Is your company genuinely prepared for the future of work? The overwhelming demand for flexible work arrangements is undeniable - as of November 2024, Gallup estimates six in 10 employees want some kind of hybrid work arrangement ⁽¹⁾. Are you leveraging the hybrid model to your advantage or being left behind?

Many companies struggle to balance remote autonomy and in-office connection. As hybrid working becomes more commonplace, this disconnect becomes a critical factor in talent retention, productivity, and profitability.

Employee's Demand Flexibility

91% of employees have positive experiences working remotely ⁽²⁾, and since the COVID-19 pandemic, they have been clear about wanting more of a work-life balance. The pandemic forced remote working on many people and businesses that may not have otherwise tested it out, creating shifts in working environments, behaviors, and structures that enabled remote and hybrid working to thrive.

However, many workplaces have tried to shift hard back to the office, so now, more employees tend to want hybrid and remote work options than work this way. According to Owlabs, 54% of employees work from the office full-time, but only 19% want to be. This was most significant in the U.S., with 66% working in the office and only 22% wanting to be. The U.S. is also the region with the most employees desiring full-time remote work ⁽³⁾, most likely as a response to the black-and-white return to office (RTO) mandates issued in recent years.

Even though tradition favors working from the office, this kind of working pattern was set up at a very different time. As Deborah Hanus, CEO of Sparrow, points out, "remote work lets any employee with a disability, mental health concern or a dependent achieve a realistic work-life balance" ⁽⁴⁾. Employees with caregiving responsibilities, disabilities, or differing needs were not exactly top-of-mind when 9-to-5 office work first came to the fore.

Employees benefit from remote working in a variety of ways, including:

Flexible scheduling: Giving employees the autonomy and freedom to choose how to spend their time means they can be more efficient by taking breaks, switching tasks, and balancing responsibilities when needed. Energy and focus are finite mental resources, and most employees intuitively know how best to work to complete what they need to by the end of the day.
Saving time and money: Remote work eliminates expenses related to commuting, parking, meals, and work attire and potentially reduces childcare costs, which is becoming increasingly critical as financial concerns press on more and more employees.
Able to care for family or pets: 83% of respondents believe being there for family is a significant benefit of remote work ⁽⁵⁾.
Freedom to travel or relocate: Giving employees more autonomy on where they can live improves their well-being and personal satisfaction, given that this impacts the rest of their lives.
Reduced stress and improved health: Research by Owlabs and Global Workplace Analytics shows that 74% of employees report feeling happier when working remotely ⁽⁶⁾. Several studies have shown that remote working reduces stress responses; however, it can impact workers under 35 who work from home long-term.

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Balancing Remote and In-Office: Enter Hybrid Working

For all its benefits, fully remote working isn't for everyone, nor is it the best in every situation. Challenges of remote working include:

Working longer hours: Research in 2021 showed that UK employees' work time had increased by 30%, including an 18% rise in out-of-hours ⁽⁷⁾. Another study of over 27 countries found that while remote workers save on average 72 minutes daily commuting, they spend 30 minutes of this time now working, adding an additional two hours to their weeks ⁽⁸⁾.
Not being able to unplug: Remote employees are more likely to check their email outside of their working hours, including when working during their time off ⁽²⁾, and are also less likely to take a sick day or ultimately rest when ill ⁽⁹⁾.
Loneliness: One in three remote workers reports their biggest struggle is staying home too often because they don't have a reason to leave, with loneliness close behind at 23% ⁽²⁾.
Decreased collaboration: One study of remote Microsoft employees found that time spent collaborating decreased by 25% ⁽¹⁰⁾. Communication improved within inner networks but was slower with new collaborators, leading to more siloed networks with fewer bridges to the rest of the organization.

These reasons, plus business needs, have led to the rise of hybrid working. This is the most popular way of working in the U.S., and it's the one most employees choose - Gallup finds that 60% of employees in the U.S. want to work hybrid ⁽¹⁾. Hybrid working is any kind of working pattern where employees can combine office and home working as part of their typical working environment. This could include the standard 2-3 days in the office, 2-3 from home, or one week per month in the office, etc. A hybrid workforce can comprise employees working a split schedule this way. Still, it also includes splits based on division, schedule, and responsibilities, such as a designated on-site team and an off-site team.

For hybrid workers, the office remains a vital hub for specific activities and crucial interactions. It can combat the collaboration issues that remote work creates, for example. In Owlab's research, 94% of global workers said they can be convinced to come to the office, and oftentimes, that depends on the type of work they are looking to complete. Over half of employees (54%) find it the optimal setting for meeting new people, while nearly half (49%) prefer it for managing others and 45% for collaborative work ⁽³⁾.

On-site employee presence creates tangible benefits: fostering stronger relationships through in-person interactions, engaging in meaningful manager conversations, experiencing the vibrancy of company culture, and building trust more rapidly. The office also provides access to essential resources, facilitates swift problem-solving, and offers a productive environment conducive to focused work and mentorship opportunities. Ultimately, hybrid workers recognize the distinct value of in-person time for building connections and driving collaborative success.

