Employers who are retracting remote work options are inadvertently hindering their own workplace objectives. This is a significant concern because around 75% of HR leaders believe that diversity, equity, and inclusion policies are essential for their company's future success. According to a prominent study by LeanIn.org and McKinsey, worker flexibility, such as remote work, is considered a valuable tool in achieving these goals.
The recent Women in the Workplace report supports this, revealing that one in five women credit flexibility as the reason they have been able to remain in their jobs or avoid reducing their working hours. This aligns with government data indicating that the gender gap in the U.S. labor market is currently at its lowest point in history, largely due to the rise of remote work.
However, a survey conducted by KPMG of over 400 U.S. CEOs revealed that 62% envision their employees permanently working from the office within the next three years, compared to only 34% a year ago. Additionally, an August report from Resume Builder suggests that nearly every company may require some level of in-office attendance in the coming years.
The clash between remote work and returning to the office lies in the potential erosion of trust between employees and employers. Taking strict attendance measures can create a sense of mistrust and impede productivity. Furthermore, experts and psychologists in the workplace field point out that marginalized individuals often perceive the workplace as a draining environment due to microaggressions—a "mental minefield," as identified by McKinsey researchers.
Indiscriminate return-to-office policies may result in companies losing the very employees they claim to value. The LeanIn.org and McKinsey study found that women of color experience the most significant drop in representation from entry-level to executive positions. While 18% of entry-level employees are women of color, this number plummets to just 6% in the executive ranks. Conversely, white men comprise only 34% of entry-level positions but hold 56% of C-suite roles.
In essence, employers may be sacrificing long-term growth and success by prioritizing the return to the office over the benefits of remote work and inclusive policies. It raises the question of whether the pursuit of growth is outweighing the potential costs incurred.