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The covid-19 pandemic revolutionised the way we work and no sector embraced remote work more than IT companies. These firms were among the first to send employees home, with promises of increased flexibility, productivity and employee well-being. Yet, in a dramatic reversal, many of these same companies are now leading the charge to bring employees back to the office.
Under Amazon's new policy, effective 2 January 2025, employees are required to be in the office five days a week, with exceptions for "extenuating circumstances" like illness or emergencies. Employees with approved remote work exceptions can continue working from home. CEO Andy Jassy noted that before the pandemic, remote work was accepted for specific situations and that understanding will persist under the new guidelines.
This mandate is just the latest in a series of strict return-to-office policies implemented by major tech players like Wipro, TCS, amongst others. This shift raises important questions about the future of work such as what is driving these decisions and how will they affect productivity, workplace culture and employee morale? And, most importantly, is this move a step forward or a setback?
The New Way Of Working
In the immediate aftermath of the pandemic, tech and IT companies highlighted how virtual work could boost productivity, improve work-life balance and offer companies access to a global talent pool. Employees, too, embraced the change, with many stating they preferred the flexibility and freedom to work from home.
Amazon’s decision to end its flexible work policy is not an isolated event but part of a broader trend in the IT sector. It is a paradox that many of these firms, which initially vouched for flexibility, are now pushing for stricter office presence.
“A new paradigm has opened up which offers more flexibility in the hands of the employees and organisations. It’s currently fit to purpose or suited for the need-based approach. While we have implemented a hybrid approach while relying on the business needs to move more towards in person to base on requirements, hardware dependencies and key business imperatives. The way forward I see it moving to need based yet hybrid in nature,” says Shashwat K Mitra, Global Head HR, KPIT Technologies.
According to 2023 Gartner Future of Work Trends report, 44 per cent of companies in the tech sector have implemented hybrid models, but the percentage of fully remote roles is shrinking fast.
Why This Shift?
Impact on Productivity: One of the key drivers behind these policies is the perception that in-person collaboration fosters creativity, innovation and productivity in ways that remote work cannot. In its internal communications, Amazon cited concerns over declining productivity and collaboration as reasons for the policy shift. CEO Andy Jassy highlighted that being physically together facilitates better teamwork, spontaneous brainstorming and mentoring opportunities that are hard to replicate over zoom calls.
“Employee needs have evolved over the last few years and so have organisations needs and expectations. One needs to remember that during pandemic, employees were not ‘working from home’, they were ‘at home, during a crisis trying to work’. We are all aware of the cost of that on physical and mental health. At SAP, we believe that working long hours does not translate to productivity. Working effectively in a conducive, healthy environment is the win-win,” highlights Shweta Mohanty, VP & Head of HR, SAP in India.
However, data suggests the relationship between productivity and physical presence is more nuanced. The Microsoft Work Trend Index 2022 report found that 87 per cent of employees reported being productive while working remotely, yet only 12 per cent of leaders were fully confident that their teams were actually productive. This disconnect between perception and reality may be a significant factor influencing the return-to-office mandates.
Cultural Reinforcement: Remote work can dilute company culture, especially for organisations that pride themselves on in-person collaboration. Amazon and others argue that physical office presence helps preserve workplace culture and fosters stronger connections among employees. Wipro’s leadership has cited similar reasons, stressing the importance of an office environment for reinforcing company values and building a cohesive, engaged workforce.
“The transition to flexible work models is unquestionably a step forward as we progress in workspace management. It is not a setback. We have seen firsthand how embracing flexibility, whether in terms of remote, hybrid, or in-office has led to an overall increased productivity, has enhanced employee satisfaction, and given an access to a broader, more diverse talent pool. As we move into the new domains of organisational cultures, I believe the future of work is not about reverting to old norms, but about evolving to meet the changing needs of our workforce,” comments Smriti Mathur, VP, People India & Global Talent Advisory Partner, Pegasystems.
Economic Pressure: The economic slowdown in the tech industry has also played a role in the return-to-office movement. Facing declining revenues and mass layoffs, companies are rethinking how to best utilise their workforce. For some, enforcing an office policy is seen as a way to address operational inefficiencies during challenging economic times.
Impact On Workplace Dynamics
Amazon’s new return-to-office policy may just be the tip of the iceberg. Many companies are watching how employees react to this mandate before making their own decisions. According to PwC Workforce Trends 2024 survey, 66 per cent of employers believe in-office presence is critical for maintaining a strong culture, suggesting this will only grow stronger in the coming years.
A concern for employees is how these new mandates affect their work-life balance. Remote work offered employees the freedom to manage their personal lives better and save on commuting time. Many employees, particularly working parents and those with caregiving responsibilities, have come to rely on this flexibility. Mandates for office presence could lead to higher levels of burnout and stress, as workers struggle to adjust to new routines.
“Employees today value autonomy in managing their professional and personal lives, and a hybrid setup allows them to do just that. It offers the flexibility of remote work while still providing opportunities for in-person collaboration. This approach is particularly beneficial for individuals with caregiving responsibilities or other personal commitments that require flexibility. On the other hand, physical presence remains critical for fostering teamwork, innovation, and building connections at work,” notes Ayaskant Sarangi, CHRO, Mphasis.
Companies that implement strict return-to-office policies may face higher turnover, especially as employees who value flexibility start looking for opportunities elsewhere. As per Owl Labs State of Remote Work 2023 survey, 54 per cent of employees said they would consider leaving their job if they lost the ability to work remotely or in a hybrid model.
The trend towards returning to the office represents a turning point in workplace culture. While companies like Amazon highlight the advantages of in-person collaboration and stronger team dynamics, they run the risk of alienating a workforce that has come to value the benefits of working from home.
