Executives discover that paying for empty offices doesn't make workers want to fill them
One week from now, California state workers will face Gavin Newsom's return-to-office mandate. The California state workers union has already warned of mass exodus. In Vermont, the state labor board simply overturned Governor Scott's identical mandate for state employees, treating it as the unenforceable overreach it appears to be. These are not isolated incidents. They are the logical endpoint of a management strategy that was always mathematically impossible to sustain.
The return-to-office movement was supposed to be a reassertion of managerial authority after two years of pandemic disruption. Executives would command workers back to desks. Collaboration would miraculously improve. Productivity would surge. Leases would justify themselves. The narrative was so tidy that almost everyone repeated it, from corner offices to mainstream business media. But the narrative required ignoring one critical fact: it was never actually true.
Consider the numbers that have emerged over the past eighteen months. Yes, the proportion of Fortune 100 companies requiring full in-office attendance rose from just 5 percent in Q2 2023 to 54 percent in Q2 2025. The average weekly office requirement climbed from 2.6 days to 3.9 days. But here is where the story becomes instructive: actual attendance increased by only 1 to 3 percent. Workers showed up slightly more often, or barely at all, and then the gap between mandate and reality became impossible to ignore.
What followed was a slow-motion collapse of enforcement. More than 40 percent of managers stopped enforcing policies against employees who refused to come in. Workers developed sophisticated workarounds—arriving early to be recorded present, then leaving, or negotiating quiet exceptions with supervisors who had no stomach for confrontation. The office was simultaneously filled with requirements and emptied of compliance. It was workplace theater performed in real time.
The California and Vermont cases expose the logic that was always missing. If collaboration still depends on video calls, if a substantial portion of staff works remotely several days a week anyway, if managers lack the will to enforce policies, then what exactly is the point of the mandate? There is no credible evidence of systemic productivity collapse during remote work periods. There never was. This was always about something else.
The research points in one direction: executives were managing their balance sheets, not their operations. Twenty-five percent of executives and 18 percent of HR workers admit they hoped some employees would voluntarily quit rather than return to the office. Return-to-office mandates, in other words, were passive layoffs dressed in productivity language. They were instruments of cost control in a moment when cutting headcount directly looked politically expensive. They were financial engineering disguised as workplace policy.
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The problem is that return-to-office mandates are also excellent tools for losing exactly the wrong people. Research shows the probability of more skilled employees departing after an RTO mandate is 77 percent higher than for less skilled workers. Senior employees are 36 percent more likely to leave than junior staff. Companies were quietly designing systems to shed experience and institutional knowledge while keeping junior people who had fewer options elsewhere. This is almost impressive in its strategic incompetence.
What Vermont and California are now discovering is that you cannot run an unenforceable policy indefinitely without consequences. A labor board can overturn a mandate. Workers can leave. Unions can threaten. And at a certain point, the gap between what management says and what actually happens becomes so visible that the entire exercise loses credibility. The manager who ignores the mandate loses authority with executives. The executive who enforces it loses the employee. Everyone loses except the commercial real estate market, which was the only constituency that genuinely benefited from this whole arrangement.
The return-to-office movement is not failing because remote work was secretly amazing all along. It is failing because it was based on a fundamentally dishonest premise: that presence could be commandeered and converted into collaboration through sheer managerial will, and that this would be worth whatever talent walked out the door. Neither assumption was ever defensible.
What happens next is the only interesting question remaining. Some companies will maintain RTO mandates as expensive signals of control, knowing they are unenforceable but needing to demonstrate authority to shareholders. Some will quietly phase them out, telling themselves that they have evolved their thinking on workplace flexibility. A few might actually reimagine the office around what people actually do there, rather than around what real estate brokers need to be paid. None of these options are particularly noble. They are just degrees of accepting reality at different speeds.
California workers have seven days to decide whether to comply. Vermont's workers have already decided for them. The return-to-office mandate is not winning. It is just losing more slowly, and the office will have to learn to live with that.
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Photo by Egor Komarov via Pexels
Priya Mehta
Staff writer covering financial markets and corporate strategy. Has strong opinions about spreadsheets.