Feature
As of May 2024, 53% of US employees with remote-capable jobs worked in a hybrid environment — up from only 18% in 2020.
What was once a necessity for work to continue as (somewhat) normal under extreme circumstances has now become a desire for many people. Six in 10 employees want a hybrid work arrangement, while around 33% aspire to be fully remote. Less than 10% of employees prefer to work on-site.
That’s a major shift in how we approach and think about work. But that mindset has not been stagnant; hybrid working has seen some big changes along the way.
Two Types of Hybrid Work
There are two major types of hybrid work models, according to Mark Ma, a business professor at the University of Pittsburgh who has researched return to office (RTO) mandates.
- Mandated Minimums Hybrid. This is where employers mandate the minimum number of days an employee must spend in the office. “The most common expectation is 3 days per week,” said Ma.
- Employee Choice Hybrid. This other type of hybrid work provides employees with a choice. “This approach allows teams to decide how many days they come to the office or meet at an offsite location for international meetings,” explained Ma. “Then, employees can choose to work from home for the other days.”
Related Article: Should They Stay (Remote) or Should They Go (Back to the Office)?
What Does Hybrid Really Look Like Today?
We’ve all seen strict return to office mandates in the headlines — come back to the office within X days, or risk losing your job.
- Amazon told employees they must return to office five days per week starting January 2025. CEO of Amazon Web Services (AWS) Matt Garman suggested those who are against the new policy can quit.
- The Washington Post plans to table hybrid working in favor of a full return to office, telling employees it will accept the resignation of any worker who refuses.
- Dell issued an internal memo stating that while employees can continue to work remotely, they won’t be eligible for promotion or new roles.
While the tech industry in particular has seemingly taken a strong stance on working in-office vs at home, how companies approach hybrid varies greatly.
“There are very striking differences in different firms’ preferences,” said Ma. “Many companies favor flexible work schedules over rigid in-office mandates. As a matter of fact, the number of large public firms with 5 day RTOs is very small. So most firms provide at least some degree of flexibility.”
And research supports this approach to hybrid work. Nick Bloom, professor of economics at Standard University and co-founder of WFH Research, found that, as of 2024, work from home is stabilizing at about 25% of days — a five-fold jump compared to 2019.
Hybrid Working Varies by Industry (and Country)
Approaches to hybrid work vary from company to company — and rightfully so. But patterns emerge when looking across industries.
While the tech and financial sectors are strict about the number of days employees must spend in office, they offer some of the most work-from-home days compared to other industries. That number takes a dive when it comes to manufacturing, retail trade and hospitality.
The rates of hybrid working also vary by country. The US, Canada and the UK see the highest number of days employees can work from home. On the low end of the scale are South Korea, Taiwan and Greece.
Related Article: Try Magnets, Not Mandates, to Make the Return to Office Worthwhile
RTO Mandates Aren’t the Way to Go — Here’s Why
In his research, Mark Ma, along with Yuye Ding, found that the peak period for RTO announcements was between the second quarter of 2021 and the first quarter of 2022. Manufacturing, finance, insurance and real estate sectors accounted for approximately 60% of RTO firms.
Ma and Ding found that RTO mandates are more likely in companies with poor prior performance — suggesting that managers might use these policies as a way to regain control over employees and shift the blame for underperformance. But, contrary to managerial claims, the study found no significant improvement in firm financial performance or value following these mandates.
Among those employers who implemented early return-to-office policies, 80% experienced regret afterwords, citing low employee morale and a loss of talent. Employee satisfaction declines across multiple metrics, including work-life balance. Yet companies don’t offer anything of value to offset that dissatisfaction.
“I don't think most firms are doing a good job with offsetting the negative effect,” said Ma. “I think financial compensation to cover the extra costs of commuting and working in the office may help mitigate the negative effect. But it may not fully offset the negative impact.”
Related Article: Workers Reject Dell’s RTO Push. What Comes Next?
Hybrid Work Leads to Happier Employees (and Employer Benefits)
Workers aren’t against going back to the office some of the time — they just don’t want to be forced at threat of their livelihoods. Bloom’s research found that the majority of people want to work in the office at least part of the time, with the number one reason being the ability to socialize with their co-workers.
Giving employees that hybrid work flexibility comes with a host of benefits. In fact, employees like hybrid work about as much as an 8% pay increase.
When studying more than 1,500 engineers, marketing and finance professionals, Bloom found that hybrid work-from-home reduced quit rates by 35% — and had no performance impact.
Related Article: CEOs Blame Work From Home for Company Failings. Here's Why They're Wrong
Creating (or Refining) a Hybrid Work Policy? Here’s Some Advice
Ma has three recommendations for companies that want to develop an effective hybrid work policy:
- Allow teams to determine their own schedules. Teams can decide for themselves when they should meet in-person, whether in the office or an offsite location. “On the other days, team members can choose where they want to work,” recommended Ma.
- Promote flexible team leaders and avoid proximity biases. With this approach, employees who prefer to have some flexibility can still see a career path in the company. Ma explained, “They are less likely to look for other opportunities when they see a path for themselves.” This step, added Ma, also involves providing team leaders on how to lead and communicate with flexible teams.
- Provide in-person training (and mentors) to new employees. New employees, said Ma, actually want to work in the office for more days.
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According to Bloom, hybrid works best when people coordinate, as the main benefit people give for coming into the office is meeting in-person. “But that coordination can happen at the group or team level or the company level,” he explained, adding that it really depends at what level people work together.
He added that if people work independently, coming to the office may not be necessary. “For example in a call-center if folks are mainly working individually it makes sense to just run this fully remote.”
When it comes to evaluating the work of flexible employees, Bloom outlined an in-office vs. work-from-home approach:
- In-Office: These employees can be partly evaluated by observing inputs, i.e., hours and activity.
- Work From Home: These employees need outcome evaluation, i.e., data, assessments and discussion. This is not surveillance, Bloom highlighted, but outcome performance reviews.
The Future of Hybrid: What to Expect
Work from home is here to stay, according to Bloom’s research. But managing it is hard and requires coordination and a performance review focus.
In five or more years, however, he believes better technology will boost work-from-home, with the market for work-from-home products having increased five times over what existed in 2017. What will the future of hybrid work bring? Better video, improved screens, virtual realities, holograms and more.
