Hybrid Work Trends 2023

Hybrid work is an increasingly popular model that companies around the world are embracing. Some of the world’s largest organizations have already gone hybrid, benefiting from happier, more productive employees and cost savings.

Gartner research reveals that by 2030, 48% of employees will be working remotely, up from 30% before the COVID-19 pandemic. So, as the adoption of this model increases rapidly, what trends will follow? Let’s explore some of the hybrid work trends we’re likely to see in 2023. The demographic makeup of the workforce is changing, along with its expectations. Millennials and Gen-Z make up ‘approximately 38% of the global workforce, and this percentage will increase to around 58% by 2030’ (PWC).

These two generations prioritize work-life balance and personal well-being in the workplace more than previous generations, as indicated in a recent McKinsey report. The same report also explains that “wellness-related employee benefits are becoming more common.” Of all the wellness benefits provided by employers, flextime is the most widely used (82% of respondents said they used this benefit). This change in expectations is one of the many reasons why hybrid models are becoming popular.

More surprisingly, these flexible benefits are more important than a raise for many candidates. As reported by Forbes, while financial benefits remain a top priority, health and wellness are the top concern. The study found that “six in ten employees say wellness benefits will be a top priority when applying for their next job.”

Rent and energy crises increase the need to save costs

With rising rental and energy prices, the need for cost-saving offices is also increasing. In big cities around the world, property prices are rising, leaving many businesses wondering if they can afford their current space. In Germany, for example, each m2 costs €25. While in the largest cities in the US, such as New York and San Francisco, the costs are 5-6 times higher.

For context, let’s go back to the 1,000 m2 office space in Germany. Assuming that each employee would need 8m2 and that each m2 costs €25, the property costs (leasing, rental and management) add up to an approximate average of €30,000:

  • €24,000 for rental expenses and
  • €6,000 for accessory expenses.

In addition, there are secondary costs that include energy, maintenance, and facility management. The World Economic Forum reports a 600% increase in the price of gas in Europe from 2021, with the figure likely to rise, catalyzed by the conflict in Ukraine.

Research by JLL reveals that there has been a 50% increase in electricity and a 150% increase in gas, leading to an overall 20% increase in ancillary costs. Although property and fixture costs are rising, organizations can save up to 30% on office costs with a well-structured hybrid work model. Therefore, we will also see more innovation in hybrid work technology, which will be explored in depth later. These workplace management tools, such as desk, It will help save cost and improve efficiency.

For example, a multinational hybrid company with 8,000 employees collected occupancy data that revealed low occupancy at its facilities. In response, they closed 4 of their 5 sites only on Fridays, saving €90,000 a month.

Prioritize employee well-being

Wellness has been a buzzword of late, with workplace trends following suit. Investing in employees has a significant impact: improving satisfaction and retention, and decreasing absenteeism. There’s no question that work-life balance improves in a hybrid environment. Still, other aspects, such as social and professional satisfaction, are rarely discussed.

Hybrid work trends will enhance additional facets of employee lives. When talking about professional wellness, for example, upskilling is key, both for new hires and for senior management. This means providing the training necessary for each individual to grow in her career. In the hybrid context, top management will benefit from increased leadership skills. As explained in an HSM advisory report on Upskilling Managers, leaders need to enhance human-centered skills, performance-focused leadership skills, and enable hybrid skills.

Taking recruitment global

Due to labor shortages, hybrid work will benefit the global hiring landscape, providing a broader pool of potential candidates. The Washington Post reports that there are “more than 11 million job openings and only 6 million workers unemployed.” Companies can expand their recruitment processes on a global scale without requiring employees to work from a specific location.

Distributed work, or employees working from multiple locations and in different time zones, is a growing trend in the world of hybrid work. It takes remote work a step further by not only allowing employees to work remotely, but also to be anywhere in the world.

Research from the Harvard Business Review reveals that “one-third of 100 CEOs around the world said recruiting and retaining talent was their biggest challenge.” Distributed labor will help overcome this challenge by expanding recruitment on a global scale to find the best candidates for each position. You will also improve diversity by hiring people with different backgrounds and perspectives. Also, as we see a trend towards a nomadic lifestyle, companies that follow a distributed model will be attractive to many people who want to travel while working.

Innovation in workplace management tools

With more companies transitioning to hybrid working, the need arises for efficient ways to manage this new model. Hybrid workplace management tools have stepped up and provided innovative solutions to everyday office problems.

For example, deskbird allows each employee to schedule which days they will be in the office and which desk they would like to reserve for that time. Plus, teams can book meeting rooms to collaborate without speaking to an office manager. Allows businesses to efficiently and profitably manage space and employee schedules! Together with deskbird, innovation in the hybrid work management space is likely to grow. From platforms to synchronize communication between remote employees to project management.

Hybrid work trends for 2023 reflect the needs of employees in a ‘post-pandemic’ world. Social interaction and community building are a priority. There is a greater focus on wellness. And the opportunity to build global teams is greater than ever. Additionally, as the cost of energy and living increases, hybrid models help organizations operate more cost-effective offices. But, as with any transition, the right tools, experimentation, and an open mind are crucial.

Is your business considering going hybrid? Try deskbird’s hybrid workplace solution to manage your hybrid office!

Annabel Benjamin – desk

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