Deciding precisely where employees work these days often comes down to an organization’s purpose, objectives and culture. Many employers are implementing or doubling down on return-to-office (RTO) policies, placing renewed emphasis on in-person interaction and collaboration.
But some are seeing a downside: RTO policies can impose substantial costs on workers, potentially influencing where they apply for jobs or whether to stay in their current positions. Understanding these costs is essential to sound workforce management.
Financial impact
According to a recent analysis by resume-building platform Resume.io, employees in the markets studied incur an estimated $6,736 annually in office-related expenses. On average, that represents 9.3% of a typical local salary.
The study combined government data with an August 2026 survey of 1,000 full-time employees working in offices at least one day per week. It examined expenses — including transportation, parking, food and work clothing — across 36 major metropolitan areas.
Commuting represented the largest expense, averaging $2,751 annually. Food and coffee bought during office days added another $2,598. For working parents who incur additional child care expenses, the estimated total annual cost climbed to $16,538. More than half of the respondents said their office-related expenses had increased from the previous year. Although individual costs vary widely, these findings show the financial burden workplace attendance can place on employees.
Time spent
And money isn’t the only consideration. Employees also sacrifice time commuting to and from work. The analysis estimated that office workers spent an average of 184 hours annually commuting — the equivalent of 23 eight-hour workdays. Preparing for office days, including getting dressed and arranging meals, took another 137 hours beyond what’s typically needed when working remotely.
Combined, that’s nearly 40 eight-hour days annually devoted to commuting and extra preparation. Although these aren’t necessarily lost working hours, they’re still personal time employees might otherwise spend with their families, pursuing interests or meeting other responsibilities. So, an RTO policy may affect their perceptions of work-life balance even when compensation and job responsibilities remain unchanged.
Risks to recognize
The findings raise an important consideration: Workplace policies can influence how job candidates evaluate prospective employers and how current employees assess the overall value of their jobs.
Let’s say two organizations are competing for the same qualified candidate. Both offer comparable salaries and benefits, but one requires five days in the office while the other offers a hybrid schedule. The candidate may view the second opportunity as financially preferable because it reduces commuting expenses and provides greater scheduling flexibility.
Existing employees may make similar comparisons when considering whether to stay or pursue other opportunities. Those facing lengthy commutes or substantial child care costs could be particularly sensitive to a strict RTO policy. And for many organizations, losing even a few experienced employees can be costly. Recruitment expenses, onboarding, training and temporary productivity declines may outweigh the perceived benefits of requiring on-site attendance.
A workable balance
Of course, some jobs require employees to be physically present to operate equipment or serve customers. For organizations with greater flexibility, however, an RTO policy may still offer meaningful advantages. Working together in person can promote effective mentoring, collaboration and relationship building.
If your organization has such a policy, you don’t necessarily have to abandon it. However, you should evaluate whether its benefits justify the financial and personal costs it imposes on employees. From there, consider adjustments that could ease the financial and personal burden on staff without compromising your organization’s strategic objectives.
For example, hybrid schedules may reduce commuting expenses while preserving opportunities for in-person collaboration. Flexible starting and ending times could help employees avoid lengthy rush-hour commutes or manage child care arrangements.
Other possibilities include employer-provided meals and eligible pretax transportation benefits. These options carry different costs and potential tax implications, so you’ll need to evaluate each one carefully.
Before implementing or changing an RTO policy, consider gathering employee feedback through surveys or in-person discussions. Their thoughts and concerns can help you assess how the existence or nature of the policy could affect recruiting, turnover and compensation expectations.
Costs and consequences
Ultimately, every workplace policy should support both operational performance and a stable, productive workforce. That means examining not only your organization’s direct costs but also the often less visible consequences for employees. We can help you evaluate the financial impact of your organization’s RTO policy (or a prospective one) and related workforce management decisions.
© 2026 TopLine Content Marketing Team
