Nick Bloom, Stanford economist and co-founder of www.wfhresearch.com, recently joined The Allwork.Space Future of Work® podcast to discuss two decades of research on remote and hybrid work. What emerged from the conversation was a data-backed explanation of how flexible work has quietly become the default in many organizations — and why it’s working better than many headlines suggest.
The Real State of Remote Work in 2025
One of the most surprising findings Bloom shared is just how steady the levels of remote work have been since 2023. After a massive spike in 2020, when 60% of workdays in the U.S. were done from home (compared to just 7% in 2019), that number has stabilized around 25%.
It hasn’t changed significantly since then, even with high-profile return-to-office mandates from companies like Amazon, Zoom, and Dell.
So why do headlines seem to suggest a mass return to the office?
According to Bloom, there are two explanations. First, media coverage tends to amplify stories that trigger strong reactions. A major company calling employees back makes for attention-grabbing content. On the other hand, when mid-sized firms extend hybrid arrangements, that often goes unnoticed.
Second, there’s a “composition effect” at play: larger, slower-growing firms are more likely to reduce remote options, while smaller, fast-growing companies are embracing hybrid.
As the latter increase their share of the workforce, overall numbers stay balanced — even if attention focuses on the big names.
Why Hybrid Works for Employers
Bloom’s research indicates that hybrid work is a great financial strategy. On average, employees value the ability to work from home two or three days per week as much as an 8% pay raise. For companies, this means hybrid work can be a tool to control labor costs, retain talent, and reduce turnover.
One example comes from a study Bloom co-authored with Trip.com. A randomized control trial showed that hybrid work did not reduce productivity but cut attrition by 35%.
Considering that each employee departure cost the company an estimated $30,000, the savings from reduced turnover were significant — around $10 to $20 million annually.
This explains why approximately 70% of Fortune 500 companies have adopted some version of hybrid work.
Making Hybrid Work… Work
Despite the success stories, not every hybrid plan delivers results. Bloom emphasized that two elements are essential: coordination and accountability.
First, teams need to agree on which days they come in. Uncoordinated attendance — where some team members are in while others work remotely — leads to frustration and low engagement. Coordinated schedules build the sense of community and collaboration hybrid work is meant to support.
Second, policies need to be enforced fairly. Employees notice when others ignore expectations, and this can undermine morale. Leaders must find a way to support flexibility without allowing accountability to slip.
Otherwise, hybrid arrangements risk collapsing under their own weight, often replaced by more rigid office mandates.
The Innovation Equation
One common belief is that remote or hybrid work harms innovation. Bloom challenges this directly, citing multiple studies that show hybrid teams often outperform both fully remote and fully in-person ones when solving complex problems. This is because hybrid work offers a balance between quiet, focused time and opportunities for collaboration.
The format encourages independent thinking while also allowing teams to come together to share ideas. This has proven effective not only in business but also in academia and research-driven organizations.
Hybrid supports a rhythm of deep work and connection that, according to Bloom, is ideal for innovation.
Remote First, AI Ready
Some companies are going beyond hybrid and embracing fully remote models. Organizations like Zillow, Instacart, and Dropbox are remote-first and report unexpected advantages.
One major benefit? Agility. Fully remote companies are better positioned to reorganize teams quickly, an advantage that has become more valuable with the growth of AI and automation.
In a traditional office model, geography limits how teams can be reshuffled. But when the entire workforce is remote, talent can be moved freely. This supports faster adaptation to new technologies and business priorities.
These companies still value in-person connection. Zillow, for example, holds company-wide retreats and team meetings throughout the year. The key difference is that everyday work happens remotely, with deliberate in-person gatherings that strengthen relationships without demanding daily commutes.
Real Estate’s New Role in the Office Ecosystem
Another ripple effect of hybrid and remote work is the reimagining of office space. Many companies have chosen to let traditional long-term leases expire. With uncertainty around headcount — especially in the age of AI — flexibility has become a top priority.
Bloom shared an anecdote from Google’s campus, where an entire building was demolished in preparation for expansion. That plan was ultimately scrapped, and the lot now sits vacant.
The takeaway is clear: in times of unpredictability, committing to permanent space can be a costly mistake.
Flex space offers an alternative. It allows companies to scale up or down without the burden of long leases. For companies navigating hybrid work, flex space supports the ebb and flow of in-office presence.
As a result, coworking and flexible office providers are seeing increased demand.
Flexibility Has Settled In
After the shock of the pandemic and years of uncertainty, Bloom believes the work model of the future is already here. Hybrid has emerged as the dominant model not because of ideology, but because it balances economic, operational, and human factors effectively.
That stability offers companies a chance to plan more confidently, though Bloom cautions against locking into rigid long-term decisions. AI continues to evolve, and business needs may change.
Companies that stay flexible — in both their people strategies and real estate decisions — will be better positioned for whatever comes next.
The takeaway from Bloom’s years of research is straightforward: hybrid work is not a compromise. It is a calculated, efficient model that supports productivity, reduces costs, and meets the needs of a changing workforce.
