Evidence Shows 4 Reasons Hybrid Work Is A Win-Win

• Hybrid workers in a recent study showed lower resignation rates, especially among female employees and those with longer commutes. 
• Despite employers’ fears of productivity losses in hybrid work environments, research found hybrid workers are equally productive as in-person workers.
• The flexibility to work from home allows employees to better manage personal responsibilities, reducing stress and increasing their engagement and overall happiness at work.

Hybrid work arrangements have become the norm for millions of workers in the U.S. and are increasingly seen as the future of work. This work arrangement is not only reshaping how professionals collaborate — it’s also be providing work-life benefits that address standing problems employers need to address.

One recent study published in Nature, by economists Nicholas Bloom, Ruobing Han, and James Liang, reveals hybrid work offers at least four compelling benefits over traditional five-days-in-office work modes.

1. Increased Job Satisfaction and Employee Retention

Of the most significant findings from the latest research, is that hybrid work increases job satisfaction and reduces employee resignation rates. 

The study involved over 1,600 employees who were randomly assigned to either work five days a week in an office or three days in the office and two days at home for six months. 

Those with work-from-home (WFH) arrangements reported higher job satisfaction, and attrition was reduced by 33% overall. Lower resignation rates were experienced particularly among those with longer commutes and also among women. 

“We examined the effect on attrition by gender, examining the 570 female and 1,042 male employees separately,” according to the report. “We found that there was a 54% reduction in quit rates for female employees. For male employees, there was an insignificant 16% reduction in quit rates. This greater reduction in quit rates among female individuals echoes the findings of previous studies, which suggest that women place greater value on remote work than men do.”

Improvements in attraction and retention are typically included in goals for companies across the workforce, as many leaders plan to maintain a stable and experienced workforce through economic uncertainty. 

Any improvements in retention can help companies reduce the costs and disruption associated with high employee turnover — ensuring that employees retain valuable skills and knowledge within the organization. This also helps maintain productivity.

2. Maintaining Productivity

There’s often a big fear among employers related to productivity losses in hybrid work environments. However, the research found that hybrid workers were just as productive as those who worked entirely in-person. 

Prior to the experiment, surveyed managers generally held negative views on the impact of hybrid work on productivity. However, after the experiment, their views were found to be “net-positive,” or generally viewing productivity in the hybrid work environment more favorably.

The study also looked at four half-year performance reviews from 2021 to 2023, and found no significant effect on performance reviews between hybrid workers and full-time in-office workers. 

“These four performance reviews span a two-year period from the start of the experimental period,” according to the report. “Across all review periods, we found no difference in reviews between the treatment and control groups.”

The researchers also looked at the effect on employee promotion rates and again found no significant difference, which is notable considering the widespread concern that remote and hybrid work can hurt chances of career progression. 

These findings show that by allowing employees the flexibility to work from home, at-least part of the time, employers won’t be taking away from their ability to perform their duties effectively. In fact, the flexibility might contribute to higher productivity and better work outcomes.

3. Cost Savings

Hybrid work arrangements can also lead to substantial cost savings for both employees and employers. 

A separate study, also co-authored by Nicholas Bloom, found that employees save on commuting costs, gas, and lunch expenses. Meanwhile employers benefit from reduced spending on office space and related overheads. 

By reducing attrition rates through hybrid work policies, companies can also save significant amounts on these costs.

“Once the experiment ended, the Trip.com executive committee examined the data and voted to extend the hybrid WFH policy to all employees in all divisions of the company with immediate effect,” according to the report. “Their logic was that each quit cost the company approximately US$20,000 in recruitment and training, so a one-third reduction in attrition for the firm would generate millions of dollars in savings.”

This positive impact on employer and employee finances is particularly appealing in a time when many organizations are looking to streamline operations and cut unnecessary overhead expenses.

4. Better Work-Life Balance

All of this research supports the notion that hybrid work models offer employees a better work-life balance — which is essential for overall well-being and job satisfaction. 

The flexibility to work from home allows employees to better manage personal responsibilities, reducing stress and increasing their engagement and overall happiness at work. This greater balance is especially beneficial for employees with caregiving responsibilities, as it provides them the flexibility to manage their time more effectively.

The Working from Home Around the Globe report found that employees, on average, would prefer to work from home about two days per week, while employers currently plan for about 1.1 days. The difference shows how the RTO debate continues to play out between employee desires and employer plans as hybrid work becomes more widespread. 

The report showed full-time employees worked from home an average of 0.9 days per week across 34 countries in April-May 2023. This number is also notably higher in English-speaking countries such as the U.S., Canada, and the U.K., where the average rises to 1.4 days per week.

To successfully implement hybrid work models, organizations must prioritize clear communication and set expectations for remote work. The lack of physical oversight can make it challenging to ensure that employees are staying on task. However, the rise of digital tools and project management software has made it easier to track progress and performance.

Experts suggest regular check-ins, performance metrics, and collaborative tools for maintaining productivity and cohesion amongst team members. Employers should also invest in skills training and support to help employees adapt to hybrid work and maximize its benefits.

With the right tools and strategies, employers can effectively manage their remote teams and maintain high productivity levels. In the meantime, the research can ease minds of employers who are yet to be convinced of the benefits of hybrid work.