Unlocking Success: Enhancing Hybrid Work Strategies for Your Organization
Can Your Organization Improve Hybrid Work?
There is not a single ultimate policy, but it is crucial to acknowledge the advantages of both in-person and remote work. For instance, some companies have found success in implementing a ‘core hours’ policy, where all employees are required to be in the office during certain hours for collaboration and meetings, but have the flexibility to work remotely for the rest of the day.
SUMMARY
With hybrid work now commonplace among many knowledge workers, companies are working to create and formalize better policies that recognize the benefits of both in-person and remote work.
More than four years after the initial COVID-19 lockdowns, the traditional five-day commute is a thing of the past for many knowledge workers. According to a recent survey by [reputable research firm], [percentage] of knowledge workers now have a hybrid work arrangement, and this trend is expected to continue.
Benjamin Friedrich, an associate professor of strategy specializing in labor and personnel economics research, has been studying the impact of hybrid work on organizations and employees. He states, “We’ve shifted to a new status quo that is challenging to alter.”
Companies pushing for a complete return to the office have encountered significant resistance. “You would need a compelling rationale to advocate for a full office return because there is strong evidence favoring a hybrid setup,” he explains.
Instead of automatically recalling workers to the office for managerial comfort, many organizations should empower their decision-makers to craft improved hybrid policies.
“Both remote and face-to-face work have unique pros and cons that are situation-specific and impact employees differently,” Friedrich says. “A hybrid schedule succeeds when it maximizes the value of both proximity and flexibility while minimizing the drawbacks of remote work.”
By analyzing external research and internal data on the effectiveness of remote work for various job aspects, leaders can ensure their hybrid system benefits both the company and its employees.
Friedrich guides how companies can achieve this. He suggests starting with a thorough analysis of the company’s current work practices and employee preferences, then using this information to design a hybrid work policy that balances the benefits of in-person and remote work.
Acknowledge the advantages of in-person work
Friedrich notes that the appeal of entirely remote work has diminished significantly since the pandemic. Safety is no longer the top priority for employees, and people now crave more connection to their work and colleagues. Consequently, the percentage of employees wishing to work solely from home could be much higher.
Additionally, research shows that face-to-face interaction fosters creativity and innovation and aids in quicker task completion—all compelling reasons to bring employees back to the office. However, it’s important to note that some employees may have concerns about the health and safety risks of returning to the office, and these concerns should be addressed in any hybrid work policy. “Many benefits are lost when fully remote,” Friedrich points out.
In particular, Friedrich highlights studies on the value of proximity, indicating that face-to-face colleagues receive more feedback and informal learning opportunities than remote counterparts.
Friedrich explains that this dynamic is especially evident between junior and senior colleagues. For example, a junior colleague may hesitate to seek advice from a senior coworker on a challenging task if they have not interacted much. However, informal encounters, like lunch meetings, make initiating work-related conversations easier. Over time, this fosters organizational learning and transforms social capital into long-term career progression opportunities for junior employees, inspiring and motivating them.
“Socializing aids career advancement by nurturing relationships. Less in-person time puts you at a disadvantage,” Friedrich asserts.
Hence, it makes sense for many organizations to require some face-to-face interaction for numerous roles.
Recognize the benefits of flexibility
However, flexibility is a pandemic-era benefit that employees desire to retain. Most knowledge workers now expect some form of hybrid work. Including this expectation in official policies can be crucial for talent attraction and retention. It’s also important to regularly seek feedback from employees on the effectiveness of the hybrid work policy and make adjustments as needed.
“The pandemic brought about a significant shift, prompting individuals to reflect on their life’s purpose, priorities, and the role of their job,” Friedrich remarks.
Consequently, some employees are no longer willing to make unquestioned sacrifices like daily commutes. Some are willing to accept lower compensation for flexibility. On average, companies that offer hybrid arrangements with remote work options have increased pay less over the past year.
“By providing hybrid options, you can tap into a talent pool you might otherwise miss. Offering flexibility gives you a competitive edge in attracting talent,” Friedrich notes.
Furthermore, companies may find that any decreases in productivity from remote work are offset by increased employee engagement.
“Their well-being could improve; they might achieve better work-life balance,” Friedrich mentions. “These factors could keep employees content and motivated, aiding retention.”
Several studies on companies have reported that employees use remote work time for focused tasks, boosting productivity. However, some studies have observed adverse effects, implying that such gains are not guaranteed. “Given some flexibility,” Friedrich states, “the business cost might be justified by productivity gains.”
Consider who benefits and who loses out
Companies convinced of the benefits of hybrid work arrangements must meticulously weigh all factors. How will the frequency and duration of remote work impact employees in varied roles, demographics, and career stages? For instance, some companies have found success in implementing a ‘flexible work hours’ policy, where employees can choose their work hours as long as they meet their job responsibilities.
The drawbacks of remote work generally affect experienced workers less than junior employees, who miss out on developmental opportunities.
“Remote work can create opportunities, but it might also result in new imbalances if, for example, male and female employees are compared regarding their flexibility or in-person time choices.”
Furthermore, granting employees the choice of remote work frequency may lead to unequal outcomes among various employee groups, including women. These disparities must be addressed.
“Remote work can present opportunities, but it can also exacerbate disadvantages for women in career advancement due to gender biases,” Friedrich cautions.
On one hand, this could benefit groups historically disadvantaged in the job market. Friedrich notes that overall, women’s participation in the workforce has surpassed pre-pandemic levels, especially among working women with young children.
Conversely, women opting for more remote work hours may be viewed as less ambitious and hardworking, potentially facing biased treatment.
“Gender biases could magnify the negative impact of remote work on career progression for women,” he warns.
Leverage internal data
While recognizing these general trends is helpful, creating the right hybrid policy for any organization necessitates data specific to its requirements. Hence, reassuringly, relying on internal data is crucial in decision-making, instilling a sense of confidence in the process.
To craft an effective system, Friedrich emphasizes the importance of two data types: employee sentiment (capturing workforce opinions on current business practices, policies, and potential changes) and performance metrics (such as productivity and employee retention rates).
“Identifying issues in your data helps tailor adjustments to maintain flexibility benefits and mitigate drawbacks,” he advises. “For instance, you can identify if collaboration is hindered among employees lacking equal access to training and mentoring because they joined while remote.”
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Armed with this information, leaders can assess what works and what doesn’t and how the hybrid policy can be refined and formalized.
Prioritize communication
Aside from improving decision-making, internal data aids in effectively communicating the business rationale behind hybrid work strategies. This is essential, as even the most well-thought-out policy will fail if employees do not grasp it.
“Internal data enables you to construct a compelling argument based on facts specific to your organization,” Friedrich states. “Merely stating ‘everyone’s doing it’ or citing media articles won’t bolster your case like understanding what is effective and ineffective in your context.”
Moreover, clear communication of objectives, policies, and timelines is crucial. Employing a decision-making and announcement approach will backfire.
Friedrich suggests fostering open communication and creating feedback opportunities because you want a mutually beneficial outcome.
A vital tip: only ask questions you are prepared to act on when seeking employee input. If employees feel they have been offered feedback multiple times without seeing any changes, it can lead to disengagement.
Continuous assessment of changes and an openness to policy adjustments are essential while tracking data over time. Flexibility isn’t just for employees; it benefits the organization, too.
“Strive for enhancements and avoid being tied to an ineffective policy.”
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