Hybrid Working Policies – Evolved, Defined and Refined

In November 2022, Elon Musk stunned his employees – and observers around the globe alike – when he decided to revoke Twitter’s long-established work-from-home policy. This bold move seems to go completely against the rising trend towards home-based or hybrid working models worldwide, and especially in Australia. In light of this, you may be left wondering what the best approach is for your organisation.

What is hybrid working, and how did it emerge?

Hybrid working is a flexible work model that lets staff work partly from home (or another workspace) and partly from their usual physical workplace. In essence, it strives to combine the best of remote and on-site work.

Before and during the pandemic

Before 2020, it was the norm for workers to physically travel to their workplace on a daily basis. But the COVID-19 pandemic changed this old-established working model in a matter of weeks. Suddenly, more than a quarter of all Australian employees found themselves working from home, according to a Fair Work Commission report. Surprisingly, perhaps, collaboration and productivity seemed to be largely unaffected even without workers being physically present.

However, a Swinburne University survey found that an astonishing 91% of workers reported missing the personal interaction with their co-workers and wanting to attend their workplace in person at least occasionally. Along with the easing of COVID-related restrictions, this has led to the emergence of the currently prevailing hybrid work environment.

The new normal

Flexible working models have transformed the Australian economy and are, for the first time, the predominant arrangement in most companies. According to a recent University of Sydney Business School survey, most workers now spend one or two days a week working from home and three to four days in the office. But this didn’t come about without a huge shift in thinking – and in policymaking.

The Australian Government’s Productivity Commission found that hybrid models typically require businesses to establish different policies for office- and home-based workers – or to adapt their existing management practices. This can be a costly undertaking despite savings in rent for physical spaces, e.g. due to expenses associated with employee monitoring solutions and team engagement measures.

Establishing hybrid work environment best practices

Getting the hybrid working model right is essential for employee satisfaction and for keeping costs in check. Working from home can boost employee well-being and support workers with mental health challenges, according to a National Mental Health Commission report. Essentially, the concept of a good work-life balance has been completely redefined.

But, of course, employers need to actively monitor and manage home-based employees to ensure work ethic and performance don’t suffer. The Productivity Commission reminds employers to balance the potential benefits of a hybrid working model with the increased organisational complexity and additional risks this brings with it. Risks can include negative effects on the corporate culture, higher technology expenses and IT security challenges.

As a leader, be sure to have a clear set of best practices in place that gives your managers and employees unequivocal guidance. This prevents ambiguities and ensures a mutually beneficial outcome for your hybrid workforce and your executive team.

Naturally, best practices are specific to your organisation, so there is no one-size-fits-all model. A good starting point, though, is your existing employee handbook. See which sections need to be revised or expanded. And, importantly, check that your best practices ensure that all your hybrid workers are treated equally. It would be quite demoralising for your home-based staff to constantly be forgotten or only be assigned those jobs that no one in the office wants.

Fine-tuning your hybrid work model

Once you have a hybrid working policy in place, it might be a good idea to fine-tune it. This may include the following aspects:

• Adopt a selective approach: A report by the NSW Innovation and Productivity Council explained that organisations are well advised to opt for a selective approach when choosing which employees can work from home. In other words, workers who have proven to be as productive at home as in the office can continue with the hybrid model. After all, companies should not have to sacrifice productivity and may therefore want to reward high-productivity workers – a win-win situation!
• Offer sign-on bonuses: Does your organisation need certain staff members to be physically present, but you’re struggling to lure them away from the comfort of their homes? Consider offering sign-on bonuses as an incentive. You would be in good company, according to Callam Pickering, Senior Economist at the Indeed Hiring Lab: ‘Overall, the advertisement of signing bonuses soared during the pandemic, with growth particularly evident in middle-income occupations and jobs where remote work is difficult.’
• Consider employee rewards and recognition for a hybrid workforce: Avoid an ‘out of sight, out of mind’ approach to ensure you don't inadvertently pass over remote employees when it comes to promotions and awards.

Reimagine leadership in hybrid working times

To make your hybrid model work, you may need to rethink what we all thought was important pre-pandemic. The post-COVID definition of work-life balance and the evolved role of the workplace are here to stay. Agile leadership will help you guide your workforce in these uncharted waters. Make sure you have a solid hybrid working model in place that is tailored to your organisation and needs. Then follow the suggestions above to fine-tune it. This will help give you the edge, attract the right staff and stay competitive in 2022 and beyond.