How to Build a High-Performing Hybrid Work Model

If your employees were forced to work from home during the COVID-19 pandemic, how will this way of working be integrated after your offices reopen? Just because companies have the option to bring all employees back to the office at some point doesn’t mean they have to. Working from home helps companies stay flexible and productive while also reducing costs. Therefore, a hybrid work model could be the next step in the evolution of your workplace.

But how can this be done in a way that ensures success for both employees and the company? The answer lies in developing the right hybrid work model for your business. Read on to learn more.

What is a hybrid work model?

It may sound like an old-fashioned buzzword, but unlike many other new terms in our business vocabulary, 'hybrid work model' actually makes sense: It is a flexible way of working that includes employees who work at a central location (e.g., an office, a branch, or a warehouse), employees who work remotely, and employees who alternate between the office and home office.

At first, this may sound like an elegant way of describing the consequences of the COVID-19 pandemic: companies are switching to mobile work wherever and whenever possible. However, a hybrid work model is significantly more thoughtful than the emergency measures many adopted in response to the pandemic. Rather than reacting to the externally imposed need for mobile work, it is a proactive plan driven by various factors such as employee well-being and company performance.

George Penn, Vice President at Gartner, explains: "Employers, managers, and employees share responsibility for decisions regarding the hybrid work model. Where and when work is done depends on what promotes the highest productivity and the greatest engagement."

The transition to a hybrid work model needs to be strategically planned, as it affects all dynamics and relationships within your company. Successful implementation requires far more than simply marking a date on the calendar or dividing job roles between remote and on-site work. Instead, the costs, benefits, and desired outcomes for your employees and your company must be analyzed. Afterwards, a plan must be developed that minimizes costs, maximizes benefits, and achieves the desired outcome.

What are the biggest advantages of a hybrid work model?

More flexibility leads to more satisfied employees

Even though employees currently have no choice regarding their working conditions, many would like the option to work at least partially from home. However, this trend did not only arise because of the pandemic. In a pre-pandemic survey by Indeed, 40% of respondents stated that they would even accept a pay cut for the option to work from home.

Of course, working from home during the pandemic comes with challenges: employees have to manage childcare and limited privacy, or they feel lonely due to social distancing. Despite all these obstacles, many have experienced the independence and flexibility of working from home and want to maintain it. More than half of the workers whose jobs are suitable for home office work want to continue working from home even after the pandemic.

Another survey by LiveCareer highlights this: 29% of respondents said they would quit their job if they could no longer work from home. Against this backdrop, you should consider implementing a hybrid work model to avoid staff turnover or – to put it more positively – to increase employee satisfaction in your company.

Hybrid work models help save costs and boost productivity.

In addition to increasing employee satisfaction, mobile work offers companies noticeable savings and measurable productivity gains. Prithwiraj Choudhury, a professor at Harvard Business School, and his colleagues studied the effects of flexible work arrangements at the U.S. Patent and Trademark Office (USPTO). During the 24-month transition period, in which patent examiners began working from anywhere, Choudhury observed a productivity increase of 4.4%. This corresponds to an annual value creation of up to 1.3 billion U.S. dollars for the U.S. economy.

In addition, this increase in productivity and flexibility led to:

Higher revenues
Lower office costs
Lower hiring costs
Higher real incomes for employees (as they could move to regions with lower living costs)
Reduced emissions

In view of these results, one might think that working exclusively from home is the right way to go, rather than a hybrid work model. However, Choudhury points out that this "work from anywhere" model is not suitable for everyone, as not every task can be performed entirely independently (as was the case with the auditors).

Instead, Choudhury offers the following recommendations for making the most of flexible work models:

Working in the office provides a solid foundation for successful remote work programs. For the employees in this study, this meant gaining several years of experience before being able to work completely remotely. In hybrid work models, however, this can mean splitting work time between on-site and remote work to ensure both support and independence.
The transition to remote work should be gradual so that teams have time to adjust their processes and address any issues.
Technology should be used to promote team collaboration.

What are the biggest challenges in leading a hybrid team?

Different home situations lead to inequalities that employers have to address.

While remote work offers many advantages, the working conditions at home are not the same for everyone. According to a study by the Stanford Institute for Economic Policy Research (SIEPR), not every employee is suited for remote work, and not every position is suitable for it.

About half of the respondents were able to work from home with a productivity of at least 80%.
30% of the respondents were not able to work from home at all.
Higher-qualified and better-paid employees worked from home more often.

