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In the wake of the pandemic, companies have implemented various incentives to entice employees back to the office. Offerings such as complimentary meals, endless snacks, fitness classes, and social gatherings have all been part of the strategy. Some workplaces even went as far as to install pet care services for those who adopted dogs during lockdowns.
Despite these efforts, a significant number of employees continue to favor remote work options, prompting several businesses to reconsider their tactics. As a result, some executives are transitioning from a strategy of incentives to a more punitive approach, enforcing stricter attendance policies.
For instance, junior attorneys at A&O Shearman, a notable law firm formed by the merger of Allen & Overy and Shearman & Sterling, have been informed that their bonuses will be jeopardized if they do not adhere to a mandate requiring them to spend a minimum of 60% of their time in the office, as per their hybrid working policy. This increasing trend links attendance to compensation and career advancement opportunities.
Similarly, PwC has mandated that its UK employees must be in the office or at client locations 60% of their working hours, even instituting monitoring measures for office attendance. Another law firm, Slaughter & May, has communicated to its employees that their attendance will be tracked and compliance will be required.
Data from the Office for National Statistics (ONS) indicates that two out of five UK workers prefer remote work, a figure that rises to two-thirds among management. Pre-pandemic, only 4.7% of UK employees worked from home, illustrating the dramatic shift that has occurred.
In the United States, the trend is similarly pronounced, with more than 25% of workdays conducted from home last year, in stark contrast to the one in 14 rate recorded before the pandemic, according to research from WFH Research.
Notably, some corporate leaders are expressing concerns about the long-term implications of remote working on productivity and workplace culture. Lord Rose, a former CEO, warned that a remote working culture could hinder proper work practices and productivity, suggesting a regression of 20 years in the past four years.
For example, Lloyds Banking Group informed its senior management that failure to work at least two days a week in the office would result in a reduction of their bonuses, emphasizing that engagement and leadership were core components of their bonus framework. This strategy of tying office attendance to financial benefits is increasingly common across various sectors beyond just banking and law.
Interestingly, while bonuses have become ingrained in corporate culture, they were introduced to the UK workforce much later than in the US. The UK’s financial landscape saw a significant bonus boom following the deregulation of markets in 1986. Prior to Brexit, the EU imposed a “bonus cap,” but with the UK now unrestrained, banks can set their own bonus structures, marking 2025 as the first year of unregulated bonuses for many institutions.
Read more: Should return-to-office mandates be reconsidered?
Companies like JPMorgan have taken a firm stance, demanding employees return to the office five days a week, with CEO Jamie Dimon expressing frustration at the apparent work-life divide, noting his own commitment to long hours in the office.
Amazon, too, has mandated a return to in-office work for its 1.5 million employees, reinforcing a no-excuses approach by implying that those struggling to adapt to this environment may find opportunities elsewhere.
The return to office debates have led to a juxtaposition of convenience and corporate expectation. Employees are voicing discontent, highlighting a disconnect as many executives enforce attendance while enjoying flexibility for themselves. This sentiment is echoed in the actions of executives such as Starbucks’ CEO Brian Niccol, who works remotely while advocating for a full office presence among staff.
Mark Ma, a business professor at the University of Pittsburgh, noted the disparity in perceptions around office work versus remote work. He pointed out that while leaders may associate in-office attendance with improved productivity and creativity, the pandemic demonstrated that remote work could also yield high levels of performance.
His research shows that many employees value the flexibility gained during the pandemic, with some indicating a willingness to forgo promotions rather than give up the ability to work remotely. In fact, data suggests that employees would be willing to accept reduced wages for the freedom to determine their schedule and work location.
Experts advise that firms are likely engaging in detrimental strategies by imposing returning mandates, as employees accustomed to flexibility may resist rigid structures. They caution that a heavy-handed approach may lead to skilled workers seeking more accommodating opportunities elsewhere.
Professor Randall Peterson from the London Business School commented that while coercive measures might ensure compliance, they often create dissatisfaction. Employees may seek environments that offer the flexibility they desire, raising concerns for companies that fail to adapt to new workforce expectations.
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uk.finance.yahoo.com