Fentress Blog

Is the Federal RTO Mandate a Threat, Opportunity, or Both?

Written by Kurt Schlauch | Jan 31, 2025

“Chaos. Shock. Retirement.” These are just a few of the terms and reactions appearing in headlines and social media posts in the wake of the Trump Administration’s Executive Order requiring federal employees to “return to work in-person at their respective duty stations on a full-time basis.”  

While the original Executive Order lacked detail, a subsequent joint memorandum from the Office of Personnel Management and Office of Management and Budget filled in some specifics and defined a timeline that implies rapid implementation.  

Many federal workers feel blindsided by the abrupt change of plans.  Since the pandemic, numerous federal agencies adopted telework policies that offered employees a range of hybrid and remote work arrangements.  However, factors such as building occupancy rates and the economic impact on downtown small businesses have driven return-to-office (RTO) initiatives in both the public and private sectors.  

Although federal workers may feel singled out, they are actually in a similar position to employees of major corporations such as Amazon, Dell, and X, whose employees recently absorbed full-time RTO policies.  

Opinions about the efficacy and practicality of RTO vary widely, but like most major social changes with wide-ranging effects, there are likely to be both threats and opportunities.  At this very early stage of the federal RTO drama, here are a few driving factors in each category.

Threats: Practical and Personal

The potential downside of a full federal RTO includes the following points and concerns:

Not Enough Space 

The federal RTO mandate somewhat ironically follows closely on the heels of a period when high federal office vacancy rates have sparked efforts by the U.S. General Services Administration (GSA) to shrink the federal real estate footprint.  Properties accounting for about six million square feet are currently moving through GSA’s sale and disposal process.  

As a result, one of the most immediate roadblocks to a broad federal RTO initiative may be the lack of space to house all employees.  Agencies that cannot physically house all of their employees in a particular location may need to consider phased implementation and/or explore options to acquire additional space.

Too Much Traffic

It may not be a dire concern everywhere, but certainly in Washington, D.C., the prospect of all federal workers returning to their offices en masse conjures up images of two hour (or more) commutes, intractable gridlock, and overflowing Metro trains.  

While the impact can’t be known with precision today, it seems reasonable to expect commuting times to increase, perhaps significantly, and personal commuting expenses to rise as well.  

It has been well over five years since federal workers experienced the equivalent of a “full RTO” day.  In Seattle, “the transportation system groaned” during the Amazon RTO.  The same scenario could materialize in Washington, D.C. and other major cities under the weight of the federal RTO.

Reduced Work/Life Balance

Remember all the optimistic accounts of the improved work/life balance available to workers thanks to post-pandemic hybrid and remote work arrangements?  For much of the past five years, organizations have been acquiring technology, changing policies and processes, and reimagining how and where employees spend their time.  

The opportunity to better balance career and personal life appealed broadly to members of the workforce regardless of age or family dynamics.  For federal workers and others experiencing full-time RTO, any benefits gained in the transition period appear at risk of being lost.  

In addition, beyond the immediate RTO adjustment, there is another layer of forward-thinking concerns such as employee retention, unionization, and organizational impact that workers and decision-makers alike will need to navigate.

Opportunities: Performance and Planning

But the outlook isn’t all negative.  Despite the above concerns, there are some potential benefits and reasons for optimism, including:

Better Organizational Performance

Employees’ reactions seem largely negative but senior leadership generally favors RTO across a variety of industries.  While some employees may be more individually productive at home, senior leaders cite greater face-to-face creativity and point out that “the office environment offers unique advantages for team dynamics and long-term business growth.”  

Put another way, corporate leaders responsible for delivering tangible results in the form of sales and profitability want their workers to interact in person and are generally favorable to RTO policies.  From this standpoint, the federal government is joining some of the titans of industry in taking a more “hands-on” approach to workforce development by implementing RTO.

Enhanced Collaboration 

Especially for project teams and creative occupations, the benefits of in-person collaboration from RTO appear significant.  The ability to conduct flexible interactions, work in proximity to high performers, and develop synergy and a corporate culture are among the key benefits of collaboration.  

During the height of the pandemic, many workers experienced Zoom fatigue as a result of videoconferencing totally replacing in-person interaction.  Especially for Gen Z/younger people, there’s growing evidence they may be suffering from “an epidemic of loneliness” which contributes to social anxiety when they interact in person.  Against this backdrop, government and corporate leaders’ drive to encourage collaboration is understandable.

A New Era of Urban Planning 

Large-scale RTO policies could substantially affect many aspects of daily life nationwide, especially if they become the norm.  For example, RTO has the potential to alter residential migration patterns into and out of cities, suburbs, and exurbs, not to mention modifying traffic patterns and the use of public transportation.  

RTO could elevate some real estate markets and depress others.  Concepts such as high-speed rail, reimagined urban cores, and “15-minute cities” may receive greater attention or be replaced with other approaches.  Trends we haven’t even envisioned could emerge and govern where people choose to live and where and how they choose to work.

Final Thoughts

As with many big-picture questions in modern American culture, we don’t currently have a broad social consensus on full-time RTO.  Those who think it’s a great idea are as convinced in their viewpoint as those who think it’s a terrible idea.  If a balance is eventually struck, despite current rhetoric, perhaps a consensus in favor of hybrid work will emerge, where many employees can complete their focused work at home and their collaborative work at the office.

As experts in space planning, the uncertainty in such a rapidly evolving landscape underscores the need for my company to remain flexible and to communicate clearly with each client and project team on the goals and objectives of each project.  The same challenge applies for the architects, executives, and administrators with whom we work. 

A one-size-fits-all approach is unlikely to succeed in such uncertain times.  Instead, an experienced space planner possesses a broad knowledge base of best practices and design standards, the ability to identify specific mobility patterns for each client, and a relational approach necessary to understand each client’s needs.  This combination enables us to effectively plan space that best supports each organization’s mission, goals, and objectives.

Please click the image below to learn how work styles influence RTO office layouts.