A forced return to office on the horizon for Americans

The cooling job market has created a dip in hiring and spiked up layoff rates among the growing fear of a recession in the US. American workers seem to be getting nudged back into offices from their remote jobs.

The slowdown of the labor market has given most of the bargaining power back to employers. Most companies have started asking their workers to return to the office at least a few times a week. This trend is picking up slowly because businesses are struggling to fill their vacancies, but in the coming days when hiring freezes and layoffs increase, it will become widespread across the job market.

Businesses are concerned about whether they will be able to fill up their openings if they lose employees due to the new return-to-work policies. However, the talent competition has decreased a bit, giving the freedom for employers to become a little pickier.

A Gartner survey of 240 human resources leaders found that only 25% of companies requested workers to be in the office at least three days a week back in August. This number has risen to 36% in September 2022. The number of companies with onsite work requirements has decreased from 31% in August to 22% in September.

There is a marginal decrease in the remote work demands by employees. A Harris Poll survey for USA TODAY found that 73% of fully remote workers are ready to look for other remote/hybrid job offers if they get forced by their employers to work from an office full-time.

Ironside Human Resources CEO Doug Carter says that “There are not as many remote jobs as there were. People are definitely more receptive," to working onsite. According to him, around 80% of administrative employees of his clients have been remote six months ago. But today, this number has reduced to only 50%.

Although the job market has slowed down recently, it still remains in favor of employees. In certain industries, the employees still have bargaining power due to pandemic-related worker shortages. The labor market is still very hot with a lot of applicants still demanding to work remotely. However, Dustin York, a consultant for large corporations feels that “the tide is changing.”

The softening economy and slowed down hiring will be the major reasons why the power balance between employers and employees shifts. The hiring slowdown hit tech industries first. Most tech businesses are asking employees to come back to the office. Layoffs will most likely target employees who refuse the new return-to-work policies.