Employers Urge Employees to Return to the Workplace as Job Market Changes

Businesses are becoming increasingly frustrated with the lack of presence in the workplace.

Notable organizations such as Vanguard Group and Paycom Software Inc. have made their mark in the investment and workplace technology industries, respectively.

In recent weeks, some employers have sent out instructions to their staff, asking them to adhere to the current hybrid work schedule or to come into the office more often in 2023. Internal memos seen by The Wall Street Journal and conversations with employees have revealed that those who do not comply with the orders may be dismissed within a few weeks.

At certain businesses, staff members have voiced their concerns about new regulations during company-wide meetings. Those advocating for remote work argue that they find it difficult to be productive in the office and that commuting is not an effective use of time. On the other hand, employers maintain that having employees in the same space is beneficial for problem solving, onboarding new staff, and maintaining the company's culture.

David Garfield, the global head of industries at consulting firm AlixPartners, commented that there is currently a struggle between employers and employees when it comes to returning to the office. Garfield, who has been helping executives with the return-to-office talks, noted that employers are not finding it to be an easy process.

Throughout the pandemic, many companies adopted a lenient attitude towards policy enforcement, as they were concerned that a strict stance on in-office work could have a negative effect on morale or cause employees to leave. Although companies had office policies in place, some managers allowed workers to disregard them, according to workers and human-resources executives. Data from security firm Kastle Systems showed that the average office occupancy in 10 major U.S. cities stayed below 50% for most of 2022.

Human-resources advisers suggest that as the job market is being affected by the possibility of a recession, employees may be losing their influence over employers, allowing employers to make alterations to the way work is done.

Research has revealed that the majority of employees are open to spending a few days in the office each week, and many of them recognize the advantages of being in a physical workspace. Some employers have argued that it is only fair to those who have been following the rules to enforce them.

In December, the leadership team at Vanguard Group, located near Philadelphia, sent a memo to their staff reminding them that they were expected to be present in the office on Tuesdays, Wednesdays, and Thursdays. It seemed that some employees had not been adhering to this rule.

The company noted that the lack of uniform implementation of the model has caused disparities in the way it is utilized, making it hard to reap the advantages of face-to-face instruction, teamwork, and connection, as per a memo seen by the Journal.

In the days that followed, some Vanguard personnel reported that their supervisors had warned them that if they did not adhere to the return-to-office policy, they would be let go in the near future without any severance pay.

At a recent departmental all-hands meeting at Vanguard, a recording of which was shared with the Journal, one team leader expressed that the company was open to changing its return-to-office policy, but that executives wanted to attempt a hybrid approach. The manager noted that it wouldn't be equitable to permit some employees to disregard the rules. The team leader acknowledged that some of the best performers may not be keen on working in a hybrid setting.

Vanguard recently announced that they have adopted a hybrid model to combine the advantages of a physical workspace with the convenience of remote work. They believe that this approach is essential to providing a positive experience for both their customers and employees, as their collaborative culture is a key part of their success.

Employers in Oklahoma City are requiring their employees to work full-time in an office. Paycom Software, a workplace technology company, recently informed their technology team that they must be present in the office five days a week starting in January. The memo stated that due to a number of important projects, the teams need to be operating at their peak performance.

Paycom has seen a large portion of its employees return to the office in August 2021, with nearly 80% of them now working five days a week at the company's headquarters, according to a spokesman.

Paycom has been clear from the beginning of the pandemic that working from home was a temporary measure to ensure the safety and well-being of all. Now, the last few departments are joining their colleagues in the office, and the company is thrilled about it.

A number of major banks based in New York, such as Goldman Sachs Group Inc., have seen their stocks dip by 0.01%.

At the start of the pandemic, executives adopted a strict policy to bring employees back to the office. Now, the offices look much the same as they did before the coronavirus outbreak, according to those in charge.

At The Wall Street Journal's CEO Council Summit in December, Goldman Sachs' CEO David Solomon stated that they have made adjustments and changes, but they are still operating in a similar manner to before the pandemic.

LifePro Financial Services Inc. in San Diego is now being upfront with potential employees about the need to be on-site. Heather Ulz, the company's CEO, has stated that the job is "100% in-office".

The company, which had around 40 employees, initially operated remotely during the pandemic, but some workers experienced burnout and a decrease in productivity, according to Ms. Ulz. Despite some employees advocating for remote work to continue, the company returned to full-time operations in the summer of 2020.

Ms. Ulz reported that over time, almost a third of the firm's employees left due to not being in agreement with the office policy. This has caused a delay in filling positions since some applicants prefer hybrid or remote work. Despite this, Ms. Ulz believes that the company culture and camaraderie have been enhanced by having people in the office, as it allows for more spontaneous collaboration and assistance.

Ms. Ulz has been a leader in advocating for office attendance, and many of her colleagues in the industry have been turning to her for advice on how to get their staff back into the office.

She posed the inquiry, “What is the secret to your success?”