Don’t be surprised when state workers quit in 2026 due to Newsom’s RTO policy | Opinion

California state workers got a temporary reprieve from going back to the office for one year. But after that year is up, don’t be surprised when we start losing state employees, because surveys are showing that the ability to work from home is more important than the size of a worker’s paycheck.

A surprisingly large number of employees now prioritize remote work even when it harms their career prospects, creating talent shortages for companies demanding a full return to the office. A Randstad survey of 5,250 employees reveals that 73% of remote workers would give up a pay increase to maintain flexibility, and 70% would forgo promotions. Half of the fully remote workers would not trade their location freedom for better job security.

External data confirms this trend. The FlexJobs Q1 2025 “Remote Work Economy Index” shows that 37% of job seekers consider location flexibility the most important factor in their career choices, ranking it higher than pay or advancement. A January 2025 Pew Research Center survey found that 46% of remote-capable employees would probably quit if their employer eliminated remote work. These preferences create high stakes for employers, who face significant replacement costs and knowledge loss when remote workers leave.

Today’s workers increasingly trade traditional career advancement for autonomy and well-being. The Randstad research shows 40% of workers have accepted lower pay to reduce stress, while 43% chose roles with limited advancement for better work-life balance. An Owl Labs study supports this, finding that remote workers report higher levels of happiness.

This desire for control also applies to the workday schedule. A majority of workers (59%) in the Randstad survey would choose to set their own hours over receiving a higher salary. This preference for time autonomy (56%) even surpasses the desire for location autonomy.

Younger generations lead this shift. Randstad found that 61% of millennials and 60% of Gen Zers prefer control over their time to more pay, compared to 57% of Gen Xers and 54% of baby boomers. These preferences translate into action. Nearly half of Gen Z (49%) and 43% of millennials have already taken lower-paying jobs for more time flexibility — a much higher rate than their older colleagues.

Simultaneously, employees feel a strong pull toward skill-building opportunities. LinkedIn’s “Workplace Learning Report 2025” notes that 91% of learning professionals see continuous learning as crucial for career success. Companies that invest in career development show better profitability and retention.

The World Economic Forum’s “Future of Jobs 2025” report indicates that 85% of employers plan to focus on reskilling their workforce. Research from Microsoft and LinkedIn reveals that 66% of executives will not hire candidates without artificial intelligence skills, yet only 25% of companies offer such training. This gap makes employees anxious to find reliable upskilling opportunities.

While remote work does not prevent skill development, poorly managed virtual environments can create obstacles. A May 2025 Gallup analysis found that fully remote employees — despite higher engagement — suffer from more loneliness and stress. Hybrid models, however, scored highest for well-being, suggesting a middle ground that provides autonomy while preserving the social connections important for professional growth.

Leaders should also integrate schedule autonomy into performance management. Atlassian’s “Team Anywhere” framework focuses on outputs rather than attendance, allowing teams across different time zones to collaborate effectively. This approach increased their code-deployment velocity by 12%.

For employees who value location freedom most, companies can offer “remote-plus” models that include occasional company retreats, coworking space stipends and structured digital communities. GitLab’s public handbook details practices like virtual “coffee chats” to reduce isolation.

Workers now pursue multiple goals: One group seeks bigger jobs with better skills, while another demands the freedom of remote work. Wise employers cater to both by combining strong learning programs with authentic flexibility. Companies that fail to address both risk losing their top talent.

This story was originally published July 14, 2025 at 10:01 AM.