OfficeSpace

Remote, Hybrid, or Office-Based? Employers Face the Future of Work

As the COVID-19 pandemic wanes, employers face the complex challenge of redefining work models—balancing remote, hybrid, and office-based arrangements—while addressing employee preferences for flexible work, investing in IT infrastructure and security, and navigating new compliance and operational issues in a digital-first era.

As the COVID-19 pandemic starts to subside, employers are facing the challenge of reinventing work for the digital age. Many business leaders recall the sudden transition to remote work during the pandemic as a period of long hours and logistical challenges. However, according to experts from Gartner, the real challenge is just beginning as restrictions lift and employers consider bringing staff back to the workplace.

A significant proportion of employees are unlikely to find a full return to the office appealing. Gartner anticipates that by the end of 2021, more than half (51%) of knowledge workers will work from home at least one full day a week. By the end of 2024, up to 60% of all employees may have the option to work remotely.

Ranjit Atwal, research director at Gartner, notes that the current state of widespread remote work was driven by necessity, not by natural evolution. Now, employers have a choice about how to proceed. There is no consensus: some industry leaders want to maintain work-from-home (WFH) options, while others, such as large financial institutions, expect staff to return onsite.

Atwal believes remote or hybrid working is here to stay. Employees have shown they can be trusted and productive outside the office, so there is little reason for employers to resist new arrangements. However, formalizing remote work brings new challenges, such as compliance, tax, and health and safety issues that were previously overlooked.

From an IT perspective, employers must decide how much to invest in supporting both office and home workspaces. Gartner expects PC and tablet shipments to exceed 500 million units in 2021, reflecting demand from a hybrid workforce. Investments will also go into virtual collaboration tools, cloud infrastructure, and security processes like zero-trust network access.

Business leaders must consider questions such as whether employees should buy their own broadband, whether to invest in 5G for staff needing reliable home connectivity, and whether these costs will be offset by savings on office space.

Gartner anticipates that by the end of 2021, a quarter of small and medium-sized organizations will reduce or eliminate their office footprint as part of a hybrid strategy. Office spaces will be redesigned to enhance employee experience and focus on teamwork, dedicating space to activities that can't be done at home, such as face-to-face meetings and informal collaboration.

Employers will need to encourage both formal tasks and serendipitous interactions that lead to innovation, without being overly restrictive. Companies must rethink how their staff work, where they work, and how to make offices most productive.

No single solution has emerged. Most employers are still experimenting with different models. David Cocchiara, CEO of OfficeSpace Software, observes a range of approaches among his customers:

  • "Traditionalist" companies aim to return to pre-pandemic models.
  • "Pioneering" companies let employees decide where and how they work, transforming offices into collaboration studios.
  • Some firms take a real-estate-first approach, reducing office space and defining hybrid models where employees come in only a few days a week.
  • Others prioritize employee choice but still consider real-estate efficiencies for the future.

For example, cybersecurity firm Rapid7 is inviting employees back and observing how they use the space. Using OfficeSpace’s platform, they track desk bookings and floorplan effectiveness, with the goal of using this data to inform their flexible work strategy.

Feedback and actionable data on productivity, satisfaction, engagement, and real-estate costs will be critical for shaping the work environment in the coming years. The definitions of "hybrid" and "dynamic" work will continue to evolve as companies experiment and adapt.

Although global WFH began over a year ago, the next few years will be highly experimental for many employers, with tough questions still to be answered.