Commercial Property

London firms are letting more staff work entirely from home

The proportion of white-collar jobs at companies in London that are entirely remote has risen from 18% to 22%, a survey has found

An office rent sign outside a commercial property in London. Photographer: Chris Ratcliffe/Bloomberg

Bloomberg
Wed May 8 2024 - 05:15

London’s employers are letting more staff work entirely from home, according to a prominent recruitment firm, with workers keen to earn the premium paid by jobs in the capital without enduring its high living costs.

The proportion of white-collar jobs at companies in London that are entirely remote has risen from 18 per cent to 22 per cent, a survey by Hays Plc found. That puts London equal with the east of England as the regions where fully remote working is most common.

Firms in the capital are having to fill specialist roles in the tech and compliance sectors, Hays said, which typically come with a smaller pool of candidates. Some job-seekers are reluctant to live in London, where even outer-borough rent prices have soared by double digits.

“If employers can’t fill a position with their usual hybrid framework – over time they will consider remote contracts,” Lorraine Twist, a finance director at Hays, said. “This is obviously attractive for candidates as they can enjoy a London salary without the commute and high property prices.”

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Hays surveyed about 12,000 staff and employers between February 26th and March 18th.

Companies and staff are still grappling to find a balance between in-person and remote work after the Covid pandemic drastically changed habits. The Labour party, which is far ahead in the polls and expected to win a general election later this year, has pledged to make flexible working a right for all employees from their first day in a job.

Separate figures from Reed Recruitment last week showed that job adverts across England were offering less part-time and remote work.

Still, Hays’ findings suggest that parts of Britain’s labour market remain tight, with firms competing for talent even as unemployment starts to pick up. The Bank of England is keeping a close eye on hiring trends and pay growth for signs of lingering inflation.

The proportion of London staff working entirely in the office dropped to 25 per cent from 28 per cent, while hybrid jobs fell one point to 53 per cent, the survey said. Office landlords in the city have already been hit by a mix of flexible working, weak economic conditions and ageing buildings.

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