Remote working: The ‘in person premium’

James Reed examines the impact of returning to work mandates on career advancement and business success.

In just a few short days, more than 15 000 signatures were collected on a petition urging WPP to rescind its new policy. The company had announced that it would force its 100,000 employees to work four days per week. Around 4,000 members from the Public and Commercial Services union announced industrial action as well after the staff was ordered to return to work for three days per week.

Amazon announced earlier in the month that it required employees to return to work full-time. JPMorgan Chase followed suit a few days after, announcing its intention to call staff back to their offices five days a weeks starting March. This is just a small sample of some of the major corporations that have decided to put an end to the hybrid and remote working era introduced by Covid-19.

A growing demand

The debate about remote work, its pros and cons, and whether it’s for employers, employees or customers, is not going away.

Reed predicted at the beginning of 2024 that employers would demand more days in the workplace and reward the “in-person premium”. Reed manages millions of job vacancies every year, so we can see trends and developments on the jobs market in real time.

The mandates for return to office have gained momentum. Recent research has shown that employers want to see employees back at work more often. Those who are more willing to be present are more likely to advance in their career.

Promotion and progression

A Reed survey of more than 170,000 people from 251 companies revealed that 68% believed in-office employees are more likely advance. This means they are more inclined to be promoted, and more inclined to receive a wage increase. This is not surprising, given that it has been five years since widespread remote working was required due to the pandemic. Business life has returned to normal.

The survey highlights the importance of collaboration in person for business success. I recognize the benefits of hybrid or remote work on occasion for specific tasks. Many business leaders have expressed concern that remote work could have negatively affected Britain’s economic growth and productivity. My recommendation is to take a balanced approach. People should prioritize attendance, while still maintaining flexibility in certain remote work activities.

Our recent polling has also brought to light the problem WPP is facing. We polled 2,000 UK employees and 29% of them rejected the notion that spending more time in the office would lead to promotion or advancement. The respondents said that they usually worked three days a week in the office, and preferred to work from home the same amount each week rather than being flexible.

It will be interesting to watch how this plays out in terms strike action and industrial disputes at companies like WPP. Both employers and employees will need to show pragmatism, flexibility, and a willingness to compromise. However, there is no doubt that the return to the pre-Covid way of life means spending most of your time at work.

Employer’s Market

I think the “in-person premium” will be even more important in this year, as companies respond to a slowing job market by making tough decisions about hiring and firing. Reed was the very first to warn about the possibility of a recession. Job vacancies were down by 24% from 2023 last year. Some companies have reportedly ordered people to return to work, calculating that the resignations will be cheaper than making them redundant.

We are already seeing the effects of the Chancellor’s increase in national insurance, which is a job tax. I expect that the market will be dominated by employers and buyers this year. In this tough economic climate, those who are willing to work in the office have the best chances of success. The employers are the ones in control and they will reward those who are flexible with their working hours and penalise others.

It is better to show willingness now than to insist on staying home if your employer asks you to spend more time at the office.

I understand the benefits of working remotely or from home, but offices should be a place where people can come together, interact, exchange ideas, learn and have fun. The nature of people is to talk and socialise. An office should be a place where everyone can focus on the task at hand without distractions. It leads to more productive outcomes, and ultimately, more job satisfaction.

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