Nearly half of UK businesses now expect staff to return to the workplace full-time within the next year, according to new research, with one in 10 firms reporting employee resignations in response to tighter attendance rules.
The findings, published this week by the British Chambers of Commerce (BCC), offer one of the clearest indications yet that attitudes to hybrid working are shifting, although not uniformly across sectors. Of the 583 businesses surveyed, 41% said they had increased their requirements for onsite work over the past year.
While most said the changes had not affected recruitment or retention, 9% of those who had made the shift reported that employees had quit as a result.
A total of 48% of all businesses expect employees to be onsite for every working day over the next 12 months. This marks a significant change from just two years ago, when BCC polling in 2023 found only 27% of firms expected to be fully in-person over a five-year horizon.
Sector split reveals differing priorities
The return-to-office trend is being driven by particular industries, most notably manufacturing and consumer-facing services. Nearly two-thirds of manufacturers (62%) and 61% of business-to-consumer companies say they expect all working days to be spent onsite over the next year. By contrast, just 27% of business-to-business service firms plan to do the same.
This divergence reflects both operational realities and differing views on productivity. Half of manufacturers (49%) said they believe remote or hybrid working reduces productivity. Only 9% of manufacturers reported a positive impact. Among B2B service providers, 25% said productivity improves under flexible arrangements, compared with 17% across all firms.
The mixed responses reflect ongoing uncertainty around the business case for hybrid working and its long-term role in UK employment models.
Employee impact and the retention question
Although the proportion of firms experiencing staff resignations due to return-to-office policies remains relatively small, the findings suggest that a segment of the workforce is unwilling to accept the loss of flexibility gained during the pandemic. With labour markets still tight in many sectors, even small increases in attrition can present challenges for HR teams seeking to maintain continuity and talent pipelines.
While 67% of firms requiring onsite working said they had not seen any impact on recruitment or retention, the 9% reporting resignations represents a notable minority. It also raises questions about whether more exits are going unreported or will emerge as policies become stricter.
Jane Gratton, director of public policy at the BCC, said the current shift in employer expectations was not without nuance.
“We’re seeing a clear shift towards more firms requiring full on-site working, but it’s by no means a uniform picture,” she said. “The trend is being led by manufacturers and consumer-facing businesses, while around two thirds of B2B service firms continue to operate hybrid models.”
Gratton added that while hybrid working had become embedded in many organisations, it was not always the best fit for every business.
“Hybrid working has become a fixture of modern working life since the pandemic and is valued by employers and their workforce. But it doesn’t suit everyone and, for some firms, a full onsite model may be the best solution for the business.”
HR considerations: beyond blanket mandates
The findings present both a caution and an opportunity for HR professionals. While some firms may benefit from the cohesion and oversight of in-person working, blanket mandates risk undermining morale or prompting unnecessary turnover, especially where hybrid arrangements remain viable.
The BCC emphasised that productivity remains central to employer decision-making, particularly in the face of rising costs.
“With the cost of doing business continuing to escalate, firms are looking to boost productivity,” Gratton said. “Hybrid working can help firms attract and retain a skilled and engaged workforce. However, some employers are identifying significant benefits of bringing all staff together again onsite.”
Employers cited benefits such as improved collaboration, faster decision-making and better support for younger or less experienced staff who may rely on informal learning from more senior colleagues.
But Gratton acknowledged that workforce strategies would likely continue to evolve. “How and where people work is likely to continue to evolve in the years ahead. A flexible working approach makes good business sense but, to drive economic growth, managers also need the flexibility to do what’s right for their business.”
Implications for policy and practice
The report comes amid wider debate about the future of work and the balance between employer control and employee choice. The legal framework is also evolving. New flexible working legislation introduced by the Labour government requires employers to accept flexible working requests unless it is “not reasonably feasible,” and to provide clear justification for any refusal.
HR leaders are now navigating a more complex landscape in which operational demands, employee expectations and compliance duties must all be weighed. Sector differences suggest there is no one-size-fits-all solution, say experts, and careful communication around the rationale for in-person requirements will be essential.
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
