There’s a theory for why so many companies are pushing for an end to remote work policies, despite strong employee backlash at tech giants from Amazon to Dell. These companies, the theory goes, are trying to justify their hefty office leases — they’re paying for the space, so they need to use it.
Now, a new report has confirmed that this reasoning is behind at least some of these RTO mandates. One in three companies (38%) say that using the office space they pay for is a reason behind their RTO push.
It’s not the only factor, however, with a handful of other reasons such as “improving communication” coming in ahead of the real estate justification.
16% of Companies Say Leases Have “Major Impact” on RTO
The new report is out from Resume.org, and is based on a November 2024 poll that surveyed 900 business leaders at companies that went remote for the Covid pandemic but have since pivoted to RTO policies.
“For over half of companies leasing office space (or 35% of the total sample), current lease terms have impacted their RTO strategies. About 16% of companies report lease terms have a major impact on their RTO policy, while 38% say they play at least some role,” the report found.
This just in! View
the top business tech deals for 2025 👨💻
Don’t expect anything to change soon. Some leases will expire in 2025, but, of the companies that currently hold leases, nearly half of them will see their lease extend to 2028 or later.
Other Reasons for RTO Pushes
The biggest reason companies cited for their return to the physical office space was fostering collaboration and teamwork, with 69% of surveyed companies saying this.
“The primary drivers for requiring employees to return to the office include fostering collaboration and teamwork (69%), improving communication (58%), strengthening company culture (51%), boosting productivity (47%), and simplifying employee management (41%)” -the report
Not covered by the report? Any of the benefits of fully remote work, from the time management upside for employees with small children or those with disabilities, to the productivity or happiness gains that some studies have found.
32% of Companies Are Concerned About Brain Drain Due to RTO
Some of the companies surveyed were worried about losing employees due to their more stringent in-office work policies — 6% were very concerned, while 26% were somewhat concerned.
However, more of them were unbothered. 36% said they were not very concerned, while 13% were “not at all” worried, and 18% remained unsure.
Fresh research just out from the University of Pittsburgh might sway those opinions: Return-to-office mandates are associated with “an exodus of high performers,” according to Fortune.
