According to a survey conducted by prominent recruitment company, Hays Plc, more businesses in London are allowing their employees to work completely from home. This shift is driven by employees’ eagerness to earn London salaries without bearing the city’s increased living expenses. The percentage of white-collar positions that are purely remote in London’s companies has elevated from 18% to 22%, putting London on par with the east of England for the highest prevalence of fully remote work.
Filling specialist positions within tech and compliance fields has become a challenge for London-based companies, as highlighted by Hays, due to the limited candidate pool. Moreover, the skyrocketing rent prices, even in the city’s outer boroughs, discourage job seekers from moving to London. According to Lorraine Twist, a finance director at Hays, employers are likely to consider remote contracts if they are unable to fill a role under traditional hybrid working arrangements. This is thereby attractive for candidates, enabling them to benefit from a London salary without the commuting costs and high property prices.
To gather this data, Hays surveyed approximately 12,000 employees and employers from late February until mid-March. The Covid pandemic has significantly altered work habits and companies are still struggling to establish a balance between remote and in-person work. Ahead in the polls and predicted to succeed in the upcoming general election, the Labour party has pledged to ensure flexible working is a right provided to all employees from their first day.
In contrast, Reed Recruitment’s data showed a drop in part-time and remote work job adverts across England. Despite this, Hays’ findings propose that segments of Britain’s job market still remain competitive, with companies battling to secure talent despite rising unemployment rates. The Bank of England is closely monitoring hiring trends and wage growth for any indication of persistent inflation.
The survey also reported a drop in the percentage of London employees working entirely in an office environment, from 28% to 25%, while hybrid roles decreased by one point to 53%. Flexible working conditions, weak economic situation and ageing infrastructures have already impacted office landlords in the city.