Microsoft has tightened its return-to-office rules, pointing to internal workforce data as the basis for its decision. The company is rolling out a tougher return-to-office mandate, with executives telling employees at a Thursday town hall that internal data shows workers spending more time on site are “thriving.”
At the town hall, CEO Satya Nadella noted that an “unintended consequence” of remote work during the pandemic was the weakening of social ties, which he described as “necessary for innovation,” according to remarks reviewed by Business Insider.
“Weak ties, you know, become weaker, stronger ties become stronger, and new ties are tough to form, right? That’s it,” Nadella said to employees on Thursday. “If you think of it as a simple network problem, that was the conclusion.”
At the town hall, Microsoft’s HR chief Amy Coleman, who first unveiled the policy on Tuesday, emphasized that the move is backed by the company’s internal data.
Coleman explained that Microsoft’s data over the past few years shows employees who spend at least three days a week in the office report a higher “thriving score,” meaning they feel energized, empowered, and find greater purpose in their work. While she did not detail how the company measures who is “thriving,” she noted that Microsoft regularly surveys employee sentiment.
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Coleman pointed out that Microsoft staff in the Seattle area are already averaging 2.4 days in the office each week. “So, for some, this is not a big change,” she said.
Nadella noted that flexibility will remain in place depending on team requirements, though some divisions such as Microsoft AI already operate under stricter rules, according to a report from Business Insider earlier this week.
“It doesn’t mean that we don’t recognize the power of flexible work,” Nadella said, adding that different teams will be able to set different terms for in-office work. “There’s tons of empowerment here for people to go organize this in such a way that it works for the folks.”
Following recent layoffs and the push to bring staff back to the office part-time, Microsoft CEO Nadella acknowledged the company must work harder to rebuild employee trust. During a virtual meeting on Thursday, when an employee raised concerns that Microsoft’s culture feels less empathetic, Nadella responded, “I really value that question and the feelings behind it. I see it as feedback for me and the leadership team. We know we can do better, and we will,” according to audio obtained by CNBC.
During the employee meeting, Nadella pointed to a key reason for the policy shift, noting that when managers stay remote while interns and younger staff come into the office, “those situations can break the social contract.” He added that in-person presence plays a vital role in mentorship and learning.
Nadella’s remarks follow Microsoft’s decision in July to eliminate roughly 9,000 roles after earlier rounds of smaller cuts. This week, the company also informed employees based near its Redmond, Washington, headquarters that beginning in February they will be expected on-site three days a week, with other locations set to adopt the same policy in the months ahead.
Microsoft, like much of the tech sector, shifted to remote work during the pandemic, relying on its Teams platform to stay connected. Unlike peers that pushed for a quicker return, the company held off on strict office mandates until now. In contrast, Amazon earlier this year directed employees to be in the office five days a week.