Worker’s Reject Dell’s RTO Push. What Comes Next?
Reworked, Lance Haun
Photo: Dell on Unsplash
Dell tied a return to office push to promises of promotions. Workers said “pass.”
Nearly two years ago, Dell CEO and chairman Michael Dell wrote on LinkedIn, “If you are counting on forced hours spent in a traditional office to create collaboration and provide a feeling of belonging within your organization, you’re doing it wrong.”
Michael Dell: You’re doing it wrong. And your employees just called you out on it.
Let’s recap. Early this year, Dell announced an ambitious hybrid return-to-office (RTO) plan. Dell’s version came with a twist. You could still choose to work remotely — but if you did, you’d be out of the running for a promotion.
It was better than losing your job, but on the draconian return to office scale, it was pretty high. It didn’t help that they color-coded employees who did decide to come into the office, adding a sort of post-apocalyptic vibe to the whole approach.
Fast-forward a few months, and the RTO plan is crumbling as workers push back. Dell’s hybrid mandate is facing significant resistance, sparking a broader conversation about the future of work. So, what now? What’s Dell’s next move, and what can other companies learn from this?
Dell’s RTO Plan Meets Unyielding Resistance
Dell’s hybrid work policy probably seemed like a grand compromise with a blend of the best of both worlds — face-to-face collaboration for those who wanted it and the flexibility of remote work. The hope was that a softer mandate might lower people’s opposition to coming into the office on a regular basis.
According to a recent Business Insider article, that hasn’t happened. Close to 50% of Dell’s full-time workers in the U.S. have opted to stay remote, according to internal data on Dell’s full-time workforce reviewed by author Polly Thompson.
For some, a return to office on a hybrid basis is impossible. They’ve moved out of the area where the central office is located — or were never near it to begin with. A commute three days a week is a deal-breaker for others. “Why should I waste hours commuting when I can be just as productive at home?” one employee lamented.
Dell was actually onto something here, though. Recent research in Nature suggests that a three-in-the-office, two-at-home hybrid schedule actually improves retention and satisfaction without damaging performance.
So where did Dell go wrong?
For one, employees really value the ability to manage their own schedules, balancing work with personal commitments in ways that are impossible with a daily commute. One Dell employee shared, “I can take my kids to school, focus on my tasks, and still have dinner with my family. The hybrid model disrupts this balance.”
After getting a taste of the autonomy and flexibility of remote work, many find it hard to justify returning to a rigid schedule.
A bigger issue may be the carrot that Dell hoped would entice people back into the office — the ability to get a promotion — isn’t as lucrative as it anticipated. As reported by Business Insider, more experienced talent had already topped out in the organization and less experienced talent found opportunities lacking even before the mandate.
Forget compliance concerns. The fact that the promotions you offer aren’t worth a return-to-office should be a major wake-up call for any leader.
What Comes Next for Dell?
Dell’s leadership is in a tough spot. They’ve invested heavily in their office infrastructure and, in spite of Michael Dell’s quote, believe in-person collaboration is a critical driver of innovation. It’s not a particularly novel idea. They say that spontaneous interactions and face-to-face meetings foster creativity and problem-solving in ways virtual meetings can’t.
But they’re facing a potential talent exodus if they can’t find a middle ground. People will unstick themselves if they want to move up, whether inside or outside of your organization. That’s been the case for decades, regardless of mandate.
The good news, if there is any, is that Dell has time to figure this out. The whole tech industry is still fighting the hangover from massive layoffs in the last 18 months. If there’s a time to experiment with a different way to convince people to come back to the office, this is it. But that time is fleeting.
So, what’s the way forward? Dell could start by listening to the employees who are passing on promotions to understand their concerns. Maybe a truly hybrid model, where office presence isn’t strictly mandated, could work. Leadership also needs to get creative about fostering a sense of community and collaboration without forcing people into the office. Embracing technology is critical, something that Dell should not only be able to execute on but Michael Dell specifically called out in his now painfully out-of-date post.
Investing in and educating teams on advanced collaboration tools can help replicate the spontaneous interactions of an office environment. Virtual brainstorming sessions, enhanced communication platforms and immersive meeting technologies can keep the creative juices flowing, when used well.
And when that isn’t enough, organizing regular team-building events and workshops can help maintain the social aspects of work without enforcing a daily office routine. These events can be strategically planned to ensure maximum participation and engagement, giving people a reason to invest their time.
Back to the Drawing Board
Dell’s struggles to mandate RTO should be a wake-up call for everyone. Whether you use a carrot or stick approach, mandates tend to lead to some surprising results.
Like others, Dell’s plan has an inevitable ending. A high-performing person who wants to work remotely will find opportunities to grow and contribute. Artificially limiting talent is a choice in this type of competitive environment and Dell’s leaders need to decide if those people leaving are worth the potential gains of in-person collaboration.
If I were Dell, I’d be just as concerned about the lack of interest in trading off remote for promotion opportunities. It could be that their formula is wrong, the opportunities aren’t great, or employees are just crossing their fingers that their calling Dell’s bluff is actually just that. It might just be all of the above.
About the Author
Lance Haun is a leadership and technology columnist for Reworked. He has spent nearly 20 years researching and writing about HR, work and technology.
https://www.reworked.co/digital-workplace/workers-reject-dells-rto-push-what-comes-next