Hybrid Work: A Cost-Effective Solution for Businesses

The popularity of hybrid work has been on the rise since the Covid-19 pandemic, and the desire for flexibility shows no signs of slowing down. Many job seekers now only consider roles that offer a hybrid work option, and people have grown accustomed to the flexibility that was made available during the pandemic. With a significant portion of the workforce now seeking hybrid work arrangements, understanding the cost-saving advantages of this model can be crucial for maximizing time and financial resources for their business.

Downsize Office Space

The hybrid work model offers a valuable opportunity for businesses to downsize their office space by implementing a rotating employee schedule.

By strategically selecting the days employees work in the office, or rotating teams in the office based on business needs, a business can reduce the need for large office spaces, lower electricity costs, and decrease the amount of office supplies such as stationery, paper, desks, monitors, and computers.

In addition to downsizing office space, businesses can also transition to a flexible workspace. For example, renting coworking spaces on a “need-basis” can provide a cost-effective and flexible alternative to traditional leasing.

Over time, the accumulation of these costs can inhibit the growth of small to medium businesses. By reducing the real estate footprint, businesses can redirect the saved capital towards strategic growth.

Before making a complete transition to a flexible workspace, it is important to thoroughly research the options available and understand the costs and benefits of different types of flexible workspaces, such as coworking spaces, serviced offices, and virtual offices, and evaluate which one would be the best fit for your business.”

Reduced Communting

The benefits of a hybrid work model extend beyond just cost savings for business owners. The weekly commute to work can cost anywhere from $35 to $70, which over a year can add up to at least $2000 or more.

According to a report by Adaptavists, more than 40% of people have anxiety about returning to the office, and 34% of that anxiety comes from the commute. With hybrid work conditions, employees can save money on commuting, enjoy more sleep, and feel more motivated to tackle the workday.

Reduced Staff Absenteeism Due to Illness

When every employee is present in the office, the risk of illness spreading is higher. Businesses lose an average of 25.5% of their total payroll due to employee absenteeism. By implementing a hybrid work model, with fewer employees in the office at any given time, the risk of illness spreading is greatly reduced.

Additionally, many employees may take a sick day when they are not actually ill. This can happen for various reasons such as feeling tired or not wanting to come into the office. A hybrid work model can address this by providing employees with the option to work from home on certain days. If an employee is feeling ill, they may be able to continue their work remotely.

For businesses that are unsure of how to structure and facilitate a hybrid work model, having access to a hybrid and remote teams policy template can be a helpful starting point.

Global Talent Pool

A hybrid work model also offers the benefit of access to a global talent pool. In many cases, businesses require specialized skills for certain projects, and hiring in-house or locally can be costly.

With a hybrid work model, businesses can tap into a wider pool of talent by considering candidates from other countries. Some countries may have a higher concentration of skilled workers in specific technical areas that may be difficult to find locally.

Additionally, different countries have different labor laws, wage rates, and currency values, which can be leveraged to hire employees overseas at a lower cost. Properly managed, a hybrid work model can also allow for 24/7 operations by having employees working in different time zones.

Increased Productivity

Research by the Harvard Business Review shows that motivated and satisfied employees can generate an additional $9,078 per year. With 43% of workers desiring hybrid work conditions and 45% of employees reporting increased productivity while working in a hybrid environment (compared to only 29% feeling productive in a traditional office setting), it is likely that hybrid work will lead to increased productivity among employees.

While this may not directly result in cost savings, it does have the potential to increase revenue for the business, making it a win-win situation.

Will Hybrid Work Be The Norm In The Future

The main point is that while most employees want flexibility and this type of work arrangement is becoming popular, not all employees will be able to work in a hybrid format. This depends on the job and whether the tasks can be done effectively from home. Nevertheless, hybrid work is likely to be the future for many workers, and the desire for flexibility is unlikely to disappear.