Hybrid Work Wins: Why Forcing Office Returns Could Backfire

Despite 40% of UK workers saying they prefer flexible working arrangements, we’re seeing more companies—especially big tech—request employees return to the office full-time. This call is in response to productivity concerns and the government’s broader concerns around long-term economic growth in city centers.

Resume Builder predicted that 90% of companies would implement return-to-office policies by the end of 2024, with 30% stating they’d threaten to fire employees who won’t comply with in-office requirements. These statistics have yet to come to fruition, with office occupancy remaining low.

While there’s no one-size-fits-all solution to the future of work, a blanket return to the office clearly isn’t the answer. Here’s why…

The damaging impact of return to office mandates

High-performing employees often view stricter attendance policies as a lack of trust in their ability to manage their work effectively. Conversely, some employees prefer coming into the office to have more face-to-face social interaction and create more separation between home and work. This divergence in preferences indicates that a one-size-fits-all approach to work policies is insufficient.

A 2023 study examining 137 S&P 500 companies revealed that return-to-office (RTO) mandates are more common in firms experiencing poor stock performance. Additionally, these mandates do not positively influence employee satisfaction or the organization’s financial performance.

The research, which pulled data from Glassdoor, found that RTO policies significantly lower employee ratings in areas such as job satisfaction, work-life balance, and retention of senior management. Furthermore, the study showed no significant benefits of RTO mandates on company profitability or stock returns.

See also: 12 Hybrid Work Model Examples to Inspire You to Work Differently

Your global competitors are winning over your talent

International companies considerably ramped up their recruitment of foreign talent last year. Notably, there was a 10% increase in UK talent hiring by international firms, according to Deel’s 2024 Global Hiring Report. Two key factors drive this trend:

Firstly, the decrease in hybrid and remote roles has led to more workers actively seeking positions that support flexible arrangements. A striking 71% of UK workers are looking for distributed and hybrid roles, often favoring companies that offer these options over those with strict in-person requirements.

Secondly, there is a broader surge in global hiring as organizations recognize the advantages of accessing a more diverse talent pool. Employers worldwide are keen to leverage UK talent to support their growth and foster innovation in emerging fields such as AI.

Widening an organization’s talent pool to those outside a 30-mile radius of its office can change its growth and trajectory. By allowing employees to choose where and when they work, companies can find the best talent for their company, not just the best talent nearby. In return, employees are more productive and loyal and have higher levels of job satisfaction.

For recruiters looking to hire a diverse skillset into the business, it’ll be essential to remember what job seekers are looking for in their new roles and work with business leaders on workplace perks that attract this talent.

A robust and flexible working policy gives employees autonomy and control over their work lives. It serves as an effective recruitment tool and gives employees the freedom to manage their work schedules across suitable locations.

See also: Free Work from Home Policy Template

What about hybrid’s impact on economic growth in city centers?

What about rural economic growth? Addressing economic disparity between cities and rural towns and villages should be a priority, especially since rural areas often include the most underfunded and economically disadvantaged communities.

Rather than hindering economic progress, remote and hybrid work is actively contributing to growth by redistributing economic prosperity and fostering a more balanced landscape across various regions. This trend became particularly evident during the COVID-19 pandemic when many individuals chose to relocate from city centers.

Remote and hybrid arrangements also provide a unique opportunity for people already 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.

By embracing hybrid work opportunities, businesses can further support local economies while expanding their talent pools. Companies that engage talent from outside major urban centers can alleviate economic concentration in metropolitan areas, thereby fostering regional development and aiding the growth of small businesses within local communities.

Moreover, flexible working arrangements encourage more working mothers to enter and remain in the workforce. A recent study revealed that a 10% increase in remote work participation correlates with a 1% increase in employment among mothers. This trend not only boosts the labor supply but also improves recruitment opportunities by attracting a more diverse range of talent, ultimately driving faster economic growth.

This inclusive approach to employment encourages diversity and inclusivity but also helps foster equitable economic growth throughout the country.

See also: ​​How an EOR Can Support Hybrid Business Expansion

Embrace hybrid work and global hiring with Deel

Rather than forcing a return to outdated norms, businesses must recognize that their talent pool is only as strong as their flexible working policy to remain competitive. Organizations can create a workplace that benefits employees and the business by valuing flexibility and empowering employees to balance their professional and personal lives.

Deel is everything your organization needs to hire, pay, and manage a remote, hybrid, and globally distributed workforce. With our all-in-one platform, you can:

• Expand your team and hire globally
• Pay anyone, anywhere, in minutes
• Consolidate your HR operations
• Simplify, speed up, and scale global IT operations
• Set your team up for success with performance tools
• Attract and retain talent with immigration support

Sound like the ideal solution? Book 30 minutes with a product expert to get your questions answered.