Distant working opportunities are decreasing, despite demand remaining high, recent data from LinkedIn shows.
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Those that have gotten used to flexible working might soon have a rude awakening.
The quantity of distant job postings on LinkedIn are falling, in response to recent data released by the platform. Within the U.S. for instance, the share of postings with distant roles has declined by 5 percentage points since April, once they peaked at 20% of postings.
While this continues to be much higher than the pre-pandemic average of two%, it’s a stark contrast to what employees want, Josh Graff, managing director for the EMEA and LATAM regions at LinkedIn, told CNBC Make It.
“Professionals now value flexibility within the workplace very highly — it consistently lists amongst crucial priorities for workers after compensation, together with skills development and work-life balance,” he said.
Despite the drop in distant working jobs within the U.S., these postings are still receiving over half of the full applications as of September, LinkedIn’s data shows.
The research shows that countries all over the world follow an analogous pattern — within the U.K., distant jobs make up 14.6% of opportunities, but get 20.2% of total applications and in India, the 11.3% of accessible distant roles are being sent 20.3% of resumes.
Why firms are scaling back
In line with a survey released by LinkedIn alongside the information on distant job opportunities, the shift away from them is linked to the present economic situation.
Sixty-eight percent of executives surveyed said they were concerned that the continuing uncertainty about economic stability and a looming recession would force their firms to undo at the least a few of the progress made toward flexible working through the coronavirus pandemic.
“World wide we’re seeing hiring slow and firms freeze recruitment because of economic uncertainty, with business leaders under intense pressure to administer costs and boost productivity,” Graff explained.
“Where the pandemic led to a shift towards flexible working and initiatives to support employees, the balance of power is now shifting back to employers,” he added.
Flexible working shouldn’t be the one worker perk being hit by the present economic turmoil, the survey found. 74% of executives said skills development could have to take a backseat, while 75% said worker wellbeing would likely be less of a priority.
Near 3,000 C-level executives at firms with at the least 1,000 employees and with a minimum annual turnover of at the least £250 million ($288.3 million) were surveyed by YouGov on behalf of LinkedIn to assemble these insights.
“Flexibility goes to increasingly grow to be a matter of survival for businesses,”
Josh Graff
Managing director for EMEA and LATAM at LinkedIn
While firms might think scaling back perks like flexible working will help them, there could possibly be serious long-term consequences, Graff believes.
“Firms who wind back progress on distant and versatile working risk demotivating their workforce and pushing them to competitors that supply more attractive options. Flexibility goes to increasingly grow to be a matter of survival for businesses,” he said.
LinkedIn’s data on distant working opportunities versus applications to those postings clearly shows demand stays high, a sentiment that was echoed by leaders at CNBC’s recent Work Summit, where a wide selection of business leaders argued that flexible working is central to recruiting and retaining employees.
Many firms are also still reeling from the so-called Great Resignation, and have since been offering a broader range of advantages, with some going so far as adapting a four-day work week to assist recruit and retain employees.
Adaptability and adaptability are subsequently key for firms going forward, Graff argues.
“It’s those that see this era as a chance, who’re prepared to adapt and iterate, and explore recent ways of working that may outperform competitors within the long-term,” he concluded.
