- Microsoft explained its new, stricter return-to-office policy by citing internal employee data.
- Remote work weakened social ties, impacting innovation, according to Microsoft CEO Satya Nadella.
- Flexible work remains an option, with team-specific in-office policies at Microsoft.
Microsoft executives explained why the company is mandating a stricter return-to-office policy during an all-employee town hall on Thursday, citing internal data that showed employees with more in-office time are "thriving."
CEO Satya Nadella said the company observed through the pandemic that an "unintended consequence" of remote work was that social ties are "necessary for innovation," according to internal comments at the town hall, reviewed by Business Insider.
"Weak ties, you know, become weaker, stronger ties become stronger, and new ties are tough to form, right? That's it," Nadella said to employees on Thursday. "If you think of it as a simple network problem, that was the conclusion."
Microsoft HR chief Amy Coleman, who announced the policy on Tuesday, said at the town hall that the decision was supported by internal data.
Microsoft has tracked and analyzed data over the past few years and found that employees who spend at least three days a week in the office have a higher "thriving score," which Coleman explained means that the employee is energized, empowered, and finding meaning in their work. Coleman didn't share how Microsoft determines who is "thriving," but the company frequently surveys employee sentiment.
Seattle-area Microsoft employees already average 2.4 days a week in the office, Coleman said. "So for some, this is not a big change," she said.
Nadella said the company will still allow the opportunity for flexible work, based on the needs of specific teams. For example, Microsoft AI has a stricter policy than the rest of the company, as Business Insider reported earlier this week.
"It doesn't mean that we don't recognize the power of flexible work," Nadella said, adding that different teams will be able to set different terms for in-office work. "There's tons of empowerment here for people to go organize this in such a way that it works for the folks."
Microsoft declined to comment.
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