Federal Report Shows Remote Work Trumps RTO
In 2025, a growing number of major employers are mandating full-time returns to the office. Amazon, JPMorgan Chase, Dell, and Goldman Sachs have all implemented five-day-a-week office mandates. Similarly, the federal government has followed suit; by early 2024, over 400,000 federal employees were required to be in the office at least two to three days per week, with some agencies enforcing full-time attendance.
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Despite this trend, a comprehensive May 2025 report from the nonpartisan Government Accountability Office (GAO), titled “Telework: Private Sector Stakeholder and Expert Views,” presents compelling evidence that these return-to-office (RTO) mandates may be misguided. The GAO’s findings highlight that, when implemented with best practices, remote work offers significant benefits for both employers and employees. These include enhanced talent attraction and retention, cost savings, and increased productivity. Moreover, challenges such as building organizational culture and tracking work hours are solvable, with existing guidance from agencies like the Department of Labor (DOL) and the Office of Personnel Management (OPM) providing clear frameworks for compliance.
The GAO’s unbiased, thorough report underscores an unignorable reality: telework, implemented thoughtfully, enriches both employers and employees. It attracts and retains talent, reduces costs, enhances productivity, and improves overall well-being.
Remote Work Trumps RTO by Strengthening Talent Attraction and Retention
Few things speak louder to employers than talent attraction and retention. Both employer and worker stakeholder organizations interviewed by the GAO identified telework’s most powerful benefit as its ability to draw and keep skilled employees. One case study in the report highlights a technology firm that cut quit rates by one-third when it offered two days of remote work per week. This single policy change transformed recruiting conversations, turning a geographic selling point into a universal advantage.
Beyond simple recruitment angles, telework unlocks opportunities for diverse talent pools. Workers with disabilities, caregivers and those living in rural areas find newfound job access when location barriers vanish. A National Bureau of Economic Research analysis cited in the GAO report found that full-time employment of workers with disabilities rose by an average of 12 percent after the shift to remote work, reaching as much as 40 percent in computer occupations. Inclusive hiring practices build stronger teams and boost organizational resilience.
Consider a top performer who must relocate for family reasons. Without flexibility, companies face a painful choice: lose that employee or invest in a costly replacement. Telework turns relocation risk into retention opportunity. By removing geographic constraints, remote work transforms talent management into a nationwide search, enabling organizations to tap into expertise that was once out of reach.
Financial and Productivity Gains are Clear
Telework doesn’t just win loyalty—it cuts costs. Employers in the GAO study reported halving office footprints and reducing lease expenses when they permanently embraced flexible work models. Hardware costs shrank as companies shifted to hot-desking and home-office stipends rather than fixed cubicles. These savings directly improve margins and free capital for strategic investments.
Employees benefit as well. GAO’s analysis of a mid-2021 global survey found teleworkers saved an average of 55 minutes per day by ditching their commute. Those reclaimed hours translate into extended focus, reduced stress and better work‑life balance. Mental health improvements follow: less burnout, fewer commuting headaches and more time for exercise or family.
Productivity itself often climbs. Studies reviewed by the GAO show a 12 percent productivity boost for roles with clear, measurable outputs when performed remotely. Fewer interruptions and a personalized home environment let workers complete tasks faster and with higher quality. During disruptions like severe weather or transit strikes, remote-ready teams maintain continuity while office-centric organizations scramble.
Sustainability also improves. Reduced commuting and lower office energy use shrink carbon footprints. Companies committed to environmental goals find telework a practical lever for emissions reduction. Beyond environmental benefits, this commitment appeals to candidates who value corporate responsibility.
Building Culture Remotely: Achievable and Essential
Critics worry that telework weakens culture. The GAO report acknowledges this challenge but highlights proven remedies. Successful organizations establish structured social rituals: weekly video huddles, virtual coffee chats and online forums for casual conversation. These digital watercoolers recreate hallway banter and spark spontaneous collaboration.
