The pandemic made us think that the world of work has changed forever. It was difficult to see patterns reversing and employees returning to the office. But now that Covid-19 is a thing of the past, we’re seeing many firms around the world adopting hybrid working systems.
In this post, company formation agent, 1st Formations, digs deeper into the concept of hybrid working. They explain what hybrid working means and explore current trends to evaluate how some businesses are navigating this modern practice. They also highlight its pros and cons for both businesses and employees to help you determine if it is right for your business and, if so, how to implement it.
What is hybrid working?
Hybrid working is a combination of working from home and working in the office. Since the Covid-19 pandemic, it’s generally common practice for office-based employers to operate a hybrid policy that allows their staff to spend some of the week working remotely and some in person with their colleagues.
The practicalities differ from business to business, but one of the most common structures involves one or two office days and the remainder at home. Other common arrangements include the 3-2 model (3 days in the office, two at home) and designated remote days (allocated office days).
Current office attendance trends
A recent hybrid working study by AWA, a workplace consultancy, surveyed 49 organisations, 119 offices, and 155,000 people across the world about their working structures. The study revealed that, on a global level, office workers spend an average of 1.75 days a week in the office.
The vast majority of companies have an average in-person attendance of under 40% across the year. In contrast, just 12% have a physical attendance of over 60%.
On a weekly level, the middle of the week is the most common period to spend in the office, while Mondays and Fridays are quieter, and employees generally work from home on these days. Over all five working days, the study showed an average office attendance of just 35%.
In terms of structure, almost half of organisations that have a hybrid working policy do not mandate their office days. These firms’ average weekly attendance is 1.4 days.
Meanwhile, a quarter of companies mandate more than 3 office days per week and nearly 20% vary their policy according to each team’s needs. Among those companies that vary their hybrid practices by teams, there is an average weekly attendance of 1.6 days.
Hybrid working tendencies in the UK
Compared to the other regions, the UK has the second lowest office attendance of 32%, marginally higher than North America (29%). It also has the lowest desk-to-person ratio, with 59 desks being used per 100 people.
Also, similar to other countries, over half of UK businesses do not have a specific policy regarding which days workers should come in. A further 20% vary their working structure per team, 18% commit to 2 office days, and only 11% come in across 3 days or more.
There’s no doubt that a trend of returning to the office in some capacity has picked up over the last year or so. This has especially been the case among larger corporations like Meta, X, and Zoom.
On the other hand, small companies continue to embrace hybrid practices. A report by business broadband provider, Beaming, shows that an overwhelming majority (81%) of small companies in the UK currently practice some form of hybrid working. Almost half of those say it’s been a positive business move.
The business benefits of hybrid working
Hybrid working can present an array of business benefits, such as:
Easier recruitment
In the Beaming study, over 60% of medium-sized (more than 50 employees) company owners said flexible working arrangements make it considerably easier to recruit new staff.
In today’s job market, flexibility is an attractive perk, one which many people prioritise in their job search. Whether it’s to facilitate smoother childcare arrangements, whether they work better alone, or if it’s for mental health purposes, many people actively seek hybrid arrangements and even turn offers down due to a lack of flexible working.
Talent gaps are a common problem among small businesses. So, when expanding your workforce, it’s worth assessing your working structure and the conditions that you’re offering to new recruits. Increased flexibility is a great way to expand your search and access a wider pool of talented people, which could help you lead the way to a more resilient and talented team.
Improved productivity
Another 60% of business owners reported heightened productivity levels among their staff. One of the main reasons for this is that workers can choose the right, distraction-free setting for their activities, making them feel more focused.
In contrast, many people find the office noisy and distracting. For instance, chatty colleagues, cluttered workspaces, and office gossip are some of the most common interferences that kill productivity.
Hybrid working, on the other hand, means that employees can work where they perform best. As a result, employers see a significant increase in their team’s work output and roughly an additional 9.5 days of work from each of their hybrid staff.
Improved health
As well as maximum productivity, hybrid working has also been proven to reduce employees’ time off work due to sickness.
Recent figures show that workplace absences have risen sharply in the last decade. The average UK employee now misses 7.8 days a year off work due to illness. The reasons behind the absences vary, but the most common culprits are stress, colds/flu, and Covid-19-related issues.
Absenteeism (unauthorised workplace absences) is a persistent problem for UK companies. However, integrating hybrid working into their business structures is a common way that employers are tackling the issue.
Reducing the need for your staff to travel to work means that they are less exposed to contagious illnesses and a potentially stressful commute. Therefore, hybrid working can considerably help boost their overall wellbeing and promote a healthier workforce.