The option for mobile work is therefore only part of the solution. If you are considering a hybrid work model, think about how your company can provide tools and resources to offset socioeconomic inequalities and help your employees succeed while working from home. Additional support could include, for example:

Rental (or coverage of costs) for coworking spaces. Some employees enjoy working remotely, but their home may not be the best workplace for them.
Coverage of costs for high-speed internet for remote employees. SIEPR refers to this as part of the "ticking inequality time bomb" between those who were able to work remotely during the pandemic and those who were not – as the economy recovers, those without access to the digital economy will continue to be left behind.
Provision of adequate communication, project management, and other software. Productivity is not possible without the right tools.
The opportunity for employees in a home office to work outside the usual 9-to-5 hours requires coordination. This ensures that employees’ working hours overlap when collaborating and emphasizes maintaining a balanced work-life balance to avoid a 'always-available' mentality. However, fully utilizing the flexibility of a hybrid work model can help employees adjust their working hours to demanding personal or family commitments.
Compensation and benefits are adjusted for all positions, particularly taking into account the impact on employees who cannot work from home (which we will examine in more detail later in this article).

It only works if employers commit to both employee experiences.

Sid Sijbrandij, co-founder and CEO of GitLab, a company that operates entirely remotely, is highly critical of the hybrid work model. He argues this in part by pointing out that companies have to manage two completely different employee experiences equally. However, instead of fully focusing on the hybrid model, Sijbrandij notes that leaders often use the in-office experience as the primary and preferred standard. This not only causes issues regarding employee satisfaction with the company but also reinforces the entire organization’s perception that remote and in-office employees are fundamentally different.

He warns: "Those who rely on hybrid work and do not pursue systematic changes and treat every employee as if they were working from home (regardless of the office) will lose their highest-performing remote employees." In his view, the dissatisfaction or lower productivity of remote employees in hybrid teams is not due to their absence from the office, but rather because they are not sufficiently included and are measured against outdated, irrelevant office standards.

As already discussed, studies show that remote employees are often more productive than their colleagues in the office. Nevertheless, in many companies that have recently switched to hybrid work, it is not uncommon for leaders to give more recognition to employees in the office because they are more visible. This can not only create a potentially harmful perception but is also a sign that the transition to a hybrid work environment has been implemented rather superficially rather than strategically, culturally, and operationally.

Both Sijbrandji and the consulting firm McKinsey give the same recommendation to counter a superficial change: leaders must lead by example. Here are suggestions on how leaders and managers can support all employees in engaging with the hybrid model:

Create new ways for informal exchange with your employees. McKinsey explains: "By defining and promoting new behaviors that are observable by everyone and consciously giving virtual employees space for informal interactions, leaders can strengthen social cohesion and trust within their teams."
Lead by example in the hybrid work environment. When leaders and managers are always in the office, all decisions are made there. This signals to employees that the headquarters remains the authority and that being physically present is key to success. On the other hand, when leaders and managers occasionally work remotely, they show that anyone can be productive and successful regardless of their work location.
Use in-person meetings strategically. As soon as it is safe again, they can help to bring teams and organizations closer together and enrich the company culture. Although GitLab is a fully remote company, it recognizes the value of personal contact and therefore organizes a company-wide in-person event each year. Additionally, travel expenses for visits to other remote teams around the world are subsidized (these events should resume as soon as the situation allows).

How do you plan and develop a hybrid workforce?

Rethinking work

Leading a hybrid workforce requires more trust and creative management strategies. “At the heart of a hybrid workforce model,” says the global market research company Gartner, “are the principles of shared responsibility and trust. This helps companies break long-held beliefs and potential myths about where and how work is most effectively done.”

At first, it may sound unsettling to allow more than just a few employees to work from home; after all, you can't just drop by and check their work if they're not all in the same building. From this traditional management mindset, it may be tempting to restrict the possibility of working from home. But how do you determine who is allowed to work remotely? How do you decide which tasks can be done from home?

You need to reassess each position impartially. When deciding which positions are suitable for remote work, you should at least ask yourself the following questions from time to time:

Does the employee need to be physically present to complete all of their tasks? For example, equipment that can only be used on-site, such as specialized machines, or personal contact with clients may limit the possibility of mobile work (although not completely rule it out).
Can your company invest in better equipment or technological tools to make mobile work easier for employees? For instance, if you have certain functions that are only accessible via your office computers, investing in web-based applications not only provides your employees with more flexibility in how they work, but also keeps your technological capabilities up to date.
Does the work rely on collaboration or coordination? For example, your video team may need to be on-site for filming, but most pre- and post-production tasks, such as scriptwriting and editing, can be done remotely.
How do you determine which hybrid work schedule is best for your employees? In a hybrid work environment, there are many options: fully remote for some employees, a few days per week remote, alternating remote every other day, alternating every other week, etc. Alternatively, you can make individual decisions and set criteria for employees' suitability for remote work. Regardless of the chosen strategy, coordination between interdependent teams and departments is essential.

Consider also how you will measure performance and productivity in the future. Attendance alone does not define a good employee. Instead of evaluating performance based on the work contributed, focus on the desired outcomes and adjust your performance standards accordingly.

