Hybrid Working: Challenges and Solutions for Organizations in 2025 - Part 1

Introduction

In an economy where flexibility and adaptability have become increasingly important, hybrid working has evolved into the new norm for many organizations. Around 2021, during the pandemic, the first symptoms of hybrid working emerged. In 2023, after Covid was over and people were allowed to return to the office, there was an expectation that we would return to the 'old normal' of pre-pandemic times.

However, the reality in 2025, four years later, shows that the changes brought about by hybrid working have had a lasting impact on how people work, when and how often people come to the office, their social lives, and other norms and values. Although everyone is now allowed to return to the office five days a week, more than half continue to work in a hybrid manner, with 2 or 3 days in the office and 2 or 3 days at home or even abroad.

This way of working, with employees working both in the office and remotely, offers numerous benefits but also brings unique challenges. In this two-part series, we delve deep into five core challenges of hybrid working and provide practical insights and solutions for HR professionals and real estate experts. In this first part, we address the first three challenges.

Challenge 1: Maintaining Engaged Employees

One of the main challenges companies face is keeping employees engaged with the organization and cultivating company culture. Microsoft's Work Trend Index 2023 showed that when teams work in a distributed manner, it becomes more difficult to create a sense of connection, which is essential for engagement (Microsoft, 2023).

When the impact of hybrid working is not properly considered, working from home can lead to feelings of loneliness and isolation. These feelings negatively impact mental health and job satisfaction, resulting in disengaged employees who achieve poor or no results.

Solutions:

Secondary Employment Benefits
A practical way to make your employees feel more engaged and valued is by offering flexible secondary employment benefits. According to a study by WeWork (2021), as many as 75% of employees would be willing to give up certain benefits, such as cash bonuses or even healthcare coverage, for the freedom to choose where they work.

One-on-One Conversations
Managers should schedule regular one-on-one conversations. It is common practice to maintain contact with team members once every two or three weeks. Use these moments not only to talk about results, but also to ask about your colleagues' opinions and how they are doing, both physically and mentally. Microsoft's research from 2021 showed that authentic managers achieve significantly better results in terms of employee engagement.

Social Activities
Organize (virtual) social activities and events to promote team building and give employees the opportunity to have informal contact with their colleagues. Dawn Klinghoffer and Elizabeth McCune of Microsoft emphasized in the Harvard Business Review in 2022 that "employees who are thriving and engaged want to spend twice as much time in locations other than their home or corporate office than their less engaged colleagues" (Klinghoffer & McCune, 2022).

Core Values
Clearly communicate the mission, vision, and core values of the organization to all employees. This ensures that people can identify with the company and thereby feel engaged. McKinsey's research from 2022 emphasizes that companies that actively promote their values show 25% higher engagement scores (McKinsey, 2022).

Challenge 2: A Future-Proof Office Strategy

The way in which, and when, people use the office has completely changed. Worldwide, employees indicate that they want to determine for themselves where and when they work – whether at headquarters, in a hub, a coworking space, or at home. The Instant Group reported in 2023 that 44% of flexible workspace providers worldwide have achieved occupancy rates of more than 80%, demonstrating that these workplaces are becoming increasingly popular (The Instant Group, 2023).

As a result, companies worldwide need to consider what to do with their surplus of leased office space. According to research by CBRE, implementing a hybrid work strategy can lead to a reduction in office space by up to 30% (CBRE, 2024).

Solutions:

Calculate Hybrid Work Footprint [HWF]
Start by mapping your Hybrid Work Footprint (HWF). To formulate a future-proof policy, you need to know the numbers. Ask yourself the following questions:

• How many workstations do you facilitate?
• What are the costs per workstation per employee?
• How often do people come to the office?
• How much must employees travel and what does that cost?
• What are the costs per workstation that is actually in use?

Based on a thorough HWF analysis, you can determine the impact of hybrid working on your organization. Map out what it costs to do nothing and what the financial consequences are of scaling up or down.

Offer Workplace-as-a-Service
Explore the possibilities of Space-as-a-Service. The traditional office market is becoming increasingly flexible and service-oriented. Cushman & Wakefield's research from 2023 showed that one in two European office owners expect to offer 16% to 25% of their commercial real estate portfolios flexibly and service-oriented by 2025 (Cushman & Wakefield, 2023).

