By: Bethann R. Decker

The rapid rollout of the COVID-19 vaccine signals that hope is on the horizon for a return to normality. While many concerns remain about the pandemic (including the threat of new virus variants) the big question for businesses nationwide is, “Now what?”

In the past year, millions of office workers adapted to the work-from-home (WFH) environment. Employers rose to the challenge with technology solutions that replaced the need for physical proximity. As a result, the disruption to the traditional office caused by the global pandemic has created a new normal in business culture. Working from home is now here to stay.[1]

A year into the pandemic, employees are aware of the perks and pitfalls of remote work. There is good news for employers: the majority of respondents surveyed wish to return at least four to five days a week. Most workers desire to return to the office, but also wish to maintain the flexibility to still work from home as needed.[2]

Consequently, as businesses move forward post-pandemic, HR professionals need to plan how to incorporate this WFH flexibility into a new hybrid work model that includes both in-office and at-home locations. Such a model accommodates both remote and in-person work.

Thoughtfully and strategically crafted hybrid work plans communicate company expectations, eliminate ambiguity, and maintain productivity. In order to design such a plan, companies need to evaluate productivity, consider costs, address legal risks, and set boundaries.

 

Evaluate Productivity

Last year, one of the initial employer concerns about their employees working from home was the lack of oversight on employee engagement and productivity. Managers used to seeing bodies at their desks could no longer count that as a performance measurement.

In the past year, employees debunked this productivity myth. Further, Apollo Technical, (an IT and engineering talent recruitment agency) reported that “on average, those who work from home spend 10 minutes less a day being unproductive, work one more day a week, and are 47% more productive.”[v]

Given such increased productivity rates, HR professionals would do well to reevaluate employee engagement and reconsider what performance metrics truly reflect the employee’s work contribution. Brooke Green, an Aon executive who leads employee reward practices, encourages a shift to “more frequent feedback and greater focus on career development.” She remarks that such frequent “checking in” may even be able to eliminate the annual performance review.[vi]

What’s more, new performance measures should include consideration for equal treatment of both remote and in-person workers.

When Twitter suspended performance reviews for 2020, they learned they had to rethink their performance review system for potential bias against people who spend more time outside the office. Jennifer Christie, their human resources chief, said, “We want to create that parity with people who work from home, so that if you work from home, you’re not a second-class citizen.”[vii]

As HR managers re-craft their hybrid work strategies, they need to carefully consider what constitutes true performance metrics that apply equally for in-office and remote workers. Clear key performance indicators eliminate ambiguity and maintain satisfactory performance levels for both the employer and employee.

 

Consider Costs

Furthermore, a hybrid work model should consider the business costs incurred from the pandemic. Now that the rush to get employees working from home has passed, taking stock of the unintended expenses in both business and human capital may mean adjustments going forward.

For example, many large companies are now considering salary based on geo-location of the worker. Last summer, Facebook announced a bold move to adjust 2021 salaries based on the cost of living in the employee’s remote working location.[viii] As businesses assess hybrid work strategies, such a solution may be necessary to keep costs in check. Regardless, employers offering a flexible work environment should consider it part of the overall compensation package.

Many businesses also experienced losses in human capital.  Minorities and females—particularly working mothers—were  disproportionately affected compared to their white male counterparts.[ix] Consequently, The Economist reported earlier this month that COVID-19 triggered America’s first female recession in 50 years.  The disruptions to children’s schooling nationwide meant working mothers fell out of the workforce at significantly higher rates than men.[x] For companies to reacquire this talent pool, having a flexible, well-defined hybrid work plan is a key strategy. Such flexibility should address the disparity between working fathers and mothers.

An additional expense for both employer and employee was the unexpected initial investment in tools and technology to maintain remote engagement. Many employers had to provide new tools like Slack and Zoom. Likewise, many employees had to upgrade their home internet plans or incur costs to make their home-work space conducive to work.

However, surprising cost benefits for employers have emerged. A new survey by Global Workplace Analytics estimates “a typical employer can save an average of $11k per half-time remote worker/year.”[xii] Determining a hybrid work strategy that compensates employees for their home office expenses can still provide considerable savings for the company.

With a solid cost-benefit analysis, companies can determine the overall cost for hybrid work plans. Opportunities to recover lost workforce talent and trim overhead costs should be part of that strategy.

