Most American economists are predicting an upcoming recession. While this recession may not be as painful as recessions past, many experts predict that it could be long in duration.
As leaders in the workplace, we must make decisions now that will support our companies through the upcoming recession period. And one of those key decisions may be a transition to hybrid work.
Why hybrid work, and why now?
It may be tempting to avoid any significant company changes in the face of a tumultuous economy. However, here are two big reasons why switching to hybrid work models could benefit companies long-term, even through a recession:
Hybrid work helps boost employee retention, which results in long-term savings.
During an economic downshift, it is more important than ever to retain good employees, since employee turnover costs significantly more than supporting current employees. The National Bureau of Economic Research conducted a study and published a research paper stating that hybrid work can reduce a company’s attrition rates by 35%. Employees used for the study self-reported higher work satisfaction in a hybrid work environment. And interestingly, six out of ten employees who have the ability to work remotely reported a preference specifically for hybrid work. It’s clear that employees are looking for hybrid work opportunities, and they are more likely to seek out and stay at companies that fulfill that need.
Hybrid work can result in higher engagement.
That’s right – working remotely at least part of the time helps many employees stay more engaged in their work. In a survey by The Economist, 34% of respondents said that in-person interruptions from coworkers was the top reason they lose focus at work. In addition, 36% of respondents stated that they were more focused working at home than in an office. Helping employees maintain focus and engagement is crucial, because engaged employees are productive and profitable. However, The Conference Board published statistics showing that one disengaged employee can lose a company about $3,400 in productivity for every $10,000 in salary.
Although the looming recession could hit businesses hard, a hybrid work model might be the transition needed to provide companies with some relief. We’d love to help companies make that transition! We Optimize Work is a boutique organizational management consulting firm that partners with leaders to create processes that increase engagement, performance and satisfaction for teams in hybrid work environments. Let’s connect! Email Domonique Townsend at dtownsend@weoptimizework.com.