2026-06-22

'Today in the U.S., a third of companies have forced everyone back to the office full time and have banned remote and hybrid work.' And for bullshit reasons.

'Some leaders say they insist on full-time in-person work because it boosts productivity, despite clear evidence that it does not. Others claim it’s about collaboration, creativity or culture. Our new research reveals that the objection to any work from home is more likely to be driven by something else entirely: ego.'


Referenced materials

The Ding, Ma paper says 'Results of our determinant analyses are consistent with managers using RTO mandates to reassert control over employees and blame employees as a scapegoat for bad firm performance', and 'no significant changes in financial performance or firm values after RTO mandates'.

The Gajendran et al paper says 'Allaying organizational concerns about remote work, RWI had overall small but beneficial effects on multiple consequential employee outcomes including job satisfaction, organizational commitment, perceived organizational support, supervisor-rated performance, and turnover intentions' and 'remote workers generally have better outcomes than their office-based colleagues. Altogether, findings suggest that remote work offers modest upsides with limited downsides—even for those who spend more time working away from the office'.

Bloom et al found 'We found that hybrid working improved job satisfaction and reduced quit rates by one-third. The reduction in quit rates was significant for non-managers, female employees and those with long commutes. Null equivalence tests showed that hybrid working did not affect performance grades over the next two years of reviews. We found no evidence for a difference in promotions over the next two years overall, or for any major employee subgroup' and 'These results indicate that a hybrid schedule with two days a week working from home does not damage performance'.


'Case by case, there may be good reasons for teams to work together in person. As a general rule, though, it turns out that ordering people back to the office full time is a power and status move. It’s a signature strategy of leaders who exhibit narcissistic qualities. They see any kind of remote work as a threat to their authority and admiration. They want to be worshiped at the office altar.'

They researched personality traits and perspectives of employee trust and remote work: 'The only trait that consistently predicted objections to remote work was narcissism — the tendency to be self-centered and entitled. The higher the opinions of themselves leaders expressed, the more they coveted power and status — and the more they favored return-to-office mandates.'

'We found that the higher chief executives scored on this [ego] index, the more likely they were to seek power and status by becoming chairmen of their own companies and joining the boards of other companies. These were the chief executives who made the most negative statements about remote and hybrid work during the first two years of the pandemic.'

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When the pandemic came to an end, many people who had been working from home assumed they would be allowed to maintain that habit at least a few days a week. But today in the U.S., a third of companies have forced everyone back to the office full time and have banned remote and hybrid work.

Some leaders say they insist on full-time in-person work because it boosts productivity, despite clear evidence that it does not. Others claim it’s about collaboration, creativity or culture. Our new research reveals that the objection to any work from home is more likely to be driven by something else entirely: ego.


2023-12-25 posted 2024-01-18

Abstract

Using a sample of Standard and Poor’s 500 firms, we examine determinants and consequences of U.S. firms’ return-to-office (RTO) mandates. Results of our determinant analyses are consistent with managers using RTO mandates to reassert control over employees and blame employees as a scapegoat for bad firm performance. Also, our findings do not support the argument that managers impose mandate because they believe RTO increases firm values. Further, our difference in differences tests report significant declines in employees’ job satisfactions mandates but no significant changes in financial performance or firm values after RTO mandates. In summary, our research contributes to the ongoing debate over RTO versus working from home and has important implications for practitioners.

Keywords: Employee Satisfaction, Firm Performance, Return to Office, Work from Home, and Work-Life Balance.

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posted 2024-03-01

Abstract

As the COVID-19 pandemic wanes, many organizations are asking employees to return to the office concerned that more extensive remote work could hurt employee morale and productivity. Employees, however, prefer to work remotely because of the flexibility it provides. In light of such competing perspectives, we conducted a meta-analysis examining remote work intensity's (RWI) effects on employee outcomes. RWI refers to the extensiveness of remote work ranging from one or two days a week to full-time remote work. We propose a dual pathway model linking RWI to employee outcomes arguing that it has indirect but opposing effects on the same outcomes via two mediators—perceived autonomy and isolation. Findings from a meta-analysis of RWI's effects based on 108 studies (k = 110, N = 45,288) support the dual pathway model. Allaying organizational concerns about remote work, RWI had overall small but beneficial effects on multiple consequential employee outcomes including job satisfaction, organizational commitment, perceived organizational support, supervisor-rated performance, and turnover intentions. We also conducted a meta-analysis of the effects of remote work use (RWU), a binary construct taking on two values—remote workers (users) versus office-based workers (non-users of remote work). Findings from the RWU meta-analysis based on 62 studies (k = 63, N = 41,904) suggest that remote workers generally have better outcomes than their office-based colleagues. Altogether, findings suggest that remote work offers modest upsides with limited downsides—even for those who spend more time working away from the office.
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Abstract

