The Covid-19 pandemic had a profound and lasting effect on the nature of work.
Hybrid working, where employees combine time in the office with remote working arrangements, has arguably become the new normal, with ONS figures showing that 9.5 million people in the UK were hybrid working earlier this year; its main driver underpinned by an improved work-life equilibrium
However, five years on from the pandemic, companies are starting to roll back remote working policies, with many well-known employers, especially within the finance and tech sector – either scaling back hybrid working policies, or mandating that employees return to the office full time.
It’s crucial Britain’s businesses take the time to think about such arrangements carefully if they wish to keep hold of and attract the next generation of talent.
Over recent years, we’ve been tracking how reward packages have evolved as the world of work has transformed, including the disconnect between what employees actually want and what’s on offer. By doing so, we’re helping businesses better understand the people they employ, and how they can meet their needs to support their wellbeing.
Epassi UK’s latest research reveals more than a quarter (27%) of businesses have changed their hybrid working policies within the last year, requiring more frequent office attendance. Around a fifth (22%) are planning to change their working from home policies, with 18% believing that working in the office full time will be considered the norm again by 2030.
Employees are starting to feel this shift. Half (52%) of the UK’s workers say their employer is now more eager for them to come into the office than the year before – and a similar proportion (51%) believes their employer favours those who come into the office more often.
They’re not particularly keen on this shift either. King’s College London found just 42% of workers are willing to comply with a full-time office mandate, down from 54% in 2022, with the women and parents being the strongest resistors – which is perhaps unsurprising given rising childcare costs.
Despite employers pushing back, hybrid working is highly attractive, particularly among millennial and Gen X. Among all employees 86% of employees see hybrid working as one of the perks they value most about their job, with the same figure saying it makes them feel happier and more productive at work.
And while only half (50%) of businesses think staff are more productive at home, three-quarters (74%) of employees say it frees up more time, thanks to cutting out the commute.
The message is loud and clear: offering flexible working patterns helps to boost productivity.
It’s of course important to note that the office still has a major role to play in the future of work – particularly among Gen Z.
Younger employees for example are more likely to embrace office working than their older colleagues. Three in ten (29%) businesses told us younger employees under 30 are the ones least likely to have an issue with coming into the office. Indeed, 20% say that demographic often comes into the office more than required.
While Gen Z employees are often assumed to be the ones pushing back against a return to the office, our research shows that the reverse is more likely. Given these employees are the ones just starting out on their career paths, the collaboration and knowledge sharing that an office environment provides is highly attractive, granting access to mentorship and professional development opportunities that are difficult to access remotely.
In comparison, millennial and Gen X employees are more likely to want to minimise their in-person attendance as they face childcare costs, may have moved further out or have invested in a home office during the pandemic.
The key point here is that employees appreciate autonomy and the flexibility to choose where they work, and when. No one wants to be shackled to an office full time, and equally working from home endlessly can feel isolating.
Employers who continue to be too prescriptive will miss out. A fifth (20%) of businesses have lost employees due to requiring them to come into the office more often, while seven in ten (70%) workers say they’d consider leaving their current job for one that offers hybrid working, if their employer changes their existing working from home policy.
Offering hybrid working within a wider benefits package provides employees with a better work-life balance, contributing to healthier bodies and minds that fuel greater productivity.
Given two thirds (62%) of employees say benefits are the most important thing they look for in employment, leaders must focus on optimising their offerings. Benefits technology for example, can help a business better communicate with employees, to better understand the type of support they need – be it financial, health and wellbeing related, or indeed more flexibility when it comes to where they want to work.
While competitors march staff back to the office, businesses that give their employers a choice and retain flexible working policies are likely to find themselves at a competitive advantage in securing the next generation of talent.