In a statement to Ars, Dell’s PR team said:
“We continually evolve our business so we’re set up to deliver the best innovation, value, and service to our customers and partners. That includes more in-person connections to drive market leadership.”
The Road to Full RTO
After Dell allowed employees to work from home two days per week, Dell’s sales team in March became the first department to order employees back into offices full-time. At the time, Dell said it had data showing that salespeople are more productive on site. Dell corporate strategy SVP Vivek Mohindra said last month that sales’ RTO brought “huge benefits” in “learning from each other, training, and mentorship.”
Manufacturing Teams and Engineers
The company’s “manufacturing teams, engineers in the labs, onsite team members, and leaders” had also previously been called into offices full-time, Business Insider reported today.
Risking Personnel
Like other organizations, Dell risks losing employees by implementing a divisive mandate. For Dell specifically, internal tracking data reportedly found that nearly half of workers already opted for remote work over being eligible for promotions or new roles, according to a September Business Insider report.
Research on RTO
Research has suggested that companies that issue RTO mandates subsequently lose some of their best talent. A November research paper (PDF) from the University of Pittsburgh, Baylor University, The Chinese University of Hong Kong, and Cheung Kong Graduate School of Business researchers that cited LinkedIn data found this particularly true for “high-tech” and financial firms. The researchers concluded that average turnover rates increased by 14 percent on average after companies issued RTO policies. This research, in addition to other studies, has also found that companies with in-office work mandates are at risk of losing senior-level employees especially.
Analyst Opinions
Some analysts don’t believe Dell is in danger of a mass exodus, though. Bob O’Donnell, president and chief analyst at Technalysis Research, told Business Insider in December, “It’s not like I think Dell’s going to lose a whole bunch of people to HP or Lenovo.”
Patrick Moorhead, CEO and chief analyst at Moor Insights & Strategy, said he believes RTO would be particularly beneficial to Dell’s product development.
Employee Concerns
Still, some workers have accused Dell of using RTO policies to try to reduce headcount. There’s no proof of this, but broader research, including commentary from various company executives outside of Dell, has shown that some companies have used RTO policies to try to get people to quit.
Conclusion
Dell’s decision to implement a full RTO policy may have both benefits and drawbacks. While some analysts believe it will drive innovation and productivity, others worry about the potential loss of talent. As the company continues to evolve its business, it will be important to monitor the impact of this policy on employee morale and retention.
FAQs
Q: Why is Dell implementing a full RTO policy?
A: According to Dell’s PR team, the company is implementing a full RTO policy to drive market leadership and deliver the best innovation, value, and service to its customers and partners.
Q: What are the potential benefits of RTO for Dell?
A: Some analysts believe that RTO will drive innovation and productivity, particularly for Dell’s product development team.
Q: What are the potential drawbacks of RTO for Dell?
A: Research has suggested that companies that issue RTO mandates subsequently lose some of their best talent, and some workers have accused Dell of using RTO policies to try to reduce headcount.
Q: Will Dell’s RTO policy affect employee morale and retention?
A: It is unclear how Dell’s RTO policy will affect employee morale and retention, but it will be important to monitor the impact of this policy on employee morale and retention as the company continues to evolve its business.
