“We know that experienced employees at major tech companies who are affected by these policies are walking away with some of their most valuable human capital investments and productivity tools and looking for work elsewhere,” Austin Wright of the University of Chicago told The Washington Post in May 2024.
“Business leaders should carefully consider employee preferences and market opportunities when deciding when or whether to mandate a return to the office.”
Fully remote work environments, hybrid or full-time office working patterns have both pros and cons: working permanently from home can make it harder to “switch off” at the end of the day, while an office environment may not be suitable for workers with children or may have a negative impact on work-life balance and lead to burnout.
While it may seem like the tech industry is moving further and further away from the office, Flex Index believes the world of work is continuing to change.
As of June 2023, 38% of tech companies were employee-selective, meaning the company has an office but employees don't have to go there. Additionally, 37% of companies were fully remote, meaning the company doesn't have an office at all.
However, this year, 56% of tech companies have adopted remote work by employee choice, a significant increase over the past 12 months. Similarly, 23% of companies have adopted fully remote work, although this figure has decreased over the same period.
In contrast, only 18% of companies have adopted a “structured hybrid model,” which mandates certain days when employees must come into the office.
Businesses are moving towards balance
Flex Index findings show that tech companies aren't moving away from flexible working, but are increasingly investing in office setups, likely as business leaders recognise the value of having regular collaborative spaces where employees can interact in person, even if they're not required to attend work days.
