This will be counterbalanced by the fact that WFH is better for many employees from a work-life balance perspective, so higher-performing employees who have more choices will tend to gravitate toward companies that allow WFH.

I expect many companies will arrive at an equilibrium with at least 2 days WFH for focused work and 3 days in-office for collaboration. This seems to already be happening since the % of companies offering hybrid is up this year. The question is how many great employees laggard companies will lose before accepting that.

(Caveat: this does not apply to companies doing mostly ground-breaking work that have more mission-focused, highly qualified applicants than they can handle. Some companies may be surprised to find they are no longer in this bucket.)