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Telegraph
26-05-2025
- Business
- Telegraph
Britain named work from home capital of Europe
Britain has been named Europe's work from home capital, with employees spending more days away from the office than in any other nation on the Continent. Workers in the UK spend an average of 1.8 days working from home each week, according to a new report from King's College London, which was more time than all nations bar Canada – at 1.9 days – among the 40 nations studied. Britain's work from home average was the highest in Europe and well above the global average of 1.3 days working from home each week. Workers in South Korea average half a day at home per week, with those in Greece and China typically putting in 0.6 days remotely, the King's study found. This rises to one day in France, 1.2 in Australia and 1.6 in Germany and the US. The persistence of home working since the Covid lockdowns is 'becoming a defining feature of the UK labour market,' said Cevat Aksoy, the lead researcher on the report. 'This isn't just a post-pandemic hangover – British workers have clearly decided they're not going back to the old ways.' The findings may raises fresh fears for productivity in the economy, amid growing concern among bosses about the detrimental impact of working remotely. Lord Rose, the former boss of Asda, has said productivity is 'less good if you work from home' and 'your personal development suffers'. He said earlier this year: 'We are creating a whole generation and probably a generation beyond that of people who are used to actually not doing what I call proper work.' Jamie Dimon, the boss of America's biggest bank JP Morgan, also railed against remote work in a leaked recording in February. He told staff: 'Don't give me this s--- that work-from-home Friday works. I call a lot of people on Fridays, and there's not a goddamn person you can get a hold of. I've had it with this kind of stuff.' Other corporate leaders, including Bob Iger, chief executive of Disney, have also expressed concerns about the impact of remote work on creativity. Adrian Pabst at the National Institute of Economic and Social Research (NIESR) said working from home can undermine coordination between colleagues, and is particularly tough for younger workers who struggle to learn the ropes when away from the office. He said: 'There are certain benefits [from WFH], including in productivity terms for certain tasks, but one can see, especially in the public sector, that the absence from the office creates problems in the levels of coordination and the levels of teamwork. It is not clear the benefits outweigh the costs. 'There is collective memory, the institutional culture and ethos of a place, which has to be transmitted in a collaborative manner between colleagues.' Productivity problems The UK has long had a productivity problem relative to nations such as the US. Productivity is so far behind that American workers typically produce as much output in four days as their counterparts in the UK can manage in five. The problem ia getting worse. Output per hour worked in the first quarter of the year was 0.2pc lower than in the opening three months of 2024, according to the Office for National Statistics (ONS). However, Mr Aksoy said: 'Research to date shows that hybrid work arrangements have no negative effects on productivity – and can offer substantial upsides in terms of employee retention and satisfaction. 'Given that hybrid models – where most people work from home on Mondays and Fridays, and from the office mid-week – have become the dominant form in the UK, we see no compelling evidence that this arrangement hampers organisational productivity.' Home working also saves employees time and money, as they spend less on petrol or bus and train tickets, which can be spent elsewhere instead, often to the benefit of the local economy where they live, rather than town and city centres. Mr Pabst said there may be personal, rather than professional, tolls from working remotely. He said: 'We have also got the other side of the work-life balance, which is mental health .... Is working in isolation, especially for younger people who may not yet be in long-term relationships, may not yet have families or children – is isolating at home good for their mental health, let alone their work performance?'
