Navigating the New Normal: The Impact of Hybrid Working on Companies and Employees
Five years ago, the world was thrown into chaos as the Covid-19 pandemic forced countries, including Aotearoa, into lockdown. This period of uncertainty shed light on the essential nature of certain workers and highlighted the potential for adapting to remote work. Fast forward to the present, and companies are grappling with the decision of whether to require employees to return to the office or embrace a more flexible working arrangement. In a recent statement, Prime Minister Christopher Luxon expressed his desire to see a return to the office, emphasizing the importance of maintaining productivity and ambition.
The Debate on Flexible Working
As companies navigate this new landscape, the question arises: is flexible working beneficial for productivity, society, and employee well-being? Nicholas Bloom, the distinguished William Eberle Professor of Economics at Stanford University and a leading expert on work-from-home policies, believes that choice and flexibility are paramount when it comes to determining optimal working arrangements. According to Bloom, individuals in their early 20s tend to prefer working in the office, citing the desire for experience, mentorship, and social interaction. However, as individuals progress into their late 20s and beyond, factors such as family responsibilities and personal commitments make remote work more appealing.
The Demographics of Remote Work
Bloom’s research reveals interesting trends in the adoption of remote work across different age groups. While younger employees may gravitate towards office settings, older workers, often referred to as “empty nesters,” show a preference for returning to the office. In countries like New Zealand, remote work remains relatively uncommon, with only about 10% of individuals opting for a fully remote setup. The majority of remote workers engage in a hybrid model, splitting their time between office and home. This approach has been shown to have no negative impact on productivity and has resulted in significant cost savings for companies in terms of staff turnover.
The Benefits of Hybrid Working
In addition to cost savings, hybrid working has brought about unexpected advantages. Bloom notes that remote work has led to a decrease in burglary rates in certain areas, as criminals are deterred by the presence of individuals working from home. This shift in criminal behavior underscores the far-reaching effects of remote work on various aspects of society. From rural residents to parents and individuals with disabilities, hybrid working arrangements have provided newfound flexibility and accessibility to a diverse range of workers.
Mental Health Considerations
While remote work offers numerous benefits, it also comes with its own set of challenges, particularly in terms of mental health. Bloom emphasizes the importance of allowing employees to choose their preferred work environment, noting that this approach is most conducive to overall well-being. Data suggests that offering employees the flexibility to decide where they work is not only beneficial for their mental health but also contributes to increased productivity and job satisfaction.
In conclusion, the ongoing debate surrounding hybrid working underscores the need for companies to adapt to the changing landscape of work. By prioritizing choice, flexibility, and employee well-being, organizations can create a more inclusive and productive work environment that meets the needs of a diverse workforce. As we continue to navigate this new normal, the lessons learned from the pandemic serve as a reminder of the importance of resilience, adaptability, and empathy in the face of uncertainty. Stay informed with Ngā Pitopito Kōrero, a daily newsletter delivering curated news straight to your inbox every weekday.