Companies that reduce flexibility for their employees are seeing an exodus of their people, say recruiters

Recruiters have reported a talent exodus from companies now offering their employees less flexibility in where they work.

Research among more than 500 in-house and agency recruiters revealed a surge in applications from employees at companies requiring their teams to be in a city centre office five days a week. Two-thirds (67%) had seen an increase in candidates looking for new positions following current employers' mandates requiring them to spend more time at a central office.

The study, undertaken by International Workplace Group, the world’s leading provider of flexible workspace with brands including Regus and Spaces, follows announcements from several companies in recent weeks. Some are doubling down on offering more flexible hybrid policies to cement their positions as attractive employers.

The research demonstrates the growing importance of hybrid working to businesses that want to attract and retain the best talent. Three-quarters (75%) of recruiters said they have had candidates reject job opportunities that don’t offer flexible working, while 72% said firms that don’t offer hybrid working are becoming less competitive in the job market.

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.” ​

Long commutes and lack of flexibility driving exodus

Separate research by International Workplace Group among white collar workers currently in jobs that require them to be in a city centre office five days a week shows the challenges their employers face. Almost half (46%) said they are actively looking for a new job that doesn’t require a long daily commute while almost two thirds (63%) said their employer is risking losing its best talent.

As International Workplace Group’s latest research attests, the significant cost (44%) and time (40%) of commuting are the most common bugbears for not wanting to travel daily to crowded and distant city centre offices, followed by lack of work/life balance (33%). One in five (21%) employees working in a central office five days a week said they experience burnout on a daily basis with long commutes undoubtedly playing a big part in this.

Flexible workspaces closer to where employees live are proving to be an attractive option to many. Three quarters (77%) said a place to work closer to home is a must-have for their next job move, while workers are four times more likely to choose an office close to home, than in a city centre. 

Just a quarter (25%) said they needed to be in a central location five days a week to do their job effectively, while 55% said they would feel empowered in their role if their employers allowed them to work from a variety of locations. Workers are also frustrated with what they perceive as a lack of trust from their employers.

Recent research conducted by IWG among more than 500 business leaders found that three quarters (75%) of CEOs that had moved to the hybrid model reported improved productivity in their organisations, while Professor Bloom’s research reported a 3%-4% increase in productivity.

U-turns predicted in 2025

Additional research by leading Stanford academic Professor Nicholas Bloom found that companies mandating five-day office attendance could face a 35% increase in employee quitting rates. He predicts that some organisations enforcing rigid policies, such as Amazon, may reverse these mandates by mid-2025 due to rising attrition.

Mark Dixon, CEO and Founder of International Workplace Group, said: “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 what they really want - the ability to say goodbye to the long daily commute.”

Dom Ashfield, SAP Specialist Recruiter at bluewaveSELECT, said: "Jobseekers are no longer just looking for a paycheck; 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."

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NOTES TO EDITORS

* Research by Mortar among 500 agency and in-house recruiter participants in November 2024 by Mortar. Mortar is Market Research Society (MRS) accredited and the research adhered to MRS guidelines.

** Research among 1,000 workers that commute daily in September 2024 by Mortar Research.Mortar is Market Research Society (MRS) accredited and the research adhered to MRS guidelines.

***Research among 500 CEO participants in June 2024 by Censuswide. Censuswide is Market Research Society (MRS) accredited and the research adhered to MRS guidelines. ​

****Hybrid Working Calculator Report by International Workplace Group and Development Economics amongst 2,000 office workers paired with publicly available transport data.

*****Nicholas Bloom, Ruobing Han, James Liang. 2022. How Hybrid Working From Home Works Out. https://www.nber.org/system/files/working_papers/w30292/w30292.pdf

About International Workplace Group PLC ​

International Workplace Group is the global leader in hybrid work solutions and workspace brands. We create personal, financial, and strategic value for businesses of every size. From some of the most exciting companies and well-known organisations on the planet, to individuals and the next generation of industry leaders. All of them harness the power of International Workplace Group’s hybrid working platform to increase their productivity, efficiency, agility, and market proximity.

International Workplace Group’s unrivalled network coverage includes approximately 4,000 locations across more than 120 countries and 83% of Fortune 500 companies are amongst our growing customer base.

Through our brands including Regus, Spaces, HQ and Signature, we help millions of people and their businesses to work more productively. We do so by providing the world’s leading hybrid work platform with professional, inspiring and collaborative workspaces and digital services all available via the International Workplace Group’s app.

For more information visit www.iwgplc.com