FlexOS | Future Work

McKinsey's RTO Research: More Office, Same Problems

February 21, 2025
Issue
#
126
McKinsey's RTO Research: More Office, Same Problems

Your Weekly Must-Read Insights about the Role of HR in the Future of Work

The world of work is changing faster than the time we have to understand it.
Sign up for my weekly newsletter for an easy-to-digest breakdown of the biggest stories.

Join over 42,000 people-centric, future-forward senior leaders at companies like Apple, Amazon, Gallup, HBR, Atlassian, Microsoft, Google, and more.

Unsubscribe anytime. No spam guaranteed.

FEATURED PODCAST

THE FUTURE OF HR ROUNDUP

Your Weekly Must-Read Insights about the Role of HR in the Future of Work

The world of work is changing faster than the time we have to understand it.
Sign up for my weekly newsletter for an easy-to-digest breakdown of the biggest stories.

Join over 42,000 people-centric, future-forward senior leaders at companies like Apple, Amazon, Gallup, HBR, Atlassian, Microsoft, Google, and more.

Unsubscribe anytime. No spam guaranteed.
FlexOS | Future Work

McKinsey's RTO Research: More Office, Same Problems

February 21, 2025
Issue
#
126
McKinsey's RTO Research: More Office, Same Problems

📢 RTO debates—again. Across our Future Work Alumni, one key theme stands out: stop fixating on where people work—focus on how work happens. The smartest companies aren’t measuring success by badge swipes; they’re tracking outcomes, engagement, and flexibility to build high-performance teams.

🤖 HR’s expanding role in AI governance is making headlines. With AI transforming hiring, training, compliance, and leadership, research suggests HR may be the natural owner of AI oversight. Perfect timing for our upcoming AI vs. Humans in HR event with Rebecca Hinds (Asana) and Anthony Onesto (Suzy)—plenty of fresh insights to explore.

🏡 Adoption benefits are growing but still lag behind fertility perks, and DEI programs face mounting scrutiny, forcing companies to refine rather than abandon their strategies.

📅 Want to join the event or dive deeper into these topics? Let me know!

Your Weekly Must-Read Insights about the Role of HR in the Future of Work

The world of work is changing faster than the time we have to understand it.
Sign up for my weekly newsletter for an easy-to-digest breakdown of the biggest stories.

Join over 42,000 people-centric, future-forward senior leaders at companies like Apple, Amazon, Gallup, HBR, Atlassian, Microsoft, Google, and more.

Unsubscribe anytime. No spam guaranteed.

Future Work Alumni: What Matters Now? 🚀

This week, we dive into the biggest conversations shaping the future of work—straight from our Future Work Alumni. What’s top of mind for workplace leaders right now? What trends, challenges, and innovations are sparking debate?

​​🔍 McKinsey: Focus on Workplace Practices, Not Just RTO Policies

McKinsey’s latest talent trends research shows a significant increase in return-to-office (RTO) mandates from 2023 to 2024, with mostly in-person workers doubling from 34% to 68%. Meanwhile, mostly remote work dropped from 44% to 17%, and hybrid work declined from 22% to 14%, reflecting a broader shift toward office-based models.

However, the research finds that work environment matters more than the working model—whether in-office, hybrid, or remote. While RTO mandates have doubled office attendance, employee burnout remains high (one-third of workers), and 39% still intend to quit.

The study highlights five core practices that drive performance—collaboration, connectivity, innovation, mentorship, and skill development—yet most employees feel their organizations are failing in these areas. Instead of focusing on mandates and monitoring, companies should redesign work environments, invest in leadership training, and ensure in-person time adds value to drive productivity and engagement.

Nick Bloom Responds: Is WFH Really Declining?

📊 Nick Bloom challenges McKinsey’s claim that WFH rates have halved since 2023, arguing that big data (Census, SWAA, Kastle, and Placer.ai) shows WFH rates have remained stable.

❌ Key flaws in the McKinsey survey:

  • Recall bias – Respondents likely recalled 2020-2022, not 2023.
  • Sample bias – The survey oversampled in-office workers (75%), skewing results.
  • Sampling on the outcome – More in-person workers = more reported in-office attendance.

💡 The takeaway: WFH isn’t disappearing—it’s evolving. Organizations should focus on outcomes, not just office attendance.

📊 Phil Kirschner on McKinsey’s RTO Findings: More Office, Same Problems

New research from McKinsey & Company suggests that forcing office attendance isn’t improving workplace effectiveness.

🔹 The real issue? Phil Kirschner: Work experience is lagging. Burnout remains high, retention risks persist (especially among Gen Z), and leaders overestimate workplace maturity in key areas like collaboration, mentorship, and innovation.

