Urbanite Advisors published their report from their survey on the impact of hybrid work. Here are some key outcomes:
1️⃣ Return to Office (RTO) Trends: 🏢
RTO rates have stabilized at 38% for 18 months.
Sectors exhibit varying RTO rates, with an average of 38% compared to pre-pandemic levels of around 60%.
2️⃣ Discrepancy Between Policy and Reality: 📜👷🏼
Employees return on average 1.9 days a week versus an expected 2.5 days.
Some sectors experience a larger gap between policy and reality.
3️⃣ Remote Working Allowance: 👩🏼💻🏡
Remote allowance slightly increases, with an average of 2.5 days compared to 2.4 days last year.
More companies offer 4 to 5 days of remote work.
4️⃣ Office Footprint Reduction: 🏬📉
Reductions range between 7% and 25%, driven by sector-specific RTO rates.
Sectors with lower RTO rates plan higher space reduction, e.g., Financial Services and Technology sectors.
5️⃣ Expanded Recruitment Strategies: 🤝📈
Over half of respondents widen recruitment strategies to new geographies, especially in Financial Services.
Increased remote job postings contribute to the trend
6️⃣ Corporate Re-Urbanization: 🌆🏙
24% plan relocation to central locations, contrasting with only 3% for decentralization.
This trend indicates a shift towards urban hubs.
7️⃣ Lease Term Flexibility:
The average lease term is expected to be 4 years, with only 10% aiming for over 5 years.
Companies seek flexibility from landlords.
🌐 Hybrid Policy Trends 🏢
The share of companies with announced hybrid policies remains stable.
Remote allowance trend towards 3-5 days increases.
🌍 Place of Work Preferences 🏠
Companies allowing working from abroad permanently: 6%.
Working from abroad temporarily: 31%.
Working from other existing offices: 41%.
Working from coworking & flex spaces: 38%.
🔍 Correlation Between Footprint Reduction & RTO Rates 📉
A clear correlation was observed between Footprint Reduction and RTO rates.
🎯 Recruitment Strategy Adaptations 🌱
Over half of respondents adjusted recruitment strategies to reach new talent pools in different geographies.
The increase in homeworking has some implications. It might be an opportunity to reduce your office footprint, adapt policies or even move to a new location.
Accessibility and mobility are key and need to be assessed upfront. Do you need help to do that? Just ask us.