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The Hidden Costs of Not Adopting a Hybrid Work Policy

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Back in December 2020, Google announced that they would be piloting a “flexible workweek” when employees returned to campus -- a hybrid of working from home and in the office, with dedicated days onsite for collaboration.

Microsoft announced a similar policy, stating that moving forward employees would operate within a “hybrid workplace”, wherein they can opt to work remotely full or part-time in addition to having access to an office space.

It’s not just tech giants moving towards hybrid remote/in-person environments.  96% of employees want to work fully or partially remote after the COVID-19 pandemic, and 80% of businesses say they will allow employees to work remotely at least part time.

While your office might be fully remote for the next few months, it’s important to note that businesses slow to adopt risk exposing themselves to the hidden costs of not adopting a hybrid workplace.

Hidden cost #1: Increased employee attrition & struggles attracting new talent

Employee attrition is an avoidable and costly expense for employers, totaling between 50% to 250% of an employee’s salary. Some employee attrition is to be expected, but as workplaces reopen, businesses that do not adopt a hybrid workplace risk higher rates of attrition than those that do. In a recent survey, 29% of employees reported that they would rather quit than return to working in an office full-time.

And, with a high percentage of employers shifting to hybrid workplaces, employees will prioritize roles at companies that are better attuned to their needs.

Hidden cost #2: Reduced employee engagement

One of the key benefits of adopting a hybrid workplace is empowering your people to determine what work environment is best for them on a given day in order for them to do their best work. For example, with a hybrid workplace environment, an employee can decide to work remotely on the days when they need to focus on a project with limited interruptions, and come into the workplace when they’d benefit from in-person collaboration.

Employees who do not feel in control of how they work are more likely to be less engaged than those that do. Gallup has estimated that a disengaged employee costs an organization approximately $3,400 for every $10,000 of salary, or 34%

Hidden cost #3: Inefficient use of real estate

While employees are enthusiastic about the flexibility and control that comes along with working remotely, 75% of workers say they still want to return to an office in the future. 

Establishing a hybrid workplace opens the door to significant savings in office related expenses. Employers can reduce real estate expenses, including downsizing office space, adjusting budgets for food and beverage, parking and transportation benefits, onsite support staff, and more. The savings can then be reinvested where it matters most.

Need a tool to help manage your hybrid workplace?

Scoop helps you set up and operate a hybrid remote and in-office workplace with confidence while maximizing safety, productivity, and performance.

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