Yahoo
26-05-2025
- Business
- Yahoo
Britain named work from home capital of Europe
Britain has been named Europe's work from home capital, with employees spending more days away from the office than in any other nation on the Continent. Workers in the UK spend an average of 1.8 days working from home each week, according to a new report from King's College London, which was more time than all nations bar Canada – at 1.9 days – among the 40 nations studied. Britain's work from home average was the highest in Europe and well above the global average of 1.3 days working from home each week. Workers in South Korea average half a day at home per week, with those in Greece and China typically putting in 0.6 days remotely, the King's study found. This rises to one day in France, 1.2 in Australia and 1.6 in Germany and the US. The persistence of home working since the Covid lockdowns is 'becoming a defining feature of the UK labour market,' said Cevat Aksoy, the lead researcher on the report. 'This isn't just a post-pandemic hangover – British workers have clearly decided they're not going back to the old ways.' The findings may raises fresh fears for productivity in the economy, amid growing concern among bosses about the detrimental impact of working remotely. Lord Rose, the former boss of Asda, has said productivity is 'less good if you work from home' and 'your personal development suffers'. He said earlier this year: 'We are creating a whole generation and probably a generation beyond that of people who are used to actually not doing what I call proper work.' Jamie Dimon, the boss of America's biggest bank JP Morgan, also railed against remote work in a leaked recording in February. He told staff: 'Don't give me this s--- that work-from-home Friday works. I call a lot of people on Fridays, and there's not a goddamn person you can get a hold of. I've had it with this kind of stuff.' Other corporate leaders, including Bob Iger, chief executive of Disney, have also expressed concerns about the impact of remote work on creativity. Adrian Pabst at the National Institute of Economic and Social Research (NIESR) said working from home can undermine coordination between colleagues, and is particularly tough for younger workers who struggle to learn the ropes when away from the office. He said: 'There are certain benefits [from WFH], including in productivity terms for certain tasks, but one can see, especially in the public sector, that the absence from the office creates problems in the levels of coordination and the levels of teamwork. It is not clear the benefits outweigh the costs. 'There is collective memory, the institutional culture and ethos of a place, which has to be transmitted in a collaborative manner between colleagues.' The UK has long had a productivity problem relative to nations such as the US. Productivity is so far behind that American workers typically produce as much output in four days as their counterparts in the UK can manage in five. The problem ia getting worse. Output per hour worked in the first quarter of the year was 0.2pc lower than in the opening three months of 2024, according to the Office for National Statistics (ONS). However, Mr Aksoy said: 'Research to date shows that hybrid work arrangements have no negative effects on productivity – and can offer substantial upsides in terms of employee retention and satisfaction. 'Given that hybrid models – where most people work from home on Mondays and Fridays, and from the office mid-week – have become the dominant form in the UK, we see no compelling evidence that this arrangement hampers organisational productivity.' Home working also saves employees time and money, as they spend less on petrol or bus and train tickets, which can be spent elsewhere instead, often to the benefit of the local economy where they live, rather than town and city centres. Mr Pabst said there may be personal, rather than professional, tolls from working remotely. He said: 'We have also got the other side of the work-life balance, which is mental health .... Is working in isolation, especially for younger people who may not yet be in long-term relationships, may not yet have families or children – is isolating at home good for their mental health, let alone their work performance?'
Daily Mail
15-05-2025
- Politics
- Daily Mail
Ex-Remain campaign chief vows to leave Britain if Nigel Farage becomes PM
A leading figure in the Remain campaign has vowed to quit Britain if Nigel Farage becomes PM. Lord Rose, the former M&S chief who chaired Britain Stronger in Europe during the Brexit struggle, laid down a marker amid the Reform surge. Polls have shown Mr Farage's party well ahead of Labour and the Tories since its storming performance in local elections on May 1. Keir Starmer has been scrambling to find a way of clawing back ground, unveiling a crackdown on immigration. Today the PM visited Albania trumpeting his desire to strike a deal for an overseas 'returns hub' where failed asylum seekers could be processed. However, embarrassingly counterpart Edi Rama immediately ruled out having one in Albania. Appearing on ITV 's Peston programme, Lord Rose was reminded that he previously promised to leave Britain if Mr Farage became Tory leader. Asked what he would do if the Reform leader ended up in Downing Street, the peer said: 'I will definitely leave the country. 'He won't become Prime Minister, we hope. But if you were sitting there looking at the danger signs - which is what the Prime Minister's done this week - you'd be taking action. 'I'm fascinated to see what the parties are going to come up with.' There is a long history of prominent figures vowing to emigrate in the event of a political outcome they do not like. Magician Paul Daniels notoriously threatened a disappearing act if Tony Blair won the 1997 election, although he later claimed his comments were misrepresented. Others have made good on departing for other countries. Charlie Mullins, millionaire founder of Pimlico Plumbers, moved to Spain complaining that Labour was wasting public money. He told MailOnline in January: 'The real reason is not what they are charging but what they are doing with the money. I'd be more than happy to help the NHS and pensioners but I'm not prepared to help people who don't contribute.' A number of US celebrities said they would leave America if Donald Trump became president.
