How can startups balance the risk of return-to-work mandates?

Is 2025 the year we abandon hybrid work and return to the office full-time? Enterprises – like Santander, PwC, Amazon, and JP Morgan – are pushing Return-to-Office (RTO) mandates and as a result, we are already seeing a significant backlash to these policies.

At WPP, the enforced four days in the office sparked massive backlash, where thousands of employees signed a petition imploring the world's biggest advertising agency to revoke the new policy. Similarly, at Lloyds, employees were threatened with bonus cuts if they failed to attend the office five times a week, which only escalated tensions and fuelled resentment. These top-down policies hurt team morale, and lead to wider talent retention issues, as employees look for more flexible opportunities elsewhere.

On the other hand, startups have a different perspective on this trend. Most startups begin with remote work as a necessity, simply because most early-stage businesses lack the resources to maintain physical office locations. This practical and cost-saving solution may now be startups’ secret weapon in attracting top talent. 

While larger organisations struggle with a one-size-fits-all return to the office, startups have the opportunity to create a work environment that combines the best of both worlds, staying agile and responsive to the needs of a changing workforce.

The edge of flexibility

It's crucial that startups don't get swayed by the RTO policies of big companies, which often emphasise rigid structures and standardisation. Emulating these policies could stifle the creativity and agility that set startups apart. By maintaining flexible, remote-first, or hybrid work models, startups preserve their unique edge – offering employees autonomy, fostering a collaborative atmosphere, and attracting top talent looking for non-traditional work environments. Staying true to what makes them nimble and innovative ensures startups can remain competitive, adapt quickly, and continue scaling without losing their original spirit. The key is balance, not mimicry.

Startups should continue offering the flexibility that many employees now expect – especially as employees who have grown accustomed to hybrid or remote work may be hesitant to return to traditional office settings.

A remote setup often leads to a more flexible, agile culture that’s built on trust, autonomy, and efficiency. Remote work can even be a competitive advantage for startups, allowing them to tap into global talent pools without the limitations of location and accessibility. Enterprise leaders claim the death of office culture as a justification for blanket RTO orders, but the reality is that startups are renowned for their cultures of innovation and creativity, even if employees are located across the world.

This is not to say that remote office policies will always have an advantage over hybrid policies. In-person collaboration still remains vital to team culture and scaling a business, but a balance must be maintained.

For startup HR teams, which are usually leaner than those in larger companies, managing the employee experience will be crucial. This might mean offering hybrid models or giving employees more control over their schedules to keep the startup's flexible, innovative spirit alive.

Balancing the risk

For startups considering implementing RTO policies, it’s crucial to remember that overly rigid policies could seriously harm employee satisfaction, especially as more workers prioritise flexibility. The level of risk a company’s leadership is willing to take with these measures often influences the company culture, affecting everything from recruitment strategies to daily operations. Leaders who demonstrate flexibility and are in tune with their employees create a more positive work environment, which can help boost both talent retention and recruitment efforts; an attitude noticed especially in a startup setting. In contrast, large organisations implementing strict RTO policies may create obstacles that alienate potential candidates and limit accessibility.

An evolved approach to risk from business leaders will be essential here: sustainable growth doesn’t come from avoiding risks, but from taking the right risks. As entrepreneurs, we are open, adaptable, and actively encourage healthy risk. It’s this attitude to risk that caused us to begin our entrepreneurial journey in the first place. This mindset sets businesses up for long-term success, as foundations for growth and transformation are laid.

This shift is not only a market-driven necessity but also a response to the changing nature of work. The growing regulatory landscape and the increasing shift towards hybrid and global workforces means organisations must protect their most valuable asset – their people.

Technology is the way forward

Finding the right candidates is one of the biggest challenges for organisations today, especially for startups that need to scale quickly. To streamline this, technology can empower HR teams and take away the administrative burden of clunky hiring processes. This ensures hiring managers can confidently assess whether candidates are aligned with the company’s RTO policies and the dynamic needs of fast-growing startups as soon as they walk through the door.

Hiring practices need to adapt to hybrid and remote work models, while also addressing the growing presence of AI in the recruitment process. With AI filtering applications, it’s becoming more challenging for HR teams to determine if a candidate is genuinely a good fit or being fully transparent. To overcome this and emulate the agility of startups, larger organisations should invest in the right technology and transparent hiring practices. Startups, in particular, can benefit from this approach, as it allows them to scale quickly while maintaining efficient, transparent hiring. Automating admin-heavy processes such as background checks and other aspects of the recruitment process can help HR teams make better, quicker decisions, improving productivity and reducing the time spent on manual tasks by half.

Through automation, businesses can replicate the trust and loyalty typically seen in startups, creating a workforce that is committed, aligned with the organisation’s long-term goals, and more efficient in the hiring process. Automation enables leaner HR teams at startups to assess candidates with confidence while maintaining efficiency and minimising disruption for both employers and candidates.