Almost one in ten UK businesses has lost staff in the past year after requiring them to return to the office, as tensions mount between employers’ productivity expectations and workers’ demand for flexibility.
New research from the British Chambers of Commerce (BCC) shows that 9 per cent of firms have seen employees resign due to the removal of remote working options, while nearly half (48%) expect staff to return to the office full-time within the next year.
The survey, conducted among 583 businesses between April and May, reveals a growing divide in attitudes towards flexible working as companies seek to drive productivity gains in the face of rising employment costs.
“In some cases, firms are saying we need to bring people back to the office to reach the levels we want to achieve,” said Jane Gratton, Director of Public Policy at the BCC.
She added that changes in the October Budget, including higher employer National Insurance contributions, have led businesses to re-evaluate their operations — with some questioning whether home working is delivering value.
According to the BCC, 41 per cent of employers believe that remote working reduces productivity. This sentiment is particularly strong among manufacturers and customer-facing sectors, which have traditionally required more on-site presence.
Gratton noted that some employers have found fully remote roles less effective — both for business performance and employee wellbeing. Concerns include reduced knowledge-sharing, less effective collaboration, and limited opportunities for junior staff to learn through shadowing.
“We’re seeing a clear shift towards more firms requiring full onsite working,” Gratton said, “but it’s by no means a uniform picture.”
Many businesses continue to embrace hybrid or flexible arrangements, such as adjusted working hours or job shares, which offer compromise solutions between employee autonomy and operational oversight.
The debate comes as Angela Rayner, Deputy Prime Minister and Secretary of State for Levelling Up, has led reforms to workers’ rights, including a new legal framework that gives employees the right to request flexible working from day one.
Under the new rules, employers must grant requests unless it is “not reasonably feasible”, and must provide clear justification for refusals.
Ministers have defended the policy, insisting that flexible working supports staff retention, productivity and business resilience, while offering better work-life balance and reduced stress for employees.
However, critics argue the reforms come at a challenging time for employers, who are already grappling with increased tax burdens and economic uncertainty.
The BCC said that the pandemic has permanently reshaped workplace norms, but businesses are still learning how to strike the right balance.
“It’s taken time for businesses to assess the impact of those working patterns,” Gratton said. “Not all roles are suited to remote delivery, and the shift back towards office-based models reflects both operational needs and the evolving expectations of employers.”
A government spokesperson said: “Flexible working can help people achieve a better work-life balance, which can lead to healthier and more productive employees, and that’s why we’ve committed to this through our Employment Rights Bill.
Flexible working extends beyond just home or hybrid arrangements — it’s about creating options that work for both the business and the individual.”
In 2023, a similar BCC survey found that less than 30 per cent of businesses expected their workforce to return to full-time office work within five years — highlighting just how rapidly employer expectations are now shifting.
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One in ten businesses lose staff over office return demands, BCC finds