A growing number of UK businesses are losing employees to organisations offering more flexible working arrangements, according to a newly released report from Remote, a global HR platform for distributed workforces.
The 2024 Global Workforce Report reveals that 72 percent of hiring leaders in the UK have seen staff leave for companies with flexible working options, such as remote work and flexible hours, over the past six months. Also, 84 percent of UK businesses report increasing employee demand for more flexibility.
The report, based on a survey of over 4,000 business leaders across 10 countries, including 500 from the UK, shows that flexible work models are fueling business growth. In the UK, 81 percent of companies have expanded their workforce over the past year, with similar growth reported in the U.S. (72%) and Germany (86%). Companies that offer hybrid working arrangements are hiring at a faster rate, with 87 percent of hybrid businesses actively recruiting, compared to 82 percent of those requiring office-based work.
Flexible Work Boosts Productivity
As companies compete for top talent, those offering flexible work arrangements are seeing clear benefits. Office-based businesses report greater difficulty in finding skilled candidates, with 43 percent struggling to recruit, compared to just 33 percent of remote-first companies. Remote businesses are also experiencing lower employee turnover (30%) and an expanded talent pool (28%) due to their flexible models.
Beyond talent retention, companies operating remotely are benefiting from increased productivity (38%) and improved business performance (32%). These findings contrast with the stance of some high-profile firms that have reintroduced in-office mandates, citing concerns about productivity.
Employee well-being is another key factor driving the shift to flexible work. The report highlights that 40 percent of businesses believe remote working improves employee satisfaction, while another 40 percent emphasise its importance in achieving a better work-life balance.
Challenges of Remote Work
While the benefits of flexible work are clear, businesses still face hurdles in managing distributed teams. Among the challenges cited are compliance with international labor laws (65%), managing remote teams (80%), and higher technology costs (79%). However, 72 percent of companies adopting remote or hybrid models have successfully reduced their office space.
“We’re just beginning to write the playbook on remote work,” said Job van der Voort, CEO and co-founder of Remote. “The benefits of flexible work far outweigh the challenges, and we believe distributed work is leading to a more balanced and fair business environment.”
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.
