The Future of Work - Is hybrid here to stay in the post pandemic world?

As 2022 draws to a close, Vicky O’Neill, Ibec HR Strategy Specialist addresses some topical questions in relation to the sort of flexible work models we are likely to see in 2023 and beyond. She also discusses the benefits to business of people returning to the office but highlights the importance of a purpose driven return.

Can you speak to how lifting of restrictions impacted workplaces?

The lifting of COVID restrictions requiring people to work from home where possible provided the first opportunity for organisations to explore hybrid, remote work and flexible work models, where they previously had no, or limited experience of those ways of working. Companies are experimenting now to see what works for their businesses, their customers, and their employees. This is very much a learning phase as hybrid working is dramatically different to the fully remote, emergency measures that we experienced, and in many ways ‘put up with’ during the pandemic in response to the greater health crisis.

In a recent Ibec HR Update 2022 Workplace Trends and Insights Report, we found that whilst many businesses have advanced with developing hybrid working plans this year, a proportion were still undecided. Where hybrid is in place there was a mix of approaches with many specifying a minimum number of on-site days per week, while others (31%) intend to give autonomy to managers/teams in deciding how best to work together. There is a focus on managing working time to maximise the benefit of hybrid working using focus days at home and promoting collaborative working during days on site to encourage more meaningful in-person interactions. What is very interesting in the survey is that up to 22% of employers have yet to decide what their hybrid or flexible models of work will be highlighting the complexity of these new forms of work for many organisations.

Of course, not all roles can be performed remotely. The same research reports that 39% of respondents believe that just over half the roles within their organisation are suitable for flexible, remote or hybrid arrangements. Aligned to this shift to new ways of working is, prioritising workplace culture as a core part of workplace design to continue to drive employee retention and engagement in an incredibly competitive market.

Is there a benefit to businesses for people to return to the office?

Yes, there is a benefit to businesses of a return to the office. This benefit also applied to our employees. Research tells us that in fully remote situations our social and professional networks become smaller and less open to new connections, which is a particular disadvantage to new entrants to a sector or younger employees building their careers. The in-person environment lends itself to considerable learning by observation, osmosis and serendipitous interactions. We also know that in-person attendance at work provides important social outlets for making friends and sharing interests and building a community which are vital for our broader mental health and wellbeing. These things can diminish in a very remote world meaning employees and culture can suffer, in turn impacting on attrition and organisational outcomes.

It is important to note that a return to the office should be purpose driven to achieve positive outcomes, bringing employees back to do the same virtual meetings as they can do remotely will not drive the engagement that makes an organisation and its culture thrive.

Many organisations are moving slowly in their iterations of flexible and hybrid working recognising that there can be negative implications for workplace culture and wellbeing if it is not managed effectively. Time is required to upskill leaders, teams, and businesses, due to the pace of this change, new technology and investment in IT infrastructure. Equally, where previously culture may have developed organically, now the impetus is on organisations to consciously curate culture and having a level of return to office engagement is important in re-shaping that culture. As businesses shift talent strategies toward hiring for human capabilities versus experience, with more commitment to upskilling, agreement at an organisational level around the infrastructure to support career development in a hybrid or remote model needs to take effect.

Of course, it’s important to highlight that we have seen a significant improvement in under-represented groups entering the workplace due to the opportunity created by remote and hybrid work. The European Commission Report 2022 Country Report – Ireland, communicates an increase in the number of women in employment, or seeking employment, due to remote work, with participation rates reaching a record high at 72%. Additionally, Employers for Change report the opportunity for remote work, as a driver for participation and inclusion, for those with accessibility needs in “The Future of Work and Disability – A Remote Opportunity”. Although they rightly caveat that this is not a replacement for reasonable accommodations. Remote and hybrid working can support talent attraction, retention, and greater diversity and inclusion, and work / life balance.

Do you find that people want to continue to work remotely or are they happy to return to the office?

We don’t have any specific research on this question, however, the recent research we do have demonstrates that hybrid (74%) and flexible (63%) working arrangements are now a priority when it comes to talent management. This has been driven in many cases by ongoing talent shortages exacerbated by the cost of living and housing shortage. Experience of working with member companies would suggest that most employees, who were working remotely during the pandemic, are happy to return to the office at least a few days a week.

Employee expectations in terms of remote/hybrid working are anticipated to have the greatest impact (77%) on business into 2023 as employers and employees navigate the medium- and long-term implications of these new ways of working. It is also worth noting that Employers are also waiting to see the new Right to Request Remote Working legislation and the related Code of Practice before finalising their own policies. Investment in the technology is critical to enable remote connection and collaboration and may become a core feature of the employee value proposition in future, along with home office set up or remote hubs to work from, and culture and wellbeing strategies for a dispersed workforce.

Are businesses expecting people to return?

As mentioned previously, businesses are expecting people to return to office working but the majority are operating within a new hybrid structure, so the expectation is not a return to five days in office. Businesses, even pre-pandemic recognised the talent attraction and retention benefits of flexible and remote working and with our current tight labour market we would expect to see these models of working continue as part of positive talent strategies.

Just over half (54%) of businesses are planning to increase their headcount in 2023. Half of those that are planning to do so plan to increase their headcount by an average of greater than 6% in the year ahead. To attract and retain people, hybrid, and remote work, will continue to be a key priority for businesses, but as a cascading feature from a focus on culture.

How do you see the workplace in 2023 and beyond? Will hybrid always be on the table now?

Hybrid and remote work show no signs of cessation and continue to evolve. Companies are only at the start of trialling and testing their new business operating models post pandemic. As employees navigate the rise in cost of living, housing shortages, and a need to prioritise wellbeing, we will see a reengineering of workplace culture and ways of work. Technology will be a huge enabler and potential disruptor with more businesses exploring tools like the metaverse to try to create a remote sense of belonging and collaboration. The need for physical workplaces will never go away as people will come together for teamwork, innovation, and socialisation.

It’s fair to anticipate more focus on lifelong career design as a retention tool, in addition to an increased focus around internal mobility, talent marketplace and succession planning. Again, deliberation will be required around workforce planning and design, and how these can be achieved in a new world of work, with integrated technology. There is a need to invest in leadership capability as our leaders continue to navigate the unknown and manage employees in ambiguous settings so that we are open to and can capture all the opportunities that new ways of working can provide.

Vicky O’Neill has recently joined Ibec as a HR Strategy Specialist. Her expertise is supporting business with the design of Talent Strategy, Leadership Development, and best practice advice across total talent management.

The female participation details are from here which sees the shift to remote work increasing the number of women working or looking for work, and their participation in the labour force reached a record level of 72%.

The discussion around remote work and people with disabilities is covered in this report.

About Vicky O’Neill

Vicky O’Neill joined Ibec as a HR Strategy Specialist in November 2022.

Prior to Ibec, Vicky conceptualised and launched a People Experience service for members of the New Zealand Employers & Manufacturers Association (EMA) and the Business New Zealand Network.

Vicky has also supported the Executive Leadership team NZ, and APAC for a Gold Class S&P and Fortune 500 technology company, leading programmes of work, such as culture transformation, sales enablement and business continuity.

She works with stakeholders to create better workplaces, work practices, and workforces.