Return-to-Office Mandates Are Costing You Talent — Leadership is the Real Issue

Return to work mandates are costing you talent – but the real issue is leadership.

According to AHRI’s 2025 Hybrid Working Report, 31% of employers who tightened their office mandates saw a drop in recruitment and retention.

It’s easy to point the finger at hybrid working when performance dips. But the data shows hybrid isn’t the problem — leadership capability is. Underperformance doesn’t disappear because someone’s at their desk, it hides behind presenteeism.

Hybrid success relies on leaders who can:

✅ Coach, not control

✅ Hold meaningful 1:1s

✅ Set clear expectations and values

✅ Deliver feedback that builds trust, not fear

Flexibility is no longer a ‘nice to have’ — it’s expected.

Especially by women, carers, and the talent pools businesses say they want to attract. 

For commercial businesses, culture and flexibility are strategic levers – but manager development is the accelerator, and investment in your managers will pay dividends.

(Source: AHRI, Hybrid and Flexible Working Practices in Australian Workplaces 2025)