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In recent years, how we work has dramatically transformed, with remote and hybrid work models becoming the norm. However, with changing times, companies are increasingly pushing for return-to-office (RTO) mandates. These mandates, designed to bring employees back to traditional work environments, are stirring debates. 

While some see RTO as a way to rebuild workplace culture and collaboration, others fear it could decrease employee retention as workers prioritise flexibility and work-life balance. This article explores the complex relationship between RTO mandates and employee retention, understanding the factors that drive these trends and how effective office designs and company culture can help make RTO mandates attractive for employees.

The rationale behind return to office mandates

RTO mandates have gained traction among business leaders seeking to reestablish traditional work environments and enhance team collaboration. According to a recent KPMG survey of 1,325 CEOs across 11 countries, 60% of managers and business leaders support RTO policies. This preference for in-office work is majorly driven by the perceived benefits of face-to-face interaction, greater team cohesion, and improved company culture. 

Proponents of RTO believe that working together in a physical space promotes creativity and productivity, especially with a well-thought-out office design. Modern office design plays a critical role here, aiming to create spaces that facilitate collaboration while maintaining flexibility.

Employee retention challenges with RTO mandates

Employee retention becomes challenging because many employees have grown accustomed to the benefits of remote or hybrid work. These include flexibility, improved work-life balance, and the absence of long commutes, which contribute to higher job satisfaction. Companies implementing RTO policies risk disrupting this balance, leading to decreased morale and job dissatisfaction. 

According to a recent study, 42% of companies that have mandated RTO saw a higher employee turnover than anticipated. Additionally, almost one-third of companies found recruiting new talent became more difficult due to RTO mandates. These outcomes emphasise addressing these concerns to maintain a productive and motivated workforce.

How workplace design affects RTO and retention

Flexibility and adaptability in office layouts are essential in accommodating diverse workstyles and creating a sense of community. Innovative workplace design solutions can impact employee retention by providing an environment that inspires creativity, collaboration, and productivity.

A notable example is the workplace design of BCG’s Gurgaon office. Before the office redesign, transforming the space into a hub for collaboration and creativity was a challenge. The key here was to address the issue of a remote work culture that had taken root even before the pandemic. 

It led to the creation of 'UnOffice,' an innovative workspace designed to address critical challenges and nurture an environment where peak performance became the new standard. This design incorporated a digital immersion area within the client experience zone, allowing BCG clients to experience the firm's solutions fully. 

The project resulted in a 3X increase in return-to-office numbers at peak occupancy, demonstrating the impact of modern office design. It shows how visionary office design concepts can transform workspaces, driving employee productivity, nurturing creativity, and reinforcing a company's core values and purpose.

Strategies to improve retention in the face of RTO mandates

As organisations navigate the challenges of RTO mandates, retaining talent becomes a top priority. Here are some effective strategies to improve retention.

Emphasis on creating a balanced and flexible work environment

Legato, a leading healthcare solutions provider, showcases how a balanced and flexible work environment helps improve employee retention. The workspace reflects the company's innovative spirit and promotes flexibility while embracing a cohesive culture.

Legato's office spans three floors and features various spaces to cater to different work styles. The design includes focus rooms for individual work, meeting rooms, boardrooms, cabins, a training zone, a work cafe, a wellness zone, and a coworking lounge. Variety allows employees to choose spaces that suit their tasks and preferences, promoting a sense of autonomy and comfort within the office.

Furthermore, the workplace has infused the "One Culture-One Community" ethos into its design. This approach has brought everyone together with a sense of oneness, reinforcing the brand's culture while providing a flexible and adaptable environment for employees. Emphasising balance and flexibility in office design has helped Legato create a workplace that resonates with employees, supporting retention despite RTO mandates.

Collaborative spaces and individual workstations

Brookfield has designed its headquarters to embody its brand and attract the best employees. The office design focuses on minimalist sophistication, openness, collaboration, and flexibility. These principles are reflected in soft whites, beiges, and wood finishes, creating a calm and inviting environment.

To encourage collaboration, the workspace features flexible areas with work booths, café-like seating, and bar stools in the pantry, allowing employees to interact informally and brainstorm ideas. At the same time, individual workstations offer high-backed armchairs, height-adjustable seats, and ergonomic chairs, providing autonomy and comfort for focused work. These collaborative and individual spaces blend and align with modern office design trends that value adaptability and personalization.

Recessed and decorative hanging lights create a warm and intimate atmosphere, creating a welcoming ambience. These design choices enhance the sense of belonging, reinforcing the Brookfield brand's culture and values. Promoting trust and transparency through versatile workspace configurations has helped Brookfield create a work environment that resonates with employees.

Wellness-focused design elements

Wellness-focused design elements are essential in creating a workspace that prioritises employee health, comfort, and productivity, which can improve retention. Ansys lives up to this commitment to employee well-being through its thoughtful office design. The company's office layout includes wellness-centric features, like perfect acoustics for noise cancellation, biophilia, and ergonomic furniture.

Advanced acoustic technology helps Ansys reduce background noise, creating a serene and focused environment that minimises distractions. The integration of biophilia enhances aesthetics and contributes to employees' psychological well-being. The approach reflects modern office design principles that recognize nature's calming and therapeutic effects in a work setting.

Ergonomic furniture is another crucial aspect of Ansys's design. It provides employees with maximum comfort to boost productivity and diminishes the risk of injuries. Adjustable desks, supportive chairs, and other ergonomically designed furniture allow employees to customise their workspace to suit their preferences, promoting better posture and reducing physical strain. These wellness-focused design elements collectively contribute to a work environment that encourages a sense of care and respect for employees, which is a decisive factor in improving retention.

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