- New research from International Workplace Group among recruiters demonstrates the correlation between companies that are reducing the flexibility of where and how their people work with increased employee churn
- Two thirds (67%) say they have seen an increase in candidates looking for new jobs from companies mandating five days a week in a central office
- Three quarters (75%) have had candidates turn down new roles that do not offer hybrid working
- Employers are seeking to work closer to home and 55% would feel more empowered if their employer allowed them to work from a local flexible workspace or satellite office
- PWC, Santander and Amazon are among businesses that have reported to have recently changed policies
- Stanford academic Professor Nicholas Bloom predicts repeal of mandates in 2025 as firms risk losing their best people
Recruiters have reported a talent exodus from companies now offering their employees less flexibility in where they work.
Research among more than 500 in-house and agency recruiters revealed a surge in applications from employees at companies requiring their teams to be in a city centre office five days a week. Two thirds (67%) had seen an increase in candidates looking for new positions following mandates from current employers that require them to spend more time at a central office.
The study, undertaken by International Workplace Group, the world’s largest provider of flexible workspace, follows announcements from a number of companies in recent weeks, while others are doubling down on offering more flexible hybrid policies to cement their positions as attractive employers.
The research demonstrates the growing importance of hybrid working to businesses that want to attract and retain the best talent. Three quarters (75%) of recruiters said they have had candidates reject job opportunities that don’t offer flexible working, while 72% said firms which don’t offer hybrid working are becoming less competitive in the job market.
Mark Dixon, CEO and Founder of International Workplace Group, said: “Flexibility is no longer a nice to have for employees. Many will not consider new roles that require long daily commutes, they want access to workspaces closer to where they live in an environment that allows them to remain motivated and productive.”
Long commutes and lack of flexibility driving exodus
Separate research by International Workplace Group among white collar workers currently in jobs that require them to be in a city centre office five days a week shows the challenges their employers face. Almost half (46%) said they are actively looking for a new job that doesn’t require a long daily commute while almost two thirds (63%) said their employer is risking losing its best talent.
As International Workplace Group’s latest research attests, the significant cost (44%) and time (40%) of commuting are the most common bugbears for not wanting to travel daily to crowded and distant city centre offices, followed by lack of work/life balance (33%). One in five (21%) employees working in a central office five days a week said they experience burnout on a daily basis with long commutes undoubtedly playing a big part in this.
Flexible workspaces closer to where employees live are proving to be an attractive option to many. Three quarters (77%) said a place to work closer to home is a must-have for their next job move, while workers are four times more likely to choose an office close to home, than in a city centre.
Workers are also frustrated with what they perceive as a lack of trust from their employers. Just a quarter (25%) said they needed to be in a central location five days a week to do their job effectively, while 55% said they would feel empowered in their role if their employers allowed them to work from a variety of locations.
Recent research conducted by IWG among more than 500 business leaders found that three quarters (75%) of CEOs that had moved to the hybrid model reported improved productivity in their organisations, while Professor Bloom’s research reported a 3%-4% increase in productivity.
U-turns predicted in 2025
Additional research by leading Stanford academic Professor Nicholas Bloom found that companies mandating five-day office attendance could face a 35% increase in employee quitting rates. He predicts that some organisations enforcing rigid policies, such as Amazon, may reverse these mandates by mid-2025 due to rising attrition.
Mark Dixon, CEO and Founder of International Workplace Group, said: “Flexible working offers benefits to businesses far beyond employee retention. The hybrid model is proven to boost workforce productivity and job satisfaction while also cutting costs significantly. It’s no surprise that more and more businesses continue to embrace hybrid working for the long term while giving their employees want they really want - the ability to say goodbye to the long daily commute.”
Dom Ashfield, SAP Specialist Recruiter at bluewaveSELECT, said: "Jobseekers are no longer just looking for a pay check; they want the freedom to shape their work environment. The demand for flexible and hybrid work models is growing rapidly, and employers who don’t adjust their policies risk falling behind in the talent race. Flexibility isn’t just about where you work – it’s about empowering employees to take control of their time and work in a way that supports their personal and professional lives."
** Research among 1,000 workers that commute daily in September 2024 by Mortar Research. Mortar is Market Research Society (MRS) accredited and the research adhered to MRS guidelines.
***Research among 500 CEO participants in June 2024 by Censuswide. Censuswide is Market Research Society (MRS) accredited and the research adhered to MRS guidelines.
****Hybrid Working Calculator Report by International Workplace Group and Development Economics amongst 2,000 office workers paired with publicly available transport data.
*****Nicholas Bloom, Ruobing Han, James Liang. 2022. How Hybrid Working From Home Works Out. https://www.nber.org/system/files/working_papers/w30292/w30292.pdf
