CashNews.co
Directives from major employers, including Amazon (AMZN) and Barclays (BARC.L), that workers will have to return to the office five days a week all have a similar ring. In a memo to employees, Amazon CEO Andy Jassy emphasised the benefits of in-person work, such as increased collaboration and cultural connection — despite the growing body of research showing the advantages of hybrid work models.
Multiple studies suggest that giving people flexibility regarding where they work boosts job satisfaction, work-life balance, health, morale, productivity and ultimately, the bottom line. Yet according to the recent KPMG 2024 CEO Outlook report, which surveyed 1,300 CEOs around the world, 83% of UK CEOs expect to see a full return to the office within three years.
So why are employers disregarding data and bringing workers back into offices full-time, potentially to the detriment of their businesses?
Read more: Why trauma-informed employers are key to good worker mental health
Sometimes, bad decisions are the result of a poor decision-making process, like not having enough information. But often, the fault lies in the minds of the decision makers — because psychological factors like bias can sabotage our decisions.
Uncertainty aversion and the status quo bias
Covid-19 lockdowns may seem like an age ago, but the changes they brought to the way we work are still fairly new. As Jassy said in his memo, it was “not a given” that people could work remotely two days a week before the pandemic.
And while remote work has since become more normalised, it still carries a sense of uncertainty for many bosses.
“As humans we have an ingrained psychological preference for what feels familiar, even when evidence suggests that better options may exist. This preference stems from our inherent desire for safety and certainty in our choices,” says Charlotte Bailey, an integrative trauma-informed psychotherapist and host of Let’s Talk People-Pleasing podcast.
“Uncertainty fuels anxiety, and anxiety in business is something most leaders want to avoid. It can lead employers to favour the traditional office set-up, where there is more certainty about how work is done.”
Being averse to perceived uncertainty is linked to a phenomenon called the status quo bias, in which we cling to what’s familiar. Essentially, it is cognitively easier to stick with what you know, rather than process something that may carry an element of risk, says registered psychologist Dr Carolyne Keenan.
Read more: Do four-day weeks improve workers’ mental health?
“In-office work has been the norm for so long that some managers may automatically assume it’s the best way to maintain structure, communication, and control even if the adaptations required during the recent pandemic have shown something quite different,” she explains.
Proximity bias
Some employers may unconsciously associate physical presence with productivity. “This is known as proximity bias, where people who are seen more often are perceived as working harder or being more committed,” Keenan explains.
“Employers might feel more reassured by seeing employees at their desks, even though productivity doesn’t necessarily depend on physical presence.”
Control
Mark Ma, a professor of business administration at the University of Pittsburgh, and his graduate student, Yuye Ding, recently analysed 500 US firms’ return-to-office mandates. They found most directives stem from control dynamics — rather than concrete evidence about the benefits of in-person work.
“Employers often equate physical presence with productivity and control,” says Bailey. “There’s an unconscious belief that seeing employees at their desks means work is being done, and without that visibility, there’s an increased sense of losing control.
“This control dynamic is deeply ingrained and reflects the belief that overworking — or being seen to work — equals dedication and increased productivity.”
Confirmation bias
Although we like to think our decisions are made deliberately and fairly, we often take mental shortcuts called heuristics. This is because we rarely have the capacity to collate and analyse all the information needed for a fully-informed decision, so we pick and choose what seems relevant.
“We all naturally filter information based on what we already believe, which is a bias known as confirmation bias,” says Bailey.
“For example, when you start thinking about buying a particular model of car, you may begin to notice that model everywhere you go. It might feel like everyone is suddenly driving it, but in reality, it’s just that you’re more attuned to it because you’re interested in that specific car. Your mind is filtering out the other models, which reinforces your belief that it’s a popular choice.”
Read more: The rise of the ‘hushed hybrid’ workplace
If an employer is already sceptical about remote work, they may be more likely to take note of the negative stories that reinforce their doubts.
“Businesses might highlight the potential risks of remote work — like reduced collaboration — while ignoring the data or experiences that demonstrate its benefits,” adds Bailey.
Social identity
Much of the rhetoric around in-person work focuses on ease of communication and collaboration, but even this can be driven by bias.
“Employers may believe that in-office work fosters a stronger company culture and sense of team cohesion. This is related to social identity theory, where people feel more connected to a group when they are physically present,” Keenan says. “Managers might worry that remote work will erode this sense of belonging or reduce opportunities for spontaneous collaboration.”
Groupthink
The phrase safety in numbers is the backbone to the concept of groupthink. First coined by social psychologist Irving Janis in 1971, the term groupthink describes how people strive for consensus within a group, casting aside their own beliefs or adopting those of the rest of the group.
So if some employers start to crackdown on remote work, others may follow suit.
“Leadership teams may reinforce each other’s beliefs about the necessity of in-office work and want to follow tradition,” says Bailey. “Challenging these long-standing norms can feel uncomfortable. It feels easier to stick with group preferences.”
How employers can adapt to new ways of working
Awareness of bias
Decision-makers may not be aware of their own biases, so taking time to think about their true motivations is important. “For instance, are they making choices based on a few individuals who have broken trust, and consequently punishing the entire team?” says Bailey.
“It’s essential to build a culture of trust where expectations are clear and the focus shifts from micromanagement to autonomy,” she adds. “Allow employees to manage their own time, showing them that they are respected and trusted to get on with the task at hand. It can lead to greater job satisfaction and increased productivity.”
Managers should challenge their beliefs. Physically being in an office often means working at a desk, headphones in for focus, and ignoring the person typing next to you. An alternative is to embrace remote or hybrid work by upgrading virtual communication methods and investing in training.
Focus on outcomes
Focusing on actual positive results, instead of clocking up a worker’s hours at their desk, is also key.
Read more: Why quiet quitting is about bad bosses, not laziness
“In-office work can create a false sense of control where visibility is equated with effectiveness,” says Keenan. “Employers should adopt outcome-based performance metrics, where success is measured by the quality and timeliness of work, not where or how long an employee is working.”
Prioritise wellbeing
Despite the increased focus on mental health at work, there’s still a disconnect between the wellbeing strategies employers put in place — like in-office perks — and what actually works.
Overwhelming evidence suggests that focusing on work-life balance, listening to what workers need, and trusting people to work autonomously are key to them feeling valued, which increases good mental health. In turn, this leads to higher engagement and retention.
Creating an environment where remote or hybrid work isn’t just tolerated but is embraced can build a more adaptable, resilient workforce.
“In doing so, employers will find that many of the initial concerns about remote work – such as productivity or culture — are manageable and even improve when approached thoughtfully,” says Keenan.
“Culture isn’t dependent on a physical space — it’s built through shared values, open communication, and support.”
Download the Yahoo Finance app, available for Apple and Android.