it” and want a return to pre-pandemic work rules
- They say their company is different and has unique dynamics that make 5-days-in-office best
- They don’t accept that hybrid is practical for their businesses
The article highlights a meta-analysis of 108 studies from Wharton that dispute these perceptions. It’s worth a read. 🤓
Spotlight on CRE goals and teams
A CBRE study released in Q4 of 2024 unveils key insights into what companies expect from their Corporate Real Estate (CRE) functions and how to build a high-performance CRE team.
The most common goal for CRE professionals is ensuring the evolving organization’s space and resource needs are met. No surprise there. The second most common is cost-cutting. Creating environments that attract the best talent also scores highly.
Around a third of businesses have considered or implemented team and organizational changes.
What are the most sought-after qualifications for new CRE and workplace staff? Expertise in technology and AI. This is closely followed by strategic planning capabilities, financial acumen, and knowledge of intelligent reporting and analytics for data-driven decision-making.
Check out the great data and insights in the full report.
Hybrid keeps older generations working
With many companies still experiencing talent shortages in key functions, data show that hybrid work rules and flexibility are among the best ways to attract and retain older workers.
This SmartBrief outlines how much these workers, as well as women and minority employees, often need greater flexibility to find a healthy work/life balance.
AI will transform the workplace
A nice prediction piece on Propmodo discusses how AI, virtual assistants, NLP, and other advanced technologies are reshaping the workplace.
The article predicts a shift from traditional fixed workstations toward dynamic environments tailored to different work styles and tasks. It also highlights the growing role of occupancy sensors, which provide valuable data to help workplace teams adapt to these macro trends.
That’s it for this month’s edition of WorkplaceBytes. We hope you enjoyed the read.
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