Five years after Covid reshaped workplace culture, executives are tightening the reins again. But the balance of power between management and employees is not as simple as before.

The Empathy Era That Wasn’t Forever
When the Covid-19 pandemic brought the world to a standstill in 2020, it also rewired the DNA of work. Remote meetings became standard, flexible hours were framed as humane necessity, and a new corporate vocabulary emerged: empathy, resilience, psychological safety. Managers were told to lead with understanding rather than authority, to accommodate rather than command.

For a time, it seemed like a permanent cultural reset. Employees, exhausted by lockdowns and public health crises, discovered they had leverage. Mass resignations in 2021 and 2022, particularly in North America and Europe, forced companies to compete not only on pay but also on well‑being. The “flexibility dividend” was hailed as the future of work.

But five years on, the tide is turning. As of mid‑2025, signs are everywhere that executives are once again laying down the law. From return‑to‑office mandates to stricter productivity monitoring, bosses are reasserting control.

Why the Pendulum Is Swinging Back Several factors explain the shift.

1. Economic Pressures. Slowing global growth, inflationary aftershocks, and geopolitical uncertainty have left boards demanding efficiency. In downturns, tolerance for experimentation shrinks. “Empathy is easy in a bull market,” notes workplace analyst Sandra Li. “In tougher times, cost discipline takes center stage.”

2. AI Productivity Metrics. Artificial intelligence tools now track output with unprecedented granularity, from keystrokes to client response times. Companies argue these metrics help improve fairness and accountability. Employees call it digital surveillance. Regardless, data has given managers new leverage.

3. A Cooling Labor Market. After years of worker shortages, hiring has stabilized. Younger professionals—many of them burdened with student debt—are less able to walk away from rigid conditions. This has emboldened employers to push harder on in‑person attendance and standardized schedules.

The Limits of Command‑and‑Control
Yet the story is not a simple return to the 1990s office. Several forces keep management from fully turning back the clock.

1. Talent Still Votes With Its Feet. High performers in tech, finance, and creative industries remain scarce. Companies that impose blanket rules risk losing top people to competitors offering hybrid models.

2. Cultural Expectations Have Shifted. The pandemic permanently rewired how employees view work‑life balance. Surveys across Europe and Asia show that flexibility is no longer considered a perk but a baseline requirement. “You can’t unsee freedom,” says Dutch HR executive Marijke Vos.

3. Legal and Social Pressure. Governments in countries such as Spain and Canada have introduced “right to disconnect” laws, limiting out‑of‑hours demands. Meanwhile, online employee communities amplify backlash against heavy‑handed policies, eroding corporate reputations faster than ever.

A Delicate Balance
The result is a workplace tug‑of‑war. Executives are asserting authority, but cautiously, aware that rigidity can backfire. Some firms are experimenting with “structured flexibility,” mandating office days while allowing employees to choose how to use them. Others emphasize outcome‑based management: less focus on hours clocked, more on results delivered.

“Power has shifted back toward employers,” admits U.S. labor economist Jordan Morales, “but it’s not absolute power. It’s negotiated power.”

As companies navigate this new equilibrium, one truth endures from the pandemic era: employees expect to be treated as people, not just headcount. Bosses may be back—but their authority now comes with caveats.