Hybrid Working: Challenges and Solutions for Organizations in 2025 - Part 2

Introduction

In the first part of this series, we discussed three important challenges that organizations encounter when implementing hybrid working: maintaining engaged employees, developing a future-proof office strategy, and facilitating technology for effective hybrid working.

In this second part, we continue with two additional challenges: knowledge transfer between remote employees and the work-life balance. We will also look at the changing role of real estate in a hybrid working world and how organizations can strategically approach this.

In 2025, hybrid working is no longer a temporary trend, but a fundamental shift in how we organize work. Although everyone is now allowed to return to the office five days a week, more than half of employees 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. It is therefore essential that organizations develop strategies to embrace and utilize this new reality.

Challenge 4: Knowledge Transfer Between Remote Employees

One of the biggest challenges in implementing hybrid working is ensuring knowledge transfer through effective communication and collaboration between team members, regardless of where they work. An analysis by Microsoft (2021) showed that compared to the pre-pandemic period, interactions between direct teams initially increased, but those between broader networks decreased when we moved to lockdowns.

This risk of compartmentalization is still present in 2025. When employees work both in the office and remotely, it can be more difficult to communicate quickly and collaborate on projects. Moreover, newer employees may be less exposed to the informal knowledge and expertise traditionally transferred through everyday office interactions.

Solutions:

Inclusive Meetings
Ensure that meetings are inclusive and accessible to all team members, regardless of their location. Use video conferencing and provide a clear agenda to ensure that everyone is involved and can contribute. Research by Owl Labs (2021) shows that hybrid meetings where some participants are in the office and others call in remotely often inadvertently create inequality, with remote employees speaking less.

Microsoft's Work Trend Index (2021) emphasized the importance of spaces that "bridge the physical and digital worlds" with technologies such as dynamic views of participants, chat, whiteboards, and other content on multiple screens. In 2025, this technology is now widespread, but still requires attention for proper implementation.

Decision-Making
Involve employees from all levels and locations in the decision-making process to create a sense of ownership and engagement. McKinsey's research from 2022 showed that distributed decision-making leads to 60% faster results and higher satisfaction among employees (McKinsey, 2022).

Clear Communication Guidelines
Establish clear guidelines for communication, such as the use of specific communication channels for certain topics or prioritizing urgent messages, to prevent misunderstandings and information overload.

CBRE's research from 2024 emphasizes that effective communication is among the most important skills that both business leaders (96%) and employees (95%) consider necessary in today's hybrid working world (CBRE, 2024).

Building Social Capital
Microsoft's research from 2021 showed that building social capital has become a business imperative, not just a "nice-to-have." McKinsey (2022) added that companies that consciously invest in social connections through both virtual and physical interactions report 23% higher productivity.

In 2025, the most successful organizations have deliberately invested in what Cushman & Wakefield (2023) describes as "dynamic meeting areas, conference spaces, flexible offices/coworking, and public spaces that allow for both formal and informal meetings."

Challenge 5: The Balance Between Work & Private Life

Another challenge in implementing hybrid working is maintaining a healthy work-life balance for employees. Microsoft's Work Trend Index from 2021 already showed that the average Teams meeting had become 10 minutes longer, the average Teams user sent 45% more chats per week, and 42% more chats per person after hours.

This trend has not decreased in 2025. Microsoft's follow-up research in 2023 showed that 48% of employees and 53% of managers reported that they were already burned out at work. It can sometimes be difficult to maintain a clear separation between work and private life when working from home.

Solutions:

Setting Boundaries
Help employees set boundaries between their professional and personal lives. Encourage them to establish working hours and stick to them, and to take breaks to relax and recharge. Microsoft's research from 2023 showed that employees who feel more productive are more likely to take breaks to exercise or stretch.

Encouraging Flexibility
Offer flexible work options, such as variable working hours and the ability to work remotely, so that employees can better adapt their work to their personal obligations. WeWork's research from 2021 showed that 62% of employees consider better work-life balance to be the biggest advantage of a hybrid model.