Yahoo
07-04-2025
- Business
- Yahoo
Working from home is turning into 'return to the office or lose your bonus'
Companies did all they could to encourage their workers back to the office after the pandemic. There were free meals, unlimited snacks, pilates classes, social events, subsidised travel costs, and some offices even installed doggy daycare facilities for workers who got four-legged companions during lockdown. But, despite such freebies, many workers continue to prefer to work from home at least some of the time – leading many executives to set aside the "carrots" of workplace incentives and reach for the "stick" to get workers back to the office. Junior lawyers at London law firm A&O Shearman were recently warned that if they fail to comply with the company's hybrid working policy of spending 'at least 60%' of their time in the office their bonus eligibility for bonuses would be 'affected'. A&O Shearman, formed from the merger of London's Allen & Overy and New York's Shearman & Sterling, is the latest large company to tie office attendance to pay, promotions and bonuses. In some cases, workers have even been told if they don't turn up to the office regularly they won't have a job at all. PwC has told its UK workers that they must spend at least 60% of their time in the office or at clients, and it would monitor their entry and exit to the office. Read more: Are work coaches the answer to get people back into the workplace? London law firm Slaughter & May has also warned staff that it is tracking their attendance and 'you should assume that if you are not in the office (or at a client, in court etc.) in line with the policy, this will be raised with you and you will be asked to comply'. Such moves come despite Office for National Statistics (ONS) figures showing two in five UK workers enjoy a remote working arrangement, rising to two-thirds for people in management positions. Before COVID-19, just 4.7% of UK employees worked from home. In the US, more than a quarter of workdays were done from home last year, up from one in 14 before the pandemic, according to WFH Research. Former Marks & Spencer (MKS.L) CEO and ex-Asda chairman Lord Rose said that working from home was creating a generation "not doing proper work". "We have regressed in this country in terms of working practices, productivity and in terms of the country's wellbeing, I think, by 20 years in the last four,' he told the BBC. Lloyds Banking Group (LLOY.L) – which owns Halifax, Lloyds and Bank of Scotland – earlier this year told senior managers that part of their bonuses would be withheld if they fail to work from the office at least two days a week. It cited the 'behaviour' and 'leadership' elements of its bonus plan to restrict the payment to those who failed to attend the office at least 40% of the time. Bonuses are now embedded in the culture of not just banks and law firms, but across a vast range of industries. However, they were only introduced to the UK workforce relatively recently, compared to the US where JPMorgan (JPM) began giving employees a full-year's pay as a Christmas present in 1902. In the UK, bonuses boomed after the "big bang' deregulation of financial markets in 1986, as US banks dangled the prospect of vast annual bonuses and generous 'golden hellos' to tempt top London bankers to join them. Read more: The 'damaging' effect return-to-office mandates could have on workers Bonuses had been limited by the EU's 'bonus cap' which limited payouts to a maximum of 200% of base salary since 2014. But post-Brexit, the UK government has allowed banks to set their own bonus terms. The 2025 bonus round will be the first year of unregulated bonuses for most UK banks, with Goldman Sachs' (GS) London bankers able to collect a maximum of 25-times their base salary. JPMorgan chief executive Jamie Dimon has demanded that from the start of April all the bank's worldwide staff return to the office five days a week. "Now is the right time to solidify our full-time in-office approach, we think it is the best way to run the company,' he said in an official announcement. When challenged by angry staff at a town hall meeting, Dimon — who was paid $39m last year, including a $37.5m bonus — replied: 'I've had it with this stuff. I've been working seven days a goddamn week since COVID, and I come in, and where is everybody else? 'And don't give me this s**t that work-from-home Friday works. I call a lot of people on Fridays, and there's not a goddamn person you can get a hold of.' Amazon (AMZN) ordered all its 1.5 million staff back five days a week from January. The head of Amazon Web Services, its cloud computing division, told employees that if they "don't work well in that environment and don't want to, that's okay, there are other companies around'. David Solomon, the boss of Goldman Sachs, ordered staff back full-time in 2021 and called working from home during the pandemic 'an aberration'. Computing giant Dell (DELL) last year warned employees that if they failed to come into the office at least three days a week they would be barred from promotion. 'Choosing to be remote does indeed put career advancement at a standstill,' the company said in an internal memo. However, many rank and file workers complain that while they are being forced back to the office their bosses are sending the diktats from home — and still collecting mega bonuses. Read more: The problem with forcing employees to list workplace achievements Brian Niccol, the chief executive and chairman of Starbucks (SBUX), lives in California – over 1,000 miles away from Starbucks' headquarters in Seattle. Starbucks is paying for 'a small remote office' for him to work from near his home in Newport Beach, and when he commutes to the head office he does so in a private jet. Niccol was paid $96m for his first four months in the job, making him one of the US's highest-paid executives. Mark Ma, a University of Pittsburgh business professor who studies the impact of working from home on company performance and employee welfare, said most workers recognise that there are benefits from being in the office environment. 