Finance

The Rise of the 5-Day Office Work Week: What’s Driving Companies Back Inside?

2024-11-28

Author: John Tan

SINGAPORE: Major tech firms Amazon and Grab are making headlines by mandating a full return to the office for their employees, reinstating a five-day work week. Grab’s new policy will kick in next month, while Amazon plans to enforce it early next year.

These corporate giants cite enhanced communication, collaboration, and productivity as justifications for abandoning the increasingly popular hybrid work model that many employees have grown accustomed to since the pandemic. This trend emerges even as a recent survey from recruitment agency Robert Walters revealed a striking 82 percent of 300 workers prefer flexible working hours.

Experts warn that companies enforcing these rigid Return to Office (RTO) policies may find themselves limiting their appeal to a broader talent pool. Dr. Issac Lim, founder of Anthro Insights and a proponent for people-centric workplace policies, suggests that employees dissatisfied with strict office requirements may start seeking opportunities elsewhere. “People are going to use their feet to do the talking,” he noted during a conversation on CNA podcast Deep Dive.

However, not everyone agrees with Dr. Lim. Human resources expert Karen Teo emphasizes that employee retention is multifaceted and can't be attributed to a single policy. She asserts that positive relationships between employees and their supervisors significantly influence job satisfaction. “If there's actual camaraderie within the organization, teamwork and social interaction becomes key,” said Teo, who leads Quess Singapore, a recruitment and talent firm.

Why the Shift Back to the Office?

Dr. Lim points out that the drive towards full office work often stems from the comfort and instinct of seasoned leaders. According to the KPMG 2024 CEO Outlook, older CEOs are more likely to expect a complete RTO. The study indicates that 87 percent of CEOs aged 60 to 69 anticipate this shift within three years, compared to only 75 percent of those aged 40 to 49. Interestingly, the report also highlights a gender disparity: 84 percent of male CEOs foresee a full return, versus 78 percent of female CEOs.

Some view the push for total office presence as a strategic move by companies to streamline operations, particularly in tech firms that excessively expanded their workforce during the pandemic. “This is a subtle yet cost-effective way for companies to encourage employees to resign,” claims Dr. Lim, alluding to job cuts that might be disguised as a quest for coherence in workplace policies.

Larger corporations, struggling with the complexities of layoffs and potential legal repercussions, are more inclined to return everyone to the office. “They may decide that this is a way to quickly eliminate a layer of employees before recalibrating their workforce,” added Dr. Lim.

Teo's firm, which recently transitioned from a hybrid model to a full RTO, believes that the decision is often contingent on the clarity of productivity metrics across various departments. “Without clear deliverables, it might be easier to revert to office work for everyone,” she stated.

Weighing the Pros and Cons

While firms may have various motivations for their RTO stances, Dr. Lim argues that the time employees spend commuting could be better utilized for work, especially considering the myriad distractions present in the office environment. “There are many interruptions that hinder deep, focused work,” he explained.

On the contrary, Teo acknowledges that in-office interactions, like “water cooler chats,” can foster relationships and enhance team bonding. Yet, she insists that five-day RTO policies can be adjusted. Her firm has implemented work-from-home applications and allows employees to work abroad for up to ten days a year.

“Creating flexible arrangements with managers to ensure agreed outcomes is crucial,” she emphasizes, highlighting the importance of strong communication in fostering workplace alignment.

As firms navigate the future of work, the debate continues—will the push for a concrete office presence ultimately cultivate collaboration and productivity, or will it drive top talent away? One thing is clear: the landscape of work is changing, and both employees and employers will need to adapt.