Leading Off: A leader’s guide to getting return to office right

ESSENTIALS FOR LEADERS AND THOSE THEY LEAD

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Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms

Welcome to the latest edition of Leading Off. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.

—Alex and Axel

Five years after the pandemic spurred a surge in remote work, more and more companies have been bringing more employees back into the office. Some leaders view return-to-office (RTO) policies as critical to boosting collaboration, productivity, and organizational performance. Others are trying to figure out the right balance of remote, hybrid, and in-person working models to meet the needs of their people and their organizations. This week, we look at how leaders can consider RTO options that support both employee experience and productivity.

An IDEA

An image linking to the web page “Returning to the office? Focus more on practices and less on the policy” on McKinsey.com.

Prioritize healthy practices

Debates about the effectiveness of RTO policies can overshadow a more pressing question: Are companies doing enough to address the persistent problems affecting employee experience and productivity? McKinsey’s Aaron De Smet , Brooke Weddle , Bryan Hancock , and their coauthors argue that companies should focus less on mandating specific working models and more on strengthening key practices that support organizational health. The authors observe that leaders most frequently cite five practices as their reasons to adopt RTO policies: collaboration, connectivity, innovation, mentorship, and skill development. But US employees across working models say their organizations fall short in supporting these practices, according to a McKinsey survey. The authors note that in-person, remote, and hybrid workers all report similar levels of intent to quit, burnout, effort, and satisfaction. “The policy mandate itself is far less important than the work environment organizations create and the practices that accompany a policy’s implementation,” they say.

A BIG NUMBER

36%

That’s the percentage of younger US workers (ages 18 to 25) who prefer remote work, compared with 46 to 59 percent of those in older cohorts, according to McKinsey’s 2024 American Opportunity Survey . McKinsey’s Nora Gardner , Vaibhav Gujral , and their coauthors note that older workers’ higher preference for remote arrangements means that young workers’ desires for mentorship may be left unfulfilled. “Employers must balance attracting and retaining more educated, experienced, and higher-earning talent with the need to deliver a compelling on-site experience for younger workers,” the authors say .

A QUOTE

“As work–life expectations continue to shift, nonfinancial rewards, like opportunities for upskilling or professional development, can play an increasingly important role in performance management strategies.”

That’s McKinsey’s Asmus Komm, Brooke Weddle, Dana Maor, and their coauthors on the factors that motivate employees to perform at their best. Nonfinancial incentives also may include greater workplace flexibility, more autonomy, praise from a manager, and the opportunity to lead a big project. “[These incentives] can be used to reward progress toward large, company-wide goals; small, private goals specific to individual employees; or career moves, among other things,” the authors say.

A SPOTLIGHT INTERVIEW

An image linking to the web page “Author Talks: Am I making myself clear?” on McKinsey.com.

Effective communication is a foundational element of building connections in the workplace, and BBC journalist Ros Atkins—author of The Art of Explanation: How to Communicate with Clarity and Confidence—identifies two essential elements: understanding and authenticity. Taking the time to gather information and get comfortable with complex or unfamiliar subjects is critical to being a good communicator in personal or work settings, Atkins observes. He also stresses the importance of choosing words that sound and feel genuine. “If the people you’re addressing in the workplace feel that perhaps you are not being who you are, or you’re trying to be something beyond what feels natural, they’ll pick up on that,” he says. “If you can speak confidently and with precision and efficiency, but it feels like it’s you, then you’re going to be a much more credible and trustworthy source. In the end, authenticity is something people welcome.”

OFFICE OF THE FUTURE

An image linking to the web page “The future of the office” on McKinsey.com.

From cubicle farms to high-tech home offices, workspaces have evolved dramatically in the past few decades. Today’s debates about RTO policies, productivity, and employee engagement all relate to a central question about the future of the office: How can employers make the best use of their spaces to support employee experience and organizational health ? Explore this interactive feature to see how office spaces may develop in the years to come, based on research from the McKinsey Global Institute as well as insights from McKinsey experts. They propose that future offices should be designed as spaces with purpose, with features that enable connectivity, with enhanced digital capabilities, and with sustainability in mind.

Lead by creating a healthy work environment.

— Edited by Eric Quiñones, senior editor, New York

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