Employers who offer benefits such as part-time working, flexible hours and remote working are regularly attracting staff from companies with more rigid practices. According to new global research, 72% of hiring leaders in the UK say that their business has lost employees to organisations who are less tied to traditional office hours and locations in the last six months. More than eight in ten (84%) also report an increased demand from employees for more flexibility.
The Global Workforce Report, which is based on an international survey with more than 4,000 business leaders of companies across 10 countries – 500 of whom are based in the UK – delivers a positive view of the current state of UK companies. As many as 81% of companies report having seen their workforce numbers swell over the past year, with similarly notable growth in the USA (72%), and Germany (86%).
Companies that offer hybrid working (as opposed to being solely office-based) are growing the fastest, with over three-quarters (87%) of companies who have adopted this approach currently hiring versus just 82% of office or location-based businesses. The report also reveals that businesses are increasingly relying on flexible work contracts, with one-third (46%) of companies increasing their use of contractors and freelancers.
Flexible work drives productivity and company performance
Amid a fierce competition for talent, 43% of office-based businesses are struggling to find candidates with the right skills, whereas only 33% of remote workplaces are facing this issue. Furthermore, remote businesses also cite reduced employee turnover (30%) and access to an expanded talent pool (28%) and major benefits to operating remotely.
Global workforces are growing quickly, and it is not just people’s desire for better life-work balance driving this growth. Companies are increasingly reaping the business benefits of flexible working models, including expanding their hiring options. The research found that an increase in productivity (38%) and improved business performance (32%) were two primary benefits that respondents attributed to operating remotely. This stands in contrast to the view of some high-profile organisations, who have introduced RTO (Return to Office) practices citing productivity as a reason for their move.
When asked about the impact remote working has on employees, 40% of companies said it increased employee satisfaction and 40% highlighted remote work as being crucial to an enhanced life-work balance for employees.
Writing the playbook on remote work
Despite the many benefits of flexible working for both businesses and employees, it doesn’t come without its challenges. The biggest issues identified within the report were to do with managing compliance issues with international labour laws - 65% of businesses who are operating remotely have faced this in the last six months alone.
Other challenges faced include:
- Managing remote teams (80%)
- Increased costs associated with remote technology implementation (79%)
- Assessing cultural fit of remote candidates (75%)
However, this stands in contrast to almost the same number of companies (72%) who were able to reduce office space due to implementing remote or hybrid models successfully.
“We have only just begun writing the playbook on remote work and will need to work together to identify and tackle these challenges,” explains Job van der Voort, CEO and co-founder at Remote. “This data echoes what we hear from many of our customers – the benefits of flexible and remote work far exceed the challenges. We believe that distributed work is paving the way to a more successful, balanced and fair business world and are committed to helping other companies in adopting flexible work and attract great talent from everywhere.”
Remote Workforce Report here.
