U.S. mandated office returns lead to surging attrition rates

NEW YORK, UNITED STATES — The mandated return to the office caused unexpected consequences for businesses, revealing a brewing storm as indicated by the Greenhouse Candidate Experience report, the Federal Reserve’s SHED survey, and Unispace’s Returning for Good report.
According to workplace design firm Unispace, 42% of companies enforcing office returns witnessed higher attrition than anticipated, while 29% struggled with recruitment. Meanwhile, 76% of employees are prepared to look elsewhere if flexible work schedules are withdrawn, with historically underrepresented groups 22% more likely to seek other options.
The SHED survey likened the displeasure of losing flexible work to a 2% to 3% pay cut. Software developer Greenhouse also found that 42% of candidates would reject roles without flexibility, while 48% ranked increased compensation as the top priority when finding new jobs.
Interestingly, Unispace’s report found that employees felt happier, motivated, and excited about returning to the office if it was by choice, not mandate.
Real-life cases further illustrate these findings. Hybrid work expert Gleb Tsipursky recalled a regional insurance company experiencing rising attrition rates adapted its return-to-office plan to a team-driven approach, focusing on collaboration and mentoring. Attrition rates dropped, and employee attitudes improved.
Similarly, a financial services company and a SaaS startup adjusted their policies to embrace flexibility, resulting in decreased turnover and increased applications.
Tsipursky said that understanding cognitive biases like the status quo and anchoring bias can guide companies to create a workplace that attracts and retains employees in this new age of flexibility.
“Companies must adapt to flexible work policies or risk being outcompeted by other employers,” he added.