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?
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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.
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.
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“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.