More than two in five UK businesses have increased their requirement for employees to work on site or return to the office (RTO) in the past year, the British Chambers of Commerce (BCC) has found.
The BCC survey, with 583 businesses, revealed that 41 percent have required staff to spend more time on site. The majority (67 percent) of these employers said this had had no impact on recruitment or retention, but 9 percent admitted that employees had resigned as a result.
In the next 12 months, 48 percent of businesses said they expect staff to be on site or RTO for all working days. This is a marked change from recent years, the BCC said. A survey it conducted in 2023 found just 27 percent of businesses predicted their staff would be fully on site/RTO within five years.
The data found clear differences between industries. More than six in ten (62 percent) manufacturers and 61 percent of business‑to‑consumer firms said they expect all working days to be on site over the next year. In contrast, 27 percent of business‑to‑business companies plan to require full RTO working.
Perceptions of how remote or hybrid working affect productivity also varied between employers. Almost half of manufacturers (49 percent) believe remote or hybrid working reduces productivity, compared with 41 percent across all firms. Just 9 percent of manufacturers said hybrid increases productivity. B2B service firms were more positive, with 25 percent reporting productivity improvements, compared with 17 percent of employers overall.
Jane Gratton, director of public policy at the BCC, said: “We’re seeing a clear shift towards more firms requiring full on‑site working, but it’s by no means a uniform picture.
“The trend is being led by manufacturers and consumer‑facing businesses, while around two thirds of B2B service firms continue to operate hybrid models.
“Hybrid working has become a fixture of modern working life since the pandemic and is valued by employers and their workforce. But it does not suit everyone and, for some firms, a full on-site model may be the best solution for the business.
“With the cost of doing business continuing to escalate, firms are looking to boost productivity. Hybrid working can help firms attract and retain a skilled and engaged workforce. However, some employers are identifying significant benefits of bringing all staff together again on site.
“How and where people work is likely to continue to evolve in the years ahead. A flexible working approach makes good business sense but, to drive economic growth, managers also need the flexibility to do what’s right for their business.”
In response to the survey, Suzanna Kemal, head of HR at Reward Gateway Edenred, said the benefits of flexible working are clear.
“Employee’s individual needs are unique to them, and they should be able to adjust their working patterns in a way that yields the most productivity – even if this means working from home. It is also an enabler of workforce diversity. By enabling greater flexibility, a wider talent pool can be considered for roles, ultimately making workplace environments more inclusive.
“Businesses need to bear in mind that happier employees translate into a thriving workforce, with better, faster outputs at no extra cost, and this isn’t going to be feasible by forcing them into working patterns that go against this objective.”
Alex Elliott, solicitor in the employment team at Birketts law firm, said the pandemic was not only a major catalyst in the accelerated and widespread adoption of flexible working, it also demonstrated the feasibility of non-traditional working arrangements. And it changed employer and employee attitudes to flexible arrangements such as remote and hybrid working, compressed hours and alternative working patterns.
Acknowledging the benefits, and employer concerns, he said “flexible working is here to stay for the foreseeable future”.
“The previous Conservative government bolstered the statutory scheme for employees to request flexible working, which is now a day-one right. Employers are required to deal with flexible working requests in a reasonable manner and may only refuse them on one or more prescribed grounds – including a detrimental impact on quality, performance or ability to meet customer demand, the burden of additional costs, or planned structural changes which are incompatible with the request,” Elliott said.
“The current Labour government has pledged to make flexible working the default from day-one except where it is ‘not reasonably feasible’. The new Employment Rights Bill introduces a further test of reasonableness when an employer seeks to rely on one of the statutory reasons for refusing a request. We can expect further details of the government’s proposals following its consultation expected to take place in late 2025 or early 2026.”
He urged employers to ensure they have clear and consistent procedures for handling flexible working requests, and that these are kept up to date.
“Where feasible, taking a proactive approach to discussing flexible working arrangements outside of the more formal statutory process is likely to improve staff morale and retention rates, although this may be more challenging for some employers depending on their nature, size and resources,” he added.
