The findings draw on responses from 801 UK businesses across sectors, sizes and regions. The results move the debate beyond anecdotes and high-profile return-to-office mandates. They reveal a clear divide between firms that have built the organisational capability to make remote work effective, and those that have not.
For CBI Economics, the project demonstrates how well-designed business surveys can generate rigorous, decision-relevant evidence to inform both policy and corporate strategy.
Remote work is here to stay
Remote and hybrid work are now structural features of the UK economy. Among surveyed firms, only 16% have discontinued remote work entirely since the pandemic, and just 13% state a full five-day return to the office is likely or very likely in the future.
Hybrid working has become the dominant model. Half of adopting firms operate a one-to-two day remote policy, while one in four allow three to four days.
The direction of travel is clear: firms are refining flexible working models, not abandoning them. The strategic question is no longer whether remote work will persist. It is how to design and manage it effectively.
The real divide isn't remote vs office. The survey highlights a sharp management divide. Firms most likely to discontinue remote work are those facing significant organisational challenges in managing it. 57% of firms identify maintaining team cohesion and collaboration as their main challenge. Early-stage innovation and idea generation are also pressure points, with 57% reporting negative effects in these activities.
The wider sample, by contrast, reports largely neutral or positive effects on wellbeing, recruitment, productivity and even innovation. The conclusion is direct: remote work itself is not the determinant of performance. Organisational capability is.
What differentiates successful firms?
The survey identifies three consistent enablers of positive outcomes:
- Early adoption: Firms that implemented remote work before 2020 report the strongest productivity outcomes: 42% positive and just 21% negative. Late adopters are far more likely to report negative effects.
- Investment in training: Firms that invested systematically in remote and hybrid training were more than twice as likely to report positive productivity impacts (42% vs 20%).
- Formal management practices: Reduce the likelihood of negative impacts and increases the likelihood of productivity gains.
Taken together, these findings suggest that the key to successful remote work lies in the organisational capabilities that support it. Remote work amplifies underlying strengths and weaknesses and those that adopt remote work without organisational adaptation struggle.
Clear benefits, but unevenly distributed
Despite the challenges, the survey identifies tangible business gains.
- 57% of firms cite improved staff wellbeing as a primary benefit.
- Around a quarter cite easier recruitment and access to wider talent pools, rising to nearly 50% among large firms.
However, geography matters. Nearly 70% of smaller firms in London and the Greater South East report positive recruitment impacts, while smaller firms in devolved nations are only around one-third as likely to do so. Large firms can tap national labour markets regardless of location. Smaller firms outside London often cannot. Remote work may therefore reshape, and potentially reinforce, regional disparities to the disadvantage of firms outside London.
From insight to impact
This project reflects what CBI Economics does best: translating business experience into structured, policy-relevant evidence.
Working with LSE, CBI Economics:
- Designed a survey instrument aligned to academic rigour and strategic relevance.
- Secured broad participation across firm sizes and regions.
- Delivered high-quality firm-level data to underpin robust analysis.
- Enabled evidence-based discussion at a national policy level.
For organisations navigating regulatory reform, labour market change or strategic transformation, business surveys remain one of the most powerful diagnostic tools available. They allow you to test assumptions, identify capability gaps and quantify where competitive advantage truly lies.
The debate on remote work will continue. What this research shows is that outcomes are not predetermined. They depend on choices - about management, investment and organisational design.
If your organisation is facing a similar strategic inflection point, we would welcome a conversation about how targeted business insight can support better decisions.
Watch the LSE report launch webinar >
About CBI Economics
CBI Economics is the economic consultancy arm of the Confederation of British Industry, providing independent economic analysis, business insight and policy evaluation to clients across the UK and internationally. We combine deep analytical capability with direct access to businesses across sectors and regions, enabling us to deliver robust surveys, impact assessments, cost-benefit analysis and strategic advisory work grounded in real-world evidence. Our clients include government departments, universities, regulators, industry bodies and leading private firms.
To discuss how we can support your organisation, please get in touch .
