Research shows that companies that promote telecommuting are more likely to attract talent
CTOnews.com A recent study by software company Scoop Technologies and data technology company People Data Labs shows that companies that offer hybrid or telecommuting models are more likely to attract talent and grow their workforce faster than those that require full-time employees. In fact, just providing telecommuting opportunities one day a week can significantly improve hiring efficiency.
The analysis, based on data from more than 4500 companies, found that fully flexible companies (which do not require employees to come to the office) experienced employee growth of 5.6 percent between May 2022 and May 2023. Companies that telecommute completely (no office) have a higher employee growth rate of 6.9%, both of which are more than twice as high as companies that require full-time employees to come to the office (employee growth rate of 2.6%).
On the other hand, companies with a structured hybrid model (requiring employees to be in the office within a certain number of days) had employee growth of 4.1%. The analysis found that there was not much difference in hiring between companies requiring employees to come to the office one day a week and three days a week, with employee growth rates of 4.8 percent for the former and 4.4 percent for the latter over the same period.
CTOnews.com notes, however, that some large companies are pushing employees back into the office. Jpmorgan requires half of its employees to be in the office five days a week; goldman sachs does the same; google and apple require employees to be in the office at least three days a week. Managers at these companies believe that employees can collaborate and train more effectively in the office, and that it is easier to build trust and relationships.
However, telecommuting is one of the factors attracting talent in a tight labor market. A survey led by Nicholas Bloom, an economics professor at Stanford University, found that employees believe flexible work arrangements are equivalent to an 8% pay rise.
The analysis noted that if companies require employees to be in the office four days a week or more, it could affect hiring. "Company executives should be very careful about the potential impact of office work on attracting talent. "The report says.
These findings were most pronounced in mid-sized companies with 500 to 5000 employees. Within 12 months, companies with a fully flexible and structured mix had more than twice as many employees than full-time ones. In the past three months, mid-sized structured hybrid companies have more than tripled the number of employees they employ compared to full-time companies.
