The pandemic and its aftermath have significantly changed the way businesses are done. One of the most hotly debated changes is the shift from traditional office environments to remote work. A few months ago, Walmart joined the discussion with a relocation mandate that sparked strong reactions. As Bloomberg reports, Walmart’s policy is nearing its deadline, sparking concerns among employees about childcare, spouses’ work situations, and the need to reinvent their lives.

Walmart isn’t the only one enforcing stricter return-to-office (RTO) policies; companies like Dell, Amazon, Salesforce, AT&T Inc., and Bank of America are also following suit. To address some of these concerns, Walmart is investing in a new 350-acre campus set to open next year that includes miles of walking and biking trails, a fitness center, a hotel, and a daycare center. These amenities are designed to enrich the community aspect of office work. More importantly, by adopting an RTO policy similar to Walmart’s, CEOs and other decision makers are making a strategic bet on the company and its workforce, and they stand to benefit for these three reasons.

1. Collaboration and innovation

At the heart of the RTO mandate, as well as similar policies from other companies, is the belief that in-person collaboration leads to greater innovation and improves overall team dynamics. While remote work offers the freedom to work from anywhere, notable evidence suggests that office environments offer physical proximity and therefore encourage the creation of breakthrough ideas. A comprehensive study by the Universities of Pittsburgh and Oxford analyzed 20 million research articles and 4 million patent applications from the past 50 years. The results showed that in-person teams were more likely to produce “breakthrough insights” and “innovative patents” than remote collaboration. Physical distance between team members can reduce the likelihood of disruptive workflows.

Innovation and the ability to reinvent oneself are critical to a company’s long-term success. What made a company successful yesterday may not be the right strategy today or in the future. In-person meetings often encourage spontaneous “magic moments” that lead to creative breakthroughs that are less likely in a remote environment. Being part of innovative teams benefits the company and employees, who receive recognition and leadership opportunities to advance their careers. Companies that continually innovate are more likely to remain competitive, leading to growth and increased job security for employees.

2.Culture, cohesion and community

The discussion around employee wellbeing has gained traction recently, with mental health taking center stage. One area of ​​concern is the increase in loneliness and isolation among employees despite our hyper-connected world. Remote work doesn’t automatically lead to a weaker, less connected culture, but it does bring with it some additional difficulties. An office environment can provide employees with more opportunities to socialize, gauge the energy and attitude of their colleagues, and build a stronger sense of culture. Building a more connected culture is especially important for millennials and Gen Z workers, who often seek a deeper sense of meaning and connection to their work.

3. Mentoring and career development

Mentoring and career development are critical for companies looking to attract and retain top talent, especially for millennials and Gen Z, who make up an increasing share of the workforce. In-person interactions with experienced professionals are more effective and easier to facilitate in an office setting. While remote work is convenient, it often lacks the depth of interaction needed for effective mentoring.

The proximity bias is real, and managers are more likely to favor employees they see regularly. Being in the office benefits those seeking a promotion, new assignments, or skill development. Networking opportunities and relationship building come more naturally in person. According to a Wall Street Journal article, employees who worked from home were 31% less likely to be promoted than those in the office and received less mentoring. Time in the office is especially important for employees from marginalized groups or those who don’t meet standard expectations on paper. In-person interactions allow these employees to showcase their skills and advocate for themselves, ensuring they aren’t overlooked.

Being asked to relocate used to be seen as a positive sign that you were on the fast track to success. But that has changed as more employees become accustomed to remote work. As CEOs look to get more employees back to the office, it’s imperative not to resort to outright force or threats. Instead, effective communication and providing meaningful reasons for returning are key to gaining employee buy-in.