Bosses in Northern Ireland tell staff: ‘Get back to your desks’

Bosses in Northern Ireland want to see staff physically back in the workplace as employer attitudes towards working from home seemingly harden, according to a new survey.

It shows there are “more negatives than positives” around remote working, and that more employers are moving away from it, citing key challenges including lower productivity, weaker communication and teamwork (specifically impacting young people) and lower staff morale.

The findings are revealed in NI Chamber of Commerce/BDO latest quarterly economic survey (QES), covering the third quarter of 2024, in which 218 member organisations (representing 36,000 employees) responded.

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Members were asked how many days employees must typically spend in the workplace on a weekly basis, with 76% saying they have employees in work at least three days a week. And almost half (45%) now have employees at their desks/work stations for five days. Just 3% of businesses have completely home-based staff.

Around two-thirds (63%) of manufacturers have staff on site five days a week compared to just 22% of professional services.

Micro businesses (less than 10 employees) have a greater share of staff working some of the time from home.

While 80% of businesses with 10 or more employees work three-plus days in the office, this falls to 54% of micro businesses. One in 10 micro businesses have staff working full-time at home while 12% leave working patterns up to the employee.

The Chamber findings come just weeks after Amazon declared that all its workers must return to the office full-time, five days a week, although Labour’s business secretary Jonathan Reynolds has pledged to end the “culture of presenteeism”, arguing that a default right to flexible working makes employees more loyal, plus “motivated and resilient”.

Elsewhere, the Chamber QES reveals that regional performance in the north is generally weakening, with the manufacturing sector struggling way more than professional services.

Many of the indicators from previous quarters were down, and confidence is flatlining.

And it emerged that taxation is now a bigger concern for businesses than inflation, with many fearing what may happen in the October 30 Budget given some ominous warnings already from senior Labour sources.

NI Chamber chief executive Suzanne Wylie said: “Whilst we are encouraged that a majority of our member businesses are trading well or reasonably well, it appears trading conditions in Q3 were more challenging than previous quarters, particularly for manufacturing businesses.

“One of the stand-out findings is a growing sense of member concern about the impact of taxation, which again, is a particularly prevalent issue among manufacturing firms. With 43% of NI manufacturing companies reporting it as a concern, it is time for the UK government to work with the NI Executive to address the corporation tax question in particular and deliver a more competitive, level playing field on the island of Ireland for NI firms.

“Equally, there is now a persistent and related concern about competition, which is the most significant external pressure for our service businesses.

“To that end, we welcome commitments in the draft Programme for Government to growing a globally competitive and sustainable economy and we look forward to working with the Executive on creating the right conditions to meaningfully deliver upon this shared priority.”

She added: “Northern Ireland is poised for growth, but the government must act now to restore confidence by addressing concerns about tax, competitiveness and access to skilled labour.”

Brian Murphy, managing partner at BDO NI, said: “It’s reassuring that so many local firms echo the view that their outlook continues to be optimistic. The overwhelming majority report they are trading positively and that they expect turnover to grow in the year ahead.

“Having weathered the storms of the pandemic, political instability, a cost of living crisis, and international conflict, it is notable that the concerns around Brexit- and the implication for local businesses- appear to have passed for most, with 83% now saying they have adapted to the new arrangements, with only 17% reporting they still face some challenges.

“Over the last three years, it seems that we’ve had more Prime Ministers than seasons, and many businesses had hoped that a decisive election result in the UK would provide not only stability, but a renewed confidence in the economy.”

He went on: “With inflation falling and growth increasing, there is much to be confident about, however, concerns remain about the new government’s first budget and what the Chancellor has planned regarding the tax burden. Uncertainty leaves a vacuum that will always be filled with speculation and apprehension, which may well be why so many local companies have raised this as a major concern.

“But there is no doubt that whatever the Chancellor announces next week, it will provide both opportunities and potentially challenges for local firms. Clarity should emerge soon, and when it does, it will enable businesses to better plan for the future.”