Just 14% of employees said their bonus packages are linked to in-office attendance, according to research by flexible workspace provider International Workplace Group (IWG).
Its survey also found just 7% of respondents believe bonus packages should be linked to in-office attendance, and 86% have no formal policy connecting office attendance to bonus eligibility. Meanwhile, 81% of leaders have warned that tying reward to in-person presence could increase turnover.
A majority (88%) of respondents said that hybrid working positively impacts employees’ ability to achieve bonuses, key performance indicators (KPIs) and measurable outputs.
When asked what matters most for bonus and KPI achievement, they consistently pointed to output and collaboration. Delivering high-quality work (59%), meeting or exceeding performance targets (46%), and bringing in new business or client growth (35%) were considered the most important factors for employee bonuses or KPIs.
Other key factors include effective communication with employees (32%), building strong team relationships (29%), and demonstrating leadership or initiative (28%).
Mark Dixon, founder and chief executive officer of IWG, said: “Our latest research reinforces what we’ve long observed: flexible working and local office access drive productivity, engagement, and retention. Employees who can work closer to home in well-equipped spaces are more focused, less distracted, and more productive.
“The office isn’t dead, it has just moved closer to where people live. Businesses that embrace hybrid working and allow employees the autonomy to choose the workspace that works best for them will unlock substantial value for both their teams and the wider economy. Employers adopting this approach are already seeing record demand for local, flexible workspaces.”
