Fewer than one in six employees have bonus packages tied to office attendance, with business leaders warning that linking rewards to in-person mandates could damage retention and morale, according to new research.
A study of senior business leaders and employees found that organisations continue to prioritise results over physical presence when setting criteria for bonuses and key performance indicators (KPIs). Performance and business growth lead the way, with delivering high-quality work (59%), meeting or exceeding performance targets (46%) and bringing in new business or client growth (35%) ranking highest among factors used to measure success.
Other aspects such as effective communication with colleagues (32%), building strong team relationships (29%) and demonstrating leadership or initiative (28%) were also cited by leaders as important, reflecting the wider focus on collaboration and performance rather than location.
The findings suggest that productivity and contribution remain at the core of bonus eligibility, with attendance in the office playing only a marginal role.
Few employers tie rewards to attendance
The research, commissioned by International Workplace Group (IWG), a flexible workspace provider, shows that just 14% of employees currently have bonuses linked to mandatory office attendance. Only 7% of employees surveyed said they believed this should be the case.
Meanwhile, 81% of business leaders said tying rewards to in-person presence could increase turnover. In practice, most organisations are already distancing rewards from physical attendance, with 86% of employees reporting no formal policy that connects office days with bonus eligibility.
The data indicates that firms increasingly see inflexible attendance rules as counterproductive, at a time when flexibility is viewed by many employees as a core part of wellbeing.
Hybrid work seen as a driver of performance
Hybrid arrangements were found to have a positive effect on both employee outcomes and organisational performance. Some 88% of leaders said flexible working had a positive impact on employees’ ability to achieve bonuses, KPIs, and measurable outputs.
IWG pointed to earlier research carried out with workplace consultancy Arup which found flexible working arrangements can boost productivity by up to 11%. Employees using flexible workspaces reported “excellent” productivity 67% more often than those working only from home.
The study also showed how the time saved from commuting can be reinvested. Up to 40% of reclaimed commuting time was spent on productive work, with the remainder often directed towards personal wellbeing and recovery.
Flexible working ‘drives productivity’
“Our latest research reinforces what we’ve long observed: flexible working and local office access drive productivity, engagement and retention,” IWG founder and CEO Mark Dixon said. Employees who can work closer to home in well-equipped spaces are more focused, less distracted, and more productive.”
“The office isn’t dead; it has just moved closer to where people live. Businesses that embrace hybrid working and allow employees the autonomy to choose the workspace that works best for them will unlock substantial value for both their teams and the wider economy. Companies adopting this approach are already seeing record demand for local, flexible workspaces.”
Performance-based rewards
The latest findings are based on two separate surveys: research among 259 high-level decision makers at hybrid businesses in the UK in July 2025 by Mortar Research, and a survey of 2,105 respondents in the UK in August 2025 by pollster Savanta.
The data adds to a growing body of evidence that mandatory attendance policies, particularly when linked to pay or bonuses, risk undermining staff motivation and retention. Linking rewards to office presence not only appears to have little support among employees but is also regarded by most leaders as detrimental to business outcomes.
For HR teams, the results underline the need to design reward and recognition systems that reflect performance, collaboration and client growth rather than hours spent at a desk. As hybrid and flexible models become embedded across UK workplaces, organisations may face increasing pressure to ensure that their incentive structures match the expectations of a workforce that values autonomy and output.
The research also suggests that hybrid working is no longer seen as a trade-off but as a contributor to improved results. With most leaders saying flexible arrangements enhance employees’ ability to meet targets and achieve bonuses, the practice is likely to remain central to workforce strategies.
