Employment Law News Roundup – 1.9.25

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Public Sector Remote and Hybrid Working Plummets

New research from Unit4 has revealed that there has been a dramatic downturn in remote and hybrid working across the public sector.

Report

The report found that just 15% of public sector employers now have fully remote working arrangements, sharply down from 37% in 2023.

Moreover, hybrid working arrangements have also fallen sharply, with only 49% of public sector employers offering any form of hybrid working. This is down from 93% compared to two years ago.

This trend reflects a broader international movement away from flexible working in the public sector. Globally, just 16% of public sector organisations are now fully remote (down from 33% in 2023), while more than half (51%) are now entirely office-based.

Countries vary in their approach. The Netherlands has the highest rate of fully office-based organisations (63%), whereas Canada remains more flexible with 66% maintaining remote or hybrid setups. Despite these differences, the overarching trend is clear, in that public sectors across the world are pivoting back to traditional workplace models.

Repercussions

This shift is not without consequences for public sector employers. Return-to-office (RTO) mandates are complicating recruitment efforts, with nearly a quarter (24%) of UK public sector respondents reporting difficulty in attracting new talent due to rigid location requirements. This challenge is echoed globally, and is particularly acute in Sweden (27%). Furthermore, the ability to recruit from a wider geographic area has diminished, with only 23% benefiting from this advantage in 2025 (down from 43% in 2023).

Retention is also under strain. In the UK, 17% of public sector employers say it is harder to keep skilled workers now compared to 13% previously. The Netherlands faces an even starker increase, with retention challenges rising from 17% to 25%. These difficulties come as other sectors and countries experience similar tensions. One in ten small and medium-sized UK businesses have lost staff over RTO demands.

Some Positives

While challenges persist, some positive trends have emerged with fewer UK public sector employers now struggling with skills shortages or in finding suitable candidates compared to previous years. Only 15% cite inadequate skills amongst applicants as an issue (down from 27% in 2023), and just 11% struggle to find the right recruits (previously 27% in 2023). Moreover, there’s greater optimism about hiring individuals with technical expertise.

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Nonetheless, resistance to RTO mandates is growing amongst staff. A majority of civil servants do not favor increased office attendance requirements, with employee surveys consistently revealing skepticism about their benefits.

With 74% of public sector employers planning to complete major digital transformation projects within the next two years, there is mounting pressure upon the public sector. To secure and maintain the crucial IT skills needed for successful digital transformation, employers should carefully consider the impact of withdrawing flexible working arrangements, as to do otherwise will mean that they will struggle to attract and retain the staff that they need.

Accountability: The Secret to Sustained High Growth in Companies

New research conducted by Culture Amp has found that accountability is the key driver behind sustained high growth.

The analysis reveals that employees in high-growth organisations are more motivated by clear accountability, recognition, and fair performance evaluation than by traditional motivators like job stability or compensation. This kind of focus fosters a dynamic, forward-looking culture where employees feel psychologically safe, empowered to take ownership of outcomes, and aligned with the company’s mission.

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High-growth firms set themselves apart through structured accountability mechanisms, such as transparent goal setting, continuous feedback, and outcome-based recognition. This turns accountability into a shared organisational standard, rather than a top-down directive. These companies also benefit from flatter hierarchies, a higher proportion of sales roles, and lower employee turnover compared to their slower-growing peers.

The findings of the report suggest that when employees feel a strong sense of belonging and trust in leadership, they are more likely to excel and remain committed for the long term. For HR leaders, including those facing economic uncertainty or talent shortages, embedding accountability within the organisational culture can drive innovation, resilience, and competitive advantage. This approach is especially vital in hybrid or remote work environments to maintain engagement and alignment across dispersed teams.

Last Updated:  Sunday, September 7, 2025

FAQs

Why has remote and hybrid working in the public sector decreased so sharply?

Recent research indicates a global trend away from flexible work in the public sector, with more organisations mandating office attendance. Factors include leadership preferences, perceived productivity benefits, and a desire for increased oversight.

How does this shift impact recruitment in the public sector?

Return-to-office mandates have made it harder for public sector employers to attract new talent, as candidates increasingly seek flexible work arrangements. This has reduced the ability to recruit from wider geographic areas and affected overall hiring competitiveness.

Are there any positive developments, despite reduced flexible working?

Despite challenges, some positive trends have emerged: fewer employers now report skills shortages or trouble finding suitable candidates compared to previous years, and there is growing optimism about hiring individuals with technical expertise.

What are the main concerns among public sector employees about return-to-office policies?

Many civil servants are resistant to increased office attendance requirements, expressing skepticism about their benefits. Employee surveys show that most do not favor these mandates, citing concerns over work-life balance and flexibility.

How does accountability contribute to high growth in organisations?

Accountability fosters motivation, engagement, and psychological safety by encouraging ownership of outcomes and aligning employees with organisational goals. Transparent goal setting and continuous feedback create a culture where people strive for excellence.

Why is embedding accountability especially important in hybrid or remote workplaces?

In dispersed teams, clear accountability ensures everyone remains aligned and engaged despite physical distance. It helps maintain trust, supports collaboration, and drives performance even when employees are not co-located.

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