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Firms with flex-work policies are hiring faster than those fully in office

Hybrid work has eclipsed fully remote workplace policies with just more than half of the workers who can do their jobs from home combining in-person and remote work, according to Gallup. (New York Times)
By Mia Gindis Bloomberg

Bloomberg

Companies with flexible in-office policies are hiring faster than those that have fully returned to pre-pandemic attendance rules.

New research from Scoop Technologies, which advises organizations on how to coordinate hybrid staffing, compared headcount growth at roughly 3,600 fully-flexible, hybrid, and entirely in-office companies.

It found that flexible outfits – those with hybrid, fully-remote or electively-remote staffs – added headcount at more than two times the rate of fully in-office counterparts during the March-through-May period.

“Companies grow faster when they offer flexibility because people are more excited to join,” said Rob Sadow, co-founder and chief executive officer of Scoop.

Prospective employees rank flexibility second only to compensation when it comes to workplace satisfaction, meaning that consistent headcount growth might be explained in part by talent flocking to flexible firms, he added.

“Companies should tread really carefully around expanding requirements to be in the office above three days,” Sadow said.

The research also found a strong correlation between the number of in-office days required per week and workforce growth.

Companies with one-day-a-week rules expanded staff by almost 5% over the past year, compared with 2.6% at five-days-a-week businesses.

“Companies should tread really carefully around expanding requirements to be in the office above three days because that’s where we start to see a pretty meaningful impact on ability to grow headcount,” said Sadow.

Despite the rise in hiring by flexible companies, job growth across the board is slowing.

U.S. nonfarm payrolls expanded by 209,000 in June – the smallest monthly increase since the end of 2020 – indicating that the overall number of open roles is dipping while demand remains high.

Jobs advertising full-time remote work attracted almost half of all applications on LinkedIn in May, compared with just 19% for hybrid positions.