New research from International Workplace Group (IWG) highlights a growing employee turnover at companies enforcing strict office attendance policies.
With hybrid working a key factor in talent retention, it may be no great surprise that reducing workplace flexibility is pushing employees to seek alternative opportunities.
The IWG study, which surveyed more than 500 in-house and agency recruiters, found that two thirds (67%) of recruiters have noticed an increase in candidates looking to leave roles at companies requiring five-day office attendance. Among candidates, the lack of hybrid working options is a dealbreaker, with three quarters (75%) rejecting job offers that do not include flexible working arrangements.
This data comes as some major companies – including PWC, Santander, and Amazon – shift policies to emphasise central office presence, a move recruiters say is making firms less competitive in the job market. According to the study, 72 percent of recruiters reported that companies without hybrid policies are struggling to attract top talent.
Long Commutes and Burnout Among Key Concerns
Separate research by IWG among employees highlights dissatisfaction with the rigid five-day office requirement. Almost half (46 percent) of workers in such roles are actively seeking jobs closer to home. Additionally, 63 percent believe their current employers are risking the loss of their best talent.
The high cost (44%) and time burden (40%) of commuting are major grievances, along with reduced work-life balance (33%). One in five (21%) of those commuting daily to central offices report experiencing burnout, with long commutes playing a significant role.
Flexible workspaces near employees’ homes are increasingly in demand. More than three quarters (77%) of workers say having a closer workspace is a must-have for their next role. Workers are also four times more likely to prefer an office near their home over one in a city centre.
Mark Dixon, CEO and Founder of International Workplace Group, said, “Flexibility is no longer a nice to have for employees. Many will not consider new roles that require long daily commutes, they want access to workspaces closer to where they live in an environment that allows them to remain motivated and productive.”
Trust and Productivity Gaps
Many employees believe the insistence on centralised office attendance stems from a lack of trust by employers. Only 25 percent feel they need to be in a central location five days a week to perform effectively. In contrast, 55 percent said they would feel more empowered if allowed to work from a variety of locations.
The push for flexibility is supported by productivity data. IWG’s research shows that 75 percent of CEOs who adopted hybrid working reported increased productivity within their organisations. Research from Stanford academic Professor Nicholas Bloom also found a 3-4 percent productivity improvement associated with hybrid models.
Mark Dixon added, “Flexible working offers benefits to businesses far beyond employee retention. The hybrid model is proven to boost workforce productivity and job satisfaction while also cutting costs significantly. It’s no surprise that more and more businesses continue to embrace hybrid working for the long term while giving their employees want they really want – the ability to say goodbye to the long daily commute.”
A 2025 Reversal?
Professor Bloom predicts that companies enforcing rigid five-day office policies could face up to a 35 percent increase in employee turnover rates. He expects many organisations, including prominent names like Amazon, may reverse these mandates by mid-2025 in response to rising attrition.
Dom Ashfield, SAP Specialist Recruiter at bluewaveSELECT, said, “Jobseekers are no longer just looking for a pay check; they want the freedom to shape their work environment. The demand for flexible and hybrid work models is growing rapidly, and employers who don’t adjust their policies risk falling behind in the talent race. Flexibility isn’t just about where you work – it’s about empowering employees to take control of their time and work in a way that supports their personal and professional lives.”
