Slowly but surely, as the pandemic’s unique circumstances fade, companies are backtracking on hybrid and remote work arrangements and rapidly restoring pre-pandemic business norms. Companies like Dell, Salesforce, and Bank of America have already established return-to-office (RTO) policies. Walmart recently joined the RTO mandate but is attempting to address concerns with a state-of-the-art, 350-acre campus designed to build community and make in-office work more appealing to employees accustomed to flexible arrangements.
Amazon is the latest company to take a stricter stance on RTO. In a recent memo, CEO Andy Jassy announced that all employees will be required to return to the office five days a week starting January 2, 2025. Jassy aims to strengthen Amazon’s culture and teams, aspiring to operate like “the world’s largest startup.” Like others before it, Amazon’s decision has sparked debate, drawing both detractors and proponents.
The Debate: Remote vs. Office Work
Detractors argue that remote work leads to happier, more productive employees. Some even suggest that RTO policies are thinly veiled cost-cutting measures, allowing companies to avoid traditional layoffs. Dropbox, for example, has fully embraced virtual work, reinforcing that remote setups can thrive.
On the other side, proponents of in-office work emphasize benefits like mentorship and addressing isolation issues. Nearly 4 in 10 parents say they go days without leaving their house when working from home, and 33% report feeling “very isolated,” according to the Modern Family Index conducted by The Harris Poll for Bright Horizons. This debate over the ideal work environment is unlikely to end soon. However, RTO policies offer advantages in two critical areas for companies looking to strengthen their culture and teams.
Togetherness, Structure, and Camaraderie
A KPMG survey reveals that 79% of CEOs expect their hybrid employees to return full-time to the office by 2027, an abrupt rise from just 34% earlier this year. Jassy and other CEOs like Starbucks’ Brian Niccol believe teams should be together as much as possible, as shared in Bloomberg. Jassy’s memo emphasized that being in the office makes it “easier for our teammates to learn, model, practice, and strengthen our culture; collaborating, brainstorming, and inventing are simpler and more effective; teaching and learning from one another are more seamless; and, teams tend to be better connected to one another.”
Amazon wants to act like a startup—agile, fast, and efficient. Reducing barriers to these goals is the bet Amazon and other companies are making with these policy reversals. Moreover, RTO could mitigate some of the negative aspects of remote work, such as isolation and loneliness, along with blurred work-life boundaries. According to a Wall Street Journal report, remote employees sometimes feel heavily isolated and akin to feeling more like mercenaries than part of a cohesive unit.
Efficiency and Effectiveness
As organizations grow, they often become mired in red tape and bureaucratic inefficiencies. These inefficiencies can frustrate employees and slow down operations, affecting overall performance. Jassy’s memo hints at these challenges: “Do we have the right org structure to drive the level of ownership and speed we desire?” The frustration with unnecessary meetings, excessive layers of approval, and prolonged deliberation is widespread.
Jassy’s note echoes this sentiment: “pre-meetings for the pre-meetings for the decision meetings, a longer line of managers feeling like they need to review a topic before it moves forward, owners of initiatives feeling less like they should make recommendations because the decision will be made elsewhere.” Unfortunately, communication can suffer when teams disperse, and the company grows. By returning to the office, Amazon aims to streamline communication, reduce management layers, and empower individual contributors. The goal is to see improvements in performance, collaboration, and overall culture.
With Amazon’s latest RTO policy, companies are signaling that they view flexible work arrangements as a benefit, not a given right. Management and organizations are reverting back to pre-COVID business norms, where leaders can interact face-to-face with their teams rather than through a monitor. While remote work and hybrid arrangements have advantages, only time will tell which approach best supports the organization and its people in the modern business world.