Cost reductions
Another significant benefit of hybrid working is cost reduction. Specifically, rent and utilities. By not having a full team in the office at all times, many companies have been actively downsizing to ‘flex spaces’ – particularly outside of city centres – to accommodate post-pandemic working lives. This has enabled over 70% of UK businesses so far to make significant cutbacks by switching to smaller or temporary commercial spaces.
Another area that you can save hundreds of pounds on with hybrid working is equipment. With some employees spending less time in the office than others, there’s no longer a need for everyone to have a fixed working space. This means you spend less on desks, chairs, and such, and the existing equipment can be shared as and when needed.
Also, with hybrid employees balancing their time between home and the office, it often means that their desktops can be replaced with laptops. Computers and monitors are a huge expense for a business, so many offer their staff refurbished laptops (where suitable to allow people to carry out their jobs effectively).
This is often a cheaper and equally effective alternative. Should a desktop computer be required when in the office, it tends to be shared on a hot-desking basis, leaving you with reduced equipment expenditure and a far more efficient use of existing resources.
But what are the realistic cost reductions that business owners might see from hybrid staff? Depending on your company size, Mark Dixon, chief executive of workspace provider, IWG, explains that “businesses can expect to save an average of £8,100 per employee, all while minimising their carbon footprint.” Let’s say you have 50 employees – that’s a considerable saving of £405,000.
Advantages for your staff
Hybrid working presents significant benefits for your employees as well as your business, which ultimately reflects positively on their professional lives and on your company’s growth. Some of the main advantages for individuals include:
- A better work-life balance
- Saved commuting time and costs
- Higher levels of motivation, concentration, and productivity
- Ability to choose where they work best for optimal output
- Improved personal wellbeing
- Reduced burnout
- Improved employee satisfaction
- Better mental health
Disadvantages of hybrid working
While there are some significant benefits as highlighted above, there are also some possible drawbacks to consider when shaping your team’s work structure. These include:
Fatigued employees
Ironically, hybrid working has been shown to improve mental health and facilitate a healthier work-life balance. However, the constant chopping and changing between home and the office is also leaving some part-remote staff more tired than ever.
This can possibly be due to the sleeping pattern adjustments required on different days. On office days, people need to wake up much earlier than they do on days when they’re working from home, and this back-and-forth style means that their body clock is constantly disturbed.
While flexibility is an attractive work arrangement, its practicalities may not be as straightforward as they seem.
Weakened staff loyalty
Even though hybrid working allows people to adjust their schedules to their needs, thus improving employee satisfaction, it may not necessarily promote long-term loyalty. Spending less time in the office may leave some workers disconnected from their teams and their attachment to the company can, ultimately, diminish over time.
For this reason, it’s paramount to find a hybrid structure that works for you and your team. There is no ‘one size fits all’, so you should find a balance that suits both parties and offers your staff a happy medium that allows for substantial connections with their colleagues.
Potential for unfair treatment
Another factor to consider is the potentially unfair treatment that hybrid working may cause. Depending on their individual roles, personal needs, and the needs of the business, you may not wish to apply one hybrid rule to everyone.
However, this is a tricky area. If mismanaged, it could spark competition among your staff and may make people feel as though they are treated differently from others.
This is also important to consider when you welcome new joiners to the company. What will their working arrangements be? Will they be different from other employees? If so, how and why?
In some cases, the easiest course of action is to apply one rule to all. But from the practical view of the business, this isn’t always possible. Where hybrid working is offered, it should be fairly considered and open to reasonable adjustments where appropriate.
How to implement a hybrid structure
If you’re considering applying a hybrid structure to your business, here are a few initial steps to help you get started:
- Communicate with your staff – The best way to make sure everyone is happy is simply to communicate. Try a survey, 1-2-1s, or a company-wide meeting to discuss people’s expectations and desires and express what they can expect from a business point of view.
- Set your priorities – Unfortunately, it’s impossible to please everyone. So, once you have a good understanding of what’s important to your team, you can set the priorities and boundaries for your hybrid policy.
Make these as clear-cut as possible to avoid miscommunication and make sure that your employees know exactly what to expect.
- Do a test run – Before committing to your new working structure full-time, do a trial run to see its realistic effects. The test could be carried out on a particular team or across a certain period of time.
Use any learnings to adapt your approach before enforcing your hybrid policy across the entire workforce.
Summary
Hybrid working has certainly prevailed since the pandemic. It is a mouldable working pattern that has the potential to significantly benefit a wide range of business types. Not only can it encourage happy and healthy employees, but it can also streamline your workforce, cut your business expenses, and improve your recruitment strategy.
1st Formations is a leading company formation agent in the UK. The experts at 1st Formations have helped set up over 1 million businesses to date, offering a wide range of packages and services to form your business quickly and efficiently as well as look after it post-incorporation. To find out more about them and their excellent work, visit the 1st Formations website or case studies page.
