The Future of Work (Part 2): The Top 3 Benefits and Challenges of Hybrid Working.

In Part 1, we discussed the relevancy of hybrid working in today’s workforce and the 4 archetypes of this work model. In this second part of the series “The future of work”, we will deep dive into the reasons hybrid working has gained popularity post-pandemic and address some key challenges organizations would face when implementing this work model.

Why should organizations adopt hybrid working?

Cut off some dead weights.

Depending on the area, rent (or mortgage) on office space would be one of the top predictable expenses of an organization, just after payrolls. Not to mention the costs of utilities, office supplies and maintenance costs associated with the office space. A previous study estimated that if employees were allowed to work remotely for half of the workweek, it would help organizations save on average $11,000. Organizations eventually need to re-evaluate real estate management to drive down costs and reallocate those expenses more effectively.

Boost employee job satisfaction, productivity and well-being.

It is no surprise that hybrid working is now considered a job perk by 80% of today’s workforce. This working model has improved all aspects of employees’ well-being, enabling them to be happier, more fulfilled and motivated at work and in their personal life. Here are a few highlights from Cisco Global Hybrid Work Study 2022 on hybrid working and employee well-being.

Financial well-being.

Hybrid working allows employees to drastically cut down commuting time and household expenses such as food and entertainment. Many people now spend the majority of their time cooking at home and have the ability to reduce their cost of living since work-from-anywhere means they can relocate to more affordable living areas. On average, hybrid workers have been able to save about $8,000 per year, amounting to a 14.25% increase in disposable income. To be in good financial health translates to employees experiencing less stress, being more satisfied with their personal lives and feeling better compensated for their performance and effort, leading to greater productivity. 

Physical well-being.

A flexible schedule has helped people to better manage their time for a personal life outside of work as 7-out-of-10 employees worldwide increased their physical activities by an additional 1.5 sessions per week, totalling up to an extra 130 sessions per year. As a result, an improvement in physical wellness can reduce health insurance claims and sick leaves which amount to savings on the organization’s end.  

Emotional and mental well-being.

The ability to work anywhere to varying degrees made the majority (82.2%) of people feel happier, experience less stress and had more time to invest in personal relationships and personal fulfillment. After all, a healthy mind fuels a healthy body and vice versa. 

Social well-being.

Despite concerns over sharing the same productivity space with home-school children and other working spouses, the majority of people (73.7%) agreed that remote working has significantly improved their relationship with family and friends. Findings also showed that working away from the office created a more fulfilling experience for nearly two-thirds of employees around the world. Having an ideal work-life balance is no longer just a perk but a crucial part of the company’s work culture and is highly sought after by today’s talents. 

Diversify talent pools.

Hybrid working opens up doors for organizations to attract talents from a diversified geographical, socioeconomic and cultural diversity as well as providing access to disabled workers. Another study of the global workforce reveals that two-thirds of the workforce would consider finding a new job if they were forced to work full-time in person. With this sentiment in mind, organizations that wish to stay competitive need to consider some form of hybrid working like one of the archetypes mentioned above in this article. 

What are the key challenges of adopting hybrid working?

As with many win-win benefits that this working model brings to the table, there are also several noticeable shortfalls that organizations need to be aware of.

Misalignment in communication and coordination between teams.

Real-time communications and collaboration in a virtual setting require a great deal of setup and coordination between key personnel, taking into account each person’s flexible schedule, and time zones difference if the teams are geographically dispersed. It can be especially challenging when organizations adopt flexible hybrid working where one team is on-site and the other is remote. Whereas pre-pandemic your colleagues are probably just a desk or a wall away, now they could be miles and hours apart from you. 

Tendency for micromanagement.

The lack of real-time supervision may trigger upper management to find ways to track employees’ productivity in an extreme manner that can be counterintuitive. The ‘productivity paranoia’ can cause unnecessary tension, eroding their relationships and trust. Up to 85% of leaders expressed a lack of confidence in their hybrid working employees being productive meanwhile 87% of employees reported they are productive at work. The striking difference in how employer-employee views productivity in a hybrid working context can fuel future unwanted conflicts and issues. 

Reliance on technologies and digital tools.

Organizations that mainly operate remotely need to take into account employees’ home setup. Both hardware like laptops/computers, screens, webcams, headphones and WiFi extenders and software for virtual conferencing, communicating, sharing resources and trading data need to be up to par with that of an office workplace. Not to mention the risk of cyber attacks, data loss and hacking, employees expect organizations to provide them with these basic tools to be productive anywhere. 

Hybrid working emerged as the preferred work model from the pandemic era and has proven to stay for the long haul. Now that we have considered both sides of the coin of this work model, let’s take a look at top tips on how to seamlessly integrate hybrid working into your organization’s workplace strategy. 

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