Five years on and firms are also suffering from the effects of long Covid

Many employers are still struggling with the long-term effects of the Covid-19 pandemic, five years after the first UK lockdown began, according to the CIPD. While the pandemic led to significant changes in working practices and an increased focus on employee wellbeing, challenges around productivity and economic inactivity persist. The pandemic brought widespread upheaval, with many people experiencing job losses, business closures, and the loss of loved ones. However, the CIPD argues that it also prompted positive changes in the workplace, including greater flexibility in working arrangements and increased adoption of technology to support collaboration. Despite these developments, many businesses continue to face difficulties, particularly as the cost-of-living crisis and economic uncertainty exacerbate the challenges of workforce engagement and productivity.

CIPD research suggests that more employees now have flexible working arrangements, with 60 percent of UK workers in early 2023 reporting they had some form of flexibility in their role, an increase from 54 percent in 2019. Hybrid working also remains a key feature of the modern workplace, with 41 percent of UK organisations having formal policies in place and a further 24 percent adopting an ad-hoc approach. Only 9 percent of employers do not permit hybrid working at all.

However, the shift in work patterns has also led to changes in employee attitudes. In 2024, nearly half of employees (47 percent) viewed their job as simply a means to earn money, compared to 38 percent in 2019. Additionally, the proportion of employees willing to put in extra effort at work has declined, with just 51 percent stating they would work harder than necessary to support their employer, down from 57 percent five years ago.

In response to these challenges, the CIPD is urging organisations to remain open to new ways of working, including exploring how flexible work and emerging technologies, such as AI, can help address long-standing issues. The organisation emphasises the importance of evidence-based decision-making when determining the most effective working arrangements, warning that any move away from hybrid or remote work should be justified by clear business needs.

Peter Cheese, chief executive of the CIPD, said that while the pandemic itself has passed, its effects are still being felt. He highlighted the ongoing impact of long Covid and the strain on mental health, reinforcing the need for flexible work and wellbeing support. He also noted that many employers are still struggling to define a “new normal” in the workplace, particularly in balancing flexibility with productivity and collaboration.

Cheese pointed to the concerning rise in economic inactivity since the pandemic, as well as the increasing number of employees who view work purely as a financial necessity. He called for greater employer engagement in government initiatives such as “Get Britain Working” and “Keep Britain Working” to help address these issues.

The CIPD also warns that employers must consider flexible work options that go beyond remote and hybrid models. It encourages organisations to explore alternatives such as flexitime, compressed hours, job-sharing, and term-time working to support workers in frontline roles.

To combat declining employee engagement, the CIPD is calling for greater investment in skills development, better training for line managers, and a focus on creating positive, collaborative workplace cultures. Cheese stressed that there is no single solution to the challenges facing businesses, urging organisations to maintain the same openness to change that they demonstrated during the pandemic as they navigate the evolving world of work.