Data published today by HSBC reveal that flexible and remote working are more likely to motivate staff and ultimately increase workplace productivity than financial incentives.
When considering the impact of all benefits, perks and more flexible ways of working on business productivity, the study of UK businesses and employees found that nine in ten employees (89%) consider flexible working to be the single largest motivator to their productivity levels within the workplace. This view is shared equally among male and female employees (87% and 90% respectively) – and is considered more important than financial incentives (77%). Alongside this, 81% of workers believe the opportunity to work remotely would also help them to improve their productivity, making a clear link between flexible working cultures and increased business productivity levels.
However, the research also showed that employees in the retail, hospitality and leisure sector are least likely to be offered any benefits and perks with almost one in four (24%) employees saying their employer does not offer any, and the same proportion are also not offered the opportunity to work flexible hours – despite the positive impact on productivity levels. Productivity (as defined by the ONS, and calculated as output per worker or output per hour worked is the lowest in this sector with output per hour standing at just £23.00, significantly lower than the national average of £32.20, in Q2 of 2017.
Whereas the most productive sector – the professional services industry – is the most likely to offer employees flexible hours, with 36% of professional services employees saying it was available to them. Average output per hour in this sector stands at £68.10, almost three times greater than that of the retail, hospitality and leisure sector.
Regions where flexible working is more popular, such as London (30%) and the South East (32%), generally see the highest levels of productivity in the UK. In contrast, only 18% of employees in Wales, where productivity levels are lower, are offered the opportunity to work flexible hours – suggesting that companies providing a better work life balance may be paving the way for a more productive workforce as employees feel more motivated.
Amanda Murphy, Head of Commercial Banking at HSBC UK said: “Our research shows that for an overwhelming number of workers, wellbeing initiatives are more motivating than financial incentives. Today’s workforce want a better balance between their work and home lives, and the companies that are recognising and making provision for this are creating happier and more productive workplaces, which in turn is translating to the bottom line.”
On receipt of the news from HSBC, Denis Sheehan, Publisher at H&C NEWS said:
This report highlights an approach many more employers in our industry could adopt or adapt to being part of their HR strategy. Combating the ongoing people and skills shortages in our industry will in part require new ways of working. We welcome all content that helps us as an industry to take a fresh look at ways to reduce our people and skills shortages.”