Office return mandates trigger mass employee resignations: IWG
ZUG, SWITZERLAND — A surge in job applications is hitting recruitment agencies as workers flee companies enforcing strict return-to-office mandates.
A survey of 500 recruiters by flexible workspace provider International Workspace Group (IWG) reveals two-thirds of recruiters report increased interest from employees at firms demanding full-time office attendance.
The hybrid work dilemma
The resistance to office-centric policies is evident in recruitment patterns. Seventy-five percent of recruiters noted that candidates are rejecting roles that fail to offer hybrid working arrangements, with 72% saying such companies are losing their competitive edge in the talent market.
Stricter rules, rising resignations
Amazon has ordered employees back to the office full-time starting in January, while other firms like Dell, Santander, and PwC are tightening hybrid work options.
Meanwhile, The Guardian reported that Starling Bank’s call for hybrid workers to spend a minimum of 10 days per month at the office led to resignations, with reports of overcrowded offices compounding employee frustrations.
According to separate IWG research, 36% of white-collar employees required to work five days in the office feel their companies risk losing top talent. Nearly half (46%) of the 1,000 surveyed in September are actively seeking jobs offering greater flexibility and shorter commutes.
Future of flexibility
“The hybrid model is proven to boost workforce productivity and job satisfaction while also cutting costs significantly,” notes Mark Dixon, IWG’s chief executive.
Additionally, Stanford University professor Nicholas Bloom predicts that some companies may need to reverse their return-to-office mandates in the coming year if they experience a significant exodus of talent.
He also explains that hybrid work helps companies save millions of dollars through reduced recruitment and retention costs. Having employees in the office three days a week appears to maintain productivity while substantially lowering quit rates, potentially saving around 5% on wage bills for large companies.
Dr. Molly Sands, head of the Atlassian Teamwork Lab, emphasizes the importance of intentional flexible work plans.
Her research indicates that distributed teams often excel at asynchronous work, while intentional in-person gatherings (approximately three times per year) can effectively boost team connection and productivity.
Sands also stresses that flexibility remains crucial for attracting and retaining top talent.
