Federal workers have been ordered to return to the office, will others follow?
President Trump terminated remote work for all federal employees in one of his first-day executive orders. Could private actors follow him this year?
The executive order asked all heads of departments and agencies to end remote work and "require employees to return to work in-person at their respective duty stations."
According to Reuters, Elon Musk, the head of the Department of Government Efficiency, said that revoking remote work would trigger "a wave of voluntary terminations that we welcome."
One purpose of President Trump's executive order could be shrinking and shaping the government to his liking. He also reduced protections for public servants, making it easier to fire them.
Beyond the intentions of the President, his decision to terminate remote work could also inspire the private sector to push their return to office policies.
The Wall Street Journal states that many large companies started pushing return-to-office policies last year. The newspaper said the degree of flexibility is changing.
Many companies see the benefits of hybrid models for retaining and recruiting top talent. Still, mandates are changing to include more days at the office than at home.
Chipotle, for example, started requesting its office workers to be present four days a week, leaving Friday for remote work. Still, the CEO told the WSJ that it could change if productivity lowered.
According to the newspaper, 25% percent of US companies offer fully flexible arrangements, down from 33% in 2023. The trend, cemented during the pandemic, might be fading.
Still, many companies also have not found the need to revisit their remote work policies since 2020. The number of companies that require five days in the office also fell last year.
For many companies, the benefits relate to real estate savings. Reducing office spaces can reduce costs by billions.
Still, by the end of last year, tech giants like Amazon or Dell issued strict office return mandates. The Federal government could push the sector to continue.