Rethinking return-to-office: the positive impact of remote work on well-being, connection, and employee retention

As organizations reassess remote work policies in the post-pandemic era, questions remain about how flexible work arrangements impact employee well-being, connection, and turnover.

Employing a time-lagged design with data from 7,704 employees across three work environments-remote (n = 1,869), hybrid (n = 2,099), and onsite (n = 3,736)-this study examines the psychological and organizational outcomes associated with work location.

Remote employees reported the highest well-being (M = 4.22), followed by hybrid (M = 4.12), and onsite workers (M = 3.89). ANOVA and post-hoc tests confirmed significant differences in well-being by work type, with remote workers reporting better outcomes. Similarly, positive workplace connection was mentioned at the highest rate among remote employees, though results were nonsignificant. Turnover rates examined 1 year post survey data collection were lowest for remote workers (7.8%) and highest for onsite employees (8.8%), though these differences were not statistically significant.

These findings challenge assumptions that remote work undermines connection and retention. Instead, they suggest that remote work can support well-being and that well-being, not proximity, is a key factor in employee retention. Implications for policy, leadership, and theoretical models of work are discussed.