Expand your definition of 'remote' and your communication strategies.

When planning a hybrid work model, you should consider how to ensure communication and networking among your employees. It can be helpful not to view "remote" in the context of remote work solely as physical distance. An article from the Harvard Business Review (HBR) distinguishes three types of distance in remote collaboration:

1. Physical distance (location and time),

2. Operational distance (team size, resources, and skill levels),

3. Social distance (values, trust, and mutual dependence).

According to HBR, the best way for leaders to improve team performance is to reduce emotional distance. Building trust, uniting individuals and teams through a common goal, and making communication more intentional – for example, through video conferences instead of just phone calls – strengthens collaboration and cultural cohesion. This way, employees learn to trust and appreciate each other.

In other words, your employees don't have to feel so far apart when working from home.

Here are some more helpful strategies for communication and team building:

Communicate your company's vision, mission, and values clearly and effectively to inspire all employees to do their best and know that their work is meaningful.
A standard process should be established for communicating problems and addressing challenges that arise.
When scheduling appointments, take the different time zones into account.
Provide your remote employees with the appropriate communication and collaboration tools to optimize workflows and minimize errors or delays. This includes, for example, a unified communication platform, an app for sharing files, and project management software. (We know we've mentioned this before, but it's important to repeat it, as it is essential for the success of your hybrid team!)
Include employees working from home in all team meetings. Out of sight, out of mind – this should not mean forgetting them.
Organize virtual team-building activities where remote employees can interact with managers, other colleagues, and each other.

Be creative in rewarding your employees on-site

You might be wondering about employees who cannot work from home – maybe they simply don’t like it, or their work cannot be done from home. How can you make the benefits of a hybrid work model accessible to them as well? How do you ensure that all employees feel they are being treated fairly? There is no one-size-fits-all solution for every company, but one way to promote more equal opportunities is to increase flexibility and choice for those who cannot work from home.

For example, you might decide that your warehouse manager still needs to be present in person on a daily basis. This makes sense, as it would be difficult to monitor deliveries, ensure warehouse workers comply with safety regulations, or check incoming goods from another location. Your office manager, on the other hand, uses cloud-based software for payroll and office organization and therefore works from home a few days a week.

To accommodate both sides, you could offer your warehouse manager and the staff extra paid vacation during the off-season, giving them more flexibility in planning their time off. While this is not the same as the option to work from home, it gives employees more choice in their working hours without affecting business operations.

More ideas for additional benefits for office employees:

Paid transportation to and from the workplace
Paid lunch
Extra paid vacation days
Additional flexible vacation days
Flexible working hours (outside the usual 8 a.m. to 5 p.m. schedule)
Paid childcare.

You can also simply ask your employees what they want and how they can work more flexibly. Use employee surveys and one-on-one meetings with supervisors to find out how you can best support your employees and thereby increase their satisfaction and productivity.

Check your budget.

A hybrid work model can save costs, but it's not as simple as cutting your office space in half. You need to plan for other expenses.

Here are some questions you should ask yourself:

Do you need office space for employees who still need to visit your headquarters?
Do you need a physical location for customer service?
Will you need to rent premises for certain activities or events?
Will you provide a subsidy for working from home?
Do employees need to share workspaces (since some work in the office on days when others work from home)? What improvements do you need to make regarding telecommunications, connectivity, and digital security?

In terms of digital security, more virtual work also means a larger attack surface and potential vulnerabilities. Unfortunately, attempts at cyberattacks have quadrupled since the beginning of the pandemic. Therefore, strengthening your company's security should definitely be part of your strategy.

Changed perspectives on the nature of work

If you have so far wondered whether mobile working will last permanently, you will hopefully now see that the answer is a clear 'yes.' And it’s not just about occasionally allowing some employees to work remotely on the spur of the moment. The hybrid work model is a deliberate, strategic approach to workplace design that requires planning and flexibility to find creative and adaptable solutions. A hybrid work model may not completely replace the traditional workplace, but it challenges common assumptions about what works and what doesn't. If you are ready to make the necessary changes, it can strengthen your workplace.

The shift to a hybrid work model is a complex but necessary strategic transformation that requires moving beyond a traditional management mindset to embrace trust, flexibility, and outcome-based performance measurement. The key to a successful transition lies in ensuring that remote and on-site employees receive equitable treatment and opportunities, actively reducing physical, operational, and social distance through intentional communication and leadership. IceHrm is an indispensable tool for developing and maintaining this successful hybrid environment. Its features, particularly Time Tracking (to log flexible hours while maintaining coordination), Performance Management (to measure outcomes instead of attendance), and robust Communication capabilities, allow HR to manage a distributed workforce fairly, mitigate risks associated with the "two employee experiences," and empower employees with the self-service tools needed to thrive in the new, flexible workplace.