As professional landscapes gear towards flexibility, hybrid work becomes a new standard of success. Based on some estimates, up to 49% of global office staff are working on a hybrid scheme, even though these numbers vary drastically by country and industry. Technology (especially information tech and telecommunications), insurance, and professional services segment are the top industries successfully leveraging the hybrid work model. In the US, around 27% of employees work in a hybrid format, with another 11% using a fully remote scheme. Based on official UK estimates, 28% of workers have gone hybrid as of late 2024, and this figure is projected to increase.
At the same time, the model is associated with a series of challenges, and recently, a lot of major companies started raising objections, demanding the return to office in 2025. Clearly, this spurred fierce discussions among employees and employers alike, with plenty of organizations advocating the hybrid work model. For a good reason, too; the supporting arguments, including better work-life balance for employees and potential savings for employers, are only the tip of the iceberg.
However, one cannot fully ignore the challenges of the hybrid work model. These tend to escalate in environments that rely on traditional management methods rather than encouraging creativity and inspiring employees through guided leadership.
However, companies that foster teamwork and collaboration can benefit from a hybrid work scheme if they understand its potential challenges and how to avoid them. This post will focus on making the most of a hybrid work model while avoiding its organizational risks.
Main Benefits of Embracing the Hybrid Work Scheme
The potential of hybrid work is not fully explored yet, but some of the most tangible benefits for both employers and employees include:
Improved work-life balance
This benefit is usually analyzed from the employee’s perspective, but in many cases, it also has its benefits for the employers – and not only because it improves employee morale and productivity. Small and medium-sized companies account for 90% of all global businesses, and many SME owners/employers also act as their own employees. By introducing more flexible working arrangements, both parties can leverage the extra time off. On a side note, allowing employees a similar degree of flexibility inspires a brand-new level of trust in company leadership.
Increased productivity
This may not necessarily be the case for every business. According to some estimates, hybrid work can result in up to a 25% productivity boost, according to some estimates. Other sources suggest that 20-25% of the workforce can work hybrid without losing productivity. These inconsistencies are most likely explained by differences in productivity performance metrics and business specifics. However, it’s hard to deny the positive effect of hybrid work on employee engagement, corporate culture, and motivation.
Access to a wider talent pool
Even though hybrid work does not presuppose a fully remote schedule, it still increases the company’s talent pool – even if not always directly. First, employers can attract people from locations that make daily commutes impossible but allow team members to show up on specific days. In large cities or locations where part of the workforce lives in the suburbs, this already enhances the candidate pool. Besides, many professionals today simply will not consider a company that does not offer flexible arrangements – especially GenZ, who have brand-new expectations from their employers.
Potential cost savings
This perk also goes both ways; as employees get a chance to save on commuting expenses, employers can downsize on office supplies. Research suggests that remote and hybrid work arrangements can drastically cut down greenhouse gas emissions, which is a huge plus on any company’s ESG report. Depending on the company, more financial benefits can add up – starting from the simple fact that many hybrid workers take fewer sick days.
These are only some universal benefits of adopting hybrid work that apply to most companies, but there can be more depending on team and leadership specifics. On the whole, hybrid work can offer a perfect balance between on-site and remote work – but only as long as the company leadership understands the model’s potential risks, which we will discuss in more detail below.
Potential Challenges & How to Avoid Them
Even though the hybrid model has proven so effective for some companies, others could not overcome its challenges, as seen from the return to office mandates. Here are the main pitfalls of going hybrid, along with suggestions for eliminating these barriers.
Decreased communication & collaboration
Employees who work part of the week from home have limited access to office chitchat – and, assuming that others on the team do the same, the days when a full team is physically present in the office are either numbered or non-existent. Still, company leadership could introduce days when everyone should be present or invest in other team-building opportunities – either during office hours or in free time.
Lack of collaboration and exchange of ideas can be easily solved with technology these days. Depending on business specifics, it’s possible to schedule regular check-ins – but only as long as these video meetings actually make sense. In the end, it’s corporate culture that affects team collaboration – and many companies have shown that hybrid work does not disrupt working relations.
Cybersecurity concerns
This is a purely technical challenge, which can be addressed through education and timely reminders. Using secure networks and regularly updated hardware should long have become an industry norm. Even though remote work increases the risks of someone forgetting the security protocols, hybrid work is not to blame here. Human error and lack of guidance from employers play a far more significant role here.
Equal access to career opportunities
Career equity is another challenge commonly associated with remote work. Once again, the solution rests with company leadership alone. Creating equal career opportunities for everyone should be a self-explanatory industry norm, and yet, recent evidence suggests that hybrid and remote workers are often overlooked for promotions. On the other hand, employers may feel that hybrid workers are underperforming; if that’s the case, a company should introduce clear paths for career development and performance metrics.
More potential challenges of hybrid work could include schedule coordination (if several workers share one desk), as well as managing office space and resources. But is it fair to blame hybrid work for problems that go down to poor management?
Companies Staying Hybrid in 2025 (And Nailing It)
Despite the potential limitations of the hybrid work scheme, many companies are successfully leveraging its benefits. Microsoft, one of the most passionate advocates for the model, started offering hybrid work arrangements in 2021. More importantly, the corporation is constantly testing new tools and systems to boost team productivity. In one of Microsoft’s late 2024 updates, the company acknowledges that the shift to hybrid happened practically overnight. However, commitment to going digital, regular assessment of technologies, and introduction of relevant AI tools improved work quality by 68% and led to a 70% productivity boost.
Spotify is another company that is currently making a stand for hybrid work. According to Katarina Berg, the company’s head of recruiting, Spotify’s ‘employees are not children,’ meaning they do not require constant supervision. Notably, Spotify did let 17% of its staff go during the 2023 tech layoffs, but the ones that stayed now enjoy greater autonomy and flexibility. According to the same source, there has been no immediate effect on team productivity, but employee attrition rates are clearly slowing down.
HubSpot also prioritizes a hybrid work scheme above fully remote and on-site models. According to HubSpot’s 2023 survey of 5000+ companies across different countries, fostering collegial connections is a major factor contributing to employee retention. As a strong advocate for workplace flexibility, HubSpot clearly believes hybrid work is not an obstacle in nurturing relationships.
These are only some isolated cases of businesses that leverage hybrid work models, but the actual numbers and success stories go beyond these examples. Based on a recent McKinsey study of B2B companies, about a third of sales companies experienced a 10% revenue boost after introducing a hybrid work arrangement, along with huge improvements in employee productivity and engagement levels.
While the adoption of hybrid models varies not only by company but also by industry, factual evidence indicates that this work model has huge potential as long as it’s in capable hands.
Conclusion
When leveraged right, hybrid work can be a perfect solution that combines all the benefits of office and remote work. At the same time, business leaders should be fully aware of the challenges if they wish to reap the rewards of a flexible work scheme. Generally, companies that invest in employee well-being and are focused on results rather than procedures can take full advantage of the model and its perks.
Besides, mastering the ins and outs of a hybrid work scheme can become the foundation for managing fully remote teams located anywhere around the globe. In one of our previous posts, we have already analyzed the perks and pitfalls of international teams – check it out and come back for more regularly updated market insights on our blog.
