WBGx WDR1901x The Future of Work: Preparing for Disruption

1. The nature of work is changing and what the UK government could do
to prepare and support the workforce
23 April 2022
As a result of the prefect storm of Brexit, Covid-19 and globalization, over the last
two years there have many changes to the way people in the UK work and that seem
likely to become permanent features of our work lives going forward.
The most significant of all, is the growth of flexible working. Whilst working from
home was initially a legal requirement to deal with the health challenges of the
Covid-19 pandemic, as the country has opened up again, many employees have
begun to realise that they did not want to go back into the workplace every day.
From the point of view of the employee, a range of studies have shown that a better
work-life balance is the driving force behind these changes, especially as the
restrictions imposed during the pandemic have made them realise that they can be
just as productive without having to travel two or more hours every day to their
workplace. In fact, the impact of these changes has, according to one report,
changed the priorities of those in the workplace.

2. From the point of view of the employers, recent research has shown that rather than
having a negative effect as many as predicted, employers that have embraced
flexible working policies have seen a 20% improvement in employee recruitment and
retention as compared to the situation prior to the pandemic.
More relevantly, seven in ten of senior decision-makers stated that not only are
flexible working policies and working environments having a positive impact in
recruiting talent but are also important in retaining talent.
With more workers wanting to work flexibly, a hybrid model has emerged where the
norm is for employees to work away from the office on Monday and Friday and to be
back in for the rest of the week. To deal with this, there has been a drive by
businesses to invest more in digital infrastructure to support this demand, with as
many as 40% stating that this was as a direct response to the Covid-19 pandemic.
This is not always easy given the challenges for people who are juggling their
personal and working lives out of the same house as well as getting access to the
same IT specifications as one would expect in the workplace.
Given this, there is evidence that businesses are increasingly looking to change the
role of the office. For example, a recent study from the real estate company
Cushman and Wakefield showed that the three most important trends were for the
future office to become a place for creativity, innovation and osmosis, for employees
and clients to build and maintain culture, and, more traditionally, for meetings
between employees and clients. Only 8% perceived that there would be a
requirement from the business for employees to be in the office.
However, as the chief executive of the UK insurance firm Admiral said, if businesses
are going to get their staff to return to the office, then they must make coming to
work a better experience with enhanced facilities although even that may not be
enough.
As a result, an increasing number of employers are now thinking about whether they
should have a core office and access to flexible workplaces. With employees less
likely to want to travel to work every day, there is likely to be an increase for flexible
workspaces, especially in urban areas that have traditionally been commuter belt
towns.
This trend does present opportunities for local authorities, alongside private
landlords, to examine how increasing amount of empty retail space - which is also a
result of the recent economic downturn - could be used to meet the needs of
employers and employees who want greater flexible working.

3. The government should consider the following:
 Legislate to make working from home the default option
 Simplify the conversion of redundant office buildings to residential
accommodation
 Roll out enhanced broadband infrastructure to support rural and isolated workers