The Future of Work
Hybrid Models and Their Impact on Small Businesses

For the remainder of 2024 and into 2025, small businesses will face key people-related challenges such as attracting, retaining, and engaging talent, addressing talent shortages, upskilling/reskilling employees, managing generational diversity, and promoting diversity, equity, and inclusion (DEI). Flexible work arrangements, like remote and hybrid work, will remain crucial for candidates and current employees alike. While these challenges are significant, they offer opportunities for businesses to adapt and innovate, aligning strategies to meet evolving talent needs and creating a more dynamic work environment.

The evolution of remote and hybrid work models has been one of the most transformative shifts in the workforce over the past four years. While the rapid and widespread adoption of these models during the pandemic made them seem like new trends, they were an acceleration of existing practices. Interestingly, a Forbes article from late 2023 reported that 90% of companies planned to return to the office by the end of 2024. Recently, major corporations such as Amazon, Walmart, AT&T, and Chase have implemented stricter return-to-office mandates. Despite this, hybrid and remote work models remain prevalent and are here to stay. Approximately 22% of the workforce is expected to continue working remotely through 2025 with the age group most likely working remote between 24-35 years old. The continued remote work landscape shows that businesses are still learning to adapt and ultimately create workplace flexibility models that work for them.

One thing about flexible work arrangements is that they are not a one-size-fits-all solution. Small businesses have unique needs and challenges that lead to differing perspectives and physical working locations. The best approach is to be upfront and set clear expectations regarding the business’s capabilities and stance on remote and hybrid work. While remote work can offer benefits such as cost savings, access to a broader talent pool, and improved employee satisfaction and well-being, it also presents challenges like cultural impact, communication issues, supervision difficulties, and increased technology costs. For businesses to succeed with remote work, they must fully integrate it into their culture. This means incorporating remote workers into every aspect of their operations and ensuring they feel as connected and engaged as their in-office colleagues.

One flexible work arrangement, when done correctly and effectively,  can truly benefit both the employee and the employer. That is a hybrid model. According to Forbes, as of 2023, about 12.7% of full-time employees fully work from home (remote), while 28.2% work in a hybrid model. A hybrid work model allows employees to split their time between different locations, typically working part of the time from home (or another remote location) and part from the office.  This type of flexible work arrangement provides balance by allowing the benefits of remote work to coexist with the need for collaboration. Research has shown that employers who can offer some type of hybrid work model experience an increase in productivity, improved employee satisfaction and well-being, potential cost savings, a wider talent pool, and enhanced communication. Employers who have been providing hybrid opportunities understand and realize the time that goes into shifting from an in-person culture to a hybrid culture. This transition requires time, patience, commitment, and extensive communication.  However, if a small business is interested in moving their culture towards a hybrid work model,  with careful planning, implementation, and focus, it can be highly beneficial.