Where employees work is often shaped by an organization’s goals, operating needs and culture. As more employers introduce or reinforce return-to-office (RTO) requirements, many are emphasizing the value of face-to-face collaboration, mentoring and relationship building.
However, requiring employees to work on-site can also create meaningful financial and personal costs. Those costs may influence whether candidates accept a job and whether current employees remain with an organization. Employers should account for these effects when evaluating their workforce strategies.
The Financial Cost of Working On-Site
A recent analysis by resume-building platform Resume.io estimated that employees in the markets studied spend an average of $6,736 per year on office-related expenses. That amount equals approximately 9.3% of a typical local salary.
The analysis combined government data with an August 2026 survey of 1,000 full-time employees who worked in an office at least one day per week. It reviewed common expenses across 36 major metropolitan areas, including transportation, parking, meals and workplace clothing.
Commuting was the largest average expense at $2,751 per year. Food and coffee purchased on office days added another $2,598. For working parents with additional child care expenses, the estimated annual total rose to $16,538. More than half of survey respondents reported that their office-related costs had increased from the prior year.
Although individual expenses vary, the findings demonstrate that workplace attendance can place a significant financial burden on employees.
The Time Commitment of Office Work
The impact of an RTO policy extends beyond money. Employees also spend personal time commuting and preparing for office days.
According to the analysis, office workers spent an average of 184 hours per year commuting, equivalent to 23 eight-hour workdays. Getting ready for the office, including dressing and arranging meals, required an additional 137 hours beyond the preparation typically needed for remote work.
Together, commuting and additional preparation amounted to nearly 40 eight-hour days each year. These hours may not be part of the workday, but they are still time employees could otherwise devote to family, personal interests or other responsibilities. As a result, an RTO mandate may change how employees view work-life balance even when their compensation and duties remain the same.
How RTO Requirements May Affect Recruiting and Retention
Workplace policies can shape how candidates compare employment opportunities and how employees assess the overall value of their current jobs.
Consider two employers competing for the same candidate. If both offer similar pay and benefits, but one requires five days in the office while the other offers a hybrid schedule, the candidate may find the hybrid role more attractive. Fewer office days can reduce commuting costs and provide greater scheduling flexibility.
Current employees may make the same comparison when deciding whether to stay or look elsewhere. People with long commutes or substantial child care costs may be especially sensitive to strict on-site requirements.
Turnover can also be expensive for employers. Recruiting, onboarding and training replacements, along with temporary declines in productivity, may outweigh some of the expected benefits of requiring employees to work on-site.
Finding a Workable Balance
Some roles must be performed in person, particularly when employees need to operate equipment or serve customers on-site. For organizations with more flexibility, office attendance can still support mentoring, collaboration and stronger working relationships.
An RTO policy does not necessarily need to be eliminated. Instead, employers can evaluate whether the operational benefits justify the financial and personal costs imposed on employees. Adjustments may help reduce those burdens without compromising business objectives.
Potential options include:
- Hybrid schedules that reduce commuting costs while preserving regular opportunities for in-person interaction.
- Flexible start and end times that help employees avoid peak traffic or coordinate child care.
- Employer-provided meals that reduce the cost of food during office days.
- Eligible pretax transportation benefits that may offset some commuting expenses.
Each option carries different costs and potential tax considerations, so employers should assess it carefully before implementation.
Employee feedback can also inform the decision. Surveys and in-person discussions may reveal how a current or proposed policy could affect recruiting, turnover and compensation expectations.
Consider the Full Cost of an RTO Policy
Every workplace policy should support operational performance and a stable, productive workforce. That requires looking beyond the direct costs to the organization and recognizing the less visible financial and personal consequences for employees.
Before introducing or expanding an RTO requirement, evaluate its business benefits, employee impact and possible alternatives. A balanced approach may help an organization preserve the advantages of in-person work while remaining competitive in hiring and retention.
Frequently Asked Questions
What is a return-to-office policy?
A return-to-office policy establishes when and how often employees are expected to work at an employer’s physical workplace. Depending on the organization and the role, the policy may require full-time on-site work or use a hybrid schedule that combines office and remote days.
How can an RTO policy affect employee retention?
An RTO policy may affect retention by increasing employees’ commuting, meal, clothing and child care costs. It can also require additional personal time for travel and preparation. Employees may compare those burdens with more flexible opportunities when deciding whether to remain with an organization.
How can return-to-office requirements influence recruiting?
Candidates may consider work location and schedule flexibility alongside salary and benefits. When two roles offer comparable compensation, a hybrid position may appear more attractive because it can reduce commuting expenses and give employees greater control over their schedules.
What can employers do to reduce the burden of an RTO policy?
Employers can consider hybrid schedules, flexible start and end times, employer-provided meals, and eligible pretax transportation benefits. They can also gather employee feedback before changing a policy. Each option should be reviewed in light of operational needs, cost, and potential tax implications.
©2026