 

Address Legal Risks

Last year’s shift to a virtual work environment for many businesses also increased their liabilities. These risks came from issues such as employee use of home Wi-Fi, disability accommodations for remote work, and a casual regard for company privacy and compliance requirements.[xiii] A potential data breach or violation of federal regulations like HIPAA from an employee’s kitchen table could cost millions in fines to the business. Understanding and addressing these risks is critical for hybrid work models to be successful.

Above all, businesses must decide how they will enforce company policies and follow up on violations to them. In their article “Mitigating Legal Risks of Working from Home,” employment law advisors Keith Markel and Theresa D’Andrea noted that employers can decrease these risks by preventing privacy breaches, reinforcing wage and hour laws, properly addressing accommodation requests, and more.

Reminding workers that company policies remain in effect when participating remotely prevents such violations; taking prompt action when an issue arises will send a strong message of employer expectations.[xiv]

When crafting WFH policies, employers have a tremendous opportunity to address their risks and liabilities. Well-designed hybrid work plans reduce ambiguity, mitigate risk, and potentially save millions of dollars in future penalties or litigation.

 

Set Boundaries

To make hybrid workplaces a competitive advantage, executives and HR professionals must determine the boundaries for the business hybrid work plan. These plans outline set working hours, collaborate meeting schedules between in-person and remote workers and communicate the professional standards for both in-person and remote work environments.

By making these decisions, employers will effectively incorporate company culture no matter where the employee lives. They will also be proactive to retain current employees, reclaim lost talent from the pandemic, and attract new talent to their company.

Further, an analysis of the remote work policies of the tech giants illustrates the disconnect between employer and employee expectations. PwC reported their leaders and employees don’t necessarily agree on the remote work outcomes. They note that “employee feedback is essential to a successful work environment.”[xv] Creating hybrid work plans that satisfy both employer and employee requires an understanding of the differences in those expectations.

 

Empower Managers

Incorporating a hybrid work model may require new management roles from the C-suite to first-level managers. Last autumn, The Washington Post reported some tech companies are carving out new jobs to meet this need. Journalist Jenna McGregor referenced the CEO of Quora, Adam D’Angelo, who noted such a manager would be, “somebody with an HR background, but they also need to be really strong at [communication skills] and to be pretty adept—or at least knowledgeable—about technology.”[xvi]

What’s more, managers with these skills may provide valuable insights into the challenges of a hybrid work environment considering they’ve been dealing with this issue for a year now. According to Dan Campia, former CEO, and writer for the Harvard Business Review, “Managing people is always more difficult when working remotely. What managers think about the return-to-work plan should carry special weight, and count for more than the views of people who report to them.”[xvii] (Emphasis added.)

When creating hybrid work policies, employers should consider the experiences of managers who already managed remote workers during the pandemic.

Lastly, managing hybridity (working employees who are co-located in the same physical space as well as employees working remotely)[xviii] requires an understanding of inequal opportunities to earn social capital in such a situation. Remote employees will not get the benefits of in-person work, such as visibility by the boss, spontaneous conversations at the water cooler, or the project pitch in an elevator.

Consequently, per Mark Mortensen (associate professor of Organizational Behavior at INSEAD) and Martine Haas (Lauder Chair Professor of Management at Wharton), these factors will “impact group dynamics and need to be incorporated into onboarding sessions and discussions in order to ensure new employees recognize the importance of consciously managing hybridity-based sources of power.”[xix] Many managers will need additional training for such circumstances.

Managers also play a vital role in helping decide what aspects of work are valuable enough to do in proximity or remotely. They will be responsible to communicate these policies and evaluate performance based on outcomes rather than visible presence. The value of managerial input when creating hybrid work models cannot be overestimated.

 

Move Forward

After a long year at home, it’s no secret that both employers and employees are eager to get back to business-as-usual. However, the reality is that the pandemic will continue to disrupt life and business for some time. Strong hybrid work models will ensure productive and quality work continues for both employers and employees.

By considering the lessons learned from the pandemic while working from home, companies can create a new normal. Each business will need to define their own unique WFH model. Developing a hybrid work strategy that evaluates pandemic productivity, counts the costs, and addresses the legal risks will allow HR professionals to craft solid flexible work plans. Such plans need managerial input and will set clear boundaries about hybrid work.

