Much like in 2024, the 2025 labor outlook is likely to strike a balance between the struggles of pandemic-era unemployment and the hot, competitive labor market of 2022/2023. As of November 2024, Indeed’s Job Posting Index was down 10% over the year, while still remaining higher than pre-pandemic levels. In other words, employees aren’t struggling terribly to find work, but they’re also not holding all the cards in hiring negotiations anymore, either.
For franchise leaders, that requires a balancing act of their own: offering sufficient incentive to attract top talent – particularly in competitive sectors – without increasing budgets to unsustainable levels.
Amidst this shifting landscape comes a growing (and controversial) push for employees to return to the office (RTO). As reported by Fortune, a third of company leaders admit that their office lease agreement – often expensive or hard to get out of – are a major factor driving the RTO mandates. But this push isn’t just about finances; it directly impacts talent attraction, retention, and compensation.
Flexibility as a Key Recruitment Driver
For many employees, hybrid or remote work is something of a synonym for flexibility, which is what they’re really after. They’re even willing to make a bit of a financial tradeoff: one survey from FlexJobs found that 63% of employees are willing to take a pay cut to work remotely, with 17% willing to take a pay cut of up to 20%! If it’s feasible for certain industries or types of roles, offering some flexibility could reduce payroll costs or make compensation packages more appealing without increasing base pay.
Remote and flexible options also may allow franchises to access candidates outside the immediate geographic area. In turn, this can diversify the talent pool – but it does come with potential challenges in managing a dispersed, decentralized workforce. Flexibility does have some workplace-culture appeal, too. It can be a way of signaling that your franchise is modern, employee-centric, and interested in attracting top-tier talent who value work-life balance.
The Impact of In-Office Requirements on Hiring
Conversely, RTO mandates or strict in-office requirements may place some restrictions on your ability to hire top talent. Candidates prioritizing flexibility may opt out of roles requiring full-time office attendance, and there is likely to be more competition for talent willing to work on-site. This can be particularly challenging in areas and/or industries with a lot of competition, and less of a challenge when you’re the “only game in town.”
Employees asked to work primarily or totally on-site may also demand higher pay or additional perks like commuter benefits, childcare, or others. This may lead to rising costs for talent acquisition, as well as for retention. For some franchises and areas, in-person work may make logical sense, but for others, strictly requiring RTO could lead to higher turnover and lower morale.
Hybrid Work and Strategic Hiring
Hybrid work is often seen as a “best of both worlds” solutions, allowing employees some level of convenience and flexibility without totally giving up the benefits of working together in a physical space. It’s about finding the right balance between flexibility and consistency, while ensuring your employees feel like you trust them and value their preferences.
Offering part-time remote work can reduce burnout while maintaining team cohesion. This approach can give your franchise a culture edge over the competition, enhancing productivity and positivity while reducing the risk (and cost) of turnover. In an increasingly crowded franchise landscape, any positive difference is important when it gives you a better chance to hire and retain the best available talent – or even attract passive talent away from their current roles.
How can franchise executives take this knowledge and translate it into action? Consider some of the following strategies:
- Strategically align pay scales with flexibility levels (i.e., higher pay for in-office roles, adjusted pay for remote roles, etc.).
- Craft clear remote or hybrid work policies to attract top candidates.
- Simplify recruitment messaging and strengthen employer branding.
- Invest in remote onboarding tools and processes to better integrate talent, particularly remote/hybrid talent.
The flexibility of remote and hybrid work models is no longer just a benefit—it’s a strategic hiring tool. As 2025 kicks into gear, it’s the perfect opportunity for franchise executives to review hiring strategies and adapt work policies to meet candidate expectations while balancing operational goals.
Staying competitive in talent acquisition requires franchises to think beyond traditional models and embrace workplace flexibility as a core part of their hiring value proposition. Blue Rock Search- Sarasota is here to help! Talk to us today for more talent and industry insights, plus personalized support when it’s time to make your next key franchise hire.
About the Author
Nancy Estep-Critchett is a founding Partner of Blue Rock Search, with oversight of the Franchise Practice. She has 30 years of successful working experience as a business advisor and executive recruiter in the franchising space. Nancy has built solid relationships which have spanned decades with industry professionals and internationally recognized brands.