Friday, December 27, 2024

Amazon Forces RTO 5 Days A Week—Why Do Companies Fear Remote Work?

Must read

In recent news that has exploded across the internet like wildfire, Amazon has become the latest company to join the ranks of employers mandating a full return-to-office policy, to be actioned on January 2, 2025.

According to Amazon CEO Andy Jassy’s memo that was shared with CNBC, the organization’s senior leadership team wants to make two major shifts with the goal of improving their overall efficiency at work, driving higher performance, removing silos and unnecessarily complicated processes, and empowering a culture of innovation, connection, and rapid growth.

Two issues identified from the memo, which Jassy raised, were first, having “the right organizational structure to drive the level of ownership and speed we desire,” and second, being “set up to invent, collaborate, and be connected enough to each other (and our culture) to deliver the absolute best for customers and the business that we can.”

What sent shockwaves across social media and the internet was when the CEO announced, as the solution for the second problem, that the company would be initiating not one, not two, not even three or four, but five full days in the office (with the exception being extenuating circumstances or an approved remote work exception).

“Amazon has announced 5 day RTO, which is unfortunate because I’m interested in working for a living, not live-action role playing and virtue signaling,” one LinkedIn member and AWS employee posted to LinkedIn. “If you have remote opportunities available, please message me. Nothing is off the table. I’d rather go back to school than work in an office again,” he said.

What Happens When Employees Are Forced To Return To Office?

When you consider the effects of driving employees to full-time in-office work, it seems pretty counterintuitive when it comes to increasing productivity, morale, and company culture.

The numbers are striking:

  • Only 2% of workers prefer fully on-site work over remote or hybrid models.
  • A mere 3% say their job satisfaction is greatest when working 100% on-site.
  • Similarly, only 3% feel most motivated or feel most productive in an all-office environment.

(This data is captured from LiveCareer’s Fears and Remote Work report 2024.)

Jake Smith, a CEO of a workspace solutions company, sees both sides of the issue: “While in-person interaction is valuable for company culture, forcing all employees back full-time could hamper productivity and work-life balance.”

Referencing his company, Evo Technologies, Smith said “we implemented automated solutions like AI agents and smart office software to enable seamless remote work. Productivity increased over 20% as employees gained more flexibility and autonomy. However, we still encourage in-person meetups a few times a month for collaboration.

“A hybrid model provides the best of both worlds. While technologies enable remote productivity, total return to office risks losing top talent seeking more flexibility. Companies should trust employees and managers to find the right balance for their teams. A one-size-fits-all mandate hampers creativity that thrives with autonomy,” Smith believes.

Andrei Kurtuy, co-founder of resume builder software company Novoresume, believes that Amazon’s recent decision to require employees to return to the office full-time by January 2025 sets a concerning precedent, especially for those who have found remote work more productive and aligned with their personal lives.

He weighs in: “While Amazon claims in-person collaboration enhances innovation and efficiency, many employees have adapted to remote work environments that allow them to focus better and maintain a healthier work-life balance.

“I think this shift will negatively impact workers who have come to prefer the flexibility and productivity gains of working from home. Forcing them back into a traditional office setting may lead to lower job satisfaction, higher turnover, and challenges in retaining top talent, especially among those who excel in a remote environment. Many industries have proven that remote work doesn’t hinder innovation but, instead, fosters new ways of collaboration with digital tools.

Forbes3 Fully Remote Jobs Hiring Now That Pay $100,000+ In 2024

“Amazon’s move seems out of step with modern work trends, which are increasingly embracing flexibility. While in-office work may benefit some roles, applying a blanket policy could alienate a large portion of the workforce who have thrived remotely.”

Why Is Remote Work Seemingly Disappearing?

Why might this be happening? Why are companies who once favored remote work and flexibility during and shortly after the pandemic, returning to pre-pandemic “ideals” again?

There are several possible reasons.

Nicole Martins Ferreira, a product marketing manager at Huntr.co, a job search tool, offers one clue as to what she believes might be a driving motivation for companies of Amazon’s size:

1. Staff Reduction

“Although we know that people tend to be more productive at home than in office, companies of Amazon’s size might be mandating return to office because they’re trying to reduce staff size without having to pay severance. Whenever companies announce return to office mandates, employees who prefer remote work tend to quit. This may just be Amazon’s way of saving costs on headcount,” she suggests.

According to a recent survey of 1,551 U.S. business leaders by Resume Templates, although more than half of employers know that increasing in-office days goes against employee preferences, one in 10 companies are increasing RTO days to drive employees to quit, with half citing it as a strategy to avoid layoffs.

SEO strategist Ashot Nanyan, however, views it differently. He believes there might be three core motivators behind Amazon’s decision:

2. Fear Of Lack Of Innovation

“Many leaders cling to the notion that innovation thrives in the office, fueled by casual interactions and spontaneous brainstorming,” he says. “However, this belief often overlooks the fact that structured remote collaboration can also lead to significant breakthroughs. Companies might fear that without these in-person moments, they will miss out on potential creative sparks, yet this perspective can stifle the diverse ways teams can connect and innovate.”

3. Fear Of Losing Company Culture

The second reason Nanayan cites is the fear of remote work diluting company culture. “Corporate culture is often viewed as a cornerstone of a successful organization,” he explains. “Yet, this fear can lead to a control-oriented approach, undermining the trust and flexibility that many employees now expect. Organizations that prioritize a strong culture should consider cultivating it in a hybrid setting rather than defaulting to full-time office mandates.”

4. Lack Of Trust In Employees

Another possible reason is the assumption that remote work equates to lower productivity, which persists in many corporate environments. “While some leaders believe that physical oversight ensures accountability, studies show that productivity can thrive outside traditional settings,” Nanayan says. “This paradox highlights a lack of trust in employees, which can ultimately harm morale and engagement. Companies need to reassess their success metrics beyond mere presence in the office.”

Back to LiveCareer’s Fear and Remote work report, it is clear that remote working, even if in a hybrid model, brings undeniable advantages. For example, according to the study, 71% of employees even favor fully remote work, with women (73%) showing a stronger preference than men (63%).

It’s a tough balancing act for organizations, but if we are to truly move forward and attract more talent—especially diverse talent (and especially women)—it’s essential to take a step back and think about what is truly best for our people, even if it means making a compromise with a hybrid model. When a company’s people are put first, the bottom line, productivity, and culture will take care of itself.

Latest article