North West businesses plan major shift towards new ways of working, as offices prepare to reopen

• Nearly a third of regional businesses (30%) are prioritising investment in technology to support more people working remotely in the next six months
• More than half of North West businesses (60%) plan to create permanent remote roles

As offices prepare to reopen, business leaders in the region are making, or planning to make, significant changes to the working environment in a bid to recover from the effects of the global pandemic.

More than half of North West businesses (60%) plan to create permanent remote roles, as companies make a major shift towards new ways of working – the highest rate across any UK region.

According to the latest BDO LLP Rethinking the Economy survey of 500 mid-sized businesses, 20% of North West companies intend to adapt their office space, with more than a third (37%) looking to introduce agile or hybrid-working on a permanent basis. Nearly half admitted that they expect the majority of staff to work from home for at least two days a week once offices reopen. As such, the number one priority for mid-sized businesses is to invest in technology to support more employees working remotely.

Ed Dwan, partner and head of BDO in the North West, said: “There is clearly a tangible shift towards a more hybrid way of working, as companies continue to adapt to the ongoing challenges thrown at them by the pandemic, while responding to the valuable lessons that have been learned over the last 12 months. This is particularly pronounced in traditional North West sectors, such as manufacturing, where there is a real step change in approach.

“Interestingly, remote working will be the biggest driver in boosting economic recovery, according to the survey, with 40% of North West businesses saying that the region will benefit from workers spending more money locally in towns, suburbs and rural economies, rather than commuting into city centres. Of course, this will impact the health of some city centre businesses which rely on footfall, but we are starting to see places rethink the way they will attract people into our cities to enjoy the cultural, hospitality and leisure offering.”

The report also showed that North West businesses are continuing to gather momentum and strengthen revenue streams. More than half (60%) intend to bring back staff after the furlough scheme ends in September, while 45% plan to hire permanent or temporary staff in the next six months.

Dwan added: “With a third of companies expecting to return to pre-COVID-19 revenues within the next 12 months, there is a clear desire to put in place strong foundations on which to build more resilient businesses.

“There’s little doubt that the region still faces challenges posed by the pandemic, while attempting to address other concerns, such as the regulatory demands brought on by the EU/UK trade agreement and the ongoing issue of trying to access the right talent in the region. It’s precisely that – creating more quality employment opportunities – that defines ‘levelling up’ for North West business leaders.”