Return-to-office mandates: is there a retention battle brewing?

In 2024, the federal government announced that all of its employees would be required to work in-office three days a week, with executives coming in four days a week. But resistance from employees and unions was strong and it’s turning out to be a challenge to enforce. 

The province of Ontario followed with its own return-to-office (RTO) mandate in August 2025 that will require full-time attendance effective Jan. 5, 2025. The union representing half of Ontario Public Service workers, OPSEU, called it a “direct show of disrespect.” 

Just recently, Rogers Communications required employees to be in the office four days a week, increasing to five by February 2026, while big banks Toronto-Dominion Bank and Bank of Montreal are set to have all employees in-office four days a week. 

Despite return-to-work (RTO) mandates from these and other big employers, Canadian employees’ appetite for remote work remains strong. According to a recent Angus Reid survey, 32 per cent of remote workers say they would consider quitting if ordered back to the office most of the time, while 27 per cent say they would do so quickly. More than half of those told to return are “very upset” or “upset,” and six in 10 Canadian workers say they prefer a hybrid model. 

Upset employees could be retention risk 

Nick Turner, professor and area chair at the Haskayne School of Business at the University of Calgary, says these numbers shouldn’t be underestimated by employers, as they may have a bigger impact on retention than many leaders may expect. 

“When employees feel they’ve lost control over where and how they work, morale can drop and that frustration often shows up first as disengagement, then as turnover,” says Turner. 

The survey’s findings reflect the idea that employees’ desire for flexibility isn’t a passing trend from the past few years, but rather a fundamental shift in how Canadians view work. It’s a shift that should colour companies’ approach in considering factors such as workplace culture and retaining talent versus the perceived benefits of increased in-person work. 

“The misconception I see most often is the idea that bringing people back automatically rebuilds culture or engagement, but in reality, culture and connection depend more on trust and meaningful interaction than physical proximity,” says Turner. “It’s also easy to underestimate how strongly flexibility has become tied to job satisfaction - surveys across Canada and globally show flexibility ranks alongside pay as a top reason people stay or leave, and even small gaps between what employees want and what’s offered can tip the balance.” 

The right time for RTO mandates? 

However, the ongoing economic uncertainty related to US tariffs and other factors may be reason for companies to worry less about retention. The recent Bank of Canada business outlook survey for the third quarter of 2025 shows that companies have ample labour capacity and can find workers more easily than in 2024, with firms reporting critical labour shortages at their lowest level in five years. This would seem to lessen concerns about retention issues, so is it the right time for companies to implement RTO mandates regardless of employee displeasure with them? 

Turner believes it might be a more opportune time, but notes that economic uncertainty can cut both ways, as skilled talent remains scarce in many fields and the labour market will eventually tighten again, causing many workers to look for greener pastures if they’re unhappy. 

“A softer labour market might make people less likely to quit over RTO, but it won’t make them more excited about being back - you can buy compliance, but you can’t buy commitment,” he says. “The risk for employers is that reluctant returnees often disengage quietly - they show up, but with less energy, creativity, and collaboration.” 

Even in a softer labour market, certain fields with highly-skilled workers – such as tech, finance, and professional services - have hybrid expectations entrenched since even before the pandemic, so full-time or mostly-full-time office mandates can hurt recruitment in these sectors. The survey reveals that about three-quarters of knowledge-sector workers want to work from home most of the time, and fewer than one in ten want to return full-time. 

“Organizations that maintain credibility and flexibility now will be far better positioned to attract talent later,” says Turner. 

Hybrid model favoured by workers 

The Angus Reid survey highlights that only a small minority of workers want to return to the office full-time, with most in favour of a hybrid model. For HR leaders, the challenge is to design policies that align with these preferences while meeting organizational needs and a perception from leaders that having staff in-person most or all of the time is ideal. 

Turner identifies alignment and communication as the core challenges. 

“Too many organizations are rolling out uniform mandates that ignore differences between roles, work types, and personal circumstances, but that one-size-fits-all mindset leads to resistance because it feels arbitrary and out-of-touch,” he says. “The other major challenge is communication - many employees still don’t know why their organization wants them in the office more often, so without a compelling explanation, every commute feels like a tax rather than an investment.” 

There is an opportunity for RTO practices to bolster company culture and collaboration if approached strategically. A focus on high-value in-person activities that hybrid or remote work can’t do as well - mentoring, onboarding, problem-solving, brainstorming, and building relationships - while letting employees handle their own focused work from home allows employees to see purpose in being in the office. This will help with engagement and retention during a time of upheaval from new RTO initiatives, according to Turner. 

‘Manage the work, not the location’ 

So how can HR leaders balance organizational goals with employee expectations? Turner suggests a data-driven, transparent approach. 

“The key is to manage the work, not the location - identify the specific activities that truly require in-person presence, and everything else can be flexible,” he says. “And when employees understand how hybrid or RTO decisions are made, compliance follows naturally.” 

It’s also an ongoing process in which companies should keep track of turnover trends, absenteeism, and engagement scores to see if the current policy is helping or hurting.  

“Where leaders often succeed is framing hybrid not as a concession but as a strategy for performance and retention, and when people can focus deeply at home and collaborate effectively on site, both productivity and well-being improve,” says Turner. “Balancing preferences isn’t about keeping everyone happy; it’s about designing work for what it needs to do and that supports both results and well-being.” 

The survey results demonstrate what many HR leaders are seeing - employee sentiment toward full-time office work has shifted permanently. While companies may not be currently concerned with the turnover risk from a hardline approach to RTO mandates, such mandates may have a longer-term retention impact – which has its own costs. 

Having a purpose to return-to-office 

For employers, it’s not about never bringing people back, but about designing the return with data, empathy, and good communication – and keeping in mind that many employees don’t reject offices outright, they just want in-person time to have a purpose. 

“When a third of remote workers say they’d start looking for another job if ordered back and a quarter say they’d likely quit, that’s not a niche preference - they represent tens of thousands of Canadians who’ve re-organized their lives around flexible work,” says Turner. “What’s striking is how stable this preference has remained, even as the economy has cooled, and that gap between what workers want and what many employers are mandating might be what’s keeping turnover risk high.” 

“Employers who treat this as a design challenge rather than a compliance issue - who make office time add real value and who use that physical office space smartly - will attract and keep the strongest talent.”