Hybrid work models alleviating economic uncertainty
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A new report has shown that organisational leaders are turning towards hybrid working models to deal with economic uncertainty.
According to a survey of chief executives and chief financial officers conducted by International Workplace Group, concerns about the business impact of “macroeconomic instability” are rife (90 per cent).
Due to this, many of these organisational leaders are searching for strategies to alleviate the potential cost issues that could arise – with 86 per cent implementing proactive financial measures to protect their businesses.
Many of these strategies and measures have included the adoption of more flexible work arrangements, with four in five (83 per cent) stating that hybrid work plays a crucial role in mitigating volatile economic and business conditions.
“In times of economic volatility, CEOs are carefully evaluating how to navigate uncertainty while driving efficiency and growth for their business,” said Mark Dixon, chief executive and founder of International Workplace Group.
“They recognise that flexibility is not only crucial when it comes to safeguarding their operations but also enhancing the productivity of their teams.”
The survey found that over three-quarters (77 per cent) claimed that implementing hybrid working has had a significant impact on reducing overheads and operational expenses for businesses. The model also allowed business leaders to explore new locations, offering greater flexibility and better retention ability.
For workers, 75 per cent said that these arrangements have helped them save money, with 78 per cent believing hybrid work should be a part of a company’s environmental, social and governance (ESG) plan. Eighty-three per cent of executives reported a noticeable boost in employee productivity.
“By empowering their teams to work closer to home in local workspaces and offices, companies operating in the hybrid model are able to significantly reduce their costs and improve the work/life balance of their people,” said Dixon.
As previously reported by HR Leader, the Productivity Commission’s recent release of the Productivity Before and After COVID-19 showed that WFH or hybrid work’s impact on business productivity is either neutral or positive.
“Identifying the aggregate effects of increased working from home on economy-wide labour productivity is difficult because these effects are hard to isolate from other changes that may have affected the economy at the same time,” said the report.
“The evidence on working from home is still evolving. However, given most studies find hybrid work to be either neutral or positive for labour productivity, there is no evidence to suggest that the trend towards hybrid working has contributed to the productivity loss phase of the productivity bubble.”
Not only is hybrid work a key cost-saving practice, but the productivity impacts can benefit businesses.
RELATED TERMS
In a hybrid work environment, individuals are allowed to work from a different location occasionally but are still required to come into the office at least once a week. With the phrase "hybrid workplace," which denotes an office that may accommodate interactions between in-person and remote workers, "hybrid work" can also refer to a physical location.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.