The cost of living crisis is reshaping workplace dynamics, with many employees seeking ways to cut expenses and manage financial pressures. While remote work has been a lifeline for many, the rising costs of energy, food, and other essentials are making office work seem more appealing to some. For instance, the warmth and amenities provided in office spaces – such as heating, refreshments, and technology – can help employees reduce household expenses.
Additionally, offices can offer a structured environment that alleviates the financial strain of maintaining a home workspace. A return to the office is not without challenges, however, as commuting costs and personal responsibilities may outweigh these benefits for certain workers.
Employers must tread carefully when considering where employees will work. Heavy-handed mandates risk alienating staff, while thoughtful approaches prioritising flexibility and sensitivity to individual circumstances can promote trust and satisfaction. By addressing these financial pressures proactively, employers can create appealing office or hybrid work arrangements that align with employee needs during challenging times.
Here are some key ways a cost of living crisis might influence preferences for office or hybrid work and how employers can respond sensitively:
1. Reducing Household Costs
With energy prices soaring, working from the office can help employees save on heating and electricity bills at home.
Employees working from home often bear the cost of maintaining high-speed internet and other tech essentials. Employers could alleviate this by providing stipends or ensuring robust office setups. For example:
- Energy Stipends: A contribution toward increased home energy costs for remote workers.
- Technology Stipends: Funds to help employees maintain or upgrade their home office equipment, such as internet, desks, or ergonomic chairs.
- Ensuring Robust Office Setups: Employers can make the physical office environment more appealing and cost-effective for employees by creating comfortable and collaborative workspaces that enhance productivity and reduce the need for employees to invest in similar setups at home.
2. Balancing Commuting Costs
While some employees may save on household expenses by working in the office, others face high commuting costs that outweigh these savings. Employers can:
- Offer commuter subsidies or discounted travel passes.
- Implement flexible start times to allow staff to use cheaper off-peak travel options.
3. Supporting Financial Well-being
Employers can introduce programs like on-demand pay systems, allowing employees to access earned wages before payday, reducing financial stress. Providing financial planning resources or workshops can help employees better manage their budgets during challenging times.
4. Hybrid Work as a Cost-Saving Solution
Hybrid work offers flexibility that allows employees to optimise their schedules. By alternating between home and office, workers can reduce commuting frequency and benefit from office amenities.
Employers should ensure hybrid arrangements are equitable, offering support for remote and in-office workers to avoid socio-economic divides.
5. Making hybrid work
With employers struggling to fill positions, it’s crucial that your employee offering provides the flexibility that candidates are demanding. It’s time to nail down how hybrid working works in your organisation, and then make sure you practice what you preach. It’s one thing saying employees have a choice in when and where they work, but are you making it easy for them to step into the work conditions that suit them best?
One way of doing that is to put together a hybrid playbook. When most of your work is asynchronous and remote, it’s helpful (if not essential) that you get clear on when and why teams come together. Make expectations transparent and come up with team-level agreements.
This will help create an enticing, flexible working offer for new candidates.
6. Why flexibility matters (and trust us, it does)
According to the Flexa Working Index, the number of job ads offering “a little flexibility” around working hours increased by 216% between June 2023 and June 2024. In June 2024, 79% of job postings mentioned flexibility, compared to just 25% a year earlier. This significant rise highlights the growing emphasis employers are placing on flexible work arrangements to attract talent in a competitive market.
Data from CV Genius reveals that 71% of UK workers deem flexible working hours important or very important when considering employment options. This sentiment is particularly strong among younger generations, with 80% of Gen Z and 77% of Millennials indicating that flexible hours significantly influence their decision to join a company.
Embedded TAs who live and breathe your culture
A strong employee value proposition is essential – but it’s only effective if the right candidates hear about it. Standing out as an employer of choice requires more than great perks and policies. It demands authentic storytelling and a deep understanding of what makes your company unique.
So, to attract great candidates, you need them to know that you’re worth working for. When we work with you, we fully embed as part of your company. We embrace your business brands as our own and, by doing so, are perfectly placed to promote you to candidates and find individuals who resonate with your values and ways of working. We’ll live and breathe your company values and culture and have innovative ways to access previously untapped talent.
“When you need extra support, Recruiter on Demand steps easily into the mix – like having a new member of your team. Because we work as part of your company, rather than on your behalf, we’re able to truly showcase your brand, quickly building rapport with candidates who share your ethos and want the flexibility you’re able to offer.”
~ James Chapman, Director of RoD.
Find out about our embedded expert recruiters and how they can showcase your work culture.