Return-to-office mandates: A backward step or necessary reset?

The debate over return-to-office mandates is reigniting tensions between employers and employees, as both sides grapple with defining the future of hybrid work. Five years after the pandemic reshaped workplace dynamics, businesses, employees and policymakers are once again at odds over how much flexibility should remain.

Opposition Leader Peter Dutton has taken a hardline stance, calling for Australian public servants to return to full-time office work – aligning with a position taken by U.S. President Donald Trump. This move signals the Liberal Party’s firm approach to workplace flexibility ahead of the federal election on May 3. Could such a rigid mandate alienate voters and backfire on the Coalition?

In contrast, Prime Minister Anthony Albanese has pushed back, reaffirming his support for remote work. He argues that flexible work arrangements reduce traffic congestion, support women, and boost regional economies.

As more companies implement return-to-office mandates or introduce incentives to lure employees back, workers are pushing back against trends such as “task masking”. The resulting tension is unlikely to lead to a full-scale return to pre-pandemic office norms but rather a compromise in work models.

“The technological evolution would be difficult to undo as employees have come to expect more flexibility and autonomy,” said Manju Ahuja, Scientia Professor in the School of Information Systems and Technology Management at UNSW Business School.

Before the pandemic, only 13% of workers operated remotely. That figure surged to 37% during peak restrictions.

“Now, COVID is no longer the factor it was, but that’s where the number has stayed,” she said. “I think that is going to continue, and we’re going to see a whole continuum of work models, from full-time office all the way to full-time remote.”

Generational shifts are also shaping workplace expectations. Professor Ahuja added, “We’re seeing this even more with Gen Z; they just do not want to go back to the office. They’ve grown up with this lifestyle, and it’s what they want to stay with. If we want to leverage their talents, we’re going to have to provide at least some remote work.”

If hybrid models offer flexibility and documented productivity gains, why do some leaders continue to push for full-time office returns? According to Professor Ahuja, the challenge lies in management’s reluctance to relinquish perceived control.

“My sense is that it’s very hard to manage remote workers; you can’t manage what you don’t see,” she said.

However, the shift away from rigid office structures has demonstrated positive effects on employee wellbeing and team performance.

“We’ve seen better wellbeing as well as better productivity [with hybrid working]. It’s supporting autonomy and reducing discrimination risks,” Professor Ahuja noted.

Some companies are attempting to coax employees back with career incentives, such as better access to promotions and pay. However, Professor Ahuja cautioned that abandoning workplace flexibility could have unintended consequences, particularly for diversity and gender equity.

“More women quit during COVID, and I think that if we’re asking people to come back, that will happen again,” she said, citing research that found 63% of C-suite leaders reported women leaving their jobs due to return-to-office mandates.

“Not that it doesn’t happen to men – it does, of course – it just forces women to a greater extent to choose between career growth and personal responsibilities. That has already happened and will likely continue to happen as people go back,” she explained.

Importantly, flexible work arrangements have contributed to narrowing gender pay gaps and improving career progression, particularly for women. Additionally, employees with disabilities – especially those who are neurodivergent – have benefited from remote work’s increased flexibility and autonomy.

While hybrid work offers numerous advantages, companies must address key challenges, including fostering team cohesion and maintaining effective collaboration. Professor Ahuja’s research underscores the difficulties of virtual teamwork.

“It’s not that you can’t do team meetings without communication technologies, but it’s a lot harder, and we have shown that it’s harder to build trust, to arrive at consensus, to solve problems, to be creative,” she said.

Despite these challenges, hybrid work models remain linked to flexibility, efficiency, and innovation – with little evidence of negative impacts on productivity. In fact, companies that embrace hybrid and remote work have often found them to be more profitable.

“Work is more than just getting things done; it’s more than just tasks. It’s also about friendships, community, and a sense of belonging and identity,” she said. “However, the shift to hybrid work is unlikely to reverse, as employees have grown accustomed to the flexibility and autonomy it offers.”

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