by Jason Richmond, CEO and Chief Culture Officer at Ideal Outcomes, Inc.
It’s been a hot button issue for the past few years—and the debate rages on. Is the ability of employees to work from home beneficial to corporate performance or is it an employee boondoggle? Is the trend towards hybrid work a happy compromise or something company leaders are simply going to have to live with if they can’t or don’t embrace it?
The attitude of many is summed up in a recent Korn Ferry article “Remote Work: A Grudging Acceptance by CEOs?” The story suggested that an increasing number of CEOs might have relinquished the desire to have everyone back in the office. It quoted a recent survey in which a mere 34% of CEOs expected a return to office work five days a week during the next three years—a significant drop from 62% who felt that way the previous year.
Many companies have encouraged workers to ditch 100% remote work and show up to the office more frequently. IBM, for instance, mandated at least three days a week. Meta, UPS, and others, even Zoom, have done the same. Amazon recently announced a five-day-a-week mandate while PricewaterhouseCoopers (PwC), in the United Kingdom, has taken it a step further. To “put more emphasis on in-person working” the major accounting firm notified its 26,000 employees that, starting January 1st, they must spend at least three days a week—or 60% of their time—in the office or with clients. It also said that it will monitor individual working location data. The message is clear: they will police whether employees abide by the mandate.
There might be another reason why companies seek to enforce in-office work. According to one survey, one-quarter of top corporate leaders and nearly one-fifth of HR executives hope that return to work mandates lead to “voluntary turnover.” In other words, they expect people to quit, thereby saving them from instituting layoffs—and the expense of severance packages
Here’s the way I see it. Hybrid work was a trend that started before 2020, and the pandemic accelerated it. It’s not going away. It’s here to stay. It’s unrealistic to expect employees who enjoyed the benefits of working from home to want to give it up entirely.
Hybrid work gives you the best of all worlds. While research has shown that key tasks like onboarding and team brainstorming are much more effective when conducted in-person, other projects and tasks can be performed remotely just as efficiently, sometimes more efficiently when you consider the lack of interruptions and distractions that naturally occur in an office environment. And to recruit and retain top talent, a hybrid work environment is going to be essential.
At Ideal Outcomes, from an operational standpoint, 90% of our work is conducted remotely. And 45% delivery of services—training and coaching—is now virtual. Even higher for some of our clients.
It’s important that employees understand exactly what hybrid work means within your organization—and that requires clear and honest communication. As Lynda Gratton, professor of management practice at London Business School and author of Redesigning Work: How to Transform Your Organization & Make Hybrid Work for Everyone, says, “My advice to senior teams about hybrid working: Make the ‘deal’ clear. For example, don’t pretend that there’s flexibility when the culture is to be in the office and a failure to show up will be punished.”
Let me summarize some of the key reasons in favor of hybrid work.
- Flexibility: Hybrid models cater to individual preferences which improve work-life balance and often lead to increased job satisfaction.
- Boosts Productivity: In a recent webinar poll, primarily of managers in human resources, 45% said hybrid work had led to a positive impact on productivity and 16% said it had been very positive.
- Reduced Commute Stress: Hybrid work reduces the time, cost, and stress of commuting, which can improve overall well-being and reduce burnout.
- Talent Attraction and Retention: Offering a hybrid work option can make a company more attractive to potential employees and help retain current employees.
- Cost Efficiency: Companies can save on real estate and operational costs by requiring less office space and resources due to a rotating workforce.
- Enhanced Collaboration: When hybrid work is structured effectively, it can enhance collaboration by scheduling in-office days for teamwork and meetings, while reserving home days for focused, independent work.
- Improved Inclusivity: Hybrid models can help level the playing field by accommodating different styles and paces of working, which can be particularly beneficial for individuals with disabilities, caregiving responsibilities, or those living far from the office.
In the largest study of professionals who work from home, Stanford economist Nicholas Bloom found that those who were home-based two days a week were just as productive, likely to get promoted, and far less prone to quit. Resignations fell by 33% among workers who shifted from working full-time in the office to a hybrid schedule. Professor Bloom said, “The results are clear: Hybrid work is a win-win-win for employee productivity, performance, and retention.” Based on my experience, I agree.
Embrace the Hybrid Work Environment [MN1]
As companies grapple with the nuances of remote and hybrid work environments, the evolution from traditional office-centric norms to more flexible work arrangements is irreversible. It’s not a reaction to world circumstances a few years ago; it’s a forward-thinking strategy that balances the benefits of in-person collaboration with the autonomy of remote work. This approach aligns with many employee preferences and can boost organizational productivity and efficiency. It’s essential for leaders to embrace these changes with open communication and clear policies that reflect the true spirit of flexibility.