Municipalities Are Returning to the Office—Should Your Business Do the Same?

It has been recently announced that several Canadian municipal governments are moving forward with a significant workplace change: a return to a traditional five-day, in-office workweek. This shift marks a departure from the hybrid models that have become the norm since the pandemic and signals a broader push for increased visibility, consistency, and in-person collaboration within public service. For small and mid-sized business (SMB’s) owners, the change raises an important question: should they follow suit?

On one hand, a municipal mandate of this scale will set a powerful precedent. Many employees in the private sector will look to these public-sector changes as a benchmark, and some businesses may feel pressure to mirror the same expectations. More people commuting into offices five days per week could reshape local economies, boosting restaurants, coffee shops, and retail in downtown cores. This could also reignite demand for commercial office space, which has sat underutilized in many cities. For SMBs that thrive on in-person collaboration or client-facing work, the government’s move may reinforce the value of being physically present, potentially providing a model to justify a full return to office.

That said, SMBs must carefully weigh whether mandating five days on-site truly serves their best interests. Unlike large government organizations, smaller businesses often rely on flexibility as a competitive advantage in attracting and retaining talent. Many employees have grown accustomed to hybrid work, citing benefits such as reduced commuting time, better work-life balance, and improved focus for individual tasks. Forcing a rigid five-day office schedule risks disengagement or even turnover, particularly in industries where remote work options remain standard. Smaller businesses might not even have the budget—or the office space—for everyone to be back in five days a week.”

Instead of adopting a blanket approach, SMBs may be better served by taking a nuanced view. Leaders should start by asking: what aspects of our work truly require being in person? If collaboration, training, and culture-building are best achieved face-to-face, designating certain “anchor days” for teams to come together may be enough to strike a balance. For knowledge-heavy roles where productivity thrives in quiet, focused environments, maintaining some remote flexibility could deliver the best results. In this way, businesses can capture the advantages of in-person connection while still respecting the flexibility employees value.

Ultimately, the municipal government’s decision to return to a five-day office workweek may reshape expectations across sectors, but small and mid-sized businesses should avoid simply copying the model. Instead, they should use this moment as an opportunity to re-examine what makes sense for their teams and operations. The most effective path forward will be the one that balances collaboration with flexibility, strengthens culture without eroding employee trust, and supports long-term growth without creating unnecessary burdens.

Our fractional HR services give you access to personal HR expertise when you need it—without the cost of a full-time hire. Whether you’re considering a full return to the office or exploring a hybrid model, we’ll help you find the right balance for your business and your team.

At Peak Performance HR, we help small and mid-sized businesses navigate these big decisions. From retention and productivity to workplace culture and cost, we’ll work with you to design an HR strategy that fits your business today—and sets you up for tomorrow.