Sara Daw is Group CEO of The CFO Centre and The Liberti Group, and the author of Strategy and Leadership as Service – How the Access Economy Meets the C-Suite, which explores the fractional leadership trend and the impact on employees.

The remote vs in-office workplace debate continues to burden leaders. Return-to-office mandates are on the rise, with the idea that they will boost engagement, productivity and collaboration. But do they?

Worryingly, the opposite can be true. A recent Gartner survey found that among high-performing employees, their intent to stay was 16% lower with strict RTO mandates. Conversely, Gallup's latest State of the Global Workplace report reveals that remote workers are the most likely to be engaged at work (31%).

Employees Work' Matters Less Than 'How They Work'

While it is important for each company to decide what work arrangements work best for them – whether remote, hybrid, or in office full-time – this misses the overarching point. Instead of arguing over the 'where' of work, leaders should be focusing more on the 'how'.

This is where "psychological ownership" comes in – our ability to feel that our job belongs to us. When employees feel psychologically tied to their roles, the more likely they are to be engaged and perform at their best. So how can leaders develop psychological ownership in their staff, regardless of where they work from?

The Three Roots of Psychological Ownership

There are three roots that underpin a sense of psychological ownership – efficacy, self-identity and having a place:

1. Efficacy – leaders, employees and their team members must understand each other's needs and feel confident that the relationship is working to meet desired goals.

2. Self-identity – work isn't just about completing tasks; it's about expressing individual skills, values and purpose. Employees need to feel that their role fits their identity and reflects who they are.

3. Having a place – individuals fundamentally want to belong. When teams work together, individuals feel part of a group of like-minded people with a shared mission, strengthening their commitment and engagement.

These three roots are particularly important for a blended workforce, with employees split between working in-office and from home. So, what steps can leaders take to nurture these roots of psychological ownership in their staff?

Create Control

When staff have a say over their work, they achieve a sense of control in their role. This helps them to feel ownership of their tasks, boosting their motivation, engagement and performance. To increase feelings of control in employees, leaders should:

Clarify the purpose and goals of staff's work but let them choose the best way to achieve them.

Encourage staff to share their knowledge and insights with others – this strengthens their feeling of control by demonstrating their competence and confidence.

Foster open communication channels by determining when individuals are and aren't available

Build Intimacy

Intimacy is a key ingredient for creating a positive and fulfilling work environment, particularly in a blended workforce. Intimacy leads to a stronger sense of belonging with colleagues, increases collaboration and conflict resolution, and deepens our appreciation of our role, its purpose and its impact. Leaders can build intimacy with and between employees by:

Scheduling regular one-to-one meetings and informal catch-ups to check in on each other's well-being, goals, and challenges

Be empathetic, actively listen and ask open-ended questions to show interest and understanding

Arrange social events and activities that promote getting to know each other outside of work

Build trust via transparency, sticking to commitments, and being consistent.

Encourage self-investment

How much employees invest themselves personally in their work influences their sense of ownership over their jobs. Investment can take many forms – time, skills, ideas, physical and psychological, and intellectual ener...