Does offering remote work reduce employee turnover rates in UK tech companies?

Abstract

This study examines the relationship between remote work policies and employee turnover rates in UK technology companies. Using a dataset of 302 UK tech companies collected for the period between 2022 and 2024, this research employed quantitative analysis to determine how different remote work arrangements (fully remote, hybrid, and office-based) impact annual employee turnover rates. The findings reveal that fully remote companies experience lowest turnover rates of 7.4% followed by organizations with hybrid arrangements at 9.87%. In contrast, office based companied record significantly high turnover rate (17.89%). The study further highlights key moderating factors which include employee satisfaction, company size and salary levels. These results have important implications for HR policy development and organisational strategy in the post-pandemic era.