The End of the ‘Work from Anywhere’ Policy: What It Means for Companies and Employees

As pandemic restrictions began to ease, the world’s largest credit union, Nationwide, announced that its 13,000 employees would not be obliged to return to the office. However, two years later, a new CEO has opted to reverse that decision.

Former chief executive Joe Garner introduced the “work from anywhere” policy in 2021, stating that they were empowering employees to choose their work location. However, his successor, Debbie Crosbie, has now rescinded that promise, mandating staff to return to the office at least one day a week and subsequently eliminating the “work from anywhere” policy altogether.

The announcement has provoked considerable discontent and frustration among many employees, particularly those who had adjusted their lifestyles in accordance with the previous policy. Several are now grappling with adapting to a new work arrangement for which they did not sign up. According to Kate Davis, a leadership coach, the decision feels like a deprivation of hard-earned rights and liberties for the employees.

The scenario at Nationwide is not an anomaly. Numerous CEOs find themselves in similar situations as executives from the pandemic era vacate their positions, leaving incoming chiefs to steer the future of work while contending with commitments made during the unprecedented crisis.

Impact of Policy Changes on Employee Morale

Mark Mortensen, an Associate Professor of Organisational Behaviour, underscores that new CEOs inherit the legacy of their predecessors and have the authority to amend policies that are no longer suitable. Nevertheless, making substantial policy adjustments can elicit resistance from employees and potentially contravene the psychological contract between employer and employees.

Karan Sonpar, a professor of Management, underscores the significance of equitable procedures and processes when altering policies to prevent disengagement and sentiments of unfairness among employees.

How to Alleviate Discomfort Among Staff During Adjustments

Sonpar proposes that executives should elucidate the rationale behind policy changes and allow ample time for discussion and deliberation before implementing new regulations. Effective communication from senior leaders is indispensable in ensuring that employees comprehend the basis for the decisions made.

Is It Worth It?

While changing policies may offer potential advantages for the company, such as enhancing the bottom line or positioning the company competitively, there are also potential downsides to consider. Davis advises that CEOs should carefully evaluate the impact on company culture and morale before enacting substantial policy changes.

In conclusion, the decision to reverse the “work from anywhere” policy at Nationwide and other enterprises has substantial repercussions for both employers and employees. Striking a balance between the needs of the business and the well-being and morale of the workforce is crucial in navigating the future of work. Effective communication, equitable procedures, and thoughtful consideration of the impact on employees are essential in managing policy changes and upholding a positive company culture.