I. Hybrid is Here to Stay
The hybrid workplace model gained significant traction during the COVID-19 pandemic, as companies and employees realized the benefits of blending remote and in-person work. Here are industry data and links to sources that demonstrate why the hybrid workplace is likely here to stay:
Increased Productivity. Many employees have reported increased productivity when working remotely, which has been corroborated by various studies. For instance, a study by Prodoscore Research found a 47% increase in worker productivity in 2020 compared to 2019.
Cost Savings
Companies can save on real estate and operational costs by implementing a hybrid model. Global Workplace Analytics estimates that employers can save $11,000 per employee per year by allowing them to work remotely half the time.
Employee Satisfaction and Retention
A Gartner survey revealed that 75% of employees expect their employers to continue offering flexible work arrangements even after the pandemic. This indicates that offering hybrid work options can contribute to employee satisfaction and retention.
Environmental Benefits
Remote work has been shown to reduce greenhouse gas emissions, as it cuts down on daily commutes. Research from Global Workplace Analytics suggests that if people who held telework-compatible jobs worked remotely half the time, greenhouse gas emissions could be reduced by 54 million metric tons annually.
Adoption by Major Companies
Several prominent companies have announced long-term hybrid work policies, including Google, Microsoft, and Salesforce. This adoption by industry leaders highlights the staying power of the hybrid workplace.
II. Cost Savings
The most compelling of the above drivers behind hybrid popularity is the cost savings derived from using VLogic’s Hot Desking software/ Office Hoteling solution to dramatically reduce real estate costs through tools that make it possible to let hybrid office/home workers share desks and offices.
A. Direct Cost Savings to Employers
- Reduced office space costs: By allowing employees to work remotely part of the time, companies can reduce their need for physical office space. According to a report by Global Workplace Analytics, organizations can save approximately $10,000 per employee per year in real estate costs by implementing a hybrid work model.
- Lower utility expenses: With fewer employees in the office on a daily basis, companies can expect a significant decrease in utility costs. Furthermore, fewer employees on the road will have a direct impact on carbon emissions. For example, Xerox, a long-time hybrid workplace, reported that its employees drove 92 million fewer miles in 2015, reducing carbon dioxide emissions by 41,000 metric tons and saving $10 million dollars.
B. Indirect Cost Savings to Employers
- Increased employee retention: A study by Owl Labs found that companies offering a hybrid work model experience a 25% lower employee turnover rate compared to organizations with a traditional office setup. Lower turnover rates translate into reduced costs associated with hiring and training new employees.
- Enhanced productivity: According to a two-year study by Stanford University, employees who worked remotely part of the time experienced a productivity boost equivalent to an extra full day of work per week. This increased productivity can lead to cost savings by reducing the need for additional staff or overtime.
- Decreased absenteeism: A study by Global Workplace Analytics found that hybrid work arrangements can result in a 63% reduction in absenteeism, as employees with flexible work options are less likely to take unplanned days off. This can save organizations thousands per employee per year in lost productivity and associated costs.
C. Direct Cost Savings to Employees
Reduced transportation and commuting costs: Employees who work remotely part of the time can save on transportation expenses, such as fuel, vehicle maintenance, and public transit costs. In turn, this can lead to a happier and more financially stable workforce, which can positively impact overall company performance.
D. Overall Impact
By embracing a hybrid workplace, organizations can not only save money but also promote a more agile, productive, and engaged workforce, ensuring long-term success in an ever-evolving business landscape.
III. VLogicFM Solves Hybrid Challenges
Given the substantial benefits of a hybrid model, what are some of the challenges to deploying a hybrid model? How does VLogicFM empower customers to solve these changes?