'But many feel it is very top-down,' he told Yahoo Finance. 'The Starbucks CEO is demanding everyone be in the office, while he is working from California. Elon Musk has ordered all Tesla (TSLA) workers back to the office, but how often is he there? He seems to mostly be at the White House. 'It can seem like the top [executives] are enjoying a privilege they are taking away from rank and file employees.' Ma says companies are increasingly reaching for the sticks of punishment as the carrots of incentives haven't worked as well as expected. 'We've been seeing much more use of sticks since the third quarter of last year when Amazon started to call people back. It could be that leaders of other companies see what others are doing and think 'we should get our staff back too'.' 'Companies are mandating five-days a week in the office because they say it improves cooperation, creativity and profits,' Ma says. 'But the pandemic showed that's not necessarily true – people worked well remotely and companies kept hitting record profits. It proved it is possible to work from home and be just as, if not more, efficient.' Ma's research examining the effect of S&P 500 (^GSPC) companies' return to office (RTO) mandates 'did not find significant changes in firm performance in terms of profitability and stock market valuation'. It did find that managers were using return-to-work mandates to "reassert control over employees and blame employees as a scapegoat for bad firm performance', and that RTOs led to a 'significant decline in employee job satisfaction'. Ma warns that top executives, who often have spouses who don't work or have household staff to assist with day-to-day chores, are greatly underestimating the value of workplace flexibility for employees. 'People have the experience from the pandemic that they can work just as effectively from home, and they really appreciate the flexibility.' The value of remote working was perhaps shown most starkly by US employees of Dell, when they were warned they would not be eligible for promotion if they refused to come into the office. 'Fifty per cent of them continued to work from home despite the threat,' Ma says. 'That shows people really do value their flexibility, they are willing to give up career opportunities to maintain it.' Read more: How to tackle unconscious bias when making decisions at work Separate research by Ma found that on average workers were willing to give up 20% of their wages to avoid a schedule set by an employer, and 8% for the option to work from home. Sankalp Chaturvedi, professor of organisational behaviour and leadership at Imperial College Business School, says companies are trying to get back to the status quo before the pandemic that work took place in the office. 'But employees have got used to the flexibility the pandemic brought, and they don't want to forget about it. They want it to be the new normal.' He warned that threats and punishments are unlikely to achieve the outcomes that bosses want, and going too hard will lead companies to lose staff. 'And it will likely be the best ones who will leave if they feel like they're not being treated fairly and respectfully.' Professor Randall Peterson, director of the Leadership Institute at the London Business School, said: 'The threats are likely to get compliance, but without acceptance. That's when staff will start thinking 'I can get the flexibility I want elsewhere so why would I stay here unless they are going to pay me a ridiculous amount to be in the office every day'.' Read more: Four key AI skills anyone can learn Why Abrdn reinstated the Es after rebrand The spring statement explained in five chartsSign in to access your portfolio
Telegraph
29-03-2025
- Business
- Telegraph
Asda mulls moving jobs overseas in cost-cutting drive
Asda is drawing up plans to shift jobs abroad as the struggling supermarket puts more roles at risk of redundancy. The retail giant has launched a fresh consultation that could involve 26 jobs being cut across its customer service team and shifted overseas in the latest attempt to drive down costs. Those affected are understood to be in Asda's social media department, which is responsible for fielding questions from disgruntled shoppers on sites such as X. The proposal, which has not yet been finalised, echoes a similar move by Asda last year when it outsourced more than 100 IT staff to an Indian-based supplier. The latest redundancy consultation, which will take place over six weeks, comes less than a month after Asda dismissed more than 200 workers involved in a botched £800m IT upgrade. An Asda spokesman said: 'As more customers choose to engage with us in different ways, we are proposing to make some changes to our online customer services team to support this changing dynamic. 'We have opened a consultation with a small number of colleagues affected should this proposal go ahead, and our priority is to do all we can to support them during this process.' The cost-cutting forms part of a turnaround plan overseen by new chairman Allan Leighton, who was parachuted in to replace Lord Rose last November. As part of his overhaul, the retail veteran has axed hundreds of jobs, scrapped staff bonuses and launched a supermarket price war to win back shoppers. He is taking radical action in a scramble to improve Asda's dwindling market share, which has shrunk from 14.4pc to 12.6pc over the past three years.
