Key points
- Big businesses are increasingly pushing for full time in the office, with some even tracking staff.
- Small businesses may feel the pressure to make similar changes.
- Leaders should consider their options carefully to avoid losing employee trust.
- Striking a balance between business goals and employee wellbeing is crucial.
In the UK, many companies shifted to a hybrid working model following the COVID-19 pandemic, a move which was welcomed by employees. Now, this is starting to change with recent data from Virgin Media O2 finding that 40 per cent of firms now require staff to come into the office every day.
The largest companies are leading the trend. In September, Amazon announced that its hybrid work policy will end for employees from January, and they will all be expected to be back in the office five days a week.
Around the same time, PwC announced that it will start monitoring location data to track how often employees work from home, as part of their shift to more hours in the office. This follows a similar move earlier this year by EY, which now uses reviewing swipe-cards to tracking how often staff were working in the office.
What will be the impact of the trend on employees?
Large companies like Amazon, Tesla, PwC and EY that employ thousands of people have shaped their communications about returning to the office around needs for increased face-to-face collaboration, financial efficiency and maintaining productivity.
For Cognexo CEO Dan Buckley, however, employees in hybrid work environments are often more productive because more flexibility improves their wellbeing and work-life balance. Indeed, a study from Mortar Research found that 74 per cent of hybrid workers felt they were more productive and 76 per cent more motivated because of splitting their time between the office and home.
Buckley adds that monitoring staff alongside a forced return to the office can lead to a sense of distrust and diminished morale. He says it’s “bound to make employees feel anxious, to a point where they are more likely to make mistakes or ‘check out’ mentally.”
What does this mean for small businesses?
The stricter stance from larger corporations is likely to have a knock-on effect on small businesses, whose leaders may feel pressure to follow suit.
Sehaam Cyrene, Coach-Leadership Advocate at Coach/Lead, says that the drive to return people to the office may strengthen the case for those businesses who are struggling with operational and commercial aspects of remote working such as productivity or teamwork and culture.
However, Cyrene advises companies to avoid blindly following larger businesses. Instead, they should consider factors like remote management effectiveness, cost and efficiency gains, technology integration, cultural health and access to broader talent before deciding on their work model.
Vicky Walker, Group Director of People, Westfield Health, says that monitoring employees could be a positive move if implemented with a focus on employee engagement and a healthy work-life balance.
However, without clear data supporting the decision—such as evidence that time spent in the office directly improves performance or engagement—employees may question the necessity and fairness of the policy.
What should small businesses do?
Walker says that communications must be handled with care. With location tracking, some employees may feel uncomfortable or distressed which could undermine trust. Feeling micromanaged can significantly impact workplace wellbeing with fears around value, confidence and job satisfaction.
Peter Wood, Chief Technical Officer at Spectrum Search, agrees. Rather than monitoring, he recommends using technologies like project management tools powered by AI and machine learning to flag up potential issues before they become a problem and predict where things might slow down.
He says: “It’s not about spying on people; it’s about using tech to make collaboration easier and keep things running smoothly. Plus, it helps leaders stay connected with their teams, no matter where they’re based.”
Wood adds that regular check-ins that focus on outcomes are also important. He says: “It’s about shifting the mindset from tracking hours to focusing on what’s actually being achieved. SMEs can stay competitive by giving their staff the space to work how they need to, while making sure everyone’s clear on the goals.”
What is the role of accountants?
For many companies, the core of the decision to return to the office full-time is financial – whether it comes down to productivity, client relations or reducing staff turnover. Accountants and finance professionals have a role in helping small business leaders figure out whether full-time office hours make sense.
They can help businesses evaluate the costs of hybrid versus remote work and determine if investing in digital infrastructure is more beneficial than renting office space. Wood says it’s about aligning the numbers with what the business really needs, and making sure a decision to return to the office is cost-effective and based on proper data.
Wood adds that offering opportunities for development through virtual training, encouraging open feedback and celebrating achievements can go a long way. Keeping communication clear, using the right tools, and building trust will create an environment where people feel motivated to do their best.
It’s essential to recognise that large and small businesses operate with fundamentally different structures, meaning what works for one may not be suitable for the other. When considering these decisions, the most important consideration for small business leaders and their accountant advisers is striking a balance between their business goals and employee wellbeing.