Every month that passes in 2023, more U.S. workers are returning to the office, but those numbers show signs of slowing down.
Every month that passes in 2023, more U.S. workers are returning to the office, but those numbers show signs of slowing down. That according to the utilization rates of dozens of Density customers.*
Since January, Density customers have seen utilization rates continue to climb:
Pulling back further, this up-and-to-the-right trend has maintained (slowly, but surely) over the last two years.
The 19.4% average utilization rate our customers saw in March is the most since before the pandemic shutdown.
It also marks a 50% increase from the same time last year.
One key factor at play is companies’ evolving relationship with remote work.
We are seeing more RTO and organized hybrid policies in effect. Companies like Meta, Salesforce, Disney, and dozens others are rethinking the role of the office.
Meta CEO Mark Zuckerberg, for example, said early analysis of performance data “suggests that engineers who either joined Meta in-person and then transferred to remote or remained in-person performed better on average than people who joined remotely.”
That said, not every company has mandated RTO policies — certainly not in our customer base. In other words, many employees are willingly returning to the office.
Since January, the Midwest has experienced higher RTO numbers than the rest of the country.
However, each region saw a smaller increase from February to March than from January to February (with the West Coast seeing less than 1% point increase).
This brings to mind research conducted by the Bay Area Council, which reveals that two-thirds of California-based companies think the utilization rates they see today (April 2023) represents their new normal.
As we continue to monitor and share the utilization rates of our customers, we may soon find out whether 20-24% is the new normal — and if so, where.
*Numbers are based on the average of the “hourly average utilization” at the floor level, between 8 am and 6 pm local time, Monday through Friday.
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