Instead of maintaining large offices, companies can offer their employees Space-as-a-Service subscriptions. This allows employees to work from different locations and gives organizations the flexibility to save costs on unused office space.

Fit-out with a Purpose
Map the needs of your employees. In what kind of office environment do they prefer to work? What type of workstations do they prefer and when? Under what conditions and circumstances are employees inclined to work in the office? Design & build agencies can advise you on creating an office environment that supports both collaboration and concentrated work, to meet the diverse needs of hybrid employees.

Promoting Sustainability
Hybrid working contributes to the reduction of commuting, which leads to lower CO2 emissions. By implementing a sustainable work strategy, companies can not only contribute to a better environment but may also benefit from tax advantages or subsidies. The further integration of sustainability initiatives into office strategy is no longer optional in 2025, but has become a business necessity.

Challenge 3: Facilitating Technology for Effective Hybrid Working

In the current era of hybrid working, facilitating the right technology is crucial for engagement, communication, and productivity. Research by Microsoft from 2023 indicated that digital fatigue has become a real and unsustainable problem, with 39% of employees feeling exhausted (Microsoft, 2023).

When colleagues work from different locations, the right technology is essential to maintain contact and collaborate effectively. While basic tools such as laptops with Microsoft Teams or Google Workspace are a good start, a truly productive distributed organization requires a more comprehensive approach.

Solutions:

Invest in Core Equipment
Ensure all employees have access to:

• Laptops or desktops
• Mobile phones
• Quality headsets
• Ergonomic accessories (keyboards, mice, etc.)

These investments are crucial for smooth communication and collaboration between remote teams. The Instant Group reported in 2022 that 27% of flexible workspace operators planned to introduce smart access to their spaces, indicating that technological investments are considered crucial (The Instant Group, 2022).

Prioritize Security and Privacy
Implement secure networks and VPN solutions, provide training on cybersecurity best practices, and ensure secure access to company data. These measures protect sensitive information and reassure employees when working remotely.

Establish Clear Guidelines
Develop a comprehensive policy for the use of technology, including expectations around availability and response times, protocols for data security, and guidelines for effective use of collaboration tools. The Harvard Business Review emphasized the importance of clear communication protocols to prevent digital overload as early as 2021.

Implement Collaboration Software
Integrate tools such as:

• Video conferencing solutions
• Project management tools
• Communication platforms
• Knowledge sharing platforms
• All-in-one collaboration solutions

These platforms significantly improve the efficiency and communication of remote teams. CBRE reported in 2024 that technology plays an increasingly crucial role in connecting people, regardless of where, when, and how they work (CBRE, 2024).

When planning the technological infrastructure, it is crucial to also consider the different needs of employees and how technology can contribute to an inclusive work environment where everyone can participate, regardless of location.

Conclusion for Part 1

The first three challenges of hybrid working – maintaining engaged employees, developing a future-proof office strategy, and facilitating technology for effective hybrid working – require a strategic approach. Organizations that proactively address these challenges can maximize the benefits of hybrid working and create a work environment that promotes both productivity and well-being.

In the second part of this series, we will address two additional challenges: knowledge transfer between remote employees and the balance between work and private life. Additionally, we will discuss the changing role of real estate in a hybrid working world and provide practical strategies for the future of work.

References

CBRE. (2024). European Flex Office Market Update H1 2024.

Cushman & Wakefield. (2023). Obsolescence Equals Opportunity: The Next Evolution of Office and How Repositioning and Repurposing Will Shape the Future.

Klinghoffer, D., & McCune, E. (2022). Why Microsoft Measures Employee Thriving, Not Engagement. Harvard Business Review.

McKinsey. (2022). Workplace real estate in the COVID-19 era: From cost center to competitive advantage.

Microsoft. (2021). The Next Great Disruption Is Hybrid Work – Are We Ready?

Microsoft. (2023). Work Trend Index: Annual Report - Will AI Fix Work?

The Instant Group. (2022). The Future of Flex: Trends, challenges, and opportunities faced by flexible workspace providers.

The Instant Group. (2023). The Office Redefined: Five Opportunities in Workspace.

WeWork. (2021). The future of work is hybrid: Here's what that will look like.

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