Working from home has become standard for employees with a university degree. The most common scheme, which has been adopted by around 100 million employees in Europe and North America, is a hybrid schedule, in which individuals spend a mix of days at home and at work each week[1], [2]. However, the effects of hybrid working on employees and firms have been debated, and some executives argue that it damages productivity, innovation and career development. [3], [4], [5] Here we ran a six-month randomized control trial investigating the effects of hybrid working from home on 1,612 employees in a Chinese technology company in 2021–2022. We found that hybrid working improved job satisfaction and reduced quit rates by one-third. The reduction in quit rates was significant for non-managers, female employees and those with long commutes. Null equivalence tests showed that hybrid working did not affect performance grades over the next two years of reviews. We found no evidence for a difference in promotions over the next two years overall, or for any major employee subgroup. Finally, null equivalence tests showed that hybrid working had no effect on the lines of code written by computer-engineer employees. We also found that the 395 managers in the experiment revised their surveyed views about the effect of hybrid working on productivity, from a perceived negative effect (−2.6% on average) before the experiment to a perceived positive one (+1.0%) after the experiment. These results indicate that a hybrid schedule with two days a week working from home does not damage performance.


Case by case, there may be good reasons for teams to work together in person. As a general rule, though, it turns out that ordering people back to the office full time is a power and status move. It’s a signature strategy of leaders who exhibit narcissistic qualities. They see any kind of remote work as a threat to their authority and admiration. They want to be worshiped at the office altar.[6]

Over the past six years, we’ve studied why some leaders continue to support remote work, while others resist it. We surveyed thousands of executives, middle managers and frontline supervisors on a host of personality traits. When we later asked them about their stances on hybrid and remote work, their answers didn’t correlate with how much they trusted their employees or how much they loved being around people. The only trait that consistently predicted objections to remote work was narcissism — the tendency to be self-centered and entitled. The higher the opinions of themselves leaders expressed, the more they coveted power and status — and the more they favored return-to-office mandates.

That pattern held for chief executives of Fortune 500 companies. Since we couldn’t directly measure the size of their egos, we measured factors that many previous studies have identified as reliable proxies for narcissism: the sizes of their pay packages, their signatures and their photos in their company reports. (No, the chief executives probably aren’t directly overseeing the page layout, but their underlings have to figure out what will and won’t please the boss.) Commanding outsize compensation and projecting an outsize image sends a message right out of Ron Burgundy’s playbook: I’m kind of a big deal. We found that the higher chief executives scored on this index, the more likely they were to seek power and status by becoming chairmen of their own companies and joining the boards of other companies. These were the chief executives who made the most negative statements about remote and hybrid work during the first two years of the pandemic.

The connection between narcissistic personality traits and wanting people in the office full time is not coincidental — it’s causal. In one experiment, we got leaders to reflect on the role that a bold, assertive ego played in the success of Steve Jobs as Apple’s chief executive and Larry Ellison as Oracle’s. After participating in that exercise, leaders were more likely to oppose remote work.

None of this is to say that individual leaders who reject remote work are necessarily egomaniacs. Many factors influence workplace policies around flexibility. But our data does show that overall, self-centered leaders tend to struggle with the idea of employees making independent choices about where to work. Psychologists have long suggested that narcissism is like a drug — it leaves people craving a regular supply of attention and validation. Remote work deprives leaders of access to that supply.

When people aren’t in the office, it’s harder to command and control. Leaders can’t intimidate by hovering over cubicle desks and slamming doors. They can’t establish their dominance by summoning people to a conference room and pounding their fists on the table. They can’t even make direct eye contact to stare people down.

