Presenteeism vs corporate real estate

While more companies are increasing the number of required office days or even monitoring employee work locations, some law firms are downsizing their corporate office space.

What to consider in your hybrid work strategy

Keir Starmer’s government recently stated that a “culture of presenteeism” is bad for productivity.

Amazon’s CEO seems to disagree. The company has mandated five days a week in the office from January. Meanwhile, PwC has started tracking the working locations of its employees, a practice already in place among some of the magic circle firms.

This might be in part because Londoners are spending just 2.7 days per week in the office, according to research by the Centre for Cities thinktank – less than many global cities.

But not all legal firms are taking the same approach. Clifford Chance is a notable example of a major firm that is choosing to downsize its corporate real estate, suggesting a more relaxed approach to flexible working.

There are many factors to consider when creating or adapting a hybrid work policy, including an improved work-life balance and the benefits of collaborating in-person. Here are some of the key considerations.

Out of office

Starmer has talked about the culture of constant connectivity leading to employees being contacted outside of working hours. While the intention to protect workers’ personal time is commendable, enforcing such boundaries in the legal sector is tricky.

There are times when legal teams simply must work longer hours – the role necessitates it. Even the best-intentioned flexible work policies will struggle to navigate these scenarios. Instead, it becomes a matter of trust between leaders and employees that these busy periods will be offset by times when employees can work with more flexibility.

Even then, everyone has different working preferences. Some people are most productive first thing in the morning, and others prefer working into the evening. Without clear guidelines, we risk creating confusion and unintended stress for workers who may feel compelled to respond to messages during their off-hours, simply because their sender’s workday operates on a different schedule.

Managing this aspect of hybrid work requires an approach that considers individual working preferences while also ensuring that communication remains effective and respectful of personal time. This balance is difficult to achieve and needs more than just a policy – it requires a cultural shift within organisations to truly honour the intent behind it.

Culture v productivity

Speaking of culture, that was one of the key reasons that Amazon gave for its new policy. A recent study by the Global Payroll Association seems to back this up, with 78% of respondents believing that remote working has damaged the social aspects of working.

However, the same study found that most people were most productive either when fully remote or in a hybrid arrangement, and just 26% said they were most productive working exclusively in the office.

Amazon’s mandate has been met with a backlash from employees, suggesting that they were not consulted on the new policy.

Finding a balance between productivity and culture is a tricky one, not least because they are both hard to measure. Though you can’t please everyone, including employees in the process is always worthwhile and likely to lead to a better outcome.

The impact on cities and pensions

There are wider societal factors to consider as well, and though they fall secondary to the immediate running of a firm, they do have a big impact.

Downsizing and/or offering more remote work may lead to the hollowing out of city centres. This isn’t merely a short-term economic challenge; it’s a question of the long-term viability of urban economies, which rely on the constant flow of people and activity.

The decline in demand for commercial real estate could also affect pension funds, as real estate has traditionally been a reliable asset in pension portfolios, providing stable returns for retirees. With fewer businesses needing office space, the value of these investments may drop, creating potential risks for retirement plans.

For younger generations already facing financial uncertainty, this could have significant consequences. Lower pension payouts or the need for greater personal savings to compensate for potential shortfalls may become an unavoidable reality.

This underscores the need for a balanced approach to remote work – one that considers the broader, long-term economic effects on society, rather than focusing solely on the immediate advantages for individuals and businesses.

Engage your workforce

Law firms must develop strong change management and communications strategies to create a hybrid work policy that meets the specific needs of the firms, supports employees and aligns with customer expectations.

It should include clear communication of the reasons behind new working practices, training to help employees adapt and ongoing support to address any challenges. With employee input, firms can shape policies that enhance productivity without compromising wellbeing.

Effective communication is at the heart of this process. Regular updates, clear guidelines and open channels for feedback help to create a culture of transparency and trust. When employees understand how flexible work fits into the broader business strategy and feel supported in their roles, they are more likely to embrace change and contribute positively to the firm’s success.

Written by Rachel Houghton, MD, Business Moves Group