First Tesco, now Asda: why are UK retailers backtracking on flexible work?

The latest ‘Rollback Offer’ from supermarket giant Asda looks a little different: an end to fully flexible work. From January, 5,000 head office staff will need to work in-office at least three days a week, as Asda joins other large UK firms demanding a return to office (RTO).

Various retailers have made similar moves this year, despite UK employees and job seekers increasingly prioritising flexible working in their career.

Employees are protesting the RTO mandates by doing everything from giving up promotions to going on strike. Yet despite the rebellion, employers are doubling down. Below, we explore what’s behind the shift in attitudes, and who will win this work model tug of war.

Who is demanding an RTO?

Flexible working had been sweeping the supermarkets as retailers jumped over each other to win talent. Tesco gave all staff the right to request flexible working last August, almost a full year ahead of it becoming a legal requirement earlier this April. In 2020, Morrisons gave more than 1,500 workers at its head office a four-day week.

But after years of embracing the new policy, many companies have now done an about-face:

• In January, Morrisons axed its four-day week policy
• In July, Tesco told admin staff to work from the office for two days per week
• Also in July, Asda scrapped a four-day week trial for its employees
• This November, Asda told staff to work in-office three days a week

It’s not just the grocers, however. After years of fully flexible policies, retailers JD Sports and Boots told head office workers to get back behind the desk. Both brands now require in-office attendance from staff members five days a week since September.

Why are retailers doing a 180 on flexible work?

WFH sceptics give differing reasoning for their RTO U-turn. Both Boots and Tesco hinted that home working was impacting teamwork. Tesco director James Goodman said the change would “build and support high-performing teams with a collaborative culture.”

Meanwhile, Morrisons has claimed the decision to scrap its four-day week was based on employee feedback. Staff members reportedly complained that the policy had actually led to them having to work extra hours on weekends.

However, that so many large retailers have chosen to start and end flexible working policies within a similar time frame suggests that some are simply following the herd.

In an announcement this week, an Asda spokesperson hinted that its recent RTO decision was made in response to industry trends. “This approach brings us in line with our competitors and the wider market, allowing us to build high-performing teams”, they said.

Asda’s market share has slumped significantly in the past year. Staff confidence has also fallen after a series of pay rows. In this context, leaders could be hoping that an RTO will signal stability and seriousness to stakeholders concerned about its ability to compete.

However, case studies have repeatedly shown that RTO mandates have little impact on productivity, and are likely to harm staff morale. Attempting to fix its financial performance with an RTO could jeopardise organisational culture, creating a win-lose situation for Asda.

Why a one-size-fits-all approach never works

The recent trend of retailers reversing their flexible work policies offers valuable insights for small businesses. While large corporations prioritise in-office work, SMEs should consider the benefits and drawbacks of such a shift. Following trends for trends’ sake can be risky.

Withdrawing flexible working is more likely to hurt, rather than help, the highly specific issues with Asda’s company culture. Similar to how Morrisons’ four-day week was undermined by leadership not taking time to work out how the policy would align with its staff rotas.

Joe Ryle, director of the 4-Day Week Campaign, agreed, saying the approach was wrong from the start. “Being required to work on Saturdays [isn’t] really a four-day week,” he added.

Ultimately, the decision to change any HR policy must consider the business’ unique needs and operations alongside macro-economic challenges. By avoiding a one-size-fits-all solution, SMEs can harness the power of flexible work to drive growth and success.