The unseen victims of RTO policies

The future of work is not just about where we work but also about how we work together to create an inclusive, dynamic, and resilient economy, writes Dr Gleb Tsipursky.

In the rapidly evolving business landscape, the momentum towards policies mandating a return to the office (RTO) is gaining traction. However, this shift risks overlooking critical segments of the workforce, particularly older employees, individuals with disabilities, and women, whose participation is not only crucial but also vulnerable under such policies. The nuanced repercussions of forced RTO on these groups, illuminated by empirical evidence, call for a deeper examination and advocate for a more inclusive approach to workplace arrangements.

The narrative around the aging workforce is witnessing a significant transformation. The allure of hybrid and remote work options has led retirees to increasingly opt to rejoin the labour market. The International Workplace Group reports that by 2031, more than a quarter of workers in leading economies will be over the age of 55. This demographic shift, underscored by economic necessities, brings to light the pivotal role of flexible working arrangements. A mere third of those over 50 who wish to retire can afford to do so, per a recent report, highlighting the essential nature of remote work in enabling older workers to continue their labour force participation.

Beyond economic factors, the appeal of hybrid work for older employees encompasses reduced commute times, the ease of caring for aging partners, and more time for personal pursuits. The Oxford Institute of Population Aging emphasises that such arrangements can significantly benefit this demographic. Yet, the push towards forced RTO policies threatens to disrupt these benefits, potentially sidelining a valuable segment of the workforce. This comes at a time when the retention of older workers is increasingly important, given the global trend of declining birth rates and the impending challenges it poses for the labour market.

The dynamics of the labour market for individuals with disabilities present a compelling case for the critical importance of remote work. According to a study by the Federal Bank of St. Louis, 9.5 per cent of individuals aged 25 to 54 in the United States had a disability in 2022, facing significant employment barriers, lower wages, and higher unemployment rates.

Before the pandemic, the labour force participation of workers with disabilities was markedly lower, and their unemployment rates were significantly higher, than those without disabilities. The advent of remote work during the pandemic, however, marked a positive shift, narrowing these gaps. For workers with disabilities, labour force participation increased by 6.5 percentage points, while the unemployment rate declined by 4.0 percentage points. Furthermore, the average hourly wage for workers with disabilities grew by 6.3 per cent, compared to a 3.7 per cent increase for those without disabilities, with the wage gap narrowing even more significantly among remote workers.

Women, particularly mothers, have also seen considerable benefits from the shift to remote work. The proportion of mothers with children under five working at least partly from home leapt. This shift has not only facilitated greater participation of women in the workforce but also expanded their involvement in traditionally male-dominated industries, such as construction, where women’s remote work rates soared. The flexibility afforded by remote work has proven essential in efficiently matching jobseekers to employers, reducing unemployment, and encouraging those who might have otherwise exited the workforce to remain engaged.

Despite these benefits, the move towards forced RTO policies poses significant risks. For older workers, individuals with disabilities, and women, especially those with young children, the return to traditional office settings can create insurmountable barriers. A survey commissioned by the Fawcett Society and Totaljobs revealed the disproportionate strain on working mothers, with almost twice as many considering leaving their jobs due to the burden of childcare, compared to fathers. The lack of flexibility in working hours and the negative impact on career progression further exacerbate these challenges.

The imposition of RTO mandates threatens to unravel the economic and social advancements achieved through remote work. Forcing workers back into traditional office environments not only constrains the talent pool but also diminishes the labour market’s efficiency, with potentially dire consequences for economic growth and innovation.

The evidence is clear: forced RTO policies risk marginalising significant segments of the workforce, undermining the inclusivity, diversity, and efficiency of the labour market. As we navigate the challenges of a rapidly changing world, it is imperative for business leaders to advocate for policies that recognise the value of all workers and embrace the flexibility that the future of work demands. Only by fostering a more inclusive and adaptable work environment can we ensure a thriving, dynamic workforce capable of meeting the demands of the 21st century.

The call to action is clear. Business leaders, policymakers, and stakeholders must collaborate to craft workplace policies that reflect the diverse needs and contributions of all workforce segments. By doing so, we can harness the full potential of our labour market, drive innovation, and secure economic prosperity for generations to come. The future of work is not just about where we work but also about how we work together to create an inclusive, dynamic, and resilient economy.

Gleb Tsipursky, PhD, is the chief executive of hybrid work consultancy Disaster Avoidance Experts. He was named the ‘Office Whisperer’ by The New York Times for helping leaders overcome frustrations with hybrid work and generative AI.