What has played out with RTO is a prisoner's dilemma scenario with astoundingly low defection rates. Return to office is a prisoner's dilemma for executives whe

What has played out with RTO is a prisoner's dilemma scenario with astoundingly low defection rates. Return to office is a prisoner's dilemma for executives where "defection" means permitting WFH and "cooperation" means enforcing return to office. If a company dictates that their employees return to the physical office but their competitors do not, there is a likelihood of losing valuable talent to companies with remote-friendly working conditions. If both the company and all their competitors allow work-from-home to continue, then all of them, as industry decision-makers, must adjust policies, expectations, and operations to reflect this shift. While this scenario does not lead to a talent exodus, it does entail some other costs. Potential costs to this mutual “defection,” the acceptance of a “new office normal,” could include investors pointing out the wasteful operational expense of unused office space. Additionally, investor pressure from commercial real estate interests may also oppose such leadership decisions. If the company “cooperates,” such that they insist on RTO while all of their competitors simultaneously insist that their employees need to work in-the-office, then no one has to adjust company policies to operate in a remote company environment. The effect of this will be employees open to recruitment finding their choices for alternative, more accommodating employers scarce and in low supply. In this multi-player, game-theoretic landscape, where CEOs want to avoid the costs (real or potential) of allowing their people the ability to work remotely, cooperating companies need as few “defector” companies in their industrial sector as possible. With their other choices few and far-between, employees seeking the freedom to continue working from home will eventually give up on their WFH-oriented job hunts and decide to stay on in their current positions.