Microsoft execs tell employees in internal meeting RTO is backed by data that shows in-office workers are 'thriving'

"Microsoft executives explained why the company is mandating a stricter return-to-office policy during an all-employee town hall on Thursday, citing internal data that showed employees with more in-office time are "thriving." CEO Satya Nadella said the company observed through the pandemic that an "unintended consequence" of remote work was that social ties are "necessary for innovation," according to internal comments at the town hall, reviewed by Business Insider."

"Microsoft HR chief Amy Coleman, who announced the policy on Tuesday, said at the town hall that the decision was supported by internal data. Microsoft has tracked and analyzed data over the past few years and found that employees who spend at least three days a week in the office have a higher "thriving score," which Coleman explained means that the employee is energized, empowered, and finding meaning in their work."

"Seattle-area Microsoft employees already average 2.4 days a week in the office, Coleman said. "So for some, this is not a big change," she said. Nadella said the company will still allow the opportunity for flexible work, based on the needs of specific teams. For example, Microsoft AI has a stricter policy than the rest of the company, as Business Insider reported earlier this week."

Microsoft is implementing a stricter return-to-office expectation backed by internal data linking in-office presence to better employee outcomes. Company analysis found employees who spend at least three days per week in the office register higher "thriving scores," defined as feeling energized, empowered, and finding meaning in work. Leadership observed that remote work weakened weak ties and made new ties harder to form, which can impede innovation. Seattle-area employees currently average 2.4 in-office days weekly, so changes may vary by location. Microsoft will permit team-specific flexible arrangements, with some teams, such as Microsoft AI, subject to stricter in-office rules.

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