Will 2025 be the watershed year for return-to-office mandates? That depends.
Years after the Covid-19 pandemic normalized remote work, recent developments have executives wondering which companies will pull staff back to the office next—and who will benefit.
Chipotle Mexican Grill has settled on a remote-work policy. But that could change.
The burrito chain requires staffers to be in four days a week, Monday through Thursday, a policy the company announced in May of last year. The mostly in-office policy helps preserve the company’s culture and has worked well for Chipotle, said Chief Financial Officer Adam Rymer, who is often at his desk five days a week.
But the company’s end-of-the-week flexibility could vanish if productivity slips, according to Rymer. “Our execution on Friday is on point, people are available," he said. “If that ever comes into question, I can see us switching back quickly."
Chipotle’s decision to hold at four days in the office comes as large companies are cracking down on back-to-office policies, which will be in the spotlight again for C-suite leaders in the year ahead. AT&T, Amazon.com and Dell Technologies in recent months have called certain staffers back to offices five days a week. Starbucks in October warned employees they risk termination if they don’t comply with the company’s existing three-days-a-week mandate.
And with President-elect Donald Trump set to return to the White House in the coming year, federal workers too could soon see a push to return to the office under the new Department of Government Efficiency advisory group, the latest sign of leaders wrangling with RTO mandates.
Years after the Covid-19 pandemic normalized remote work, the recent developments have executives wondering which companies will pull staff back to the office next—and who will benefit. Finance chiefs, who tend to be involved in setting remote work policies, continue to evaluate how often workers should be at their desks and whether their companies are getting the right mix of productivity and flexibility. Some see others’ retreat from remote work as a competitive edge for them.
Many employers continue to see the benefits of hybrid working schedules, from the ability to attract employees to retaining top talent. But the degree of flexibility at the workplace is shifting.
A third of U.S. employers mandate that employees be in an office five days a week, down 16% from a year ago, according to Flex Index, which tracks workplace strategies.
Twenty-five percent of U.S. companies offer fully flexible arrangements, down from 33% a year ago.
And hybrid arrangements, when companies require a certain number of days in the office but leave at least one for remote work, are growing in popularity. Forty-three percent of U.S. companies have hybrid office policies, compared with 29% a year ago, Flex Index data shows.
Some executives are still working out what the best policy is. At footwear and apparel maker Deckers Outdoor, some workers are encouraged to come in often, particularly those on the creative side of the business, said Chief Financial Officer Steve Fasching.
The owner of Ugg footwear and Hoka sneakers hasn’t set a required number of days at a desk for any employees—“We haven’t gotten to that yet"—the CFO said.
One reason is office space.
Deckers increased the number of workers to 4,800 as of March 31, a 14% jump from 2023.
With many, including Fasching, choosing a hybrid work routine, the company hasn’t expanded its square footage to meet a full return to office.
“We want to make sure we don’t overdo it, so we don’t want to commit to too much space," he said. “But at the same time, we want to make sure that we’re offering options that allow people to connect and collaborate."
DirecTV executives are sticking with the call made in 2021 to be a remote-first workplace, said Chief Financial Officer Ray Carpenter. Some were initially concerned that productivity would suffer. The opposite happened; in fact, the company’s roughly 7,000 employees are more productive now—increasing DirecTV’s share of new customers and adding to the offered services, for instance—he said.
Consequently, DirecTV has cut costs by shedding around 30% of its physical space, according to Carpenter. And the flexibility gives the company an edge when hiring and retaining workers.
The recent push by some companies for five days in the office adds to the advantage, the CFO said. “It makes it more current and relevant for us to discuss and ensure we’re not being complacent," he said. “But it also means someone from one of these companies may look for a remote alternative."
At Yelp, staffers left offices in 2020 and have remained fully remote since. Initial challenges such as figuring out how to onboard people, maintaining a collaborative culture and measuring the performance of a workforce scattered primarily across the U.S., U.K. and Canada have been worked out, said CFO David Schwarzbach. The reviews platform has seen millions of dollars in savings.
The company has cut its office space by over 90%, to around 60,000 square feet, since going fully remote. Yelp is down to just two office floors in the U.S., according Schwarzbach. “We have saved tens of millions of dollars doing this," he said. Yelp reported net income of $38 million for the quarter ended Sept. 30, down 34% from a year earlier.
The move by some away from looser workplace policies hasn’t shaken Yelp executives’ resolve on the subject, Schwarzbach said. “Remote work works for Yelp," he said. “We don’t see a need to revisit that."
Write to Jennifer Williams at jennifer.williams@wsj.com
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