Analyzing the Impact of Trump’s RTO Mandate: Insights on the Recent Policy Decision

News Analysis

Following through on his campaign promise, the president has opted to overturn his predecessor’s policy allowing government personnel to maintain a hybrid work setup until 2029.

Shortly after assuming office, Trump signed the memorandum instructing agencies to facilitate a full return to in-person work by 5 p.m. on January 24, providing 30 days for compliance with the return-to-office (RTO) directive.

“Leaders of all departments and agencies in the executive branch shall, as soon as possible, take all appropriate measures to eliminate remote work policies and mandate that employees return to their respective duty stations full-time, although department and agency heads may make necessary exceptions,” the memorandum indicated.

The newly formed Department of Government Efficiency (DOGE) is responsible for identifying strategies to reduce government expenditure and improve federal operational efficiency. A part of this effort includes the termination of remote work arrangements in favor of office attendance.

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Billionaire Elon Musk and Ohio gubernatorial hopeful Vivek Ramaswamy, who previously served in DOGE, jointly penned a November article for The Wall Street Journal, labeling remote work a privilege.

Treasury nominee Scott Bessent supported the return-to-office requirement during his January 16 confirmation hearing in front of the Senate Finance Committee, asserting that it also pertains to national security.

“As Treasury Secretary, I plan to be in the office every day I’m in Washington, D.C., and I expect all other employees to do the same,” the seasoned Wall Street executive testified.

Telework and Remote Work

Trump’s memo has created some ambiguity as it didn’t distinguish between remote work and telework.

Remote work allows employees to operate from home without the necessity to visit a central office location, while telework requires employees to go to a traditional federal facility at least twice within a biweekly pay period.

Charles Ezell, the acting director of the Office of Personnel Management, urged agencies to modify their telework policies to align with the mandates for employees to “work full time at their respective duty stations.”

Hiring, Retention, and Attrition

Trump’s memorandum has met with some resistance.

Max Stier, the president and CEO of the Partnership for Public Service, argues that restricting remote work could worsen challenges in attracting and retaining talent in today’s labor market.

During the early days of the COVID-19 pandemic, various companies and government offices adopted work-from-home policies, with many retaining such measures beyond the health crisis, while others have gradually called employees back to the office.

Numerous workers have grown accustomed to the remote structure, and now it is a benefit increasingly demanded by employees.

The report highlighted that younger workers, below 50 years, are more inclined than their older colleagues to hold this perspective.

Elizabeth Lotardo, an instructor at LinkedIn Learning and author of “Leading Yourself,” believes this policy may lead to significant voluntary resignations.

“The RTO mandate will likely generate a surge of voluntary departures,” Lotardo explained to The Epoch Times.

She suggests that officials may prefer this outcome because those who resign, as opposed to being terminated, are not eligible for unemployment benefits. Lotardo pointed out that agency managers may not need to determine how to handle layoffs, thereby minimizing the government’s legal risks.

Moreover, it can enhance perception.

“Donald Trump wouldn’t want the public to know he fired a large number of employees,” she noted. “They wish to achieve a subtle reduction in headcount. They anticipate that this influx of voluntary resignations will certainly occur.”

Examining Government Findings

Ultimately, Stier states that flexibility is an essential aspect of human resources.

“Flexible work policies are paramount in retaining employees in both public and private sectors,” he asserts. “Federal agencies recognize telework as an effective recruitment tool.”

In August 2024, the Office of Management and Budget (OMB) addressed the logistical challenges of organizing for a larger number of employees to return to office routines.

The detailed report noted the hosting of a bi-weekly working group comprising senior agency leaders throughout 2023, with discussions covering various topics like re-opening cafeterias, managing re-enrollment in public transit commuter benefits, and updating work environments.

Debating the Number of Remote Workers

Politicians and government officials have been analyzing figures in anticipation of Trump’s executive order.

Everett Kelly, president of the American Federation of Government Employees, asserts that lawmakers and Trump’s administration have inflated the count of federal workers engaged in remote work.

The senator’s research indicated that only 3 percent of the federal workforce engaged in daily telework before the pandemic. According to Ernst’s findings, 6 percent of federal workers now report being present full-time, while nearly one-third are working remotely.

“The majority of federal employees are eligible to telework, and 90 percent of them do so. Some only report to the office once a week,” the report observed.

Ernst also discovered that between 23 and 68 percent of teleworking employees in specific agencies may be incorrectly benefitting from inflated locality pay.

Locality pay refers to additional compensation tied to the cost of living in an employee’s work area. For instance, a position in Washington D.C. would earn significantly more than the same role in Kentucky.

“Some employees reside over 2,000 miles from their workplace, and a ‘temporary’ teleworker has received higher locality pay for nearly a decade,” the report noted.

Nod of Approval

Despite the discomfort among employees regarding the shift to completely remote work settings, a majority of companies are planning to send their teams back to the office this year. A Resume Builder survey indicated that 90 percent of companies aim to return by 2025.

The responses vary, yet surveys demonstrate similar patterns. Numerous businesses across sectors prefer having their staff in physical office spaces.

In recent months, Amazon, AT&T, and Dell have mandated in-office attendance five days per week. In contrast, companies like IBM and Salesforce have adopted RTO protocols that include three or four days of in-office work.

Organizations struggling with these mandates may perceive an unofficial approval to return to the office, according to Lotardo.

“I suspect that some organizations will follow the executive order’s lead and see this RTO directive as an efficient, cost-effective, and legal method to stimulate voluntary turnover,” she stated.

It may also provide organizations with an opportunity to scout for talent.

“This could be an excellent moment for us to attract talent, offering flexibility and additional resources for remote working, enabling us to find skilled individuals who are looking for such opportunities in the job market,” Lotardo explained.