Return to workplace (RTO) mandates dominated headlines final yr, and lots of of them kicked in in the beginning of this month. However regardless of vocal massive employers decrying distant work, unique Startups information reveals that full-time office-based work continues to be on the decline.
In our annual survey of SMEs, we requested 531 enterprise leaders in the direction of the tip of 2024 about their office mannequin. The outcomes present that, since 2023, the variety of employers who report working in-office 5 days every week has declined from 28% to 19%.
The RTO debate has sowed division amongst staff, who favour house working for work-life steadiness, and leaders, who argue the workplace boosts productiveness. Startups’ information suggests the latter are actually “having their cake and consuming it too”, by embracing hybrid working as an alternative.
Absolutely distant work declines in 2024
2025 marks the beginning of a brand new half-decade. However for a lot of white-collar staff, it is usually the start of the tip for distant work. Giant retailers together with Asda and Boots have referred to as employees again to the office after years of pyjama-clad, at-home Zoom calls.
Amazon is among the many strictest. Final September, it instructed admin employees that they’d be anticipated to work in-office 5 days every week from January 1, though HR bosses have already admitted that there’s not sufficient desk house to accommodate the RTO coverage.
Startups’ survey means that small and medium-sized corporations have additionally embraced the Nice Workplace Migration up to now yr. Between 2023 and 2024, the variety of companies describing themselves as absolutely distant in our survey has halved from 32% to 16%.
Hybrid work wins
Whereas distant work could be falling out of favour, the door hasn’t but swung shut on versatile work for Brits. With each absolutely distant and in-office work fashions declining year-on-year, Startups’ survey means that the massive winner from the RTO has as an alternative been hybrid work.
18% of organisations surveyed by Startups final yr stated they supported a mix of in-office and distant working. In 2024, that determine rose to 26%. This surge in help for hybrid work schedules could possibly be learn as a rejection of the ‘work-at-home / work-in-the-office’ binary.
By encouraging workplace attendance, whereas permitting WFH when obligatory, corporations can steadiness in-person collaboration with the autonomy of distant work; avoiding protests from employees.
BT Group and Asda have upped the variety of days that employees are anticipated to work in-office, quite than demanding a return to the pre-pandemic type of working.
That is doubtless why using coworking areas has additionally surged. We discovered that 12% of SMEs now function from serviced workplaces, up from simply 2% in 2023. Most trendy serviced workplaces now provide versatile contracts, offering a less expensive different to workplace leases for hybrid groups.
Work from wherever on the rise
Our findings additionally point out that Work from Anyplace (WFA) is on the rise. WFA insurance policies are a sort of versatile work settlement the place staff are permitted to work remotely from any location for a set time period.
The identical survey reveals that 8% of companies now provide WFA as a perk, whereas 27% are contemplating it for the brand new yr, up from 11% in 2023.
Of the corporations that plan to introduce WFA subsequent yr, 13% say they’ll permit their staff to turn out to be a digital nomad and work remotely for chosen intervals of time, akin to through the Christmas break or summer season holidays.
These employers seem like utilizing WFA preparations as the same compromise to hybrid working. By sustaining management of the coverage, the enterprise can nonetheless provide this aggressive worker profit with out risking productiveness and teamwork throughout peak enterprise intervals.
Distant work is lifeless. Lengthy reside distant work.
RTO mandates might have roared again in 2024, however the Startups survey paints an image of a office in flux this yr. Tellingly, after we requested SMEs whether or not they deliberate to alter their enterprise mannequin this yr, simply 14% stated no. That’s in comparison with 44% within the yr prior. Hybrid and coworking fashions are booming, whereas the rise of WFA suggests a shift in the direction of location-agnostic work.
The reign of the workplace is definitely not over, however its dominance inside the enterprise world appears significantly smaller amid a sea of versatile work potentialities. With the race for expertise additionally set to warmth up this yr, SMEs should keep adrift of any rising office developments.
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