Investment in hybrid working is rewarding UK businesses, with many organisations experiencing increased revenue, productivity and employee satisfaction as a result, according to new research released by ISG.
ISG’s second ‘The power of place’ report, conducted by the Centre for Economics and Business Research (CEBR), found that investment in a combination of remote working and improvements to workspaces is associated with revenue growth of 18.7%. By contrast, those that failed to invest in this manner saw revenue fall as employees adapted to the post-pandemic world.
The report, based on a survey of over 1,300 employers, employees, and investors found that, as well as the beneficial impact on financial results, this investment in adapting to the ‘new normal’ has been found to benefit both recruitment and retention. Almost half (48%) of businesses that made improvements to their workspaces agreed that it had made staff recruitment ‘easy’. Among existing employees, those who rated their workspace condition as poor or very poor were over three times as likely to consider leaving their company than those who rated their workspace as good or excellent (6% vs 21%). With companies in the midst of the ‘Great Resignation’, this highlights the competitive advantage that is created when organisations choose to invest in hybrid working.
Commenting on these results, Matt Blowers, CEO at ISG, said: “Our latest ‘The power of place’ report confirms that any predictions of ‘the death of the office’ were misplaced. While the pandemic saw significant disruption to our ways of working, physical workspaces remain critical. It has enhanced business revenue and productivity by serving our needs to collaborate and socialise in person, giving employees pride in their organisation. Furthermore, the research shows the significant opportunity cost of standing still and not meeting the needs of the hybrid worker. It is vital that organisations invest in their workspace to entice employees back into the office and unlock the full potential of their businesses.”
ISG has recently led on the construction of Legal and General’s new office in Cardiff. Commenting further on the importance of workplaces, Heather Andrews, L&G’s Director of Employee Experience said: “At L&G, we see the future of work as more than a hybrid policy. We’re investing in our workplaces to give our people the best experience when they’re in the office, as well as the technology to help them stay connected when they’re not. The investment we’ve made in our Cardiff office is a great example of this. With a focus on sustainability, wellbeing and workplace experience, our new home in The Interchange will help us retain and attract the best talent and set us apart from competitors.”
Further to the main findings on business impact, the report uncovered that, in March 2022, just over one in 10 (12%) people exclusively worked from home. When asked why they would prefer not to work remotely full-time, two-fifths (42%) felt it damaged their sense of teamwork, over a third (34%) said being in the office helped establish a work/life distinction, and almost a fifth (19%) commented that they became too distracted while working from home.
Other key findings of the report include:
- Seven in 10 (69%) businesses experienced an increase in productivity following workplace investment.
- Employee headcount grew by 13% following workplace investment, compared to a 6% reduction for those that did not.
- A majority (55%) of employees do not want to work from home permanently.
- Work-life balance (74%) and travel savings (67%) are the primary perceived benefits for working remotely.
- Over three quarters (77%) of employees feel proud of their organisation if there is a good office workspace condition.
To see the full The power of place: The true cost of inaction report, visit https://www.isgltd.com/en/campaigns/the-power-of-place-2022