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In the wake of the pandemic, many corporations swiftly mandated employees to return to the office, aiming to restore a sense of normalcy and productivity. However, this approach has led to ongoing headlines about return-to-office policies and significant pushback from employees. According to Joe Brady, commercial real estate expert and Former Walgreens Head of Real Estate, it’s time for leaders to rethink these mandates and instead focus on the behavioral science behind consumer behavior.
In his new book, Work Shop: The Consumer-Driven Transformation of Commercial Real Estate, Brady highlights the importance of choice architecture, also known as the “nudge,” in improving decision-making within corporate settings. “Choice architecture is a construct that is largely lacking in the corporate setting. But choice architecture has been proven to drive desired behavior and outcomes. Not by mandating and diminishing personal freedoms, but by creating alignment and incentives for desired behaviors,” says Brady.
Understanding the Limitations of Mandates
Mandates can often lead to a psychological phenomenon called reactance, where individuals exhibit a motivational reaction against rules or threats to their freedom. “Mandates drive a behavioral reaction called reactance, which refers to the motivational reaction to rules, regulations or threats to freedom that cause a person to resist that imposition. Reactance leads to resistance and can propel people to do the opposite of what is expected,” explains Brady. This resistance can undermine the very goals that the mandates are designed to achieve.
Recent reports and studies have shown that strict return-to-office mandates may not be yielding the desired results. For instance, a survey by PwC revealed that while 68 percent of executives believe employees should be in the office at least three days a week, only 28 percent of employees agree. This disconnect highlights the growing tension and dissatisfaction among the workforce, leading to decreased morale and potential retention issues.
The Power of the Nudge
Behavioral economics suggests that nudges can facilitate optimal behaviors more effectively than blunt mandates. Nudges steer people toward good decision-making without depriving them of their freedom of choice. Brady emphasizes that successful nudges create an environment where desired behaviors are encouraged naturally.
Implementing Effective Nudges in the Workplace
- Design Nudges: The traditional office cubicle farm is becoming obsolete. Instead, employers should rethink office design to enable gathering and collaboration. Open spaces, comfortable meeting areas, and flexible workstations can make the office a place where employees want to be. A report by Gensler’s U.S. Workplace Survey found that employees in more innovative office spaces reported higher levels of productivity and satisfaction.
- Learning Nudges: Facilitating upskilling, reskilling, and continuous learning is crucial for employee growth and satisfaction. Employers can create environments that encourage ongoing education and personal development. According to a LinkedIn Learning Report, 94 percent of employees would stay at a company longer if it invested in their career development.
- Mentorship Nudges: Formalizing mentorship programs can provide stability and guidance in today’s uncertain work environment. Aligning mentors with mentees can help employees navigate challenges and develop their careers more effectively. Research from the Association for Talent Development (ATD) shows that formal mentorship programs can lead to higher job satisfaction and career success.
Why Traditional Strategies Are Falling Short
Traditional return-to-work strategies, such as rigid schedules and blanket policies, often fail to address the diverse needs and preferences of the modern workforce. A McKinsey report highlights that employees now prioritize flexibility, with 52 percent preferring a more flexible work model. Moreover, Gallup’s research indicates that 54 percent of employees would consider leaving their jobs if flexible work arrangements were not offered.
A Path Forward
The post-pandemic corporate world requires a shift from rigid mandates to more flexible, science-backed approaches. By understanding the limitations of mandates and leveraging the power of nudges, organizations can create environments that not only meet business objectives but also align with the evolving needs and desires of their employees. This approach will not only improve employee satisfaction but also enhance overall productivity and organizational success.
