Are employers making a costly mistake by nixing remote work?

The latest wave of full-time RTO mandates fueled by President Trump's executive order directed at federal workers, as well as similar announcements from big names like Amazon and AT&T, seems to suggest that remote work lost the battle — but it might still win the war. 

PR Firm Bospar has been a fully remote company since its establishment in 2015. As the company celebrates 10 years with multiple industry and work culture awards under their belt, they put their work model further to the test and asked their employees about their experience. Over 60% reported being more productive at home than in an office, and just 5% reported the opposite; over 80% of employees reported improved work-life balance. 

For Bospar, this flexibility isn't just a work arrangement, but a stand-out benefit for employees and the business itself, says Curtis Sparrer, principal at Bospar. Sparrer predicts that despite employers' best efforts, remote work won't leave the benefits conversation.

Read more: This company attributes their low turnover rate to a 'culture interview'

"Work-from-home jobs are going to have a new level of cachet that they didn't have before because people had a taste of freedom, and they want it back," he says. "And if the economy heats up, there will be a demand for talent. A demand that once again puts the decision of where someone works in the hands of the worker."

Sparrer predicts that when the labor market swings back to favoring talent, remote and hybrid employers will see gains in great hires, while in-office employers will see losses — and his vision is already half-realized. A study by the University of Pittsburgh found that RTO mandates among S&P 500 companies led to a 14% jump in quit rates, with high performers taking the lead. There was also a 23% increase in the time it took to fill those roles.

However, Sparrer acknowledges that it may be difficult to tune out big employers who are vehemently opposed to it: Elon Musk called work-from-home "morally wrong" in a 2023 interview, and JP Morgan CEO Jamie Dimon stated, "I don't care how many people sign that f---ing petition," in response to the opposition against its full-time RTO mandate during a town hall. Sparrer warns other employers against buying into this outdated thinking.

"I call it the Smithers effect," says Sparrer. "Smithers is the super archetypical boss from 'The Simpsons.' These bosses do not trust their employees, and they need the satisfaction of seeing people there, performing tasks."

Read more: 10 US cities with the highest and lowest percentage of remote workers

EBN spoke with Sparrer further to better understand why remote work needs to stay top of mind in the benefits space, and how employers can move forwards rather than backwards.

Why are some employers so adamant that workers return to the office? 
It's this old school thinking — because that's how we did it back in the day, that's how we're going to do it now, even if there's no research that definitively supports the idea that working in an office is better. In fact, the Federal Reserve Bank of San Francisco put out a paper saying they could find no difference in productivity. There's also the fact that [employers] have invested in these buildings, and they can't have something on the books that's a waste. So then, RTO becomes a fiscal imperative to make a sunk cost useful. 

This is the kind of thinking we are fighting against, where the people with money and the older generation demand that they see you come in and do work.

How can employers ensure their workforce is productive, even if they're remote? 
It comes down to making sure that people have deliverables, that they have deadlines and that they also have a web of support that can check in on them. When you have a deadline-driven culture, it's a lot easier to ensure that people are doing the work they need to do. And having a web of people is critical, because even if they're working remotely, they are connected to a whole bunch of people that they talk to and interact with regularly. Meanwhile, people don't have to battle over the corner office or the good bathroom — all those awful things that happen when you put a whole bunch of people in a corporate jail.

Read more: What does it take to be a great workplace for working parents?

Beyond the competition for talent, why do you believe WFH is the future of work?
You can't do business if the species is extinct. And research shows that if you work four days or more from home, you're going to cut your carbon footprint by over 50%. The fact is that most office buildings are not environmentally friendly, and they've not been constructed that way. As environmental problems become more disruptive to people's day-to-day lives, the more likely employers are to change those policies. We have to deal with climate change. For knowledge workers, [WFH] just makes so much sense, and it's absolutely the right thing to do.

What advice do you have for employers who are unsure about their stance on remote work?
If you are on the fence, you owe it to yourself to talk to your staff and create an environment where they believe they can be truly honest with you. If you transition towards remote work, the benefits you'll realize — less absenteeism and certainly happier employees — will be worth it. Not to mention, you can eliminate that huge real estate bill. Just remember that working from home boils down to trust. You need to tell your staff that you trust them to do the right thing and to be accountable. Employees realize how precious that is, and they invest their time back.