The Business Case: Benefits Beyond Employee Satisfaction

While getting caught up in traditions is easy, more flexible hybrid workforce models have many benefits for businesses and employees. As Owlabs summarises, "Employees feel more productive, balanced, and loyal to their companies when they have flexibility" (3).

Business benefits of hybrid working include:

Improved Employee Engagement: Gallup highlights that hybrid and remote workers often exhibit higher engagement than their entirely on-site counterparts, and engagement for those who work on-site but could work from home has declined since 2020 ⁽¹⁾.
Higher Productivity: 77% of employees report that they feel more productive when working from remotely, but 59% of managers globally believe hybrid and remote working has made their teams the same or more productive, rising to 79% in the U.S ⁽³⁾.
A More Desirable Workplace for Talent Acquisition: Offering remote and hybrid options expands your talent pool and makes your company more attractive to top candidates. 40% of employees would reject a job offer if the company did not allow for flexible hours, and 35 percent would reject a role that required in-office attendance full-time ⁽³⁾.
More Able to Retain Talent: Equally, if your existing employees aren't given hybrid options, they tend to vote with their feet, with in-office workers more likely to have changed roles in 2023 than their hybrid or remote counterparts. Most employees say they would start looking for another job if their hybrid or remote work options were removed ⁽³⁾. One study found this tends to affect most women, senior, and highly skilled employees ⁽¹¹⁾, which can hugely impact a business in the long term.
Cost Savings: As Bloomberg argues, the environmental impact of remote work is complex. However, employers can realize significant cost savings on office space, utilities, and other overhead by downsizing or eliminating office space and reducing relocation funds.

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Building a Successful Hybrid Workforce Model

Based on the pros and cons of remote and in-office working, a blended hybrid workforce should give your employees the best of both worlds. However, it's essential to ensure you're implementing an effective hybrid working model that positively impacts your business. While the benefits are clear, implementing a successful hybrid model requires careful planning:

Communicate: McKinsey reports employees who received detailed communications from employers were five times more likely to report themselves as productive ⁽¹²⁾.
Actively Address Collaboration Gaps: Implement strategies to foster cross-team collaboration, such as virtual meet-ups or in-person summits, to bring people together who don't need to speak or work together much of the time.
Combat Loneliness and Isolation: Organise virtual social events and mentorship programs and encourage meaningful in-person meet-ups. Keeping communications clear and aligned across channels ensures that no one feels excluded.
Factor in Training and Development: 58% of managers believe hybrid and remote workers miss out on informal feedback and development opportunities, with 41% agreeing ⁽³⁾. Adding or enhancing learning opportunities for hybrid employees and factoring hybrid working in L&D plans can help address this.
Define Purposeful Office Time: Tom Keuten, Senior vice president and global Microsoft Alliance lead at Rightpoint, emphasizes balancing digital collaboration with "intentional, purposeful in-person experiences that foster deeper personal and professional connections" ⁽⁴⁾. Ensure you support office time for meeting new people, managing others, and collaborating.
Train Managers: It's easy for managers at all levels to slip into proximity bias, with 49% of managers viewing in-office workers as harder working ⁽³⁾. Given managers' impact on employee experience, they should be your first port of call, ensuring everyone feels supported and included wherever they work. Encourage them to work with their team to define their working patterns as a group, as this is when employees feel happiest with hybrid working.
Invest in Tech: Companies must invest in robust technology infrastructure to support seamless remote collaboration. This could include new meeting room video and/or audio equipment, training or providing resources on how to hold effective and inclusive hybrid meetings, securing systems for remote access and cloud infrastructure, or improving project management and other standard working tools or processes for asynchronous working.
Monitor: Create a continuous feedback loop around your hybrid work model across your organizations; this should include enabling employees to track their productivity and understand how they work best, surveys to share their thoughts and opinions as well as using KPIs with managers and business leaders to assess how business output as a whole fares.

The Future is Hybrid: Embracing the Evolution of Work

As traditional CEOs and RTO mandates continue, remember the impact this will have on your workforce. 44% of workers would sacrifice 10% or more of their salary for flexible working hours, and 6% would quit if they lost remote or hybrid options, rising to 29% in the U.S. ⁽³⁾. As Doug Dennerline, CEO of Betterworks, states, "These rigid mandates are causing talented people to leave jobs they genuinely enjoy." ⁽⁴⁾

The hybrid workforce model is not just a temporary solution; it's the future of work. By embracing flexibility, companies can unlock many benefits, from increased productivity and employee satisfaction to cost savings and talent acquisition. By prioritizing employee wellbeing and investing in the right technology and strategies, companies can create a thriving hybrid workforce to drive success.

Akumina's modern intranet and digital workplace solutions provide the essential tools to bridge the gap between remote and in-office employees. By fostering seamless communication, personalized experiences, and easy access to critical resources, Akumina ensures that every employee feels connected, informed, and engaged regardless of location. We enable companies to build a dynamic and responsive digital environment, supporting the flexibility that employees demand and driving the productivity and collaboration necessary for success in the evolving world of work. Ready to see how Akumina can transform your hybrid workplace? Contact us today to learn more or schedule a personalized demo.