The Future of Work is Hybrid
Hey, business leaders, you’ve just been handed a key tool in the war for talent. Your move.
Without question, the COVID-19 pandemic dramatically transformed the workforce in 2020 by creating a divergence in the workplace. Businesses with remote working potential were quickly forced to make this transition to respond to the economic repercussions of the pandemic. Conversely, businesses that were bound to a physical work location and could remain in operation faced the stark reality of risking the health of their employees to remain solvent. For those with the ability to work remotely, there was a large-scale, rapid adoption, and transformation of working practices.
The slow and incremental progress towards hybrid (part remote and part in office) and fully remote work that we had seen over the past decade suddenly became a requirement for business existence. Changes that typically took years occurred in weeks. Necessity drove innovation and adaptation. So, what comes next?
Permanent shift vs. temporary accommodation
As we emerge from the crisis, business leaders and employees alike are asking themselves what the post-pandemic work environment should look like. The availability of effective vaccines means that there is the possibility for people to return to pre-pandemic ways of working, but the appetite for employees to return to the office has shifted. While some employees welcome the opportunity to return to the office for face-to-face interaction with colleagues, others are reluctant to do so or have discovered a preference for fully remote or hybrid work structures. Similarly, some business leaders look forward to returning to the office for the in-person collaboration and innovation it brings. Others are questioning the need to do this and see the benefits that remote working can bring (e.g., reduced operational overhead, increased employee productivity due to reduced commuting time, increased employee engagement, etc.).
“Employers (need to) move beyond viewing… hybrid environments as a temporary …strategy.” — Gartner
While no one has a crystal ball and can predict the future with certainty, there are indications that for organizations where remote working is possible, it’s here to stay. Let’s take a look at a few of these indicators:
1. Mutual benefits of remote working
While remote working is not a new concept, the extent to which it was employed during the pandemic has provided new perspective on its benefits and feasibility. The large-scale adoption of remote working practices on a global, cross-industry basis highlighted several benefits for businesses and employees. For businesses, remote working created the opportunity to reduce operational overhead (e.g., offices/facilities and associated support costs), increase employee productivity (by eliminating commute times), support their environmental goals, and provide an attraction and retention incentive for talent. For employees, remote working offered greater work/life flexibility and reduced commuting costs.
2. Opportunity for remote working
According to a post-COVID-19 recovery study, the opportunity for US organizations to leverage a more remote workforce is clear. While approximately 61% of roles are not suited to remote working, the remaining 39% have the potential to leverage hybrid or fully remote working patterns. This represents a significant portion of the workforce that has the potential to work remotely to leverage the benefits it offers if their employers enable them to do so.
3. Business sector advantages
While tech-focused companies recently captured headlines in terms of adopting more remote-friendly and remote-first practices (e.g., LinkedIn, Google, Amazon, Microsoft, Spotify, Facebook, Twitter, etc.), organizations in different industries are recognizing that remote working delivers bottom-line benefits as well as serves to attract and retain top talent. JPMorgan, Vanguard, and Deutsche Bank are examples of financial services companies that have realized the benefits that hybrid work arrangements bring and have adopted hybrid practices to create a competitive advantage.
“Google expects 20% of its employees to work from home after its offices reopen.” — CNBC, May 2021
When we look more closely, we see that certain business sectors are at an advantage when it comes to offering remote working options to employees. The nature of work in these sectors make them more conducive to flexible work arrangements which means that there are fewer barriers to implementing remote working practices. Specifically, the Finance and Insurance, Management, Professional Services, and Information sectors have the highest potential to adopt remote working practices.
4. Proven effective
For those organizations that were able to transition to remote working as a result of the pandemic and organizations that were already leveraging a fully remote or hybrid structure, one thing is clear — it works. As a society, we have participated in the largest remote working pilot in history. For 15 months (and counting), millions of people across multiple industries and countries have taken part in this experiment. Complications encountered in the early stages of remote working were largely overcome through the adoption of new tools and technology, altering work practices, and changing people’s mindsets. The notion that remote working was just a temporary fix to a short-term challenge is starting to fade and organizations are recognizing the potential of remote working on a permanent basis. According to a study conducted in 9 countries, “hybrid models of remote work are likely to persist in the wake of the pandemic, mostly for a highly educated, well-paid minority of the workforce.”
5. Employee demand
As we exit the worst days of the pandemic and business leaders consider their return-to-work plans, many are finding that their employees do not want to return to the way things were pre-pandemic. While many are eager to return to the office to see their colleagues and the interactions that brings, others are looking to retain what they believe they have gained over the past year. Our internal research show that approximately 30% of employees would look for another job if not given the option to continue to partially work remote.
As the economy rebounds from the pandemic, we are seeing significant skills and capability shortages across a variety of industries. Demand for skilled and experienced labor is high and employees are increasingly seeking greater work location flexibility in addition to conventional differentiators such as pay, benefits, and career growth opportunities. Savvy employers are taking this opportunity to reimagine their remote working practices to retain their existing workforce and compete for new talent. Employers that are unable to respond to the need for more flexible work will be at a competitive disadvantage for attracting and retaining the talent they need to win in the marketplace.
Your move.
Have you defined what the Future of Work looks at your organization? If you’re interested in learning more or would like to explore opportunities in more detail, please contact us. Reach out to Slalom Orange County Business Advisory Services at slalomocbas@slalom.com — or learn more about Slalom’s ETHOS model for supporting your shift to a hybrid future.
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