A handful of recent workplace reports reveal the schism.
On one hand, there are the strident cries of corporate suits demanding workers return to the office at big companies like Amazon (AMZN) and Starbucks (SBUX), veiled with “brush off your résumé” threats.
A recent survey by KPMG reported that roughly 8 in 10 CEOs envision a full return to the office in the next three years vs. 34% who had this prediction earlier this year. And 86% of CEOs “will reward employees who make an effort to come into the office with favorable assignments, raises, or promotions.”
On the other hand, flexible work arrangements are crucial to more than 8 in 10 workers, and more than half say they would be willing to turn down a salary increase for more autonomy over when and where they do their job, according to a recent Charles Schwab study.
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“The evolution of work continues to be defined by flexibility and adaptability,” Ruth Thomas, pay equity strategist at Payscale, told Yahoo Finance. “While return-to-office mandates are gaining traction in some sectors, the enduring appeal of remote work is undeniable.”
Last week, Elon Musk and Vivek Ramaswamy, whom President-elect Donald Trump named to head the new Department of Government Efficiency (DOGE), joined the chorus and blasted forth about their plan to force federal employees to return to the office in hopes that some will opt to quit instead.
“Requiring federal employees to come to the office five days a week would result in a wave of voluntary terminations that we welcome: If federal employees don’t want to show up, American taxpayers shouldn’t pay them for the Covid-era privilege of staying home,” the two wrote in a Wall Street Journal op-ed.
How much time federal staffers spend working remotely varies by department, according to an August report from the Office of Management and Budget. The reality, though, is only a fraction of employees work fully remotely.
Roughly 2.3 million civilians work for the federal government, according to the OMB report, which looked at 24 agencies that employ about 98% of the federal civilian workforce.
Just over half, or 1.2 million, work fully in person since their jobs require them to be physically present. The remaining 1.1 million staffers are eligible to telework. About 228,000 employees, or 10% of the total, are in fully remote positions and are not expected to work in person on a regular basis.
One consequence of requiring workers to show up in the office is that the voluntary turnover rate for traditional in-person work is 30%, around double that of remote companies and hybrid work environments, according to Payscale data.
“Organizations are finding that a balanced, hybrid approach often fosters both productivity and employee satisfaction,” Thomas said. “As we close out 2024, the key to success lies in empowering teams with choice and building cultures that prioritize results over presence.”
That doesn’t make Amazon’s CEO Andy Jassy flinch. Last month, in a memo to office workers, he announced a full return-to-office starting in 2025, an increase from three days for the past year or so.
“We’ve observed that it’s easier for our teammates to learn, model, practice, and strengthen our culture; collaborating, brainstorming, and inventing are simpler and more effective; teaching and learning from one another are more seamless; and, teams tend to be better connected to one another,” he wrote. “If anything, the last 15 months we’ve been back in the office at least three days a week has strengthened our conviction about the benefits.”
Starbucks is also turning the screws, threatening its employees with job termination if they fail to follow the company’s return-to-office mandate, according to a recent memo obtained by Bloomberg.
Despite the pressure, plenty of workers aren’t backing down. More than four years since the pandemic sent us home to work, flexible work arrangements remain a high priority for the vast majority of workers, according to the Schwab study.
In fact, it means so much to them that they’re cool with getting paid less to do so.
In the last year, the percentage of baby boomers who are willing to give up a salary increase for a more flexible work arrangement jumped from 29% to 38%, according to the Schwab data. Gen Xers followed suit, rising from 49% to 54%; millennials, 67% to 71%; and Gen Z stayed essentially flat at 76%. Women are more likely to say that the ability to work from home and flexibility in work hours and location are must-have benefits compared to the men surveyed.
“So many workers told us that they would be willing to forego a raise in their salary for more flexible work arrangements,” Marci Stewart, director of client experience at Schwab Workplace Financial Services, told Yahoo Finance. “It’s all a little surprising.”
So where does this disconnect leave us?
“This is absolutely going to be the workplace battle of 2025,” John Mullinix, head of growth marketing at Ladders, the career site for jobs that pay $100,000 or more, told Yahoo Finance. “Despite employer pushbacks, remote job availability has stabilized, and the debate over in-office versus remote work will likely intensify.”
One factor in favor of those workers digging in their heels is evidence that the number of lucrative remote jobs is on the rise. High-paying remote job opportunities increased more than 10% last quarter, according to the latest research from Ladders, which pulled data from over half a million job postings on its site from July through September of 2024. High-paying hybrid job availability increased by more than 50%.
“While some companies are strongly advocating for a return to the office, remote work remains significant in high-paying roles,” Mullinix said. “Of course, we’re not anywhere near the soaring numbers we saw in the immediate aftermath of the pandemic, but the latest data proved the RTO fight isn’t over yet.”
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Who are the companies backing remote work? Midsize employers who realize that remote options are key to attracting and retaining top-tier talent and staying competitive, Mullinix said. “Larger employers will be more likely to continue their RTO push.”
Certain industries are more apt to embrace and value remote work too, per Mullinix. Roles in software development, data analysis, and IT support, for example, are predominantly remote-friendly, he said.
Many financial positions, such as those in analysis, consulting, and accounting, are adopting remote work models. Jobs in digital marketing, content creation, and design also tend to lean into remote work.
Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist, and the author of 14 books, including “In Control at 50+: How to Succeed in The New World of Work” and “Never Too Old To Get Rich.” Follow her on Bluesky:
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