A well-thought-out WFH model will communicate company expectations, eliminate ambiguity, and maintain satisfaction for both employers and employees. Ideally, this will attract and retain employee talent turning a hybrid workforce into a competitive advantage for the business. Working from home is here to stay, but the hybrid model offers its own opportunities.

 

 

---

[1] Noah Buhayar, “The Work-From-Home Boom Is Here to Stay. Get Ready for Pay Cuts,” Bloomberg, last modified December 18, 2020, https://www.bloomberg.com/news/features/2020-12-17/work-from-home-tech-companies-cut-pay-of-workers-moving-out-of-big-cities.

[2] Jillian Smith, “Envoy Survey Finds Employees Want Companies to Embrace Hybrid Work, Mandate COVID Vaccines,” Envoy, March 16, 2021, https://envoy.com/blog/envoy-survey-finds-employees-want-companies-to-embrace-hybrid-work-and-mandate-covid-vaccines/.

[3] Ibid.

[iv] Nadine Malek, “Prodoscore Research Council Data Confirms Shifting Workday Patterns, Productivity Gains in 2020,” Prodoscore, March 17, 2021, https://www.prodoscore.com/press-releases/prodoscore-research-council-data-confirms-shifting-workday-patterns-productivity/.

[v] “Surprising Working from Home Productivity Statistics (2021),” Apollo Technical LLC, accessed March 16, 2021, https://www.apollotechnical.com/working-from-home-productivity-statistics/.

[vi] Jena McGregor, “One Potential Pandemic Upside: Performance Reviews Are Getting Simpler,” The Washington Post, October 19, 2020, https://www.washingtonpost.com/road-to-recovery/2020/10/19/performance-reviews-changes-pandemic/.

[vii] Ibid.

[viii] Janina Conboye, “Will Facebook’s Salary-by-Location Move Set Precedent for Tech?” Financial Times, July 8, 2020, https://www.bizjournals.com/triangle/news/2020/07/08/facebook-remote-work-salary-adjustments.html.

[ix] Ben Rogers, “Not in the Same Boat: Career Progression in the Pandemic,” August 26, 2020, Qualtrics, https://www.qualtrics.com/blog/inequitable-effects-of-pandemic-on-careers/.

[x] “How Covid-19 Triggered America’s First Female Recession in 50 Years,” The Economist, March 8, 2021, https://www.economist.com/graphic-detail/2021/03/08/how-covid-19-triggered-americas-first-female-recession-in-50-years.

[xi]Ibid.

[xii] “Work From Home Experience Survey Results.” Global Workplace Analytics, accessed March 2021, https://globalworkplaceanalytics.com/global-work-from-home-experience-survey.

[xiii] Douglas Wigdor, “Returning to Work During a Pandemic: 3 Legal Issues Employers Cannot Ignore,” Forbes, May 27, 2020, https://www.forbes.com/sites/douglaswigdor/2020/05/27/returning-to-work-during-pandemic-3-legal-issues-employers-cannot-ignore/?sh=29b2ae895652.

[xiv] Keith Markel and Theresa D’Andrea, “Mitigating Legal Risks of Working from Home,” Risk Management, June 1, 2020, http://www.rmmagazine.com/articles/article/2020/06/01/-Mitigating-Legal-Risks-of-Working-from-Home-.

[xv] “TMT Companies Well-Prepared for Hybrid Work Model,” PwC (PricewaterhouseCoopers), accessed March 2021, https://www.pwc.com/us/en/industries/tmt/library/companies-prepared-for-hybrid-work-model.html.

[xvi] Jena McGregor, “Hot New Job Title in a Pandemic: ‘Head of Remote Work,’” The Washington Post, September 9, 2020, https://www.washingtonpost.com/business/2020/09/09/head-of-remote-work-jobs/.

[xvii] Dan Ciampa, “A CEO’s Guide to Planning a Return to the Office,” Harvard Business Review, February 25, 2021, https://hbr.org/2021/02/a-ceos-guide-to-planning-a-return-to-the-office.

[xviii]Mark Mortensen and Martine Haas, “Making the Hybrid Workplace Fair,” Harvard Business Review, February 24, 2021, https://hbr.org/2021/02/making-the-hybrid-workplace-fair.

[xix] Ibid.