Key takeaway: Stop focusing on where work happens—fix how it happens. Instead of mandates, leaders should make office time valuable, redesign work for effectiveness, and measure outcomes—not attendance.

⁉️ What do you think of McKinsey & Company's new research? Do these findings align with your experience, or are there other lessons leaders should take from their insights? Let’s discuss. 👇

🚨 Office Attendance as a Performance Metric? A Trust-Killer

In FT article (Emma Jacobs and Anjli Raval), Debbie Lovich reinforces what many workplace experts have argued: one-size-fits-most RTO mandates don’t drive high-performance work environments.

🔹 Key takeaway:“Nothing says I don’t trust you like a mandate with badge swipes monitoring your every move.”

The smarter approach? Invest in hybrid and distributed work models that actually enable productivity, trust, and flexibility—rather than enforcing rigid policies.

📊 The Office Was Never “Full” Five Days a Week

🏢 Brian Elliott reminds us that pre-pandemic desk utilization averaged 50-65% (Cushman & Wakefield, JLL). Today, it’s closer to 30%, with peak days at 60-65% (CBRE, Kastle Systems).

🔹 What doesn’t work:

  • Treating attendance as a performance metric
  • Monitoring badge swipes
  • Blaming workplace teams for “low” office use
  • Forcing a return to a past that never existed

What does work:

  • Redesigning offices for collaboration instead of rows of empty desks
  • Investing in team gatherings that build real connection
  • Supporting managers to lead in hybrid environments
  • Measuring outcomes, not attendance

💡 The focus should be on driving results, not office occupancy.

🚨 HR’s Role: More Than Just Protecting the Company

💡 Ashley Herd on HR Besties Podcast tackles a tough workplace reality: too often, HR is seen as just a shield for the company, rather than an advocate for employees.

🔹 Key takeaway? Organizations that prioritize employee experience, fairness, and transparency don’t just protect themselves legally—they build trust, engagement, and long-term success.

💡 The best protection for a company? A workplace where people are treated well.

🚀 The “Big Brand” Hiring Trap

💡 Lars Schmidt calls out one of the biggest recruiting mistakes: assuming that experience at a top brand automatically translates to success at your company.

Better interview questions:

  • Leadership philosophy—How do they lead in different environments?
  • Lessons learned—What did they take from past roles and how will they apply it?
  • Adaptability check—How do they handle working with fewer resources or a different pace?

💡 Don’t hire résumés—hire the right mindset and skills.

🏗️ AI & Real Estate: The Future is Here

💡 Antony Slumbers breaks down how AI is reshaping real estate—from automating workflows to redefining urban spaces.

🔹 Key takeaways

  • Hybrid work is here to stay—offices must become experience-driven hubs.
  • 15-minute cities & secondary markets will reshape where people live and work.
  • AI won’t replace professionals—but skilled people using AI will have the edge.

💡 Success depends on adapting roles, questioning AI outputs, and designing spaces people actually want to use.

🗨 How is AI reshaping your industry? Let’s discuss. 👇

🏰 Designing Retreats That Actually Work

💡 Chase Warrington shares the top team-favorite moments from Doist’s company retreat in Ireland—proving that intentional design + flexibility = real connection.

🔹 What worked best?

  • "Connection Court" – A dedicated social space with games and snacks, offering a low-pressure alternative to the bar scene—great for introverts and casual conversations.
  • Doist Build Hackathon – Pre-selected, high-impact challenges with an energy-packed, first-come-first-serve format—plus, the winning project improved onboarding immediately.
  • "Choose Your Own Adventure" Itinerary – Parallel options like hiking, escape rooms, and local music let teams bond organically through shared interests.

Key takeaway? Create structure, but let people choose. Flexibility leads to stronger, more natural team connections.

NEVER MISS ANOTHER PAYROLL TASK WITH BAMBOOHR ✅

If you’re new to running payroll, use this free checklist to help you formalize your process and set your company up for smooth, error-free payroll runs.

82% of Americans say they would have difficulty paying bills if more than $500 were missing from their check.

Dealing with payroll errors is a costly affair, and nothing squashes employee morale like a botched payday.

That’s why we’ve wrangled all the important payroll to-dos you need to ensure accurate, on-time payroll runs for your company!

The Roadmap to AI Mastery for Non-Technical Leaders 🛣️

"I thought I needed a technical background to use AIturns out, I was wrong! This course made AI accessible, fun to experiment with, and an essential tool for leading hybrid, distributed, and remote teams." - Sacha Connor, CEO, Virtual Work Insider

Hundreds of business leaders, just like you, have successfully transformed their approach to AI in just 3 weeks.

