We’re now deep into the post-pandemic workplace era. In early 2023, many of us were still debating whether remote work was a temporary blip or the new normal. By late 2024 and throughout 2025, the pendulum swung hard the other way: a wave of high-profile return-to-office (RTO) mandates hit corporate America. Amazon went full five days a week starting in January 2025. Dell followed with strict in-office requirements and even “end-of-day walkthroughs” for sales teams. Companies like RBC, AT&T, and others pushed for four or five days on-site. We told ourselves, and our teams, that proximity would reignite collaboration, culture, and innovation.
Now, with fresh 2025 data and early 2026 reflections in hand, the reckoning is clear. Strict RTO mandates have often cost more than they’ve delivered. Talent has walked out the door, productivity gains remain elusive, and hybrid models are proving to be the real winner. But it’s not all doom and gloom; there’s a path forward if we’re willing to listen to the numbers and our people. Let’s break it down with no sugarcoating.
The 2025 RTO Surge: Bold Moves, Mixed Execution
2025 was the year of the great RTO push. Amazon’s Andy Jassy doubled down on five days in the office, framing it as essential for culture and teamwork. Dell’s leadership issued warnings and enforced 40-hour in-office weeks for sales, citing concerns about early departures. Other giants joined the fray, with many organizations formalizing policies of three to five days. The rationale? Rebuild connections lost during the pandemic, spark spontaneous innovation, and signal a return to “normal.”
Office occupancy did tick up in response. Kisi’s access control data showed average U.S. office occupancy hovering between 49% and 59% on peak days through late 2025, with Tuesdays and Wednesdays the busiest. Commercial real estate reports from Cushman & Wakefield and CBRE noted that national office vacancy rates, which peaked around 20% in recent years, began to stabilize or even decline slightly by Q3 2025, the first annual drop in over five years in some metrics. Prime buildings saw positive absorption, and sales volume rose 35% year over year. For a moment, it felt like the office was making a comeback.
But beneath the badge swipes and bustling hallways, trouble was brewing.
The Talent Exodus: When Mandates Backfire
Here’s the uncomfortable truth: rigid RTO policies triggered significant turnover. Multiple 2025 studies paint a consistent picture. Research from sources like Resume Builder and academic analyses found that companies with strict mandates saw turnover rates spike—abnormally high increases of 13-14% compared to more flexible firms. Eight in ten companies admitted losing talent directly because of RTO policies.
Who left? Often the best people. Women were nearly three times more likely to quit than men when forced back full-time. Senior employees, caregivers, and underrepresented groups were disproportionately affected. One report highlighted a “brain drain,” with high performers heading to competitors offering flexibility. Amazon employees reportedly “rage-applied” to new jobs in protest. Dell faced confusion and resentment over inconsistent enforcement—some teams got exceptions, others didn’t, breeding perceptions of unfairness.
Why the mass exodus? Employees had adapted to flexibility and weren’t willing to surrender it. Surveys from 2025 showed that 42% of companies with RTO policies experienced higher-than-expected attrition. In a tight talent market, this hurt twice: losing stars and struggling to replace them, with longer time-to-hire cycles.
The irony? Some executives quietly hoped mandates would prompt voluntary quits to trim headcount without layoffs. But it often backfired, leaving critical gaps and damaging employer brands.
Productivity and Performance: The Data Doesn’t Lie
We justified RTO with promises of better collaboration and output. “Innovation happens at the water cooler,” we said. Yet the 2025 productivity studies tell a more nuanced story.
Hybrid arrangements consistently came out on top. Owl Labs’ 2025 State of Hybrid Work report and Cisco’s Global Hybrid Work Study (based on surveys of over 21,000 workers) found that hybrid employees reported higher engagement, better work-life balance, and stronger productivity than fully on-site peers. Gallup’s ongoing tracking showed hybrid workers with the highest satisfaction rates. Broader data indicated that 84% of employees felt more productive in remote or hybrid setups, with 66% of employers agreeing.
Fully remote wasn’t far behind—remote workers showed lower turnover (only 4% switched jobs vs. 10% for office workers, per Owl Labs). But strict in-office? No clear productivity boost. Some research even linked RTO mandates to lower employee satisfaction and increased incivility, without measurable firm performance gains.
Office occupancy data reinforces this: even with mandates, many desks sat empty. Average utilization remained below 60%, suggesting that forced presence didn’t translate to focused work. Deep-focus tasks thrived remotely, while structured collaboration could happen in targeted hybrid days.
What Employees Really Want—and What’s Working
The preference data is overwhelming. Gallup’s August 2025 poll: among remote-capable U.S. workers, 52% were hybrid, 26% fully remote, and only about 22% exclusively on-site. Robert Half’s Q3 2025 job postings analysis: 24% offered hybrid, 12% fully remote—far outpacing on-site-only roles.
When asked directly, 70% of job seekers ranked hybrid in their top two preferences. JLL’s 2025 Workforce Preferences Barometer (8,700 workers across 31 countries) and other surveys confirmed: most want 2-3 days in the office for collaboration, with the rest flexible. Many—up to 41% in some polls—said they’d quit or take a pay cut to avoid full-time office returns.
Companies that leaned into thoughtful hybrid thrived. Those offering team-led scheduling, better office experiences (think collaboration tech, not just desks), and outcome-focused metrics saw stronger retention and engagement. Remote-first leaders like Shopify and Airbnb continued attracting top talent without mandates.
Leadership Lessons for 2026 and Beyond
So, fellow leaders, what’s the reckoning? Strict, one-size-fits-all RTO often fails the cost-benefit test. It risks talent flight, erodes trust, and doesn’t reliably deliver the promised productivity or culture boosts. Hybrid, when done right—with intentional in-office days, great tech, and employee input—wins on nearly every metric: retention, satisfaction, diversity, and access to global talent.
This isn’t about abandoning the office. Thoughtful in-person time matters for mentoring, onboarding, and serendipity. But mandating it five days a week? The 2025 data says proceed with caution.
Moving forward in 2026, let’s pivot smarter. Measure outcomes, not hours. Invest in hybrid infrastructure. Communicate transparently—explain the “why” behind any in-office expectations. Offer incentives for voluntary office days. Accommodate life stages: caregiving, disabilities, commutes.
The pandemic forced rapid experimentation. 2025’s RTO wave gave us hard data. Now we refine. Trust your people, embrace flexibility as a competitive edge, and build workplaces that attract and retain the best.
This reckoning isn’t a defeat—it’s clarity. The future of work isn’t fully remote or fully office. It’s hybrid, human-centered, and results-driven. Let’s lead accordingly.
