Return to office or resign: How companies can handle the great office divide

The message from corporate America is getting clearer by the day: Return to office or find a new job. As Starbucks joins Amazon in mandating office attendance, we're witnessing what many are calling "soft layoffs" — using rigid return-to-office policies as a way to trim workforces without announcing formal reductions.

Having experienced a layoff firsthand and now working with companies navigating complex transitions, I see both sides of this challenge. Companies want to rebuild culture and collaboration, while employees who've built successful remote work lives face impossible choices. The reality is, many won't return — and companies need to be prepared for this wave of exits.

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The implications extend far beyond empty desks. Mass exits, whether through traditional layoffs or RTO-driven departures, create significant risks for organizations. One often-overlooked aspect? The financial exposure from COBRA coverage. When employees leave, many default to COBRA for healthcare continuation, typically costing companies three times more than active employees through high-cost claims.

But there's an even bigger consideration: your employer brand. In today's connected world, how you handle these transitions will be scrutinized, shared, and remembered. The LHH Outplacement and Career Mobility 2024 Report reveals a startling disconnect: while 45% of HR teams believe they're providing comprehensive transition support, only 10% of employees report receiving it.

For companies implementing RTO policies, this is a critical moment to rethink your offboarding approach. Here's what organizations should consider:

1. Acknowledge the reality: Some valuable employees won't return to office. Instead of viewing this as defiance, treat it as an opportunity to handle transitions with dignity and support.

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2. Protect your healthcare costs: With COBRA participants typically costing 3 times more than active employees, companies need strategies to help departing employees find affordable alternatives.

3. Preserve your brand: How you handle these exits will impact both your reputation and your ability to attract talent in the future. The traditional approach of handing over a COBRA packet and wishing people luck isn't just outdated — it's dangerous for your brand.

4. Support your HR teams: Large-scale exits strain HR resources. Having automated, tech-enabled solutions for managing transitions can help maintain quality support even at scale.

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Whether your company is mandating return-to-office or maintaining flexibility, one thing is clear: The way we handle employee transitions needs to evolve. The old playbook of treating departures as administrative tasks rather than human moments isn't just failing employees — it's exposing companies to unnecessary risks and costs.

Companies that recognize this moment as an opportunity to reimagine their approach to employee transitions will emerge stronger. Because at the end of the day, how we say goodbye to employees — whether they're leaving due to RTO policies or other reasons — speaks volumes about our values and shapes our ability to attract talent in the future.

The return-to-office debate isn't ending anytime soon. But by focusing on providing real, accessible support during transitions, companies can navigate these changes while protecting both their people and their bottom line.

After all, last impressions matter just as much as first ones.