Regular Check-ins
Have regular conversations with employees to discuss their well-being and work-life balance. Encourage them to share any problems or challenges they are experiencing. According to Microsoft (2021), employees with authentic leaders report better balance and higher productivity.

Dawn Klinghoffer and Elizabeth McCune of Microsoft emphasized in their Harvard Business Review article from 2022 that a distinction should be made between 'thriving' and work-life balance: "While 'thriving' is focused on being energized and empowered to do meaningful work in your role, work-life balance also reflects employees' personal lives" (Klinghoffer & McCune, 2022).

Providing Support
Provide access to support resources, such as coaching, training, and wellness programs, that can help employees deal with stress and find a better work-life balance. A report by Cushman & Wakefield (2023) emphasizes that "wellness and lifestyle amenities such as gyms, childcare, amenity floors, personal services" are becoming increasingly important in office environments that support hybrid work.

Culture of Respect
Create a culture where employees feel respected and valued, regardless of their work style or location. Encourage colleagues to support each other and be considerate of each other's needs. Research by Owl Labs (2021) shows that companies that implement this approach report 21% higher retention rates.

The Role of Real Estate in a Hybrid Working World

An important aspect of hybrid working that deserves special attention is the changing role of real estate. Cushman & Wakefield's report "Obsolescence Equals Opportunity" (2023) outlines the transformation that the office market is undergoing as a result of hybrid working trends.

According to the report, the relationship between job growth and demand for office space has been disrupted. Employee density has decreased from 190 square feet per employee before the pandemic to 165 square feet. CBRE confirms this trend in their European Flex Office Market Update of 2024, noting that operators and landlords are increasingly entering into management agreements or hybrid lease contracts.

McKinsey's research "Workplace real estate in the COVID-19 era" (2022) emphasizes that real estate should no longer be seen solely as a cost center, but as a competitive advantage. They identify three steps to achieve this transformation:

1. Determine business objectives and metrics - Real estate choices should stem from strategy and business model.
2. Identify the moments that matter - Which moments of coming together with other employees, suppliers, or customers actually improve outcomes?
3. Set up a steering committee - The CEO can set the real estate agenda, supported by the CHRO, CIO, CFO, and the head of real estate.

The Instant Group reported in 2022 that 74% of flexible workspace providers had plans to expand, with 39% focusing on city centers and 28% on suburban areas. This trend has continued in 2025, with an increasingly diversified range of workplace options.

Cushman & Wakefield's research from 2023 also identified three categories of office space:

1. Top segment (15% of total inventory): High-quality, experience-oriented buildings that can command premium rents.
2. Middle segment (60% of total inventory): Office space that is functional but may need adaptation to remain competitive.
3. Bottom segment (25% of total inventory): Older, less functional space that may need to be redeveloped for other purposes.

This segmentation emphasizes that a significant portion of the office market needs to be transformed to meet the changing needs of hybrid workers.

Conclusion

In 2025, four years after the pandemic, it is clear that hybrid working is not a temporary trend but a lasting change in the way we work. Although employees can now return to the office full-time, more than half choose to continue working in a hybrid manner, with 2-3 days in the office and 2-3 days at home or even abroad.

To succeed in this new reality, organizations must:

1. Prioritize engagement through targeted social activities, authentic leadership, and clear communication of core values.
2. Revise office strategies by analyzing hybrid working patterns and designing workplaces that meet employee needs.
3. Deploy technology strategically to facilitate seamless collaboration and reduce digital fatigue.
4. Promote knowledge transfer through inclusive meeting practices and deliberate social capital building.
5. Support work-life balance by respecting boundaries, offering flexibility, and implementing wellness programs.

By proactively addressing these challenges, organizations can maximize the benefits of hybrid working and create a work environment that promotes both productivity and well-being. In the words of Satya Nadella, CEO of Microsoft: "Thriving employees are what will give organizations a competitive advantage in today's dynamic economic environment" (Microsoft, 2023).

The future of work is hybrid, and organizations that embrace this reality and approach it strategically will flourish in the new work landscape of 2025 and beyond.

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?

Owl Labs. (2021). State of Remote 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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