Nick Bloom, a professor at Stanford University, has been confirming what a lot of our LinkedIn polls have been telling us for some time now: the corporate world appears to have settled into a “three work, two home” split of hybrid work.
He adds that employers commonly recommend that employees spend two days per week working from home, concentrating on individual tasks or attending small meetings, and allocate three days a week to be in the office for larger meetings, training sessions, and social events.
We now know that this flexibility has no effect (positive or negative) on staff productivity. However, it does impact employee costs – the average salary offset in offering hybrid work is 8%. Fully remote work is a different story. Here, we see a productivity loss of 10%.
So, why would companies tolerate this significant reduction?
Cost – there is no need to pay for a place for the person to work or provide any of the office equipment and amenities.
There are several other interesting observations from Nick’s work, but we are really interested in how this affects our clients and candidates.
Additionally, it's important to note that while there can be cost savings, there are also potential costs associated with supporting remote/hybrid work, such as investing in technology, cybersecurity measures, and employee training.
The overall impact can vary depending on the specific circumstances and industry. Prior to implementing hybrid policies, executives and managers should carefully consider the effects of when and how employees engage in remote work.
- How does working from home affect employees in your team?
- Do you work in an environment where you need more freedom, or you could benefit from more human contact?
If these questions are important to you, then get in touch – EMEA Recruitment is at the forefront of people-first recruitment, so we can help you understand the real-world implications of the decisions you make, as a client or a candidate, regarding this topic: [email protected]
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