by Kevin Empey, International Head of Future of Work Strategy & Solutions at Lockton
Donald Trump’s recent declaration that federal employees must return to the office or face termination has added further fuel to the ongoing debate on workplace flexibility. Closer to home, Government departments and other employers are also encouraging employees to spend more time in the office than has been the case in recent years. This shift signals growing difficulty in the implementation of employee-friendly policies that gained traction during the pandemic. But where is the balance to be struck for organisations looking to retain talent and remain competitive in a changing workforce landscape?
The Reality Check on Workplace Trends
Over the past few years, flexibility, work-life balance, and employee wellbeing have become core expectations rather than optional or exceptional perks. This trend was in play well before the pandemic, with employees looking for greater control over their time and working lives. While some employers may be keen to return to traditional models, ignoring these irreversible trends and demand for greater workplace flexibility could be costly. Companies that fail to offer some level of flexibility risk losing talent to competitors who embrace new ways of working. Employees now have more options than ever, with a growing preference for workplaces that prioritise autonomy and professional growth over traditional employment structures.
At the same time, employers are facing mounting costs, productivity and competitive pressures. Legislative changes—including statutory sick pay, auto-enrolment pensions, additional public holidays, and increased PRSI contributions—are adding to the financial strain on businesses. Many organisations that introduced flexible work policies as a competitive advantage in a tight labour market are now questioning their sustainability in the longer term. With rising employment costs, some employers are pushing back, seeking a more structured, traditional and controlled approach to workforce management.
A More Nuanced Approach
Trump’s hardline stance and similar mandates elsewhere assume that productivity and collaboration suffer outside the office. However, research suggests that a one-size-fits-all approach is simplistic and overall workforce productivity doesn’t just come from employees being in an office. Employers who want to attract and retain top talent recognise that different workers have different needs and, depending on the work that needs to be done, more blended forms of work have clear productivity outcomes and advantages over traditional models. The World Economic Forum recently identified six distinct worker types—operators, givers, artisans, explorers, pioneers, and strivers—each with unique working patterns, motivations and definitions of meaningful work. Successful organisations will tailor their employment models to appeal to this diverse workforce dynamic and find themselves more competitive as a result.
Some industries, like investment banking, thrive on a high-intensity, in-office culture, and their business model and employment proposition is clear. But for many sectors, a more flexible model is key to securing top talent over the longer term. Leading organisations are shifting from a traditional employer-employee model to a more dynamic approach—one that focuses on being able to ‘access’ the right skills rather than ‘owning’ them in the traditional sense. This trend towards “fragmentation” of work includes greater reliance on gig workers, contractors, fractional roles, and global talent pools. Forward-thinking companies are using this shift to improve agility and productivity while also ensuring they remain attractive to core, full-time employees seeking stability and a more structured career path and employee experience.
Beyond Hybrid: The Future of Work
Employers are facing a paradox. While many employees increasingly seek flexibility and balance, they also desire long-term financial and career security. Companies that strike the right balance between structured in-office time and flexible arrangements will have a competitive advantage. Unilever, for example, has embraced this shift by introducing “u-workers,” a blended version of a gig worker and a traditional employee, demonstrating a willingness to innovate in workforce design and management.
Moreover, businesses must consider the rising demand for alternative employment models. With the increasing pool of skilled professionals opting for remote, gig, or contract work, companies need to find ways to integrate these workforce segments into their operating models. This allows them to access critical skills when needed, while also managing costs more effectively. Those who fail to adjust may struggle to attract and retain the best talent, as employees prioritise organisations offering flexibility, career growth, and a sense of purpose.
As the conversation around remote and hybrid work continues, and with more change to work and the workplace ahead, businesses must move beyond reactionary policies and instead create a more forward looking, transparent and sustainable employment model and employer proposition. Employees need clarity and consistency in expectations rather than abrupt policy shifts. Employees are not a homogenous group. Recognising different career aspirations and work preferences will help businesses build a stronger, more engaged workforce. However, flexibility goes both ways. Employees also have a responsibility to meet employers half-way and to engage with what employers and their colleagues need in terms of the right culture and ways of working that ultimately get the job done for customers and colleagues alike. From a business and productivity perspective, it is ultimately about the work that needs to be done – and then how and where that work is “best” done.
However, employers who cling to rigid, traditional models may find themselves struggling to attract the talent they need now and into the future.
Return-to-office mandates, if too extreme, will ultimately backfire by eroding employee attraction, retention, trust and engagement. The challenge for employers is not just about bringing staff back into the office—it’s about adapting to a new employment landscape. Solving for how many days in the office is dealing with a short-term symptom rather than the cure for longer term success. Companies that approach workforce management with a rigid mindset may get what they need in the short term, but those that innovate and embrace flexibility will be best positioned for long-term success.
The workplace is evolving, and so too must the relationship between employers and employees. The organisations that successfully navigate this transition will be those that balance financial realities with the changing needs and expectations of their workforce. The debate over remote work isn’t about returning to the past; it’s about shaping a sustainable future. Employers who recognise this will stand out—not just as places where people work, but as places where people want to work.
