Should bosses be footing the RTO bill? 

If you’re a business leader, the chances are you’ve had to grapple with the return to office (RTO) question at some point. Whether it’s wasting rent on a vacant office, the perceived lack of productivity, or tightened spending, organisations are increasingly mandating a return to the workplace for their people.  

But some leaders may question whether the risk of alienating their workforce and undermining talent attraction efforts is worth the gamble. And as employees are put under increasing financial strain, brought on by continued inflationary pressures, costly childcare, and mounting student loans, the added burden of having to show up at work may be affecting their wellbeing and productivity. The question arises then: should organisations be covering the cost of office work? 

Is the future RTO? 

Flexible working arrangements remain popular with professionals. According to our 2025 Salary & Recruiting Trends Guide, almost half (46%) say they would not consider accepting a job in the future that didn’t offer hybrid working, and 40% would be prepared to accept a lower salary for a role that was fully remote. Adding to these considerations are the government’s plans to ‘Make Work Pay’ – enshrined by the new Employees Rights Bill – which may hold employers more accountable when it comes to providing flexible working arrangements. 

But despite the risk of losing talent amid on-going skills shortages, and the potential legal implications, it’s clear that employees are being asked to work from the office more frequently. Our salary guide data revealed that 41% are working fully in the office, and executive leaders predict this could just be the beginning. KPMG’s latest survey of 1,325 CEOs – including 150 from the UK – revealed that 83% expect a full return to office over the next three years. 

Furthermore, employees may feel that showing up to work is key to getting ahead in their job. More than half of UK professionals (51%) believe that they need to be seen in person to progress in their career, according to LinkedIn's Workforce Confidence Index survey data, with this sentiment highest among Gen Z (60%). However, only 10% of this cohort want to work in an office full-time, according to The Times' recent research of young adults. 

RTO has its price – but who’s paying the bill? 

From hiked commuting and food costs to budget-draining childcare, the expenses of office life can quickly accumulate. But if office work is becoming the new norm again, should employers be responsible for remedying their staff’s financial burdens? 

Employer responsibilities have arguably heightened over the past few years, with many workers expecting greater financial and wellbeing intervention. And amid on-going cost-of-living concerns, there’s an argument that employers should be helping their staff to offset RTO costs, particularly when it comes to commuting. 

Our UK Employment Trends 2025 Spring Update survey, gathering the insights of over 8,000 respondents, revealed that 96% of professionals believe that an RTO mandate's influence on commuting costs would have an impact on their general finances. Moreover, over half (53%) would feel more motivated to return to the office more frequently if their employer paid for or subsidised travel. 

However, some leaders may respond to this by raising questions around fairness. If office-based workers receive a subsidy for their expenses, where does this leave remote workers? This point is especially pertinent for those who work remotely out of necessity. Rewarding staff that come into the office while penalising those that can’t – whether that be due to caring responsibilities or a protected characteristic – could lead organisations into a legal quagmire. And outside of fairness, offering financial bonuses for office work may push budgets beyond their limit as organisations tighten spending. 

While these are valid concerns, there’s still a strong business case for covering the cost of work, and methods that can be applied fairly across the workforce. 

Covering the cost of work: a business case 

Professionals are acutely aware of the costs associated with coming into the office. Having been shown a work routine free of eye-watering train fares and wallet-burning lunch prices, many are reluctant to take on these added expenditures. And with talent in short supply across many industries, this represents a crucial opportunity for employers, and covering the cost of work could become a key differentiator in a competitive market. 

Alleviating your staff’s financial concerns could also foster a more engaged, high-performing workforce. As financial pressures mount, there’s a risk that employees could be bringing distractions to work that might compromise their ability to do the job. Offering support and resources that could help employees overcome financial stress — from saving programmes to financial coaching — could lead to higher engagement and greater productivity, adding ROI to your RTO. 

As is the case with the RTO question at large, there may be no blanket answer to who should foot the office bill. Instead, employers should consider what they can feasibly do to provide targeted support for those who need it most.  

Key actions for employers 

How can organisations balance the needs and expectations of their employees with the realities and challenges of their business? Here are some practical tips for employers who are unsure what to do: 

• Reviewing your Employee Value Proposition (EVP) is always good practice – regardless of your stance on RTO. However, if you’re looking to draw your people back into the office, it’s even more important that you go beyond traditional benefits to adequately support staff and compensate associated costs. This might include in-person career coaching or CV-enhancing upskilling opportunities. 

• When offering more creative benefits, consider implementing financial wellness programmes that can help staff navigate their financial journeys and keep their minds on the job rather than their bank balance. At Hays, for example, we provide our employees with complimentary financial education and planning via FinWell. 

• Even if staff are working more frequently from the office, you can still grant them greater autonomy and freedom over the way they work. For example, as a potential compromise, you might give them more control over their start and end times. A relatively small concession such as this could go a long way towards helping with daily commutes and childcare demands. 

Finding the right balance 

The cost of work is the latest dimension to be added to the increasingly complex debate around where work gets done, as organisations battle to maintain productivity, offer flexibility and control costs. 

Whether it’s realistic or not to expect employers to cover the cost of office work, it’s clear that they will need to balance the value of an RTO mandate with the talent attraction benefits of flexible working. This decision will ultimately be driven by a unique blend of specific talent demands and organisational ambitions – as well as the availability of financial resources.  

Rather than fixate on where people work, it may be more prudent for organisations to take the opportunity to review their EVP and ensure it’s meeting the expectations of their existing people and future talent. 

Looking to refine your ways of working, increase retention and attract top talent? Take a look at our 2025 Salary & Recruiting Trends Guide for more expert insights and recommendations.