Since April 2023, the debate over flexible working continues to wage on, with Scottish Civil Servants having been permitted to fulfil their job roles from a foreign country for four weeks per year. However, the policy hasn’t been met with open arms. Scottish Government officials do not support long-term working abroad, concerned with its knock-on impact on the local economy.
And Scotland isn’t unique in its concerns over the impact remote work will have on the economy. Many businesses are requesting employees return to the office full-time – not only in line with productivity concerns but also with government bodies’ broader concerns around long-term economic growth in city centres.
Right now, we’re seeing more companies – especially big tech – requesting employees return to the office five days per week. Data from Resume Builder reveals that 90% of companies plan to implement return-to-office policies by the end of 2024, with nearly 30% stating they’ll threaten to fire employees who won’t comply with in-office requirements.
But even though requests to return to the office may be on the rise, office occupancy has remained low, and workers (40%) say they prefer flexible working arrangements. While there’s no one-size-fits-all solution to the future of work, research shows a blanket return to the office isn’t the answer. So what does the future look like?
High-performing employees frequently interpret stricter attendance policies as a sign that their organisation does not trust them to make the best decisions about how they complete their work.
Working for global companies
According to Deel’s 2024 Global Hiring Report, the hiring of UK talent by international companies increased by nearly 10% last year. This likely correlated with the elimination of fully remote roles and employees’ desire to obtain flexible work arrangements.
Global employers are eager to tap into UK talent, wanting more control over their working patterns, to help their own companies grow and innovate in emerging areas like AI. But what’s more important to recognise is that employers aren’t just driving the uptick in global hiring. Workers (71%) continue looking for distributed and hybrid roles and often choose companies that offer hybrid work versus strict in-person working.
Employee satisfaction & opening talent pools
High-performing employees frequently interpret stricter attendance policies as a sign that their organisation does not trust them to make the best decisions about how they complete their work. Meanwhile, others may want to come into the office to feel more connected to the company culture. A one-size-fits-all policy doesn’t work and there is more demand for flexible work arrangements.
Recent research of 137 S&P500 companies shows that return-to-office mandates are more likely in firms with poor recent stock performance and don’t positively impact employees or a business’s bottom line. Glassdoor data shows that return-to-office (RTO) mandates significantly reduce employee ratings for job satisfaction, work-life balance, and senior management retention, without boosting firm profitability or stock returns.
The debate over flexible working highlights that expanding talent pools beyond a 30-mile radius can transform business growth. Allowing employees to choose where and when they work improves productivity, loyalty, and job satisfaction. For recruiters, offering flexible working policies that provide autonomy and control is crucial in attracting and retaining diverse talent.
Thriving local economies
As hybrid work becomes the norm, we expect a positive knock-on impact on local economies, smaller towns, and villages.
Numerous towns and cities across the UK have recently undergone remarkable regeneration and development initiatives. These efforts have resulted in the development of new homes, job opportunities, office spaces, improved transport links, and green spaces. And many individuals opted to move out of city centres at the height of the Covid-19 pandemic.
Businesses can continue supporting local economies while widening their talent pools through hybrid work opportunities.
For example, hybrid work has the potential to reshape the distribution of economic prosperity, resulting in a more balanced landscape across regions. For businesses opting to tap into talent pools outside of major urban centres, it becomes possible to reduce economic concentration in metropolitan areas, spurring regional development and supporting the flourishing of small businesses in local communities. Especially on the days that employees work from their local areas.
As hybrid settings become the norm, we expect a positive knock-on impact on local economies, smaller towns, and villages.
Furthermore, a recent study found that flexible working encourages more working mothers to enter and stay in the workforce. The paper showed a 10% increase in working from home increases mothers’ employment by 1%. This drives faster economic growth by increasing the labour supply and opens the talent pools for more diverse recruitment opportunities.
No one-size-fits-all answer
If hybrid work is to stay, there is a unique opportunity for people living in rural or underserved areas to actively participate in the global economy without having to travel long distances five days a week at high costs.
This inclusive approach to employment encourages diversity and inclusivity but also helps foster equitable economic growth throughout the country.
In essence, rather than forcing a return to outdated norms, businesses must recognise that their talent pool is only as strong as their flexible working policy to remain competitive. Organisations can create a workplace that benefits employees and the business by valuing flexibility and empowering employees to balance their professional and personal lives.
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