One in ten (9%) small and medium-sized businesses say employees have left because of a requirement to return to onsite working, according to research.

A survey by the British Chambers of Commerce (BCC) also found that 41% of businesses have increased their requirement for onsite working over the past year, and 48% expect all working days for staff to be on site during the next 12 months

Nearly two-thirds of manufacturers (62%) and business-to-consumer companies (61%) said that all working days will be onsite, compared with just 27% of business-to-business firms.

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Jane Gratton, BCC director of public policy, said: “We’re seeing a clear shift towards more firms requiring full on-site working, but it’s by no means a uniform picture.

“The trend is being led by manufacturers and consumer-facing businesses, while around two-thirds of B2B service firms continue to operate hybrid models.

“Hybrid working has become a fixture of modern working life since the pandemic and is valued by employers and their workforce. But it does not suit everyone and, for some firms, a full onsite model may be the best solution for the business.”

Nearly 600 businesses took part in the online research, carried out in April and May, 94% of which were SMEs with fewer than 250 employees.

Half of manufacturers (49%) thought remote or hybrid working decreases productivity, while only 9% thought it increases it.

While most firms (67%) that require onsite working said it had not impacted recruitment or retention, 9% had seen staff leave in response.

Gratton added: “With the cost of doing business continuing to escalate, firms are looking to boost productivity. 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.

“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.”

This new data marks a shift in attitudes. Previous polling by BCC in 2023, found that just 27% of responding firms predicted their staff would be fully in-person over the next five years.

 

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