Microsoft sticks to flexible work policy amid RTO pressure

WASHINGTON, UNITED STATES — In a recent internal meeting, Microsoft executive Scott Guthrie reassured employees that the company has no immediate plans to change its flexible work policy, which allows most employees to work remotely.
According to two employees present, Guthrie confirmed that the tech giant has no immediate plans to enforce a strict return-to-office (RTO) policy like Amazon’s, the Business Insider reported.
Amazon recently mandated its corporate workers return to the office five days a week starting next year, which has been met with dissatisfaction from some employees.
Productivity as the key factor
Guthrie, the executive vice president of Microsoft’s Cloud + AI group, emphasized that the company would only consider altering its current policy if productivity declined significantly. This approach aligns with Microsoft’s recent promotion of hybrid work as a strategy to boost productivity and retain employees.
Keith Boyd, a Microsoft IT senior director, highlighted the benefits of flexible work arrangements in a recent post, stating, “If you make the time to do it right, your employees will be more engaged, more productive, and more connected, even when they’re miles away.”
“And they’ll be far less likely to leave for a competitor who has a more sophisticated and flexible model than you do.”
Moreover, LinkedIn’s Workforce Confidence survey revealed that only 36% of remote workers in the U.S. report feeling burned out at their jobs, compared to 42% of hybrid workers and 44% of onsite employees.
On the other hand, hybrid work fuels ‘fauxductivity’ concerns among managers. A recent survey by Workhuman involving 3,000 full-time employees in the U.S., U.K. and Ireland, reveals that half of managers believe their staff are engaging in “fauxductivity” – the act of pretending to work while on the clock.
A study from Federal Reserve Bank of San Francisco also found no major change in productivity growth between industries more amenable to remote work compared to those requiring in-person activities since 2020.
Industry trends and expert opinions
While Microsoft maintains its flexible stance, other tech giants are taking a different approach. Amazon’s return-to-office mandate has faced opposition from some of its employees. Similarly, Dell has announced strict return-to-office policies.
Brigid Schulte, director of the Better Life Lab and author of Over Work, criticizes the trend of CEOs pushing for full-time office returns.
She argues that these decisions are often based on personal beliefs rather than concrete data. Schulte points out that many leaders operate in a “circular echo chamber,” reinforcing their views through conversations with like-minded peers.
A KPMG US survey reveals that 83% of big-company CEOs expect full-time office returns within three years, indicating a growing sentiment among top executives. Meanwhile, a new global survey by HireRight reveals that twice as many HR leaders anticipate an increase in remote work rather than a decrease in 2024.
Despite this trend, Microsoft’s commitment to hybrid work sets it apart from competitors like Amazon and Dell, who are pushing for more traditional office environments.