Onboarding remote employees demands intentional design. Effective programs blend self-paced learning modules with live mentorship sessions. New hires receive welcome kits, paired mentors and check‑in schedules that nurture connection from day one. This proactive approach builds belonging even when teams never meet in person.
Communication norms play a pivotal role. Companies thriving with hybrid models set clear expectations around response times, meeting guidelines and document sharing protocols. Asynchronous tools like shared workspaces and collaborative platforms enable smooth handoffs across time zones. Clarity and predictability foster trust and reduce friction.
Leaders reinforce culture by modeling vulnerability and recognition. Regular praise in public channels, team retrospectives celebrating wins, and transparent leadership updates keep everyone aligned. Investing in social capital drives engagement and loyalty, dismantling the myth that culture can only thrive under one roof.
Navigating Compliance and Best Practices
Legal and regulatory concerns often intimidate organizations exploring telework. The GAO report confirms that challenges like tracking hours, navigating multi‑state taxation and ensuring safety are solvable with existing guidance. The Department of Labor’s Field Assistance Bulletins under the Fair Labor Standards Act and Family and Medical Leave Act outline how to count remote work hours, authorize overtime and manage leave eligibility.
Interstate tax complexities ease when businesses adopt standard protocols. Experts in the GAO study advocate for policies clarifying state income tax obligations and encouraging license reciprocity for cross‑border workers. Until federal clarity arrives, companies can rely on multistate payroll systems and professional advice to remain compliant.
Data security and confidentiality concerns demand robust IT practices. Leading firms deploy virtual private networks, strict access controls and regular training to protect sensitive information. These measures enable secure remote operations without sacrificing productivity.
Finally, ergonomic and mental health considerations rank high. Employers provide home‑office stipends, ergonomic assessments and mental wellness resources. Offering stipends for desks, chairs and noise‑cancelling headsets demonstrates a commitment to employee well‑being and reduces liabilities associated with workplace injuries.
The Remote Work Revolution Is a Strategic Imperative
Organizations clinging to outdated office‑only mandates risk losing talent, productivity and market agility. One business in the GAO report enforced a five‑day in‑office rule and saw half its workforce walk out, including top performers. In contrast, companies embracing remote options maintain low turnover and high morale.
Leaders, it’s time to embrace this reality proactively. The GAO’s unbiased, data‑driven insights make one truth clear: telework, when implemented thoughtfully, delivers measurable gains across every dimension of organizational performance. Whether you manage a startup or a government agency, the blueprint for success is flexibility.
Key Take-Away
The GAO’s 2025 report proves that remote work trumps RTO. Flexible work boosts talent retention, cuts costs, and raises productivity, making it a smarter choice than rigid office mandates. Share on XImage credit: Paymo/Unsplash
Dr. Gleb Tsipursky was named “Office Whisperer” by The New York Times for helping leaders overcome frustrations with hybrid work and Generative AI. He serves as the CEO of the future-of-work consultancy Disaster Avoidance Experts. Dr. Gleb wrote seven best-selling books, and his two most recent ones are Returning to the Office and Leading Hybrid and Remote Teams and ChatGPT for Thought Leaders and Content Creators: Unlocking the Potential of Generative AI for Innovative and Effective Content Creation. His cutting-edge thought leadership was featured in over 650 articles and 550 interviews in Harvard Business Review, Inc. Magazine, USA Today, CBS News, Fox News, Time, Business Insider, Fortune, The New York Times, and elsewhere. His writing was translated into Chinese, Spanish, Russian, Polish, Korean, French, Vietnamese, German, and other languages. His expertise comes from over 20 years of consulting, coaching, and speaking and training for Fortune 500 companies from Aflac to Xerox. It also comes from over 15 years in academia as a behavioral scientist, with 8 years as a lecturer at UNC-Chapel Hill and 7 years as a professor at Ohio State. A proud Ukrainian American, Dr. Gleb lives in Columbus, Ohio.