UK employers pay premium to get office workers back

Decline in the size of the UK’s workforce, down 600,000 sine the pandemic, means those people who are applying for jobs can ask for more flexibility and benefits.

Wages are rising at near-record rates because workers are in short supply, even though the economy is headed into recession.

British companies are starting to pay a “five days in the office” premium to lure in staff who have retained bargaining power because workers are in such short supply, the UK's biggest recruitment firm has said.

James Reed, chairman of recruitment giant Reed, said employers are having to lift wages most in industries such as hospitality, manufacturing and healthcare where there is less flexibility to work from home.