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Adaptable Hybrid Work Approach Crucial for Employee Retention

Why embracing an adaptable approach to hybrid work is essential for the future of business.

Dr. Gleb TsipurskybyDr. Gleb Tsipursky
May 10, 2023
in Business
Reading Time: 5 mins read
A A
Adaptable Hybrid Work Approach Crucial for Employee Retention

Companies that fail to adapt risk losing their most valuable asset: their employees.

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  • Hiring challenges are affecting businesses’ ability to operate at full capacity, with 61% of CEOs expressing concern over this issue. 
  • It’s crucial for business leaders to recognize that the conventional office model may no longer be the optimal choice for their employees or organization.  
  • When employees work in a manner that suits them, they are more likely to be engaged and motivated, leading to higher productivity, reduced turnover and increased employee loyalty and satisfaction, which lowers recruitment and training costs for new hires. 

A recent Monster job site survey reveals that 26% of U.S. workers prefer undergoing a root canal procedure to spending five days a week in their offices. Furthermore, 38% would resign if required to spend just one day on-site. This dramatic change in employee perspectives about conventional office settings implies that companies must evolve or risk losing their most precious resource: their workforce. 

As a seasoned authority in hybrid work, I talk with 5–10 executives weekly to discuss optimizing hybrid work models for their organizations. Their primary concern is usually recruiting and retaining skilled personnel. 

External surveys, such as a Vistage study of small and medium-sized enterprise (SME) leaders, corroborate this sentiment. The study found that 60% of SME CEOs plan to increase headcount in the upcoming year, while only 7% anticipate reducing it. According to Vistage Chief Research Officer Joe Galvin, this marks a departure from larger corporations making layoff headlines, as SME CEOs are hesitant to let go of recently acquired employees. Hiring challenges are affecting businesses’ ability to operate at full capacity, with 61% of CEOs expressing concern over this issue. With a tight labor market, as evidenced by the U.S. unemployment rate of 3.5% (the lowest since February 2020), this situation will require significant effort to change.  

Considering these factors, I confidently advise leaders to embrace an adaptable hybrid work model incorporating full-time remote work opportunities. This approach not only satisfies and engages employees but also positively influences a company’s financial performance. 

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Enhanced Productivity and Employee Involvement 

Flexible hybrid work models significantly boost productivity and employee involvement. Research indicates that remote employees are more efficient and less prone to burnout. A medium-sized IT services firm I advised experienced a 20% productivity increase among remote employees after adopting a flexible work policy. 

Remote employees can create personalized work environments, leading to greater productivity. They can work from their preferred locations, be it their homes, coffee shops, or coworking spaces, reducing distractions and enhancing focus. 

Flexible work arrangements also positively affect employee involvement. When employees work in a manner that suits them, they are more likely to be engaged and motivated, leading to reduced turnover and increased employee loyalty and satisfaction. 

Access to a Broader Talent Pool 

Adaptable hybrid work models enable companies to access a more extensive talent pool. Unrestricted by geography, companies can attract and retain exceptional talent worldwide. One large financial services firm I worked with struggled to find qualified local candidates, but after implementing a flexible work policy, they hired top talent from other regions. 

A flexible work policy promotes a diverse workforce, as it can attract candidates previously excluded due to geographical limitations. This diversity fosters new ideas, perspectives, and innovation. 

Cost Savings on Talent 

Flexible work arrangements can result in considerable cost savings. A hybrid work model reduces office space requirements and can decrease absenteeism and turnover. A retail company I advised saw a 30% reduction in absenteeism and a 20% drop in turnover after adopting a flexible work policy. 

Remote work capabilities reduce absenteeism as employees are less affected by traffic, weather, or public transportation issues. This also decreases sick leave and increases overall productivity.  

Reduced turnover results from higher employee satisfaction and engagement, lowering recruitment and training costs for new hires.  

Addressing Cognitive Biases 

Cognitive biases significantly influence decision-making regarding flexible work. The status quo bias causes managers to resist change and maintain traditional office settings. The sunk cost fallacy can lead managers to be reluctant to alter the status quo due to prior investments in the current system. By recognizing and actively combating these cognitive biases, companies can make more informed and effective decisions about their work policies. 

Gathering data and conducting studies on flexible work’s impact on productivity, engagement, and turnover can help overcome these biases. This evidence supports the implementation of an adaptable hybrid work model. Additionally, managers should actively seek employee feedback on work arrangement preferences and consider their needs and concerns.  

Implementing an Adaptable Hybrid Work Model 

Successfully implementing an adaptable hybrid work model can be challenging, but with thorough planning and communication, it is achievable. Establishing clear guidelines and expectations for remote work is crucial, such as setting specific availability hours and maintaining regular communication with team members. 

Providing necessary tools and resources for remote work, like reliable internet connections and secure virtual communication platforms, is also essential. Offering training on hybrid work best practices and technology can help ensure a smooth transition, as can engaging a hybrid work consultant to guide the process. 

Conclusion 

The transformation in workers’ perspectives on traditional office environments is indisputable. Companies that fail to adapt risk losing their most valuable asset: their employees. An adaptable hybrid work model that accommodates full-time remote work is the future for those who prioritize employee retention, increased productivity, access to a broader talent pool, cost savings, and overcoming cognitive biases.  

Now is the time for companies to adopt this model. As a business leader, it’s crucial to recognize that the conventional office model may no longer be the optimal choice for your employees or your organization. Embracing an adaptable hybrid work model helps retain top talent, boost productivity, and reduce costs. The future of work has arrived, and companies that adapt will be well-positioned for success. 

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Tags: Human ResourcesHybrid WorkLeadership
Dr. Gleb Tsipursky

Dr. Gleb Tsipursky

Lauded as “Office Whisperer” and “Hybrid Expert” by The New York Times, Dr. Gleb Tsipursky helps leaders use hybrid work to improve retention and productivity while cutting costs. He serves as the CEO of the future-of-work consultancy Disaster Avoidance Experts. Dr. Gleb wrote the first book on returning to the office and leading hybrid teams after the pandemic, his best-seller Returning to the Office and Leading Hybrid and Remote Teams (Intentional Insights, 2021).

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