How hybrid working is enabling enterprises to leverage the benefits of global talent

If there’s one phrase we have heard repeatedly over the last two years, it’s “the new normal”. Remote working is the new normal, travelling as you work is the new normal, and now, it seems that hybrid working is the new normal. So what does a hybrid work model really mean?

A hybrid work model integrates multiple working processes by blending colocated, remote, and semi-remote employees into a single system, thus enabling employees to work according to their comfort and schedules. We know that there are pros and cons to each working style; people in physical offices spend considerable time and money on their daily commute, while remote workers often struggle with isolation and Zoom fatigue. The hybrid model enables organisations to reap the benefits of both models by giving employees the autonomy to decide how they work. 

Enabled by technology, an increasing number of multinational companies are choosing to go the hybrid route due to its many benefits:

Eroding geographical boundaries

By removing the barriers of location and physical presence, the hybrid model gives companies access to a limitless pool of talent. No longer restricted to hiring within a 20 mile radius, businesses now have access to a highly diverse and skilled set of candidates from across the globe. Today, hiring is determined by technical excellence and specialisation, not where the talent resides. Having a hybrid workplace enables companies to easily hire different types of employees, whether they work remotely or from the office, as freelancers, contractors, or full time employees.

Reducing operational costs

The hybrid model enables companies to reduce operational costs by as much as 27%. Employers are able to substantially cut down on office rent as employees share the same workstations on rotation. Not only does this considerably reduce a company’s real estate cost, it also reduces spending on utilities like electricity, maintenance, and pantry. This reduction in cost enables companies to offer better salaries, giving them access to highly skilled talent across the globe.

Reduced employee attrition rate

‘Flexible working hours’ and ‘the ability to work from home’ are some of the most valued employee benefits according to millennials. According to this survey by Ernst and Young, 54% of employees surveyed from around the world would consider leaving their job post-COVID-19 pandemic if they are not afforded some form of flexibility in where and when they work. Want a highly engaged workforce? Give them the autonomy to decide how they work. Switching to a hybrid work model is one of the best ways to increase employee engagement, and consequently, retention.

Increased productivity

Did you know that the relationship between remote work and increase in productivity has now been proved? 77% of people who work remotely at least a few times per month show increased productivity, with 30% doing more work in less time. When employees have the flexibility to work according to their own schedules, the result is a visible increase in their productivity. This is especially true for employees who are primary caregivers to children or adults. 

Improved collaboration and team bonding

According to this survey by Microsoft, a hefty 67% of employees said that they would want more in-person work or collaboration post pandemic. One of the biggest benefits of the hybrid system is that it enables all types of employees – remote, semi -remote and collocated, to find their own office and home balance. Hybrid teams can choose when they want to work from the comfort of their homes, and when they want to sit together for an in-person brainstorming session. The ability to blend in-person interactions with virtual meet-ups helps teams form better relationships, which in turn boosts collaboration. 

Improved scalability and global expansion

Thanks to the benefits of a distributed team, companies can expand globally without having to set up a legal entity in a new country. Scaling up becomes easy as employers now only need to pay for the cost of the talent, without having to worry about relocation, travel and visa costs. A company in the USA’s silicon valley can recruit a DevOps engineer in India’s Hyderabad with zero hassle.

More importantly, hybrid working has made it easier for multinational corporations to enter new geographical markets via local employees. Instead of having to set up a new foreign office, companies are choosing to simply hire remote team members who are aware of the on-ground social, economical, and cultural aspects of the foreign country. An increasing number of employers are choosing to leverage the services of an employer of record to build their global teams without worrying about the hassle of legal compliance and paperwork. 

Prepping for the transition

In the last section, we’ve talked about the multiple benefits of a hybrid work model, especially for global companies. However, as we get ready to make this transition, it is important to remember that the hybrid model is also prone to certain challenges. 

Here are a few important factors that all employers must account for before switching to a hybrid work model: 

The proximity bias

One of the biggest and most common challenges faced by hybrid teams is the presence of the proximity bias, a phenomenon where remote colleagues are often meted out second-hand treatment when it comes to new initiatives, appraisals and opportunities. Employees who physically commute to the workplace experience better visibility in the eyes of the leadership, are viewed as more productive and consequently experience better rewards and recognition.

As is the case with all biases, the first step towards correction is to accept that the bias exists. Hybrid managers and leadership must regularly check for, and take active steps to guard against any kind of proximity bias. A good place to start would be by putting in place objective and qualitative measures for performance evaluation. 

Redesigning workspaces

As many as 66% of employers are considering redesigning their workspaces for hybrid work. The pandemic has changed how we view our physical offices. What was once the “ dreaded workplace” has now become an avenue for collaboration and socialising. 

However, this transition to hybrid working will require employers to strategically use their physical office spaces in order to increase the spaces for collaboration, and cut down exclusive cubicles. Companies will also need to ensure that all conference and meeting rooms include video conferencing facilities, stable internet connection and optimum bandwidth so as to ensure uninterrupted meetings.

The hybrid work model emerged from a need to consolidate the benefits of the different existing work models. Its beauty lies in its flexibility. Employees are free to carve out their own home and office schedules, and employers are no longer restricted to hiring within a specific geographical region. For companies exploring global expansion and location strategy, the hybrid model is the perfect way to extract the maximum potential of a distributed team.