Hybrid work, the combination of remote and in-office work, has gained significant traction among both employees and employers in recent years. Beyond the flexibility and convenience employees enjoy, hybrid work programs have led to competitive advantages for organizations.
Here is what research shows are 5 substantial competitive advantages of hybrid work, including increases in employee retention, productivity, positive culture, agility, and profitability.
1. Employee Retention Research shows that the ability to work from home equates to an 8% increase in pay. This figure can skew even higher, particularly in the technology and finance sectors. Also, organizations offering hybrid work options see a 35% lower quit rate among employees. In fact, 40% of workers indicate that they would not consider a job that does not offer remote or hybrid options.** By accommodating work-from-home preferences, companies can attract and retain top talent more effectively, saving considerably on the cost of turnover.
Charterworks (September 2022) and WFHresearch.com (January 2023) ** World Economic Forum (February 2023)
2. Increased Productivity Contrary to concerns about productivity, studies have consistently shown that hybrid workers outperform their 100% in-office counterparts by 3-5%.* Eliminating commute and “get ready” times, affords an average of 72 minutes a day for work (30 minutes) and personal time (42 minutes). By providing the flexibility to balance work and personal commitments, hybrid work fosters a more content and engaged workforce, resulting in improved output and performance.
National Bureau of Economic Research (January 2023) McKinsey Global Institute (February 2023) and Stanford Future of Work (March 2023)
3. Positive Culture Hybrid work allows organizations to cultivate a culture of care, equity, and belonging. Companies that prioritize the mental and physical wellness of their employees foster a supportive and positive work environment, leading to increased engagement and loyalty. Researchers found that remote and hybrid employees were 22% happier than workers in an onsite office environment and stayed in their jobs longer. Three-quarters of respondents (75%) stated that they move more frequently and have a more active work style when working remotely.
Forbes Article - 3 New Studies End Debate Over Effectiveness of Hybrid and Remote Work
4. Agility and Resilience In today's fast-paced and ever-changing business landscape, agility and resilience are key attributes for success. Hybrid work offers organizations the flexibility to adapt swiftly to market dynamics, reducing the risks associated with volatile conditions. By maintaining a dispersed workforce with supporting technologies, companies can ensure continuity of operations and adaptability, positioning themselves as industry leaders capable of withstanding uncertainty.
5. Increased Profitability One of the most tangible benefits of hybrid work is the potential for substantial cost savings. By adopting a hybrid model, organizations can reduce their real estate footprint, resulting in significant financial savings. Additionally, the enhanced productivity and employee satisfaction observed in hybrid work environments can translate into a 3-5% increase in overall company profitability through reduced turnover. The benefits of offering hybrid work transform it into a profit center and solidify it as a strategic advantage.
Charterworks (September 2022) WFHresearch.com (June 2022)
By understanding and responding to the preferences of workers, organizations can unlock a myriad of benefits that contribute to their bottom line. Hybrid work not only enhances employee satisfaction and productivity but also creates a culture of care. Companies benefit from the agility, resilience, and cost savings necessary for long-term success. In today's competitive business environment, investing in hybrid work is a solid way to increase profits and gain a sustainable competitive advantage.
Want to learn more about the competitive advantages of hybrid work? Check out our recorded webinar produced with our partners at Neat.