How do we balance hybrid work to meet employee needs and business requirements?
For many organisations hybrid working is helping to improve employee engagement and productivity. A hybrid model allows employers to access a wider talent pool, often at lower cost and those companies that can adopt remote hiring are able to take advantage of the global talent market.
The Mercer 2022 Global Talent Trends survey showed that UK participants were more likely than global respondents to prefer hybrid or full-time remote working and this trend has continued into 2023, with almost all UK respondents reporting stating that they offer at least some ability to work remotely.[1] As a result, there is strong competition to offer flexible terms to attract potential candidates and retain existing employees. Productivity remains important as economic uncertainty continues to impact and by mandating a return to the office, many employers believe productivity will be optimised. However, many argue that a flexible hybrid work model can increase productivity and employee engagement.
Almost three quarters of those who work from home in a hybrid capacity say doing so helps them balance their work and personal lives. Research shows that remote workers often work more efficiently and are less likely to experience burnout than those office based full-time, however younger employees can be disadvantaged by the lack of social interaction, mentoring and training opportunities. It is imperative for an organisation to mitigate the effects of not being physically present in the office by ensuring that employees are valued and engaged.
Recent data from JLL shows that globally, around 60% of office using employees prefer hybrid work and work remotely for an average of 2.3 days/week. Of the hybrid workers who are not self-employed, almost two thirds (63%) say their employer requires them to work in person a certain number of days per week or month. Interestingly a survey by Pew, found that the majority of those who are working from home at least some of the time (56%) believe that this helps them get their work done and meet deadlines. Only 7% say working from home harms their ability to achieve tasks. Almost two thirds say they work from home for three or more days in a typical week with 41% stating that they do two days or less.
We asked our network about the future of work including working from home vs the office in H1 2022. At that time, all respondents had been offered flexible working by their employers, with a third working 2 to 3 days in the office and the remainder from home. If given the choice, more than three quarters of the respondents would like to continue to work in a flexible capacity. Typical working arrangements are difficult to define, however most of those that we spoke to a year later (in H1 2023) are now office based 2/3 days a week.
Organisations that are based in high-paying regions are sourcing candidates from lower paying ones and therefore saving costs. In the US, employer demand for remote work has increased almost 400% since 2016, with over 3.5million remote job postings listed in 2022. [2] Return to office rates in the U.S. are still at 50% while in Europe and Asia they are more than 75%. Industry, job function, commute times, size of property and labour market conditions are all driving this.
While there are distinct benefits to being able to tap into a remote, global workforce and take advantage of a diverse, skilled pool of talent, these need to be balanced with employee wellbeing and business strategy. A recent article in the FT explores an increasingly corporate approach to ‘digital nomads’, with employees being told that they can work from an international location but only for a certain amount of time and with restrictions on the different geographical locations they can work in. [3] Organisations must confidently trust the arrangements put in place to ensure that they achieve a remote work model that balances employee preferences and business needs.
[1] https://www.mercer.com/insights/talent-and-transformation/flexible-working/
[3] https://www.ft.com/content/075bc87c-a01b-4372-b1e7-1a44f6684768