Not just the rank-and-file: In-office mandates cause executives to quit

Recent research from Gartner HR highlights a stark reality: One-third of executives faced with in-office work mandates plan to leave their employers.

This significant misalignment between organizational policies and employee preferences is not only a barrier to recruitment but also a catalyst for losing valuable leadership. This alarming statistic serves as a harbinger of potential crises in leadership and organizational stability as organizations try to force more employees to come to the office.

Perhaps that’s why we’ve seen such a big swing in CEO opinions against forced returns to the office. KPMG’s 2023 Global CEO Outlook, which surveyed 1,300 global chief executives, found 63 percent predicting a full-time return-to-office within three years for all of their employees. However, KPMG’s most recent survey of CEO opinion, from 2024, shows the pendulum has swung back: Only 34 percent now believe that their employees will work the traditional Monday through Friday, 9-to-5 in-office schedule within three years.

Given that it’s a similar survey by the same organization, the findings can’t be attributed to sampling bias or a tweaking of the questions. Rather, we’re seeing a real swing in CEO opinion.

Despite this swing, the 34 percent who do want their staff in the office more often represent a large number of organizations. We’re forced to conclude that many organizations ignore the threats of losing staff, including executives, from pushing for more mandatory days in the office.

How does the impact of in-office mandates differ among executives versus rank-and-file employees? A November 2023 Gartner survey of over 3,500 employees found that 19 percent of non-executives would leave their organization due to a return-to-office mandate. Gartner’s finding among executives, however, had that number at more than 33 percent, revealing that such a mandate could have a disproportionate impact on leadership.

This discrepancy suggests that while rank-and-file staff may reluctantly comply with return-to-office policies, senior leaders, whose experience and vision are critical to organizational success, are less willing to compromise.

The results of a Deloitte and Workplace Intelligence survey aligns with this finding, highlighting that 66 percent of leaders in the finance industry feel prepared to leave if required to return to the office full-time. And while the looming flight of leadership talent triggered by inflexible back-to-base edicts is troubling, an even more pressing concern lurks beneath — namely, the particularly higher likelihood of attrition by female executives.

The findings unveil a ticking time bomb for decisionmakers juggling professional and personal care duties. These individuals face a 30 percent higher likelihood of jumping ship if their work-from-home privileges evaporate. And the caregiving burden still falls disproportionately on women's shoulders.

While there’s no equivalent survey for federal government data, we do have extensive evidence that taking away remote work options threatens retention. For instance, the Office of Personnel Management's annual report on telework within the federal government highlights how 68 percent of federal employees who telecommute plan to stay in their current roles, compared to just 53 percent of their non-telecommuting peers. Presumably, government executives — who would have an easier time finding roles in the private sector than rank-and-file staff — would be more likely to leave with more hard-core in-office work requirements.

The departure of senior executives due to such mandates presents a multifaceted problem. It weakens the leadership bench and complicates succession planning, threatening long-term stability and growth. Organizations facing such losses must contend with the immediate fallout of leadership voids and the longer-term challenges of nurturing and developing new leaders in a disrupted environment.

The loss of executives to in-office mandates has ripple effects across the entire organization. An April 2024 Gartner survey of HR leaders revealed that 64 percent of them expressed concern that onsite requirements would increase attrition among senior leaders. This anxiety is well-founded, as the departure of key leaders can lead to several adverse outcomes.

Executives possess deep organizational knowledge that is not easily replaceable. Their departure can result in a significant loss of expertise and strategic insight. Leaders play a crucial role in maintaining team cohesion and morale. Their exit can disrupt team dynamics and lead to further disengagement among remaining staff. Finding and onboarding new executives is a costly and time-consuming process. Organizations may face heightened expenses and prolonged periods of instability during the transition. High attrition rates, particularly among leadership, can damage an organization's reputation as an employer of choice, making it harder to attract top talent in the future.

To mitigate the risks associated with in-office mandates, organizations must adopt a more flexible and employee-centric approach. This involves re-evaluating rigid policies and considering hybrid models that balance organizational needs with employee preferences.

Key strategies include transparent communication, flexible work options, investments in leadership development, and prioritization of employee well-being. Open dialogues with employees about the rationale behind on-site mandates can build trust and foster a sense of collaboration. A range of flexible work arrangements, such as hybrid models and remote work options, can accommodate diverse employee needs and preferences.

Organizations should also focus on developing internal talent pipelines to ensure a steady flow of capable leaders who are aligned with the company’s vision and culture. Addressing burnout and promoting mental health can enhance employee engagement and loyalty, reducing the likelihood of attrition.

The push for return-to-office mandates poses a significant threat to organizational stability, particularly in retaining senior executives. The misalignment between organizational policies and employee preferences poses a serious risk that can disrupt leadership continuity and strategic direction. By adopting more flexible work arrangements and prioritizing employee well-being, organizations can better navigate the complexities of the modern workplace, retaining their top talent and ensuring long-term success.

Gleb Tsipursky, Ph.D. serves as the CEO of the hybrid work consultancy Disaster Avoidance Experts and authored the best-seller "Returning to the Office and Leading Hybrid and Remote Teams."