Remote work also prevents leaders from basking in the glow of employee reverence. Instead of standing out in the corner office, leaders are lost in a sea of equal squares on a screen. Instead of rapt attention, they’re met online with boredom, fatigue and interruptions from partners, children and pets. Instead of being showered with immediate gratification, they get glitchy facial expressions and delayed replies. Sycophantic reassurances from employees just don’t have the same effect if they’re on Slack.

Self-centered leaders often respond to these threats by tightening their grip. They declare that people are shirking from home instead of working from home. They threaten to fire people who aren’t on site five days a week.

Rigorous evidence shows that forcing people to come in every day backfires. Take it from studies of over 450 companies and over three million employees: Return-to-office mandates fail to increase financial returns. They succeed only in motivating star employees to quit, reducing the satisfaction of those who stay and discouraging new talent from joining. Experiments at tech companies and nonprofits show that letting people work from home part of the week boosts happiness and decreases turnover by a third — without any cost to performance. In many cases, those employees even get more done, because they don’t have to spend time commuting and don’t get distracted by office interruptions.

There are limits to the benefit of flexible office policies. Research suggests that working from home for more than half the week can be isolating — it’s harder to build connections and cultures. It’s also more difficult to encourage creative collisions, informal learning and mentoring. But it doesn’t take five days a week to accomplish these goals. In fact, it turns out that people are most collaborative and creative when they work remotely part of the week. They can use a day or two at home to focus on individual deep work and reserve the rest of the week for communication and collective problem-solving. It’s well documented that too much togetherness breeds groupthink (not to mention germs). When we spend some time apart, we actually generate more innovative ideas and make smarter decisions.

Hybrid work does have its own challenges for leaders. It’s not fun to try to inspire through a recorded video message or lead a brainstorming session on a digital whiteboard. But to maintain a competitive advantage in an increasingly flexible world, it’s time for leaders to put their egos aside and master the art of managing from afar. Evidence supports a few basic guidelines.

One: Coordination counts. Teams need anchor days when everyone shows up — especially to welcome newcomers and mentor junior people. At Microsoft, new hires who spent at least a couple of days a month with their manager and their teams were more satisfied with their early experiences, which in turn meant they were more likely to stay over the next year and a half.

Two: Intensity beats frequency. The software company Atlassian has found that spending a few days with your team at a well-designed quarterly team gathering does more for connection and belonging than daily schleps to the office.

Three: Hybrid work is not one-size-fits-all. Different jobs require different amounts of time in person. So do different people; for example, flexibility proves particularly important in attracting and retaining women. And you need to gather together more if your staff operates like a basketball team passing the ball back and forth, rather than a gymnastics team whose members do their own individual events. (This explains why fully remote teams struggle to patent new technologies, but the people who examine patent applications are more productive when they can work from anywhere they like.)

Four: Most people care more about when they work than where. If they can choose the hours, they’re more willing to let leaders pick the place.

Organizational policies shouldn’t be vanity projects. The responsibility of leaders is not to mold the world to their needs. It’s to adapt themselves to the world’s needs, even if it means learning to live without the thrill of a live audience.

Adam Grant, a contributing Opinion writer, is an organizational psychologist at the Wharton School of the University of Pennsylvania. He is the author of “ Think Again ” and the host of the TED podcast “ Re:Thinking.” Marissa Shandell is a Ph.D. candidate at Wharton studying the forces that drive people to feel and do their best at work, and the author of @researchdoodles on Instagram. Courtney Elliott is a Ph.D. candidate at Wharton studying how remote work, social media and technology influence workplace relationships.



  1. Working From Home Research: Survey of Workplace Attitudes and Arrangements; https://wfhresearch.com/ (2023). ↩︎

  2. Aksoy, C. G. et al. Working from Home Around the Globe: 2023 Report. EconPol Policy Brief No. 53 (EconPol, 2023). ↩︎

  3. McGlauflin, P. JPMorgan CEO Jamie Dimon chides managers who work from home: ‘I don’t know how you can be a leader and not be completely accessible to your people’. Fortune (11 July 2023). ↩︎

  4. Kelly, J. Goldman Sachs tells employees to return to the office by July 14, as Wall Street pushes back on the work-from-home trend. Forbes (5 May 2021). ↩︎

  5. Goswami, R. Elon Musk: Working from home is ‘morally wrong’ when service workers still have to show up. CNBC (16 May 2023). ↩︎

  6. foo ↩︎