Hello 5-day-week in the office, bye bye diversity
Amazon’s Return to Office Mandate: Bye Bye Diversity
In a recent email to employees, Amazon CEO Andy Jassy outlined the company’s decision to return to pre-pandemic office work arrangements, requiring most employees to be in the office five days a week starting in January 2025. Jassy emphasised the benefits of in-person work for business, innovation, and culture, which are undeniably important for any fast-paced, customer-driven company like Amazon. I for one wholly agree that face-to-face collaboration enhances creativity and speeds up decision-making … anyone that knows me well, knows I prefer in person interactions and am a 5-days-a-week in the office kind of gal, but I also value and have a genuine family need for flexibility! For me the mandate raises serious concerns about the impact it will have on diversity, equity, and inclusion, particularly for women and minority groups.
The reality is that the modern workforce faces unique challenges that weren't as pronounced in the pre-pandemic world. Childcare costs have skyrocketed, rental costs are at an all-time high, and commuting expenses are also rising with inflationary pressures. For many employees, the flexibility of remote or hybrid work has been a lifeline. It has enabled them to balance their professional and personal responsibilities, especially for women, people of colour, and those from lower-income backgrounds who disproportionately face barriers to full-time office work.
Childcare costs in particular have seen significant increases globally, particularly in the U.S. and the UK. According to recent reports, childcare costs have increased by around 3% annually over the past decade (this is disproportionally higher in London incidentally). For many working parents, particularly mothers, these expenses represent a large portion of their income. The flexibility to work from home has allowed parents to juggle these costs more effectively. Without it, parents may be forced to spend more on external childcare services or face the impossible choice of reducing work hours or leaving the workforce altogether. In fact, during the height of the COVID-19 pandemic, when schools and nurseries were closed, women were nearly twice as likely as men to leave their jobs to care for children. This demonstrates the clear relationship between flexibility and the ability to retain women in the workforce.
Rental and living costs have similarly reached unprecedented levels. In London, the average monthly rent inflation was as high as 9.6% in September from last year. The U.S. is also experiencing soaring rent costs, with major metropolitan areas seeing double-digit rent hikes year over year. For employees who need to live near company offices, typically in urban cities, this represents an additional financial burden. Commuting expenses, often taken for granted, are also on the rise. Between rising fuel prices and increased public transportation costs, these add up to a significant amount of monthly expenditure.
The email from Jassy subtly acknowledges the financial difficulties facing employees, but it ultimately calls for full-time office work, thereby disregarding the flexibility many workers need to navigate the increasing cost of living. While Amazon has been working to improve its cost structures and operating margins, as mentioned in the email, this shift back to office mandates may be perceived as a way to indirectly reduce headcount, particularly among employees who may not be able to afford the logistical burdens of a full return to the office, a stealth resizing (or correcting post COVID bloating) .
This return-to-office mandate also intersects with broader concerns around health and wellness, both physical and mental. The pressure on healthcare systems like the NHS is becoming unsustainable, with long wait times and overwhelmed resources making it increasingly difficult for people, especially women, to receive timely care. For many employees, particularly those with chronic health conditions, the flexibility of working from home has been a crucial way to manage their health while remaining productive. Jassy’s email suggests little room for those who need remote work as a health accommodation, which could lead to increased absenteeism or burnout. Elon Musk is having to lure Tesla workers in Germany with €1000 simply to attend the office due to increased sick days.
Mental health is also at risk. According to studies, many employees report better work-life balance and less stress when working remotely. Flexibility reduces commuting stress, provides time for self-care, and allows employees to integrate their personal and professional lives more harmoniously. The sudden removal of this flexibility could exacerbate mental health issues, making the workplace more challenging for employees to navigate.
Women and ethnic minorities are almost always disproportionately impacted by inflexible work policies. The return-to-office mandate could reverse years of progress in diversity, equity, and inclusion. Women, particularly those with caregiving responsibilities, may find the rigid return-to-office policy untenable. In fact, a survey by McKinsey & Company found that 23% of women in corporate America were considering leaving the workforce due to the lack of flexibility in managing home and work responsibilities.
For minority communities, the issue is similarly complex. Many individuals from underrepresented ethnic groups have historically faced more hurdles in career advancement and economic mobility. The flexibility of remote work has provided them with opportunities to thrive in environments where they don’t have to contend with microaggressions or discriminatory practices that can occur in the physical office. The lack of a nuanced approach to remote work may disproportionately impact these groups, widening the already persistent gaps in representation and opportunity.
Moreover, there’s the issue of eldercare. With an aging population and the exorbitant cost of social care, more middle-aged workers are finding themselves responsible for both their children and aging parents. This “sandwich generation” will find themselves squeezed from all sides if they lose the flexibility that remote work provides. These family responsibilities fall heavily on women, adding further strain to their ability to maintain their careers.
Flexibility doesn’t need to be at odds with innovation, collaboration, or culture. While there are undeniable benefits to being in the office, a more flexible hybrid model could serve as a middle ground. For a company as large and influential as Amazon, surely it’s possible to maintain the spirit of innovation while offering employees the flexibility they need to thrive both personally and professionally. If diversity and inclusion are truly a priority for the company, as Amazon has long claimed, then a rigid five-day office week seems counterproductive.
The world of work has changed, and employees need, now more than ever, a level of flexibility that allows them to balance their professional roles with personal responsibilities. A one-size-fits-all return-to-office mandate risks alienating large portions of the workforce, potentially undoing hard-won gains in diversity and inclusion (which by the way is proven to have a positive impact of profitability). Amazon, and other companies facing similar decisions, must consider whether the benefits of in-person work truly outweigh the costs to their people.