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When the pandemic hit in early 2020, organizations pivoted overnight to remote and hybrid models to survive. Nearly five years later, Amazon, JPMorgan Chase, Dell and Goldman Sachs have enforced five-day-in-office mandates, while US federal agencies imposed on-site requirements for more than 400,000 employees.
These actions rely on outdated assumptions about productivity, culture and resilience, according to authoritative federal government data. A May 2025 report from the non-partisan Government Accountability Office (GAO), Telework: Private Sector Stakeholder and Expert Views, shows that telework offers clear advantages when leaders embrace strategic culture-building, robust performance tracking and available regulatory guidance. Companies ignoring these insights risk talent attrition, rising costs and reduced agility in an era that demands adaptability.
Flexibility now drives talent acquisition and retention more powerfully than traditional perks. Interviews in the GAO study reveal one technology firm cut voluntary turnover by 33% after offering two remote days each week. Across industries, employees cite autonomy and work–life balance as top priorities when evaluating offers. Remote work removes geographic barriers for candidates facing challenges such as caregiving, disabilities or rural isolation. A National Bureau of Economic Research analysis cited in the report found full-time employment among workers with disabilities rose by 12% on average – and by as much as 40% in computer roles – once telework became widespread. Veterans, caregivers and parents of young children similarly gain access to roles they would otherwise forego, expanding the talent pipeline. By hiring beyond traditional office locations, organizations retain top performers who might otherwise resign due to relocation or caregiving conflicts.
Telework can deliver significant cost savings and measurable productivity gains at scale. Organizations in the GAO report halved their office footprints and slashed lease expenses, redirecting budgets toward home-office stipends rather than fixed desks. Some reported saving millions annually in real estate costs alone. Employees reclaim an average of 55 minutes daily by skipping commutes, boosting focus and reducing burnout, while employers report fewer sick days and lower absenteeism. Research reviewed by the GAO indicates a 12% performance lift for roles with clear metrics when executed remotely, thanks to fewer interruptions and personalized work environments. Reduced commuting and lower energy use help companies meet sustainability goals and support corporate social responsibility commitments, while ensuring continuity during severe weather, transit disruptions or other emergencies.
Workers and employers in the study did raise concern about difficulties in building workplace culture and relationships – and indeed, building a cohesive culture in distributed teams demands intentional effort. Leading companies foster connection through weekly video huddles, virtual coffee chats and cross-team recognition ceremonies that spark collaboration and belonging. Mentorship programs pair new hires with seasoned employees, and all-hands virtual events celebrate milestones and reinforce shared values. Clear communication protocols and compliance frameworks – drawing on Department of Labor guidelines and multistate payroll solutions – ensure legal peace of mind and maintain consistent policies across jurisdictions. Robust IT safeguards, ergonomic stipends and mental wellness resources protect sensitive data and support employee health across locations, demonstrating an organization’s commitment to its people.
Insisting on full-time return-to-office mandates now carries steep risks to competitiveness and culture. The GAO report highlights one business that lost half its workforce – including key leaders – after enforcing a strict in-office policy. In contrast, organizations embracing a remote-first mindset enjoy minimal turnover, higher morale and stronger employer brands, attracting top talent even in saturated markets. Experts advise publishing telework eligibility in job postings, investing in high-speed broadband infrastructure and designing compensation models that reward flexibility and fairness. The GAO’s data-driven findings deliver a clear roadmap: integrate remote work strategically to attract talent, reduce costs and enhance productivity. Leaders who act now will build resilient, high-performing teams prepared for whatever challenges lie ahead in a competitive global landscape.
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Gleb Tsipursky, PhD, is the CEO of the future-of-work consultancy Disaster Avoidance Experts
