4 min read
What Return to Office Mandates Really Mean for Small Business Owners
Eric Joern
· November 18, 2025
The main reasons companies enforce return to office mandates are underused office space and long-term lease commitments, not proven drops in productivity. There is no clear evidence that performance improves simply because employees return. For small business owners, the real focus should be on what your numbers show and whether the current setup is improving performance or holding it back.
We've all seen the headlines. Another major company announces that everyone needs to be back at their desk. No exceptions. And if you're running a business, it's natural to pause and wonder if you should be thinking about the same thing.
Here's the part that rarely gets talked about. These decisions are usually driven by financial reality, not culture or collaboration. Big companies are sitting on expensive real estate and trying to make those investments make sense again. That does not mean you should follow their lead.
When you look at the small business world, the real question is not “Should we bring people back?” The real question is “What does the data tell us about our own team, our space, and our performance?” Once you shift the conversation from trends to numbers, the decision becomes much clearer.
Table of Contents
What Is Really Driving Return to Office Mandates
Let's start with the obvious. Many large companies own or lease a lot of office space. Those costs do not go away when the building is half empty.
So when you see a corporation pushing a return to office mandate, it's not always about culture or teamwork. Often, it comes down to real estate. Big companies have made big investments, and they want to see those spaces used.
This isn't a criticism. It's a reminder. Your business probably looks nothing like theirs. You do not have the same square footage, lease terms, or cost structure. Your decision should be based on your numbers, not someone else’s overhead.
Does Returning to the Office Improve Productivity
This is where things get interesting. There is no solid evidence that productivity suddenly improves when people return to a traditional office environment.
Most of the time, performance has more to do with systems, expectations, and accountability than where someone sits during the day.
If your team knows what success looks like and you have real metrics to measure it, location becomes a smaller factor. If your structure depends on physically seeing people work, you might be measuring activity instead of results.
That shift alone can make or break performance.
If you want more clarity around how to track what matters, start here:
How to Read Financial Statements for Your Small Business
The Financial Side of the Office Decision
Before you think about bringing people back, look at the math.
Ask yourself:
- What does my office space cost each month, per person?
- How much of that space is actually used?
- Could those dollars support better training, technology, or retention?
- What does the data tell me about productivity in my current setup?
These questions point you toward a financial decision, not an emotional one.
If your space is used well and the team performs better in person, then returning to the office might make sense. If not, there are other ways to strengthen collaboration without committing to higher overhead.
The numbers will give you a much more honest answer than a headline ever will.
What Small Business Owners Should Focus On Instead
Whether your team is remote, hybrid, or fully in person, the real driver of performance is clarity.
When your systems are documented, your training is consistent, and your metrics are tracked, your team can adapt to almost any structure.
If you want to improve productivity, start with the foundational pieces. Review one process at a time. Make sure expectations are clear. Track the results. Small, consistent improvements often outperform big structural changes.
If you need more ideas on that front, here is a helpful resource:
How to Motivate Employees Without Micromanaging or Going Broke
What It Means for Your Business
Return to office mandates might make sense for companies that are sitting on expensive real estate. That doesn't mean that choice fits your situation.
The question is not where people work. The question is whether your team is productive, your space is used well, and your money is supporting the right priorities.
Don't follow trends. Follow your data.
Questions Small Business Owners Ask (FAQ)
-
Are return-to-office mandates proven to increase productivity?
Not necessarily. There is no solid evidence showing that performance automatically improves when people return to the office. Productivity usually comes from clear systems, defined expectations, and consistent accountability. If those pieces are in place, teams can perform well in a variety of setups.
-
How should small business owners decide whether to bring employees back?
Start with the numbers. Look at the cost of your space, how much of it is used, and what your team’s performance looks like today. If your systems and metrics are strong, you will have a clearer picture of whether an in-person environment actually improves results.
-
What financial metrics should I review before making this decision?
Focus on metrics that show how your team is performing. Labor cost as a percentage of revenue, billed hours compared to paid hours, gross profit per employee, and utilization rates can tell you whether your current setup is effective. These numbers will highlight where the real changes need to happen.
-
Is it risky to follow what big companies are doing?
It can be. Large corporations make decisions based on their own challenges and cost structures. Many have expensive real estate that needs to be justified. Your business has different needs and different financial realities. Decisions like this should always be guided by your own data, not someone else’s strategy.
-
Can a hybrid model work for small teams?
Yes, as long as expectations are clear and performance is measured consistently. A hybrid setup can work well when your processes, communication, and training are solid. The structure matters more than the location.
Related Resources
If you want to understand what your numbers are actually telling you about decisions around space, staffing, and strategy, we can help. At Kaizen CPAs, we work with business owners to turn their financials into better-informed decisions every month.
How Payroll Scams Happen (and How to Prevent Them)
If you work with a payroll provider for your small business, payroll typically runs on a set schedule with very little day-to-day involvement from...
Is Bigger Business Actually Better? What Does Smart Growth Look Like?
Many business owner dreams about growth. More customers. More revenue. Maybe even a bigger space or a second location. But at some point, growth...

