Leaders are shifting from loyalty- and tenure-based employer-employee models toward performance metrics and contribution, which correlates with lower employee engagement despite strong worker commitment to their work. Many companies mandate return-to-office policies claiming remote work damages culture and productivity, while many employees report greater productivity and improved well-being when working from home. Executive surveys show 80% of responding managers would have chosen different RTO plans with fuller data, and about 25% relied on gut instinct. Higher employee well-being predicts stronger company performance, and people-focused firms outperform performance-focused ones during uncertain periods.
AT&T CEO John Stankey recently sent a headline-making memo to employees, doubling down on the organization's return to office (RTO) policy and highlighting a transition away from a "familial" employer-employee relationship rooted in loyalty and tenure toward a culture of performance metrics and contribution. The memo also acknowledged a drop in overall employee engagement, despite a high percentage of workers who said they felt committed to their work. This memo brings up two important points leaders must consider.
First, many companies have implemented or are still considering varying degrees of RTO mandates (including Disney, Google, and JPMorgan Chase, to name a few), arguing that working remotely harms company culture and values and reduces employee productivity. This stance has created significant tension between many workers and companies, with workers arguing back that they are more productive and efficient when working from home and enjoy better overall well-being.
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