UK businesses are increasingly losing employees to competitors offering more flexible working arrangements, according to the 2024 Global Workforce Report by Remote, a leading global HR platform for distributed workforces.

The report found that 72 percent of UK hiring leaders say their companies have seen staff leave for organisations offering part-time work, flexible hours, and remote options over the past six months.

The findings underscore a growing demand for flexible work across the country, with 84 percent of UK business leaders reporting heightened employee expectations for flexibility. This shift in workforce preferences reflects a broader global trend as the report, based on a survey of over 4,000 business leaders across 10 countries, highlights.

Flexible Work Drives Growth and Productivity

UK businesses embracing flexible or hybrid work models are seeing significant benefits. According to the report, 81 percent of UK companies reported workforce growth in the past year, while similar expansions were seen in the US (72%) and Germany (86%). Companies offering hybrid work options—where employees split time between the office and remote settings—are growing the fastest, with 87 percent currently hiring, compared to 82 percent of fully office-based businesses.

Additionally, there has been a rise in the use of contractors and freelancers, with 46 percent of companies globally increasing their reliance on flexible work contracts. This trend is allowing companies to better respond to market needs while accessing a broader talent pool.

Remote Work Increases Productivity and Employee Satisfaction

The report emphasises the advantages of flexible work models, especially in the context of the ongoing talent war. Office-based businesses are struggling more to find candidates with the right skills, with 43 percent citing difficulties, compared to only 33 percent of remote-first companies. Moreover, remote businesses are benefiting from reduced employee turnover (30%) and increased access to global talent (28%).

Flexible working is not only helping businesses attract talent but also enhancing operational performance. According to respondents, increased productivity (38%) and improved business outcomes (32%) were major benefits of adopting remote work models. In contrast, companies enforcing Return-to-Office (RTO) policies, citing productivity concerns, may not be aligned with these findings.

On an individual level, 40 percent of companies noted that remote work boosts employee satisfaction and contributes to a better life-work balance.

Challenges in the Remote Work Landscape

Despite the numerous advantages, remote work comes with its own set of challenges. Managing compliance with international labour laws is the top issue, with 65 percent of companies encountering difficulties in the past six months. Other challenges include managing remote teams (80%), the rising costs of implementing remote technology (79%), and assessing the cultural fit of remote candidates (75%).

However, remote work also offers cost-saving opportunities. Some 72 percent of companies reported that adopting remote or hybrid models allowed them to reduce office space, further underscoring the practical benefits of flexible work.

The Future of Flexible Work

“While we are still in the early stages of developing best practices for remote work, the advantages far outweigh the challenges,” said Job van der Voort, CEO and co-founder of Remote. “Our data reflects what we’re hearing from customers: flexible work is reshaping business for the better, enabling companies to access great talent worldwide. We are committed to helping organisations adopt these models and thrive in a more balanced and fair workplace environment.”

The 2024 Global Workforce Report paints a clear picture: flexible work is here to stay, driving both business growth and improved quality of life for employees globally. As companies continue to adapt to this new norm, those that embrace flexibility are best positioned for future success.

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Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.