We understand the unique challenges you face and have fine-tuned our program to deliver exactly what non-technical leaders need to thrive in the AI-powered future.

Be among the first to experience our upgraded 2025 program: ChatGPT o3, updated Copilot, Agents & Automation, and more live sessions:

  • 4x live coaching sessions – More direct support than ever before.
  • The most up-to-date AI curriculum, including ChatGPT o3, Microsoft Copilot, and advanced automation techniques.
  • 15 daily video lessons – Learn practical AI strategies in just 30 minutes a day.
  • Exclusive access to 200+ elite executives – Network with leaders from Microsoft, Apple, McKinsey, Toyota, and more.
  • 6 months of Lead with AI PRO – Stay ahead with ongoing AI masterclasses and expert Q&As.

Join leaders from companies like McKinsey, Microsoft, and Cisco, and master AI in just 3 weeks!

THE FUTURE OF HR ROUNDUP ✨

I follow and summarize the news that future-forward and people-centric leaders care about, so you don't have to.

This week:

📊 Measuring the ROI of AI in HR

AI is transforming HR, yet calculating its ROI remains challenging. A survey of 600 HR leaders found a median ROI of 15%, with top adopters seeing returns of 55% or more. However, AI’s impact is often indirect—measured through efficiency gains, accuracy, and time saved, rather than immediate financial returns.

🔹 Key insights:

  • Top AI use cases in HR include self-service HR support (81%), personalized learning (80%), and bias mitigation in hiring (71%).
  • Challenges in ROI calculation include long-term investment cycles, hidden costs, and difficulty in isolating AI’s impact.
  • Companies spend more on AI tech than workforce skills, creating a disconnect between investment and readiness.

So what’s the process for implementing AI in HR effectively? How can organizations align AI with HR processes, invest in high-quality data, start with small pilots, and use data-driven insights with storytelling to build leadership buy-in?

Join the discussion at AI vs. Humans in HR with Rebecca Hinds (Asana) and Anthony Onesto (Suzy)

HR’s Strategic Role: Influencer or Afterthought?

A Randstad Enterprise survey confirms that HR’s role is more critical than ever, yet many organizations still bring HR into strategic discussions too late—after key decisions are made.

As AI-driven workplaces and talent market shifts accelerate in 2025, HR’s influence must move from reactionary to proactive.

HR has evolved beyond its traditional role, now driving workforce strategy, culture, and adaptability. HR has secured its seat at the table, but the real question is: Will it shape strategy from the start or only be called in when issues arise?

Rethinking Org Design in the Age of AI

Accenture’s latest research shows that while AI is reshaping work, many companies prioritize tech investment over workforce development, creating a critical skills gap.

AI will transform nearly half of employees’ working hours, yet companies spend three times more on AI than on talent, with only 72% of employees feeling adequately trained despite 92% of leaders believing otherwise.

To sustain growth, organizations must balance AI adoption with upskilling, ensuring employees are prepared to thrive in an AI-powered workplace.

✅ Quick Hits:

  • HR’s Expanding Role in AI Oversight: As AI reshapes the workplace, experts suggest HR may soon take on AI governance and strategy, with some envisioning a Chief Human and AI Resources Officer (CHAIRO) role. AI in HR already supports hiring, training, performance management, and compliance, but ethical and legal oversight is critical. HR leaders’ expertise in workforce impact, engagement, and policy makes them uniquely positioned to guide AI integration—ensuring it aligns with company values and regulatory standards.
  • DEI Under Pressure—But Could Emerge Stronger: As scrutiny on DEI programs intensifies, many companies are refining rather than eliminating their initiatives. While lawsuits and political challenges have led some firms to scale back, major companies like Target, Nike, and Costco continue to defend their DEI strategies. Experts argue that treating DEI as a core business priority—aligned with leadership accountability, data-driven goals, and evolving legal frameworks—will make these programs more sustainable. Instead of reacting to external pressures, organizations should use this moment to strengthen and realign DEI efforts with long-term business strategy.

🔥 Interested in reaching 25,000 work and workplace innovators? Let's connect!

Your Weekly Must-Read Insights about the Role of HR in the Future of Work

The world of work is changing faster than the time we have to understand it.
Sign up for my weekly newsletter for an easy-to-digest breakdown of the biggest stories.

Join over 42,000 people-centric, future-forward senior leaders at companies like Apple, Amazon, Gallup, HBR, Atlassian, Microsoft, Google, and more.

Unsubscribe anytime. No spam guaranteed.