Hannah Cox recently wrote the following article, originally published by CXM. Customer Service Magazine
A recent survey by Gallop Executive of over 50 engaged business leaders at director level in the customer space has provided valuable insights into current workplace models.
The results indicate that only 12% of businesses operate on a fully remote basis, 24% are now almost fully office-based (4 days per week in the office or more), with the preference being a hybrid approach at 64% (2-3 days in the office).
It has been widely publicised that global corporations such as Amazon, Citibank, IBM, JP Morgan and Goldman Sachs have mandated a companywide, fully office-based presence, reflecting a shift in broader industry trends both in the UK and globally.
Almost two-thirds of organisations prefer a flexible hybrid model, typically requiring employees to work in the office two to three days per week. However, there are recruitment challenges when competing for talent with organisations that offer fully remote roles because, overall, a fully flexible approach to work is preferable.
This is particularly evident in lower-paid positions, such as entry-level roles, or supporting a customer contact centre, where employees prioritise eliminating commuting costs.
In financial services, technology and public sector roles, workers are being encouraged to return to offices, even though this may impact their ability to attract and retain talent.
Hybrid trends around the world
Regional differences also play a significant role in workplace policies. More companies are mandating five days in the office in the United States. American workers ‘love working from home’ according to a chief revenue officer of a global fintech firm. The organisation mandates two days in the office if the commute is less than 30 minutes, one day a week if the commute is under one hour. If the employee is further than an hour’s commute, office work is on an as required basis.
In the UK, many businesses enforce two to three office days per week. Hybrid working is now the norm for over 25% of the country’s workforce. Some offer fully remote options based on the type of role and distance from an office.
Nuances around hybrid roles
Roles which are encouraged to come into the office are those where KPI’s are harder to track from home, such as change roles and more programme and transformation type work. Leaders tend to not like office working as this means longer lines of communication and reduced work.
To encourage staff to return to the office, companies are implementing various incentives, such as free lunches, fruit, and social perks. Some organisations only mandate office attendance when there is a clear purpose, such as greater collaboration or training, ensuring that employees see value in being physically present.
Start-ups often lean towards office-based models where collaboration and cross-functional working remain critical to an organisation’s success.
We have also seen businesses completely closing offices and shifting to fully remote, often without considering the implications on their staff or managing the huge cultural change such a move poses.
In the BPO industry, client expectations and cultural influences shape workplace policies. Some businesses mandate full office attendance to meet client requirements, particularly for US-based clients. Offshore teams may prefer office-based work due to socio-economic factors, which can help reduce attrition rates and provide a structured work environment.
Many businesses are investing in ‘workplace experience’ to encourage people back into physical office space and provide a trackable ROI to investments made in organisations’ real estate.
Hybrid as a tool for recruitment
Recruitment and retention are heavily influenced by workplace flexibility. Employees expect greater flexibility if compensation is lower than competitors. Remote work is a particularly attractive benefit in contact centres and certain geographical regions where commuting costs are a significant consideration.
Preferences across different age demographics also vary hugely with younger workers preferring in-office work, and those who are older with caring responsibilities for children and older family members, prefer a more flexible working environment.
Company culture and team collaboration are additional factors in determining workplace policies. Some organisations prioritise an in-office culture, particularly for teams that work closely together, such as service and operations departments.
We are seeing a shift with US-based global corporations from flexible working to fully office-based. It will be interesting to see whether other organisations will follow suit. This will impact both talent attraction and retention, and only time will tell what the impacts will be.
There is no universal approach to hybrid working. Flexibility is influenced by industry, geography, salary levels, role types, and company culture. While hybrid work models dominate, factors such as competition for talent, operational and business needs, where in its lifecycle a company may be, and economic considerations shape varying workplace policies in businesses around the world.
The next couple of years will be very interesting to see how the rapidly changing dynamic around work location is going to play out. I’ve always said that choosing a new employer is like dating, and this is becoming increasingly the case. Values, culture, and workplace dynamics are critical factors when looking to move roles.
