A new study by the International Workplace Group (IWG), reveals that companies with strict attendance policies are seeing a rise in employee turnover.
hybrid work is a critical factor in talent retention. It may not come as a surprise, then, that employees are seeking alternative employment opportunities when workplace flexibility is reduced.
IWG’s study of more than 500 recruiters from in-house and agencies found that 2/3 (67%) had noticed a rise in the number of candidates who were looking to leave jobs at companies which required five-day attendance. The lack of hybrid work options is a deal-breaker for candidates. Three quarters (75%) will reject job offers without flexible working arrangements.
This data is coming at a time when some major companies, including PWC Santander and Amazon, are shifting policies to emphasize central office presence. Recruiters claim that this makes firms less competitive on the job market. According to the research, 72 percent recruiters said that companies with hybrid policies struggle to attract top talent.
Burnout and long commutes are among the key concerns
IWG conducted a separate survey of employees to gauge their dissatisfaction over the five-day requirement. Nearly half (46%) of these workers are actively looking for jobs nearer home. Also, 63 per cent of workers in such roles believe that their employers risk losing their best talent.
Major complaints include the high cost of commute (44%) and the time burden (40%), as well as a reduced work-life equilibrium (33%). One fifth (21%) who commute daily to central offices experience burnout. Long commutes are a major factor.
More and more employees are looking for flexible workspaces close to their homes. Over three-quarters of workers (77%) say that having a workspace closer to their home is essential for their next job. Four times as many workers prefer a home-based office to one located in the city centre.
Mark Dixon, CEO of International Workplace Group and founder, stated that “Flexibility for employees is no longer an option.” Many employees will not accept new jobs that require a long commute each day. They want to be able to work in a workspace that is closer to their home and that encourages them to stay motivated.
Trust and Productivity Gaps
Employees believe that employers lack trust in them when they insist on centralised attendance. Only 25% of employees feel that they must be at a central office five days a weeks to perform well. A majority of 55 percent would be empowered to work from different locations.
Productivity data supports the push for flexibility. IWG’s study shows that 75% of CEOs who have adopted hybrid working report increased productivity in their organizations. Stanford professor Nicholas Bloom’s research also showed that hybrid working models improved productivity by 3-4 percent.
Mark Dixon said, “Flexible work offers businesses benefits that go beyond employee retention.” The hybrid model has been proven to increase workforce productivity, job satisfaction and reduce costs. It is no surprise that hybrid working continues to be adopted by more businesses for the long-term, while also giving their employees what they want – to say goodbye the the long daily commute.”
What if the 2025 Reversal is different?
Professor Bloom says that firms who enforce rigid policies of a five-day work week could see their employee turnover rate increase by up to 35 percent. He predicts that many companies, including Amazon and other prominent names, will reverse their mandates in response to the rising attrition.
Dom Ashfield is a SAP Specialist Recruiter for bluewaveSELECT. He said that job seekers are not just interested in a paycheck; they also want to be able to customize their working environment. Employers who do not adjust their policies may find themselves falling behind the competition for talent. Flexible working is not just about the place you work. It’s also about giving employees control over their work and time in a manner that supports both their personal and professional life.
