How hybrid work impacts the workplace experience
Oct 17, 2024
In organizations all across the United States, an ongoing debate still rages — should employees be allowed to work in hybrid or remote settings, or should they be called back to the physical work setting? This debate will not be resolved through consensus any time soon. According to a recent study by Korn Ferry, only 34% of CEOs expect their employees to be in the workplace for a full 5-day work week – at least for the next three years.
Gallup says that the future of work has arrived, and that the proof is in the current landscape: more than 8 in 10 office employees say that hybrid and remote work is now their permanent working arrangement. At the same time, 90% of companies say that they’ll return to the office by the end of 2024. Clearly a return to work mandate will be tough to achieve without significant backlash from employees who have come to enjoy the freedom and flexibility such arrangements provide.
Productivity concerns remain for many employers and managers, but research has failed to show any definitive conclusions. In the U.S., employee productivity rose by 4.4% in 2020 and 2.2% in 2021, before falling in 2022 according to the Bureau of Labor Statistics. In 2023, though, labor productivity rose 3.7% during the second quarter and is up 1.3% compared to last year.
Of course, not all companies, and not all types of employees can work in a hybrid or remote setting. Some healthcare providers, manufacturing employees and employees in the trades, for example, must do their work on-site.
Hybrid work has an impact not only on employees and employers, but on communities and the economy.
For instance, real estate occupancy rates have declined and are predicted to continue declining in 2024. Some of the biggest impacts have been in large urban areas. As McKinsey reports: “Office attendance fell by 90% in New York City and San Francisco.” As office leases tend to be lengthy and many employers have not yet decided whether to renew since the pandemic, the full scope of this downsizing is unclear. Still, there is evidence that larger cities’ populations are shrinking as people move to other locales because they’re able to work remotely.
There are also social implications to this new world of work. While employees are embracing flexibility, they also acknowledge the loss of community that remote work brings. Employees are feeling less connected now that they are not interacting face-to-face with their colleagues on a daily basis.
In fact, more than 70% say they don’t feel like they’re able to socialize enough when they’re working remotely. For more on this subject download our eBook: Creating the Workplace of the Future, a guide to understanding the importance of social connection and well-being in the workplace.
The Society of Human Resource Management (SHRM) reports 70% of remote employees aren’t able to socialize enough. Organizations who leverage their physical workspaces to create a hub for social interaction, employee connection and collaboration intentionally address their workforces needs by design, not accident.
The principles that help hotels create loyal guests can help organizations boost employee engagement and encourage more employees and visitors to return to their office. Much the same way quality hotels build guest loyalty through tailored experiences, workplace hospitality relies heavily on personalization to provide customized service and a unique human touch. Here’s how to incorporate hospitality into the workplace experience, so that employees want to come back into the office with more frequency:
For more information on this, download our Complete Guide to Workplace Hospitality and see how using a partner with specialized hospitality experience and resources can create a highly personalized culture that elevates your brand and makes your office commute-worthy for employees.
Technology was a life saver for many organizations and their employees during the pandemic. Since then, technology has expanded and improved to continue to offer a means of connecting with and engaging employees, customers, their community, and others.
Circles uses technology to create a sense of community through a connected workforce — on-site through amenities that can help employees achieve better work-life balance, and hybrid by giving them a reason to come into the office.
AI is being used to reshape business operations and the delivery of employee experiences:
We explore more about AI in HR in our Q3/4 2024 Workplace Trends Report.
Including amenities as part of total benefits packages help employees tick off their to-do lists, providing them with more free time when they’re not working and allowing them to focus better while at work. These same amenities also contribute to employee well-being. It’s all interconnected. When we feel a sense of accomplishment it has a positive impact on our well-being.
One example of this comes from an American multinational financial services corporation that improved their employee support services program to make it less labor-intensive, and more efficient and innovative. Initially, the program served more than 36,000 employees, but has grown to support more than 63,000 across all locations. Annually, the program completes over 52,000 requests and saves an average of 2.5 hours per request, or more than 100,000 hours overall. The return on investment — 85% year over year.
When employees can work in comfort and feel connected to their employer and their co-workers, they tend to be more engaged, less burned out, and less likely to quit — contributing to positive business outcomes in terms of both productivity and profitability. Making a workspace that provides that sense of community entices employees back to physical work setting more often, and with more positive results.
