Hybrid or Office? Who will win the work tug-of-war?

Hybrid working, done well,? could be the answer to so many challenges.? From?gender equality, closing the gender pay gap, and ensuring a diverse workforce.? But as?more companies mandate a ‘return to office’ mandate, new research says that 60% of candidates would turn down a role if it wasn’t hybrid. Who will win the tug-of-war?

At one end we have the ‘Back to the Office’ pulling hard. Concerns over productivity, collaboration, and culture are the reasons cited for companies reversing their hybrid policies and asking everyone to return to the office.

KPMGs annual outlook survey found that 64% of 1300 Global Chief Executives believe that there will be a full return to ‘in-office’ working by the end of 2026. Nearly 90% of those polled by KPMG thought that pay, bonuses, and promotions would be linked with coming into the office more regularly.

Dell US has announced that fully remote workers won’t get promoted. Nationwide has scrapped their ‘work from anywhere policy’ and is asking for a minimum of 2 days a week in the office. Bank of America has threatened disciplinary action if employees don’t meet minimum attendance, whilst EY, BNP Paribas, and Slaughter & May are all monitoring attendance at the office.

Retail giant Boots will require all head office staff to return to the office 5 days a week from September, with UK Managing Director Seb James saying:

"There is no doubt in my mind that the informal conversations, brief catch-ups, and ability to meet in groups in person have been far more effective – and better for the Boots culture than the enforced formality of remote meetings. I know that has been true for me.”

On the other side of the rope, pulling just as hard are the employees, who having had a taste of flexibility are reluctant to let it go. In Gartner’s Voice of the Candidate Survey, 56% said they want more flexibility. The recent CPL Salary Guide 2024 found that more than half would turn down a job if it didn’t offer hybrid, and new legislation gives employees the right to ask for flexibility from day one of employment.

AWA’s Hybrid Working Index study of 220 offices in 33 countries, representing nearly 250,000 employees, revealed that hybrid working employees deliver nearly two extra weeks of work a year on average for their employer as well as working harder and better in a hybrid environment.

So who is right?

“I know that has been true for me”

The quote we shared earlier from Boots MD Seb James reveals part of the issue. Of the 65% of the 1300 CEOs surveyed by KPMG that predicted a full return to the office, how many were men? How many had caring responsibilities alongside their career? We must be careful that the voice of a few, don’t drown out the needs of many.

Working from the office has served a cohort of people well. It's what they know. It's what they feel comfortable with. But that doesn’t mean that’s the way it has to be for everyone. As CPL CEO Lorna Conn CDir says,

“Organisations that are innovative in how they reach their talent goals put people at the heart of the employee experience”.

Will there be a winner? In the short term, will it be those advocating for a ‘return to office’? Or, given that according to CPL 50% are looking for new opportunities, will employees win in the longer term? One thing is for sure, you can’t say you’re committed to having a diverse and inclusive workforce, and have strict policies that enforce office working, especially when pay and promotion are linked to office attendance. Neither are you going to be able to attract top talent.

So what does this mean for employers?

1. Follow the data and evidence to determine your work style policies, not the opinion of a few senior people who hold immense power and privilege. What’s your gender pay gap? What % of women leave post-family leave? How diverse is your workforce? How will you demonstrate your commitment to DEI in your Gender Pay Gap, CSRD, and ESG reporting?
2. Upskill leaders to be able to lead in a hybrid world. Leading and managing the performance of remote and hybrid teams requires different skills from when we were 100% office-based. Set leaders up for success.
3. Shift mindsets to value and measure outputs, not hours. Presenteeism is still rife. Focus on what’s being delivered, not where it’s delivered from.
4. Make office-based days compelling. Why would anyone want to commute 4 hours a day, just to sit on online calls? Use them to collaborate, debate, and network. This requires added effort to make it worthwhile. ‘Just because’ isn’t a reason to come into the office.
5. Accept that one size doesn’t fit all. Some jobs have to be done in the office. One policy for everyone may not work as different business units work in different ways.

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