The Future of Work: Analyzing Organizational Performance in the Hybrid Era

The world of work is still in flux as many companies continue to follow hybrid and work-from-home models. At the same time, Fortune 500 companies such as Amazon, JP Morgan Chase, and Nike moved to mandated in-office policies of at least four days a week in 2024, and more organizations, as well as much of the US federal workforce, are following suit this year.

Which working model is best for organizational performance? There is a general debate about whether return-to-office (RTO) policies are too strict, not strict enough, or just right. Our new data suggest this focuses on the wrong question. The policy mandate itself is far less important than the work environment organizations create and the practices that accompany a policy’s implementation. Companies that hope to reach their stated organizational-effectiveness goals should look beyond RTO policies themselves to address the chronic problems that continue to take a toll on employee experience and productivity.

Survey Insights

In a new survey of several thousand US employees across industries, most people in each of our tested models (in person, hybrid, and remote) say their overall work experience needs improvement, even if their work arrangement is satisfactory.

Respondents across working models say their organizations are doing a poor job of supporting five core practices that drive performance and strengthen organizational health: collaboration, connectivity, innovation, mentorship, and skill development. Leaders frequently cite these practices as top reasons for getting their people back in the office.

More organizations are mandating and enforcing RTO

Our latest talent trends research, based on surveys of thousands of employees and employers across industries in the United States, shows that there was a surge in RTO across industries from 2023 to 2024.

The proportion of mostly in-person workers doubled between our two samples to 68 percent, while the number of workers in a mostly remote arrangement plunged by more than half to 17 percent, and the number of workers in a hybrid format declined to 14 percent.

The working model won’t automatically improve outcomes

We tested the perceptions of employees who work mostly in person, hybrid, or mostly remote, as well as the relationship between the working model and certain outcomes related to productivity.

The results show that there is no clear winner when it comes to a working model that provides a high level of employee experience and productivity. In-person, remote, and hybrid workers all report mostly similar levels of intent to quit, burnout, effort, and satisfaction.

Most employees in each model report being satisfied with their working-model arrangement. However, nagging levels of employee dissatisfaction are still evident—and the working model isn’t solving the problem.

Five key practices: How are companies doing?

Our research shows that employees’ satisfaction across working models is, on average, moderate but that employee experience and productivity rates are relatively lower. To dig deeper into why, we tested five core practices that spur organizational health: collaboration, connectivity, innovation, mentorship, and skill development.

The data show that across working models, most employees perceive relatively low organizational maturity across these five key practices.

The enablers: Behaviors and other key factors

After acknowledging the problem, leaders can look for concrete ways to strengthen the practices. Each working practice has behaviors, policies, or norms that contribute to how well it functions. These enablers influence the maturity of each practice, regardless of working model.

Building (or restoring) the foundation of a high-performing organization

Organizations must reestablish the underlying practices that drive organizational health and performance, then choose the working model that best fits their culture. Organizations that do so can reap the rewards of productivity, engagement, and employee satisfaction—no matter where people work.

Recommendations for Leaders

Senior leaders should complement RTO policies with practices that create a healthier and more collaborative organizational culture. They should shape the physical environment to meet workforce needs and ensure policies have enough flexibility to reflect workers’ needs.

People managers should spend focused time with team members, design the workweek with a combination of individual time and collaboration, and regularly take stock of what is working well and what isn’t across the model.

Employees should make the most of in-person time by scheduling regular check-ins with managers, embrace increased connectivity, and be mindful of the individual work that needs to get done.

FAQ

Q: What are the key practices that drive organizational health?

A: The key practices that drive organizational health include collaboration, connectivity, innovation, mentorship, and skill development.

Q: How can organizations improve employee satisfaction and productivity?

A: Organizations can improve employee satisfaction and productivity by focusing on strengthening key practices, addressing chronic problems, and creating a work environment that supports collaboration, connectivity, innovation, mentorship, and skill development.

Conclusion

To thrive in the hybrid era, organizations must prioritize organizational health and performance by focusing on key practices that drive employee satisfaction and productivity. By addressing chronic problems and creating a supportive work environment, organizations can maximize the benefits of different working models and achieve long-term success.