The Real Economy

Professional services firms must redefine in-office work plans amid new demands

Nuance critical as leaders evaluate return-to-office strategies

March 10, 2026
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Economics The Real Economy

As professional services firms revisit return-to-office policies with renewed urgency, they must balance evolving employee expectations against long-standing assumptions about learning, collaboration and culture.

What was once framed as a binary choice between remote and in-office work now reflects a far more complex set of trade-offs, particularly as certain sectors across Canada look to mandate employees back to offices.

This requires leaders to weigh firm objectives, team dynamics, regulatory and training requirements, and local cost-of-living realities while continuing to deliver consistent client outcomes.

In this environment, effective return-to-office strategies should focus on deliberate, context-specific decisions that reflect how work actually gets done—rather than imposing limitations that ignore the nuances within the professional services sector.

Why proximity still matters—selectively

In professional services, culture and learning were traditionally reinforced through proximity. In-person environments played a meaningful role in accelerating learning for early-stage professionals as work depended on tacit knowledge and judgment.

Observing more experienced colleagues allowed newer professionals to ask questions in real time, receive rapid feedback, develop technical judgment, adopt professional norms and gain confidence.

Physical proximity increased feedback by roughly 18 per cent and improved work quality, with the strongest benefits accruing to less-tenured employees, according to an empirical study of software engineers by the National Bureau of Economic Research

Related research from Nature Human Behaviour suggests firm-wide remote work can make collaboration networks more static and siloed while reducing the informal flow of information that supports apprenticeship-style development.

But the value of in-office presence is increasingly context-dependent rather than universal. Proximity still matters—but not continuously, and not for every task.

Employees are most motivated to be in the office for activities like coaching, collaboration, complex problem solving and relationship building—whereas focus and individual productivity are often better supported outside the office. 

In recent years, newer cohorts in particular developed learning behaviours shaped by digital tools, asynchronous collaboration and self-directed problem solving. These formative traits emerged initially out of necessity due to pandemic-era restrictions but now are deeply ingrained in their approach to work.

These workers prefer hybrid arrangements that combine purposeful in-person time with flexibility—and these preferences have remained stable over multiple years. 

For leaders, these developments reframe culture and learning as design challenges, not compliance exercises. Proximity remains a powerful accelerator when it is intentionally aligned to mentorship, feedback and shared problem solving—but flexibility is now a cultural signal in its own right, shaping attraction, retention and motivation.

The risk lies not in choosing the wrong model but in defaulting to one-size-fits-all policies that assume culture and learning are experienced uniformly across roles and career stages. The optimal setup increasingly comes from deciding when physical presence adds the most value—and structuring hybrid environments that make those moments deliberate, visible and worth the trade-off for employees.

Commute economics and the office as a service

As professional services firms evaluate when and why staff should be in the office, the cost of being in person is a meaningful source of friction.

Proximity to colleagues and firm leaders presents opportunities for newer employees to establish and leverage these connections—and produce unexpected results. However, the trade-off comes in the form of monetary and personal costs—such as family responsibilities—that may feel too steep in the current work environment.

Commutes are currently longer than during the pandemic for many employees who moved further from urban cores as remote-only work became the norm; it’s also more expensive to commute due to the rising cost of living and other economic pressures. 

Housing affordability has also constrained mobility, meaning firms can no longer assume that talent can easily relocate closer to the office.

When employees are asked to come in, they increasingly debate whether the purpose of being in the office justifies the investment required to be there.

This fundamentally changes how offices are expected to function. For many professional services firms, the office transcends its use as a fixed place where work happens and is now viewed as a service environment that needs to deliver specific value on the days employees use it.

The notion of building-as-a-service means office spaces are designed to support high-value activities—including coaching conversations, complex client work and collaborative problem solving—supported by reliable technology, predictable access to rooms, and layouts that acknowledge collective and private needs.

Utilization data—such as which spaces are used, when they are used and for what purposes—extends beyond real estate considerations and helps determine whether the office experience effectively supports the firm’s culture, learning and client service objectives.

The costs of misalignment show up on both sides. Employees feel it when they travel long distances only to spend the day on independent tasks that could have been done remotely; firm leaders feel it when mandated office presence does not translate into better outcomes, stronger engagement or improved development.

Redefining the office—and how it is used—should not be about physical changes and hitting appearance quotas. Leaders should concentrate in-person time on activities for which proximity adds meaningful value.

This shifts the return-to-office question for leaders from how often employees should come in to which activities genuinely benefit from being in person, how those days are designed, and whether the office experience delivers enough learning, connection or tangible benefits to clients to justify the very real costs to firms and employees.

The takeaway

Instead of restoring old norms, firms must thoughtfully develop return-to-office strategies that accurately reflect contemporary professional services work.

Leaders should clearly define which activities benefit most from being in person, align office days to those moments, and ensure the in-office experience consistently delivers learning, connection and optimal client experiences that justify the cost of presence.

Firms that treat proximity as a deliberate investment—rather than a blanket requirement—will be better positioned to develop talent, retain high performers and sustain performance in a workforce that no longer experiences work, culture or value in uniform ways.

RSM contributors

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