Starbucks increases office attendance to four days a week, rolling back WFH even further

News.com.au

4 days ago

Starbucks is ordering corporate staff back into the office four days a week, as part of the company's plan to 'turn around the business'.
CEO Brian Niccol announced the new in-office policy this week, which will affect staff in the US and Canada.
From October, the company's three-day in-office requirement will increase to a minimum of four days, with common days being Monday to Thursday.
This applies to Starbucks' Seattle and Toronto Support Centres, along with the North America regional offices.
'We'll share more details before October, including our plans to ensure everyone has an assigned dedicated desk,' Mr Niccol said.
He also noted the company wants leaders and people managers to be 'physically present with their teams'.
So, on top of the increased office days, all Support Centre 'people leaders' currently working from other areas will be required to relocate to Seattle or Toronto within 12 months.
This does not apply to 'individual contributors', but the CEO noted that hiring for future roles and lateral moves will require partners to be either Seattle or Toronto based.
Mr Niccol noted that not every employee would agree with this approach and that an updated in-office culture 'may not work for everyone'.
For those that feel this way, the company will be offering cash payments for people who wish to leave.
'If you decide you want to leave Starbucks for any reason, we respect that,' the CEO said.
'To support those who decide to 'opt out', we're offering a one-time voluntary exit program with a cash payment for partners who make this choice.'
Mr Niccol said the company is re-establishing its 'in-office culture' because they believe everyone does their 'best work' when they are together, such as sharing ideas, solving problems and, in general, moving 'much faster'.
'Being in person also helps us build and strengthen our culture. As we work to turn the business around, all these things matter more than ever,' he said.
Employees were informed that the company understood there were circumstances in which they may need to leave the office early for personal reasons, but the 'default' should be working in person in a Starbucks office.
Starbucks has become the latest major company to turn their backs on previous flexible working policies and push ahead with increasingly strict return to office mandates.
Amazon, JPMorgan Chase, Tabcorp, AT&T and Dell are just a few of the companies that have ordered staff back into the office.
However, the cracks have started to show, with employees less than impressed with how some of these RTO mandates are going.
A report from Business Insider published last month suggested that Dell was dealing with multiple issues, three months into ordering people back into the office full time.
Dell staff told the publication that enforcement varies between managers, with some employees saying they were in eight hours a day, while others seemingly coming into the office to show their face and leaving soon after.
This has reportedly been causing a lot of 'in-office politics'.
Last month, a leaked internal memo from JPMorgan showed morale had taken a hit in the wake of the RTO mandate.
A yearly employee survey showed the company's health and wellbeing scores had dropped, with leaders attributing this to the return to office.
'We know return full-time to the office has been an adjustment and one that not everyone agrees with, but we continue to believe in-person is how we do our best work and how we foster connections and mobility opportunities,' the memo stated.
Elsewhere, there have also been complaints of companies introducing RTO mandates but actually not having the capacity for everyone to come back.
Several workers at AT&T told Business Insider that there was a shortage of available desks and the parking lots had become overcrowded.
There were also claims of increasingly long wait times for elevators, leading to the company posting signs with 'motivational quotes' encouraging staff to use the stairs.
So, why do some companies, both overseas and here in Australia, keep pushing to increase office attendance despite many employees preferring a remote or flexible hybrid approach?
Well, according to Employment Hero CEO, Ben Thompson, it is a mix of old habits and good intentions.
'There of course are many genuine cases where working from home is not possible and many industries where face-to-face is a must,' he said.
'But ultimately, trying to retrofit an outdated structure on modern work is holding many businesses back.'
He pointed out that many leaders genuinely believe that being physically present is the only way to create a highly effective and collaborate team.
In many cases, changing long held mindsets and values of leadership is a significant challenge.
'Where the private office, towering view or city parking space may have formerly been markers of success, leaders need to redefine what this success looks like and the example they are setting for their teams,' he said.
'When the leaders show up, others will follow. But imagine how this could be better done online, with the right tools, to create a sense of unity and commitment remotely.'
Mr Thompson also noted that the cost of leases could be a key driver for some of these businesses to focus on office attendance, but claimed if these funds were reinvested into setting up teams for remote work, it could be 'game changing'.
Moving forward, he said the modern workplace is at a 'pivotal juncture', and is being influenced by both global and local trends.
'From a first-principles standpoint, the future of work hinges on meeting human needs, leveraging technology, and optimising economics, with AI emerging as a game-changer,' he said.
'There is an increasing case building for sustained hybrid and remote models that will be difficult for companies to ignore.'
So, while Mr Thompson believes we may continue to see a short term pull towards the office, he expects the remote working to rise in the long term.
'Humans value autonomy and balance. Combine that with maturing remote collaboration tech and AI capability, many millions of people globally are about to 'come online' with internet access and a growing playbook for building real social connections outside the office – and I think it's clear we will see remote work prosper,' he said.