The Financial Tug-of-War: Why RTO Sparks Tension Between Employers and Employees

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The economy and a currency’s earning power are top priorities for most capitalist Western countries, particularly in America, as evidenced by the most recent election. People feel financially strained, and it’s no surprise—everything comes at a cost, including the choice to return to the office (RTO) or remain remote.

As I discussed in my previous post, RTO is fraught with challenges for both employers and employees. Unfortunately, neither side is addressing these issues openly, especially when it comes to financial impacts. As a result, the fog of mistrust permeates many workplaces. To begin clearing the air, let’s explore the financial burdens on both sides.

The Employer’s Financial Perspective

Real estate, office furniture, equipment, servers, internet infrastructure, and parking spaces are just some of the tangible expenses businesses face. During and after the pandemic, many organizations were locked into long-term leases or owned properties, which required continued payments—including property taxes—even as offices sat empty. Office equipment and furniture, though depreciating assets, still represented sunk costs. In addition, many companies had to expand technological infrastructure to accommodate remote work. These ongoing expenses weighed heavily on balance sheets. 

As a former executive director, I constantly wrestled with these costs. Justifying them became the ultimate priority, even though I personally felt that RTO wasn’t necessary. Employers across industries face similar pressures, many of which are accountable to board members or shareholders. 

The Employee’s Financial Reality

Employees are keenly aware of these financial dynamics, and they’re waiting for employers to acknowledge them—along with their own financial challenges. Shannon Hayes, in her book Redefining Rich, explains:  

Employment income is the most expensive income to bring home. Tax laws are set up to make employment income expensive.”  

Employees, even if they haven’t read Hayes, understand this reality intuitively. On top of taxes, they face commuting costs (gas, public transit, parking, and vehicle maintenance), food expenses (breakfasts, lunches, snacks, and coffee), and increased childcare costs. For those earning south of six figures, the financial hit of RTO can feel overwhelming, especially compared with remote work’s lesser costs.  

Unfortunately, the public witnessed this dynamic play out in real time with Dell Computers’ recent RTO saga. Prior to the implementation of its RTO policy, Dell announced that employees who opted to remain remote would no longer be eligible for promotions. This policy sent a clear message: employees who refuse RTO will lose out on career and financial advancement at Dell—despite their performance, skills, or years of experience. It also sent the equally damaging message that Dell was willing to stagnate its employees professional growth, which would hinder their future career prospects and earning potential. Essentially, Dell asked employees to spend money commuting in the hope of earning more money, all while signaling a lack of trust in remote workers. For organizations or institutions who have taken similar stances, it’s no wonder they face a growing wave of indignant employees.

A Tale of Two Income Types  

If employment income is the most expensive to bring home, what’s the least? Business income. In America, businesses enjoy significant tax advantages through write-offs, tax credits, and lower overall tax rates. Employees are aware of these benefits, and most feel little sympathy for employers citing financial challenges. After all, in the train of trust it’s not employees’ job to care about the company’s bottom line—it’s the employer’s job to care about its employees first.  

What Should Employers Do?

To rebuild trust, organizations must acknowledge the competing financial burdens faced by both parties. Honest discussions demonstrate transparency and open communication, which are crucial for trust-building. Beyond that, here are some actionable steps:  

1. Recognize That Hybrid Isn’t a True Compromise  

Hybrid work may seem like a middle ground to employers, but for employees, it still comes with significant costs—especially considering the financial advantages businesses enjoy.  

2. Offset Employee Expenses 

Employers can help alleviate the financial burden of RTO by offering tangible support:  

Transportation Assistance: Cover parking fees, rideshares, or public transit passes.  

Meal Options: Provide free or subsidized breakfasts, snacks, and coffee, or offer gift cards to local eateries. I had a boss who gave gift cards out of her own pocket to show appreciation—it was small but meaningful.  

3. Offer Childcare Support  

Childcare subsidies can take several forms: in-office childcare facilities, financial assistance, or remote work policies that allow parents to care for children without penalty. These policies should also address gender bias and ensure equal opportunities for promotion, leadership and project/work responsibilities.  

4. Engage in Honest Communication  

Even if solutions aren’t immediately available, transparent conversations about financial realities can go a long way in reducing resentment. Employees want to feel heard, especially in low-trust environments.  

While this isn’t an exhaustive list, these are straightforward and impactful steps organizations can take. When trust is fragile, even small gestures can make a big difference. Start with what’s obvious, and always prioritize honest dialogue.