Federal policy pushes public sector workers back to their desks, commercial landlords cheer each new badge swipe and investors ask private companies to make the space pay. For small and midsize businesses (SMBs), designers and marketers, the decision is more than a real-estate play — it shapes recruiting reach, brand reputation and daily cash flow. The following 10 considerations show where a strict mandate can strengthen results — and where it may undercut them.

1. Assessing Employee Preferences and Well-Being

Remote work is no longer a pandemic perk — it’s a baseline expectation. About 12.7% of U.S. employees work fully remote, 28.2% follow a hybrid rhythm and 21% would switch jobs to keep that flexibility.

Mandates risk draining goodwill that took years to build. Research led by University of Pittsburgh professor Mark Ma tracked millions of Glassdoor reviews at S&P 500 firms and found job satisfaction scores fell sharply after return-to-office (RTO) orders, with no uptick in company performance. Weigh morale as carefully as margin.

2. Evaluating Productivity — Remote vs. In-Office

Years of large-scale experiments reveal a mixed environment. High-security engineering, rapid prototyping and real-time creative sprints often move faster and are more productive when teams share the same physical space. Deep-focus roles — copywriting, coding or financial modeling — show little difference once clear output metrics exist.

Run a short audit — compare task completion times, quality checks and client feedback for each role. If numbers stay flat regardless of location, a blanket mandate may add commute time without creating value.

3. Company Culture and Collaboration

Face-to-face moments still bond teams — sketching on a whiteboard, trading ideas over lunch or fixing a bug side by side. Yet full colocation is no longer the cultural gold standard. Rituals like virtual coffee roulette, quarterly off-sites and camera-on standups can protect cohesion while limiting mandatory commute days. The market’s preferred compromise — structured hybrid, adopted by 43% of U.S. firms — anchors collaboration without demanding constant presence.

4. Talent Acquisition and Retention

Only 33% of companies require full-time in-office work in the second quarter of 2025 — up just two points from a year earlier. That means flexibility remains a selling point. Designers, developers and multilingual marketers routinely field national offers — a rigid schedule narrows your recruitment pool and forces higher salaries to compensate. If you compete on creativity or specialized skill, consider whether proximity truly trumps reach.

5. Operational Costs and Office-Space Utilization

Electricity, security, janitorial contracts and snack budgets all scale with occupancy. Before issuing an order, total the per-desk cost of returning every employee, and then model the alternative — such as subleasing excess footage and reinvesting savings in ad spends, product research and development or wage growth. For many SMBs, every square foot that sits empty represents capital that could speed growth elsewhere.

6. Legal, Health and Safety Considerations

A January 2025 executive order directs federal departments to terminate most telework — hinting at tighter compliance demands for government suppliers. Still, employers must meet disability-accommodation rules. RTO mandates can disproportionately impact subgroups of employees such as those with disabilities, creating barriers that trigger Americans with Disabilities Act (ADA) claims.

With roughly 29% of the general population experiencing a disability, it’s highly likely that at least some employees have a disability that requires workplace accommodations. This is even more probably if you employ a large number of people in certain groups that face higher disability rates, such as veterans, which make up around 7% of the population, or older adults, which make up around 17%. For groups such as these, mandated commutes can exacerbate existing health issues or create new challenges related to accessibility, transportation, and workplace ergonomics. Build exemption pathways before conflict arises.

7. Technology and Infrastructure Readiness

Hybrid teams succeed when video rooms, virtual private networks and project management dashboards run without hiccups. An in-office rule shifts demand to secure on-premises bandwidth, upgraded Wi-Fi and more hardware maintenance. Map each workflow to verify that tech can handle various modes without bottlenecks. Skipping this step invites downtime and data-security headaches.

8. Diversity, Equity and Inclusion (DEI) Impact

Remote options widened the talent funnel to caregivers, rural creatives and professionals with mobility limits. Yanking that choice can reverse hard-won diversity gains and lower internal engagement scores. To keep inclusion efforts on track, offer at least partial flexibility, clear accommodation processes and staggered start times. This also helps avoid reputational hits among clients who vet suppliers on environmental, social and governance (ESG) criteria.

9. Change Management and Communication

Even a sound policy backfires if employees hear it second-hand. Explain the business case, set trial milestones and promise to revisit the plan. Equip managers with talking points and one-page guides for handling pushback. Maintain two-way channels — town hall Q&A boards or anonymous surveys — so concerns surface early and fixable issues don’t fester.

10. Environmental Impact

Cornell and Microsoft modeling shows that full-time remote work can shrink an individual’s carbon footprint by 54%, while even two remote days per week cut emissions by 11%-29%. Another study estimates that a 10% rise in remote work would slash U.S. transport emissions by 192 million metric tons annually. For firms publishing sustainability reports, mandating commutes inflates Scope 3 numbers and risks missing net-zero targets.

Making the Decision for SMBs

Pull leadership into a huddle and ask these questions. For each, jot whether the honest answer leans toward “stay flexible” or “bring people back.” The side with the most marks could point to your path today.

• Hiring reach: Are top candidates often outside the commuting range?
• Office commitments: Would unused leased space waste too much money?
• Client and compliance needs: Do regulators or customers require on-site work?
• Collaboration payoff: Does face-to-face time measurably speed creative or technical wins?
• Team sentiment: Do surveys show flexibility keeps morale and retention strong?

Navigating the Future of Work

Mandates are blunt instruments, and leaders who weigh legal risk, worker well-being and hard-cost trade-offs signal agility and respect. That balance keeps talent engaged, customers confident and budgets aligned with growth instead of overhead. Your next policy should serve strategy first and square footage second.