Global Competitors Snap Up UK Talent: Time to Rethink Return-to-Office Mandates

Deel's latest Global Hiring Report reveals a nearly 10% increase in the hiring of UK talent by international companies last year. This trend likely relates to the decline of fully remote roles in the UK and employees’ pivot to international roles to maintain flexible work arrangements.

Global employers are keen to attract UK talent to gain more control over work patterns, aiding their growth and innovation, particularly in emerging fields like AI. It’s also essential to note that 71% of workers are actively seeking distributed and hybrid roles, often preferring companies that offer such options over strictly in-person positions.

Despite this, many UK companies, particularly in the tech sector, are insisting that employees return to the office five days a week. Data from Resume Builder indicates that 90% of companies intend to implement return-to-office policies by the end of 2024, with nearly 30% threatening termination for those who do not comply with in-office mandates.

Interestingly, while the push for a return to the office appears to be gaining momentum, overall office occupancy remains low, overall occupancy rates remain low, and the enthusiasm of remote employees seems undiminished. In fact, 40% of employers have seen an increase in flexible working requests.

Given that there is no universal solution to the challenges of the future workplace, research suggests that a blanket return to office settings is not the answer.

Attracting and retaining top talent

We live in an employee-centric era, where individuals confidently express their desires and requirements to their employers. This includes seeking opportunities for learning and development in areas crucial for career development, such as adapting to the rapid evolution of AI and advocating for more flexible work arrangements that cater to their personal lives, whether that involves childcare responsibilities or caring for elderly or ill family members.

High-performing employees often see strict attendance policies as a lack of trust in their decision-making. Conversely, some may prefer being in the office for a stronger connection to company culture. It’s important to tailor approaches to individual needs.

Research involving 137 S&P 500 companies indicates that return-to-office (RTO) mandates are more common in firms with poor stock performance and do not boost employee satisfaction or business outcomes. Glassdoor data shows that such mandates lower job satisfaction, work-life balance, and retention of senior management, with no significant effect on profitability or stock returns.

Expanding the talent pool beyond a 30-mile radius can enhance a business’s growth. Allowing employees to choose where and when they work not only attracts top talent but also boosts productivity, loyalty, and job satisfaction.

For recruiters, understanding what job seekers value in new roles is essential. Collaborating with business leaders to offer flexible work policies can be a strong recruitment tool, giving employees the autonomy to manage their schedules effectively.

See also: Remote Work Enablement: A Guide for Global Teams

Supporting local economies

As hybrid work settings become more prevalent, we anticipate a positive impact on local economies, particularly in smaller towns and villages. Many communities across the UK have experienced significant regeneration and development, leading to new homes, job opportunities, coworking spaces, improved transport links, and green areas. This shift comes as many individuals chose to move away from city centers during the COVID-19 pandemic.

Through hybrid work models, businesses can support local economies while expanding their talent pools. By tapping into talent outside major urban centers, companies can help reduce economic concentration in metropolitan areas, promote regional development, and bolster small businesses in local communities, particularly on remote workdays.

Additionally, recent research indicates that flexible working arrangements encourage more mothers to enter and remain in the workforce. Specifically, a 10% increase in remote work correlates with a 1% rise in employment among mothers, ultimately driving faster economic growth by enhancing labor supply and creating more diverse recruitment opportunities.

See also: The Rise of Hybrid Work: From Office to Total Flexibility

The future of work

As organizations plan for the future of work, it’s essential to shift away from one-size-fits-all solutions in favor of flexibility and adaptability. Rigid office norms are being replaced by a dynamic work environment that allows employees the freedom to choose how, when, and where they work. Companies that embrace this mindset can attract top talent, foster innovation, and drive sustainable growth.

See also: Global Work and How Jobs are Changing: Policy Summit Insights

Jump into the global talent pool with Deel

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

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This article was originally published on Future of Work: Embracing Flexibility Over Office Returns