GLOBAL companies like Grab and Amazon have landed in the news, demanding that employees return to the office, pushing back against the flexible, remote working setups adopted during the pandemic.
Grab, the Singapore-based tech giant, has ordered its employees to fully return on-site by Dec. 2. CEO Anthony Tan emphasized that increased face-to-face collaboration would “accelerate progress and enhance integration” among business units, aligning with the company’s mission to drive growth.
Similarly, Amazon has announced its corporate employees must return to the office five days a week starting Jan. 2, 2025. CEO Andy Jassy noted that an in-person presence improves collaboration, connectivity and company culture.
This shift back to on-site work is becoming a trend, with a recent survey indicating that 70 percent of employers plan to strengthen remote work policies in the coming years. As more companies implement strict return-to-office (RTO) mandates, the reasons behind this shift and its implications for both companies and employees are worth examining.
In the Philippines, employees have included flexibility as part of their negotiation or condition for employment, and for good reason: the increase in productivity is a result of savings obtained by removing the commute, traffic and other ancillary elements related to the process.
In-person vs remote interaction
The move toward RTO mandates can be attributed to several key factors. For companies, the value of in-person interaction is a strong driving force. Executives argue that a physical workplace fosters a sense of camaraderie and teamwork, which can be harder to replicate virtually.
Jassy has pointed out that “collaborating, brainstorming, and inventing are simpler and more effective” in an office environment, where colleagues can spontaneously exchange ideas and provide instant feedback.
Amazon believes office presence helps employees connect with each other and reinforces company culture — a sentiment shared by Grab, whose leadership views in-office collaboration as a critical component of its growth strategy.
Another reason behind the RTO push is performance oversight. Many employers believe that in-office work offers better visibility into employee productivity and engagement. In response to widespread employee reluctance to return, some companies are tracking office attendance, tying raises and promotions to physical presence, and building compliance measures to enforce RTO policies. The aim is to create a consistent, measurable work environment that minimizes distractions and enables managers to directly observe and engage with their teams.
However, these policies could also stem from a desire to reassert traditional managerial control, as remote work challenges the established practices of on-site oversight and micromanagement. From a business standpoint, many leaders believe an office-based work model can enhance productivity and drive faster results, particularly for mission-critical projects that require close collaboration.
For companies like Amazon and Grab, which operate in highly competitive markets, the need for rapid progress and cohesive teamwork is paramount. Thus, these organizations view RTO policies as essential for achieving strategic goals and maintaining competitive edges.
Implications
However, this shift back to the office brings significant implications for both companies and employees. For companies, an RTO mandate could negatively impact retention and recruitment. The pandemic altered employee expectations, with a majority of workers now seeking roles that offer flexibility. Many employees have found that remote work improves work-life balance, reduces commuting stress, and even enhances productivity.
Thus, strict RTO policies may push skilled workers to seek more flexible opportunities elsewhere, including freelance roles or remote positions that provide similar, if not better, compensation without the need for in-office presence. This talent drain could widen the skills gap, especially if companies struggle to attract top talent in a competitive job market where flexibility has become a standard expectation.
The RTO mandate can also have serious consequences for workplace diversity and inclusion. Remote work has provided marginalized groups, such as disabled individuals and working parents (especially women), with opportunities to thrive professionally without the limitations of a traditional office setup.
By demanding a full return to the office, companies risk creating a discriminatory environment that may disadvantage these groups. For instance, employees who are able to commute and work on-site may be prioritized for promotions and raises, while those who have legitimate reasons to prefer remote work, including health concerns or caregiving responsibilities, may be left behind. This could widen existing inequalities and hinder diversity efforts within the workplace.
Moreover, the reintroduction of strict in-office policies can create a culture of distrust between employees and management. Tracking attendance and enforcing strict compliance measures may foster an environment of micromanagement, reducing employees’ sense of autonomy and potentially leading to decreased job satisfaction.
When employees feel they are not trusted to perform their work independently, morale and engagement often suffer, creating a transactional relationship between employers and employees rather than a collaborative one. This environment could drive employees to fulfill only the minimum requirements, negatively impacting overall productivity and diminishing company culture.
On the other hand, the implications of RTO policies extend beyond individual companies and affect the larger workforce landscape. The rise of freelance opportunities and independent contracting has opened up alternative paths for workers seeking flexible arrangements, allowing them to work remotely and potentially earn more.
In the long run, if companies insist on rigid RTO policies, they may unintentionally fuel the growth of the freelance economy as dissatisfied employees leave traditional roles for more autonomous, flexible work options. This shift could leave traditional employers struggling to fill roles, especially with skilled workers who prioritize flexibility over job stability.
In the end, the return-to-office mandate sweeping through companies like Grab and Amazon signals a pivotal shift in workplace dynamics as employers attempt to regain a sense of control and encourage collaboration.
Ultimately, companies must recognize the importance of flexibility in today’s workforce if they wish to retain and attract top talent while fostering an inclusive and trusting work environment. Striking a balanced approach that considers both the company’s objectives and employees’ expectations may prove more sustainable, allowing for a workplace model that meets the needs of all stakeholders involved.
Kay Calpo Lugtu is the chief operating officer of Hungry Workhorse, a digital and culture transformation firm. Her advocacies include food innovation, nation-building, and sustainability. She may be reached at kay.lugtu@hungryworkhorse.com.
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