Telework Seen as Key Tool for Recruitment and Retention, But Culture Concerns Persist

Telework continues to reshape the private sector workforce landscape, with recent input from industry stakeholders highlighting both the opportunities and complications brought on by remote work arrangements. According to a new report from the U.S. Government Accountability Office (GAO), experts and representatives of employers and employees say hybrid telework—typically involving two or three days in the office per week—is now the most common model. While the shift has helped attract and retain talent, challenges remain in preserving workplace culture.

In interviews with GAO, organizations representing both employers and employees overwhelmingly cited improved recruitment and retention as the top advantage of telework. They also noted that remote work arrangements can expand employment opportunities for historically underserved groups, including individuals with disabilities, caregivers, older workers, and dual-career couples. Experts consulted for the report echoed these points, emphasizing that flexible work models can increase workforce participation across multiple demographics.

However, both employer and worker stakeholders agreed that maintaining a cohesive workplace culture is one of the most significant drawbacks of remote work. They reported concerns over reduced interpersonal interaction between colleagues and between employees and management. Some worker organizations noted that return-to-office mandates have resulted in increased turnover, as employees seek positions offering greater flexibility.

In addition to broader trends, experts identified several policy gaps that could affect telework sustainability. One key issue is determining tax obligations when employees telework from states different from their employers’ locations. Stakeholders recommended policy clarifications to resolve such multi-state taxation issues. The report also cited existing federal labor guidance from the Department of Labor (DOL), including bulletins issued in 2020 and 2023 that guide employers on tracking teleworkers’ hours and ensuring fair compensation under federal law.

The GAO based its findings on interviews with 11 organizations representing private sector workers and employers, along with seven expert researchers. While the results are not nationally generalizable, the report offers insight into common trends and concerns from industries with high rates of telework and groups with unique experiences. The analysis is part of an ongoing series examining telework practices and implications in the post-pandemic era.

Article by multiple RFHC contributors, based upon information from the U.S. Government Accountability Office press release GAO-25-107078

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