How Has Working from Home and Hybrid Working Impacted Businesses and Our Attitudes to Work?

Over the past five years, attitudes towards remote and hybrid working have evolved considerably. Prior to 2020, working from home was often viewed as a privilege reserved for certain roles or circumstances. However, the COVID-19 pandemic forced businesses to adopt remote working at scale, proving that productivity could be maintained outside the traditional office environment. As restrictions eased, many organisations embraced hybrid working as a long-term solution, recognising the benefits of increased flexibility, employee wellbeing and access to a wider talent pool. Today, remote and hybrid arrangements are widely expected.

Within this article we look at the changes in working practices within the UK and how this has impacted both individuals and businesses.

Timeline

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Pre-Pandemic (2019)

Before the pandemic, remote working was a rare feature of the UK employment landscape. Only around 12% of UK employees worked remotely at least occasionally and it was largely limited to freelancers, tech companies or specific sectors that allowed for greater flexibility. Most businesses operated on a traditional 9-to-5 schedule, with employees required to be present at physical office locations.

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Pandemic Peak (2020)

The onset of the COVID-19 pandemic in early 2020 forced a dramatic shift in how work was conducted. By April 2020, nearly 50% of the UK workforce was working from home due to government-imposed lockdowns. The transition to remote work was immediate with businesses scrambling to adapt to new restrictions, while employees navigated the challenges of balancing home life and work. In some sectors, up to 60% of the workforce was working remotely –  a drastic departure from pre-pandemic norms.

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Current Landscape (2025)

In 2025, remote and hybrid working models have become permanent fixtures in the UK’s employment landscape. Approximately 13-16% of workers are fully remote, while 25-28% work in a hybrid model, splitting time between home and the office. Hybrid working has proven to be more popular than fully remote work as employees and employers alike realise the value of a flexible approach. Notably, full-time office based roles have seen a sharp decline with many workers opting for greater flexibility in their working hours and location.

Impact on Businesses

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Productivity and Performance

Hybrid and remote working have had a profound impact on employee productivity with most studies indicating that working from home or in a hybrid model has not led to a decline in output. In fact, 52% of business leaders now believe hybrid working is the most supportive environment for employee productivity. Furthermore, 84% of employees report that they get more work done in a hybrid or remote setting compared to working in the office full-time.

Businesses have been able to leverage digital tools, communication platforms and project management software to maintain or even improve productivity. By embracing these tools, organisations have been able to foster efficient collaboration among teams that may not be in the same physical space. In addition, companies have found ways to reduce overhead costs by downsizing office spaces, allowing them to redirect resources to other areas, such as investment in technology or employee benefits.

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Employee Wellbeing and Retention

One of the most significant benefits of hybrid and remote working has been its positive effect on employee wellbeing. 78% of remote workers have reported a better work-life balance, which has had direct implications for job satisfaction and retention. As employees continue to appreciate the flexibility to manage their work alongside personal commitments, hybrid working models have become a critical tool for businesses looking to retain top talent.

Retention rates among hybrid and remote workers are notably higher than those of employees working solely in-office. Reports indicate that retention rates among hybrid/remote workers are 35% higher compared to their fully on-site counterparts. The mental health benefits of hybrid working are especially notable, with both male and female office workers reporting improvements in mental health—47% of men and 44% of women have indicated that hybrid work arrangements positively impact their wellbeing.

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Talent Attraction and Access

Hybrid and remote working have expanded employers’ ability to attract talent from a much broader geographic area. With fewer constraints on location, companies are able to recruit from a more diverse and expansive talent pool. This is particularly beneficial for businesses located outside major urban centres as it allows them to compete for skilled workers without the need to relocate them.

Additionally, flexible working arrangements are no longer viewed as a luxury but an essential offering for attracting top talent. By 2023, more than half of UK employers were offering some form of remote working – recognising that flexible working options are key to meeting the expectations of today’s workforce. In fact, the expectation of flexible work has become an industry standard, with many job seekers now prioritising flexibility in their job search over salary alone.

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Organisational Culture and Collaboration

Maintaining a strong organisational culture and fostering collaboration have been challenges for many businesses as remote and hybrid working models have become the norm. With employees working in different locations, companies have had to adapt and innovate to ensure they remain cohesive and collaborative.

Many businesses have introduced virtual team-building events, work socials and other initiatives to help build a sense of community. Additionally, some companies have revamped office spaces to offer more collaborative environments, making office time more valuable and engaging for employees. While hybrid models present challenges in terms of fostering consistent communication, businesses have adapted by implementing core office days, often with Wednesdays being a mandatory on-site day for in-person collaboration, allowing employees to interact face-to-face for team meetings or key project updates.

Changing Attitudes to Work

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Flexibility as Standard

The pandemic significantly changed how employees view flexibility at work. Once considered a special perk, remote and flexible working have now become standard expectations. The ability to work from home or adopt a hybrid model is now a primary consideration for many employees when evaluating job offers.

As a result, the number of employees eligible for flextime has risen dramatically. By 2024, over 4 million UK workers were eligible for flexible work arrangements. For many employees, the option to choose their working hours and location is no longer just a benefit but a necessity. This shift has redefined what is expected from employers in terms of work-life balance and employee support.

Employer Responsibility

There has also been a shift in how employees view their employers’ responsibilities. With the rise of remote and hybrid working, 82% of employees now believe that employers have a greater responsibility to support employee health and wellbeing, particularly in light of the challenges brought on by the pandemic. This expectation includes not only physical health benefits but also mental health support and flexible work arrangements that contribute to a better work-life balance.

Employers are increasingly being held accountable for providing resources and an environment that promotes employee wellbeing, whether that’s through mental health initiatives, flexibility in working hours or a commitment to creating inclusive and supportive workplace cultures.

Declining Appetite for Full-Time Remote Work

While the flexibility of working from home remains a major draw for many employees, the appetite for fully remote work has begun to decline. A significant portion of employees who work in hybrid models (around 10%) have expressed a preference for this balance rather than returning to a fully remote setup. Many employees appreciate the flexibility hybrid working offers, but still value face-to-face interactions with colleagues to foster stronger working relationships and a sense of belonging.

Office Attendance Patterns

As the work culture has evolved, office attendance has become more flexible with employees no longer bound by rigid office schedules. Certain days of the week have seen significant changes in attendance patterns. For example, Tuesdays are often the least popular days for employees to be in the office, while Mondays or Wednesdays tend to be mandated as core office days for key meetings and team discussions. This new flexibility has allowed businesses to create more dynamic office environments that cater to the needs and preferences of employees.

Five years on from the COVID-19 pandemic, remote and hybrid working have transitioned from temporary solutions to permanent aspects of the UK’s employment landscape. These working models have reshaped the way businesses operate, enhancing flexibility, productivity and employee wellbeing.

Businesses, too, have benefited from the ability to tap into a broader talent pool, reduce overhead costs and increase retention rates. However, the shift has also brought challenges—particularly in terms of maintaining organisational culture and fostering collaboration. As businesses continue to adapt, the need for a thoughtful approach to hybrid working will remain essential.

Looking forward, the future of work will likely involve a continued emphasis on flexibility and employee wellbeing with technology playing an increasingly central role in ensuring seamless remote collaboration. The lessons learned over the past five years will likely shape the employment landscape for years to come, making flexibility and work-life balance essential pillars of workplace culture.