The hidden cost of RTO: Why forcing choice is detrimental to your business

Fast Company

18 hours ago

Like most CEOs, I've been watching the return-to-office (RTO) trend closely. It's yet another wrinkle for the talent acquisition function, which is difficult to begin with. After all, the quest to hire and retain qualified talent is discussed at every board meeting, every leadership team offsite, and every yearly planning event. Entire books, magazines, podcasts, and conferences focus on this topic. Whether called a talent gap, the war for talent, or skills-based hiring, the essence remains the same: It's a struggle for every organization.
So, why have I been struck by the most recent exodus back to offices? Because when you force choices, the results don't always land in your favor. Don't get me wrong—here at Employ, we have a great headquarters facility in Denver. Employees enjoy coming to work and collaborating in person. But there's a line between RTO as a productivity gain and it being the reason you lose qualified talent.
According to 2025 research by Lightcast, remote job postings are down over 27%, hybrid postings are down 20%, and in-person postings are up over 17%. At the same time, companies that have publicly committed to a five-day in-office workweek are losing talent to employers supporting remote and hybrid working arrangements. It's a double-edged sword.
The cost of an open role has direct financial implications on an organization, as well as less apparent indirect consequences. Estimates place the average cost of replacing an employee to be six to nine months of their salary. Other financial costs range from the expense of recruiting qualified candidates to onboarding and training. If temporary workers are needed to backfill open roles, the financial loss escalates. And the longer roles go unfilled, business objectives are derailed and productivity falters.
Unfilled positions wreak havoc on the existing workforce. Critical projects might be delayed, and workforce planning questioned. Employee morale and engagement stand to decline, especially if employees are overworked. When the topic of it being time to hire qualified talent becomes water-cooler conversation, rest assured that unfilled roles are being noticed.
YOUR CURRENT (AND FUTURE) EMPLOYEES EXPECT YOUR TRUST
Clearly, some jobs cannot be done remotely. A job candidate applying as a labor and delivery nurse knows they will work onsite in a hospital setting. A hospitality worker seeking flexible hours at a quick-serve restaurant understands it's in person. The job location is well defined in the job description, and the candidate chooses to work on site.
For other roles, workplace flexibility isn't an optional perk—it's brand equity. Forcing a one-size-fits-all policy not only damages internal trust but dilutes the company's external talent brand, which is particularly damaging in an already tight labor market. In the case of roles that do not require an in-office presence, pressuring a return to an office can have cataclysmic effects. When teams have operated remotely with success, especially when a robust employment brand has been built on a work-from-anywhere culture, confidence in leadership erodes when a change is decreed versus suggested. The move from remote or hybrid working arrangements to return to office is perceived punitively.
Researchers at Gartner have observed that high-performing employees react to a return-to-office mandate as a trust issue, resulting in a 16% lower intent to stay.
'High-performing employees are more easily able to pursue opportunities at organizations that offer hybrid or fully remote policies,' said Caitlin Duffy, a director in the Gartner HR Practice. 'Losing high performers to attrition costs organizations in terms of productivity, difficulty in backfilling the role, and the overall loss of high-quality talent available to fill critical positions.'
THE REALITY OF THE WORKPLACE
Speaking of losing valuable talent, the return-to-office mandate can be a deal-breaker for those balancing childcare, eldercare, or other requirements with their career. In many cases, this falls on women in the workplace; however, it can affect any worker at some stage in their career journey. Upwork's research said that nearly two-thirds (63%) of C-suite leaders whose companies have mandated an office return of some sort say the policy has led a disproportionate number of women to quit. Gartner's research also showed women's intent to stay at 11% lower with strict RTO mandates.
It's a fact that retaining an employee is less costly and disruptive than losing them. Having flexible working policies can help counterbalance care responsibilities and ensure that valuable skills remain in the workforce.
QUALITY OF LIFE, QUALITY OF HIRE
Apart from those roles where being in person is required, hard-and-fast rules about returning to the office make it harder to recruit. From a technology standpoint, talent leaders are continually seeking to source new candidates and drive efficiencies in their hiring systems, such as using AI-powered interview intelligence to speed up time to hire.
According to the U.S. Chamber of Commerce, labor force participation is off by two million people from the February 2020 levels, impacting industries in every state. And, if you compel people to choose between their family and their career, the former will win every time.
To be an employer of choice, offer choice. If you can't offer remote and hybrid work arrangements, offer flexibility. It will be the difference between engaged employees and those planning to leave.