When executives justify their return-to-office mandates, they almost universally cite the collaboration and innovation that result from serendipitous encounters between employees. They also point to the need to boost productivity. The problem with these arguments is that the evidence does not support them. In this short midweek FIR episode, Neville and Shel look at one financial services company that has seen eye-popping increases in performance metrics since listening to its employees and adopting a policy that lets employees work where they want. We also review a report on what it actually takes to build connections and collaboration in organizations.

Links from this episode:

The next monthly, long-form episode of FIR will drop on Monday, November 25.

We host a Communicators Zoom Chat most Thursdays at 1 p.m. ET. To obtain the credentials needed to participate, contact Shel or Neville directly, request them in our Facebook group, or email fircomments@gmail.com.

Special thanks to Jay Moonah for the opening and closing music.

You can find the stories from which Shel’s FIR content is selected at Shel’s Link Blog. Shel has started a metaverse-focused Flipboard magazine. You can catch up with both co-hosts on Neville’s blog and Shel’s blog.

Disclaimer: The opinions expressed in this podcast are Shel’s and Neville’s and do not reflect the views of their employers and/or clients.

Raw transcript:

@nevillehobson (00:03)
Hi everyone, welcome to episode number 435 of 4 Immediate Release. I’m Neville Hobson.

Shel Holtz (00:11)
I’m Shel Holtz. I was reading an article the other day by Brian Doubles, the CEO of Synchrony, which is a financial services company that offers consumer finance products. My Chevron gas station credit card is a Synchrony product. Doubles wrote in Fortune that amidst all the CEO calls for employees to return to the office, he’s had no second thoughts maintaining Synchrony’s policy, which I can best sum up as whatever. Want to work from the office? Fine. Work from home?

That’s fine too. Wanna be hybrid? You got it. Doubles does ask employees to live close enough to an office that they can get there for occasional meetings, training, and culture events. This policy stemmed from a survey of employees who said they wanted to be able to have work at home as an option and have access to the office from time to time without concern about it threatening their career or being seen as a negative.

Now, despite everything we’re hearing from the CEOs who are justifying the return to office mandate, Synchrony, using its approach, has risen to fifth on the Fortune 100 best companies to work for list. That’s up from 51st in 2019. And 95 % of Synchrony employees say it’s a great place to work and that the company’s way of working gives them the flexibility they need. So what’s going on with all of this justification?

that other CEOs are providing for their mandates for everybody to come back five days a week. We’re gonna dive into that right after this. In the article he wrote, Doubles explains that what Synchrony did to make this approach work, including making in-person events matter, adopting a coaching culture, supporting career journeys, no matter where the employees are situated,

And measuring outcomes versus time in the office are what really drove this success. And by the way, on that last one, Double says the company has seen stronger productivity and business outcomes. Employee turnover is lower. The company has experienced a 30 % increase in job applications. Meanwhile, CEOs everywhere are insisting that having employees in the office produces key benefits.

These include enhanced collaboration, the belief that physical proximity leads to spontaneous interactions, brainstorming sessions, and seamless communication. But yeah, spontaneous interactions can occur in an office setting, but the forced nature of return to office mandates have proven to result in employee dissatisfaction and resistance rather than genuine collaboration.

They also argue that you get stronger company culture. The idea that shared physical spaces cultivates a unique organizational culture and reinforces company values. And the big one, they believe that you get better productivity when people are in the office. The assumption is that in office work environments minimize distractions and facilitate better oversight leading to higher productivity levels. These, it’s important to point out, are myths.

For example, a recent survey found that only one in three executives who imposed return to office mandates saw even a slight positive impact on productivity. Doubles calls this a failure of imagination on the part of leaders everywhere. And while these points have some merit, we really have to examine whether these assumptions hold true in the current work landscape. Recent studies and expert analyses offer a more nuanced perspective. Let’s start with collaboration and connection.

There was an article in the Harvard Business Review recently that agrees that in-person work can facilitate spontaneous interactions, but that doesn’t necessarily lead to meaningful collaboration. The quality of interactions rather than their frequency or spontaneity is what truly drives effective teamwork. Next, let’s turn to employee satisfaction and retention. Data from the Great Places to Work organization suggests that

Rigid return to office mandates can negatively impact employee satisfaction and retention. Employees who have autonomy over their work environment tend to exhibit higher engagement and are more likely to stay with their organizations. And as for productivity metrics, findings from Gallup reveal that remote workers often match or exceed the productivity levels of their in-office counterparts. The flexibility of remote work can lead to better work-life balance, which in turn enhances overall performance.

The fact is, the research finds that meaningful connections develop through intentional engagement, not just physical presence. And while a physical presence coupled with efforts to create meaningful connections can produce these results, careful thought and planning can produce meaningful opportunities for connection and collaboration, regardless of where employees are doing their jobs. Organizations like Synchrony are achieving success by focusing on intentional engagement strategies

rather than arbitrary office attendance requirements. Now I raised this issue a few months ago, but it’s worth reiterating in light of this data about what truly drives connection and collaboration. We have to stop acting like remote or hybrid work is temporary. We have to stop using patchwork methods for engaging with employees, for guiding their career aspirations, for managing them and for keeping the culture strong. We have to help our organizations and leaders figure out how to develop

practices based on remote and hybrid work being the way business is done in the post-COVID era. Understanding employee preferences is crucial for this kind of success. Surveys indicate that a significant portion of the workforce values the flexibility that remote work offers. For example, a study by Buffer found that 97 % of employees would like to work remotely at least some of the time, indicating a strong preference for the flexibility that remote work provides.

And companies that offer flexible work arrangements are more attractive to top talent. Rigid return to office policies could deter potential candidates who prioritize work-life balance and autonomy. Now, this is a podcast about communications and there is a role for internal communicators here. This is an opportunity to help leadership understand that effective collaboration stems from well-designed processes and cultural support, not physical proximity.

The key is shifting the conversation from where work happens to how it happens most effectively.

@nevillehobson (06:56...

FIR #435: Physical Presence is Not a Collaboration Magic Bullet

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