Just as employees must recognise that a business has the right to dictate the terms of their employment, businesses must understand that talent retention is contingent on working policies that align with candidates’ expectations, argues Tony Gregg.
In a recent column, I wrote that blanket, back-to-the-office mandates will do more harm than good if they serve to drive good people into the arms of more enlightened rivals.
Boots clearly didn’t get the memo. Earlier this month, the retailer ordered all its head office staff to return to the office five days a week, starting September 1, in a bid to make the office “a normal place of work for everybody for the whole working week”.
The decision has led to suggestions that the floodgates will now open as retailers take a harder line on flexible working, including working from home. A comment in response to Retail Week’s coverage of the Boots story predicted “the vast majority will now follow suit”.
“Despite the backlash on social media, there will be many who privately admire Boots for sticking its neck above the parapet”
I wouldn’t be so sure, and not just because of the immediate backlash Boots faced on social media. The timing of the announcement, just days ahead of International Women’s Day, was ill-judged, given than women stand to lose most from a retreat from flexible working policies.
But the echo chamber of social media is not always a good gauge of wider opinion and there will be many who privately admire Boots for sticking its neck above the parapet.
Still, I don’t get the sense that other retailers will rush to adopt the same approach. An informal survey I have done of around 15 businesses in the sector suggests three fixed days in the office is the new sweet spot, which allows for regular physical contact between staff while maintaining an element of flexibility. Savvy retailers are recognising this and acting accordingly.
That’s not to say that Boots’ justification for its decision doesn’t have some substance. “There is no doubt in my mind that the informal conversations, brief catch-ups and ability to meet in groups in person has been far more effective – and better for our unique Boots culture – than the enforced formality of remote meetings,” wrote managing director Seb James in a letter to employees.
Many business leaders will sympathise with that view, believing that productivity and creativity is best unleashed in an office environment.
“A demand for flexibility is especially common among those in their 30s and 40s – the next generation of senior leaders”
Yet the world has changed since Covid-19. Just as employees have to recognise that the business pays their wages and has the right to dictate the terms of their employment, so businesses have to understand that talent acquisition and retention are contingent on adopting working policies that align with candidates’ expectations.
For the candidates we are putting forward for new roles, this invariably means signing up to work three days a week at the office and the remaining two days remotely.
A demand for flexibility is especially common among those in their 30s and 40s – the next generation of senior leaders – who have restructured their lives around the ability to work some of the time from home, including decisions about where they choose to live and how they manage childcare. This group is more likely than any to be turned off current or prospective employers that demand five days a week in the office as standard.
It will be fascinating to see how Boots’ employees respond to its diktat. The introduction of the new policy in September gives staff the opportunity to work a notice period and find a new role before the regime comes into effect. It would not surprise me to see many retaliate in this way.
“But nice perks can’t counter the weight of the societal shift we have seen towards flexible working”
Those businesses wanting to at least shift the balance back towards office working need to think about some of the softer measures and incentives they can to increase its appeal.
James talked about the need to upgrade Boots’ office facilities, which is a good starting point. I hear of retailers investing in improving their catering offer and offering free coffee and even breakfast as a perk for coming into the office. One retailer has banned business meetings in the canteen to make it a genuine space to have a break from work.
These are all nice perks, but they can’t counter the weight of the societal shift we have seen towards flexible working.
If Boots sticks to its guns (of which I have my doubts) and delivers a turnaround in performance, then it will, of course, give other retailers cause to reflect on their own policies. More likely is that it will remain a rare example of a business clinging onto a past that no longer exists.
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