A Stanford expert on working from home declared the "return to office" dead. Recently, survey data from EY suggests that the traditional five-day-a-week office model is not only on the decline, but fully remote work is also on its way out as the workplace adapts to the new normal.
Future of Work Index
In a recent survey by EY, only 1% of over 500 business leaders reported that their companies are now fully remote. This marks a significant shift from 2022, when 34% of companies operated virtually, according to its third annual Future of Work Index released on Monday. Between 2019 and 2021, the number of employees working entirely from home tripled. Many workers found advantages in their new setup, including no commute, greater flexibility, and more opportunities.
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Remote Work Model Downside
As working from home peaked, business leaders began disliking the remote model. Even CEOs who initially adopted remote work for reasons like cost savings, employee well-being, and diverse hiring acknowledge that it comes with sacrifices in terms of crucial corporate objectives. Mark Grinis, leading EY Americas' Real Estate, Hospitality, and Construction sector, highlighted concerns about losing aspects of company culture, training, growth, and professional development.
Pre-Pandemic Productivity
During the pandemic, many companies expressed readiness for a hybrid work approach, and current EY data indicates that this is now a widespread reality. The survey reveals that 80% of leaders are confident in their hybrid work strategies. Additionally, there has been a significant increase in productivity over the past few years, with 80% of executives noting that their employees' productivity has been somewhat or much higher in the last 24 months.
Hybrid Model Does Not Harm Innovation
Nicholas Bloom, an Economist and work-from-home expert who declared the "return to office" dead, recently stated to CNBC that the hybrid model does not harm innovation. According to him, employees coming into the office three days a week and working from home for two days is adequate. Coordinating these office days can provide sufficient face-to-face interaction, which is why the hybrid model has become prevalent.
EY data indicates that companies should encourage employees to work in the office to make a hybrid policy work well. About 21% of employers struggle with retaining and recruiting staff willing to come in. Mark Grinis suggests that leaders need to be intentional and transparent in their approach, as uncertainty and lack of definition are not appreciated and are less effective.
Hybrid is Here to Stay
In today's context, 86% of most companies require employees to attend the office for a specific number of days per week. According to the EY survey, 80% of companies have employees coming to the office three or more days a week.
Dave Stephenson, Chief Business Officer at Airbnb, also shared with CNBC that while the company adopted a "live and work anywhere model" during COVID, it isn't strictly "remote first" for every function. Stephenson emphasized the importance of in-person work for training, development, and implementing new projects. He additionally noted that returning to a five-day office week is unlikely, stating that many new employees aren't close to an office.
For most workers, a three-day-a-week in-office presence is the norm. Mark Grinis, commenting on the survey release, asserts that hybrid work is no longer in a trial phase but is here to stay.
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