Hybrid Working – Where Are We Going in 2023?

The Covid pandemic acted as a catalyst and allowed us to effectively ‘cross the chasm’ and adopt en masse technologies that we already had to transition to a remote or hybrid working model.  This happened in a short space of time and almost in unison in nearly every country across the world.  Any new technology or significant change in behaviour needs to effectively cross this chasm that exists between the inevitable early adopters of a new technology and the majority who will make it stick.  The question now is, where do we go from here?  Will we continue along the current path or will ‘pandemic fatigue’ set in along with a call back to the offices for the majority of workers?

Hybrid working has brought with it a number of benefits, principally flexibility and cost savings for workers, which we know from surveys are both highly valued.  From a talent point of view the model allows for greater inclusivity and will help organizations to better balance their gender and minority representation and pay issues going forwards.  Detractors are concerned principally about the diminished impact on leadership ability and influence, reduced collaboration and potential for lower levels of productivity in the new model.  So far the productivity numbers do look promising however.

Factors that will affect the decision on future ways of working will likely fall into the following three categories – Industry, Company and Personal.

Industry

Industry specific factors will likely have a large impact on the decision.  How work is done and best arranged will have a direct impact on how it will be organised.  In some industries large scale remote working is not possible, whilst in others it is.  Industry culture will also play a part.  Industries with a more ‘progressive’ culture will likely favour more remote working whilst industries that are more conservative, like potentially banking, will likely see more workers back in the office in 2023.

Company

Company specific factors will also play a role.  Organisations that own their properties or are locked into long-term lease arrangements are less likely to favour increased remote or hybrid working.  Those with more flexible arrangements will more easily be able to realize the company portion of any related cost savings and are more likely to see and support the business case for continuing with remote working.  Companies that see their competitors and peers moving back to an in-office arrangement are also more likely to follow suite, and vica versa.

Personal

Style and the individual personal preferences of the organisation’s leaders will be the third factor that will impact on the decision.  Will leaders be willing and able to effectively transition to new ways of managing or will they not?  Leadership styles driven more by power and affiliation motives are far more likely to miss the in-office time and team dynamic and be beating the ‘back to work’ drum more vigorously.  Leadership styles that focus more on people and achievement will likely be more open to hybrid working, if the results are strong. 

By understanding each of these three groups of factors, individuals and teams will be better placed to understand what the future of work might hold for them in 2023.  For now, many companies will likely stick with the current, slightly hedged, position of sometime in and some time out of the office, with the 2 days a week in the office and 3 remote, or alternatively one day in the office per week and 4 days remote that we currently see in the market remaining dominant for some time.  Developing a model to allow organisations to better understand what will work best for them would be a good step forward in the debate.

Paul Hunter is Principal at People. Performance. Reward. Paul has over twenty years’ experience in a professional advisory capacity and has held leadership positions previously with ‘Big 4’ advisory firms, boutique advisory practices, as well as large multinational advisors in the human capital and pension fund industries.  Paul has been a keynote speaker at conference, industry and client events across a wide variety of industries and his advisory experience spans across the UK, EMEA and Asia Pacific regions. 

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