To return-to-office or not return-to-office, that is the question.
But it’s not really a question.
News outlets are coining 2023 as the Great Mismatch, meaning employers want their workforce in the office full-time, and employees want to be fully remote. Who will get what they want?
The reality is — neither.
Current employment trends like the Great Retirement and the Great Resignation give workers more leverage in terms of supply. And as the whispers of a potential recession spread, the impending threat of layoffs will make some workers comply with a RTO plan, thus giving employers more leverage.
As trusted advisors for over 24 years, we at Ambrion believe the future of work is hybrid.
The general rule of thumb is two days a week in the office. Sometimes three days a week will be needed, but generally, stick to two days a week. This stance might invoke mixed reactions, but we firmly believe organizations that embrace and adopt a hybrid culture will improve employee retention, attract the best talent, and increase productivity.
Establishing hybrid work policies
Transitioning to a hybrid work structure requires careful consideration and shouldn’t be thrown together as a last-ditch effort.
Think of hybrid work policies as a three-legged stool.
If one or more of the legs is missing, the stool cannot stand. Organizations must include (1) core working hours, (2) purposeful plans, and (3) empathetic leadership in their hybrid work policies to reap the benefits mentioned later in this blog.
1. Core working hours
Core hours are predetermined timespans set by organizations when workers must be working.
This applies to office and remote environments, as everyone agrees to be “live” and available to one another. Outside of core hours, team members can adjust their working hours for the rest of the day.
2. Purposeful plans
There are many benefits to being in the office, and we don’t deny it. But, to have an actively engaged culture during the Great Disengagement, time spent in person must be meaningful. When everyone is in the office, there needs to be a plan.
Employers should encourage their staff to make connections, have informal cubicle chats, and collaborate on projects live. This time should also be used to schedule activities and outings that foster team camaraderie.
Heads down-headphones, a.k.a limited human interaction, should be designated for WFH days.
3. Empathetic leadership
Any change, including transitioning to hybrid schedules, is a common source of stress and anxiety.
Employers prioritizing wellness and offering flexibility as we navigate this new “normal” will ultimately retain their staff. Those who don’t attempt to alleviate their team’s stress will see their best talent find other opportunities and walk out the door.
Learn how to lead empathetically and see real-life examples.
Benefits of hybrid cultures
1. Improve employee retention
In IWG‘s recent study, “HR Leaders & Hybrid Working Report,” over 60% of HR leaders stated that hybrid work increases retention. And 80% of respondents believe it leads to a more satisfied workforce.
Hybrid work leads to happier, more loyal, motivated, engaged, and productive employees.
Employers who offer hybrid work options demonstrate that they care about and want to invest in their employees’ well-being. According to the National Bureau of Economic Research, this could reduce quitting rates by 35%.
2. Reduce costs associated with turnover
The cost of losing an individual employee is one-half to two times their annual salary.
These costs include, but are not limited to, the following:
- Hiring
- Onboarding and training
- Loss of productivity during the vacancy
- Loss of engagement from existing employees who are overloaded with work
- Additional employees who quit from stress and burnout
- And general cultural impacts
To put this into dollars and cents — a 100-person organization with an average employee salary of $50,000 could have turnover costs of approximately $660,000 to $2.6 million annually.
Employers can’t afford to lose their best people, especially since the labor market continues to be highly competitive and short in supply, specifically in the Accounting and Finance industry. Establishing a two-day-a-week in-office policy is the best way to improve employee retention and reduce company costs.
3. Attract the best talent
Whether you donate, keep, or toss it — the days of using a compass are over!
Flexible schedules widen the search radius for where candidates may reside so employers can access a larger talent pool.
For example, someone who lives in St. Paul is willing to drive to Minnetonka two days a week, but if it were five days a week, they would be more open to new career opportunities.
4. Increase productivity + efficiency
One of the most common misconceptions about hybrid work is that employees are less productive when they WFH.
Scientists at the University of Chicago conducted a study and discovered:
- Nearly 60% of survey respondents reported higher productivity when working from home
- Only 14% of respondents reported a decrease in productivity
- And on average, WFH productivity was over 7% higher than in-office productivity
A significant benefit of hybrid work is doing away with the Monday-to-Friday commute. The U.S. Census Bureau estimates workers spend an average of 55 minutes daily commuting to and from the office.
Using our handy calculator to do some quick math: an employee required to be in the office five times per week spends roughly 276 minutes — or 4.6 hours — sitting in a giant metal box (car). Now multiply that by a team of accountants and finance professionals. For any organization, it’s a substantial amount of time.
In comparison: a two-day-a-week in-office policy reduces weekly commute times by over 60%.
Final thoughts
Hybrid culture isn’t about “letting” employees WFH. Flexible work options are about the shared understanding that work is only one component of our lives.
And the leaders that get it — get it.
And the leaders that don’t — don’t will read this blog with an open mind and reach out to continue the conversation.