Businesses shift back to on-site working

Nearly half of firms expect staff to be fully in the workplace within the next year, but attitudes vary sharply between sectors, according to new BCC research

Over two-fifths (41 per cent) of businesses have increased requirements for staff to work on site over the past year, according to new research by the British Chambers of Commerce (BCC).

While most firms (67 per cent) requiring on-site working say it has not affected recruitment or retention, almost one in 10 (9 per cent) have seen employees leave as a result. Looking ahead, nearly half (48 per cent) of businesses expect all working days to be on site over the next 12 months.

The survey, conducted online earlier this year, gathered responses from 583 businesses. SMEs (fewer than 250 employees) made up 94 per cent of participants.

The data highlights clear differences between sectors. Manufacturers (62 per cent) and business-to-consumer (B2C) firms (61 per cent) are most likely to expect staff to be fully on site in the coming year. By contrast, fewer than a third (27 per cent) of business-to-business (B2B) service firms say they will require all working days to be in person.

Views also differ on the impact of remote or hybrid working on productivity. Half of manufacturers (49 per cent) say it decreases productivity, compared with 41 per cent of all firms. In contrast, a quarter (25 per cent) of B2B service firms believe it boosts productivity, compared with 17 per cent across all businesses.

This marks a notable change in attitudes. In 2023, BCC polling found that just 27 per cent of businesses expected to be fully on site within the next five years.

Jane Gratton, Director of Public Policy at the British Chambers of Commerce, 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 both employers and staff. But it does not suit everyone and, for some firms, a full on-site model may be the best solution.

“With the cost of doing business continuing to escalate, firms are looking for ways to boost productivity. Hybrid working can help attract and retain skilled, engaged staff. However, some employers are identifying significant benefits in bringing all staff back on site.

“How and where people work is likely to continue evolving in the years ahead. A flexible approach makes good business sense but, to drive growth, managers also need the freedom to decide what works best for their business.”