Today’s evolving work models are further complicating an already complex work landscape. They have created challenges, such as balancing improvement of employee experience through anywhere work and fostering innovation in a collaborative, in-office environment. So, what dilemmas do companies face with a distributed workforce, and how can they navigate the complex work landscape? VMware’s study provides some insights.
The world of work has always been tricky to navigate. Corporate policies, new technologies, and threats from competitors have presented challenges to even some of the highest-functioning companies. Today’s hybrid and remote work models have complicated the situation, creating new and competing priorities.Â
One of the primary challenges is the conflict between enhancing employee experience through “anywhere work†and fostering innovation through a collaborative environment. Striking a balance between investments in automation and talent development is also important. Adding to these complexities are other external forces that render employee-employer power dynamics increasingly unstable.
To understand the trends in the distributed workforce, the dilemmas employers face, and how they are navigating the complex work landscape, VMware recently conducted a study. Here are a few findings.
See more: Managing the Technology Challenges of a Distributed Workforce
With the Work from Anywhere Model, Job Satisfaction Thrives While Innovation Suffers
Most companies surveyed either have a hybrid or an anywhere-work policy. While 20% have an anywhere-work policy, 64% have a hybrid work model, and only 13% have an in-person policy. That said, it was found that high-performing companies favor anywhere-work policies much more than underperforming companies (21% vs. 4%). At the same time, underperforming businesses tend to say they don’t have an official policy. It was also seen that a significant number of high-performing companies have a hybrid work policy (57%).
About 66% of the respondents agreed that their company becomes more innovative when people work from the office. The sentiment is more exaggerated for companies with an anywhere-work policy (75%). That said, there is a difference in perception between the way employees and employers see work location’s impact on innovation. Decision-makers are more likely to see in-person collaboration’s value (69% vs. 56%). This difference tends to add to the friction between the two.
It is also seen that smaller companies feel more that innovation is disrupted when people don’t work from the office.
While employers and employees tend to disagree on the impact of work location on innovation, almost all agree on how location policies impact job satisfaction: the more flexibility in the policy, the better the satisfaction rate is.
Employer and employee views on how work-from-anywhere impacts job satisfaction
Source: The Distributed Work DilemmaOpens a new window
A Hybrid Work Model Balances Job Satisfaction and Innovation
Looking at the above scenarios, we can say that job satisfaction favors “work from anywhere†policies, while innovation favors work-from-office policies. The best option to balance them appears to be a hybrid work model. And this can be seen from the data. Companies with hybrid work models see a more positive impact on innovation and job satisfaction. Companies that want to create better employee experiences could create hybrid models where in-person days are more dedicated to collaboration and innovation.
Given that innovation may get impaired in a distributed work environment, it is crucial for companies to have the right metrics to track it. And companies with anywhere-work (97%) and hybrid work policies (93%) tend to do it more.
The top ways of measuring innovation are people-focused and qualitative. On the other hand, the bottom two ways are quantitative and product-focused. This could correlate with the trend towards innovation favoring in-person collaboration.
Top metrics used to measure innovation
Source: The Distributed Work DilemmaOpens a new window
Employers and Leaders Have Embraced Distributed Work, But Rifts Are on the Horizon
When looking at how often people want to come to the office, employers and employees reported about 60% of the time. It may not be surprising that employees and managers prefer a hybrid working model, as companies with this model report reduced manager-employee conflicts.
Both employers and employees admit to non-compliance with the work location policies almost equally. And 81% of respondents say there is a consequence of not complying with these policies. HR leaders were more likely to report consequences, suggesting the existence of communication barriers between policy creators and employees. And this may cause rifts in the future.
With trends like quiet quitting, the Great Resignation, and talent shortages, employees may be wielding more power. Regarding work location policies, most employees (53%) are clear that they won’t work for an organization that doesn’t offer anywhere-work or hybrid models. Yet, a larger percentage of employees (62%) are less likely to switch jobs, given the economic situation, giving employers some power.
Power Shifts May Be Tempered By Talent Gaps and Turnover
While employers may wield some power due to the economic situation, talent shortages still give some power to employees. About 62% of companies currently experience talent shortages. That said, there are meaningful differences in talent gaps across companies of different sizes and industries.
Further, employee turnover has increased since the pandemic, and it has been higher in the cybersecurity teams over the last year. The top reasons for this are better pay, flexible work policies, and burnout.Â
Digital Tools and Automation Are Helping Companies Do More With Less
There is a craving for more tools and training across industries to alleviate burnout and talent shortages. Almost 66% of cybersecurity respondents said their companies’ current protocols and training need improvement to address the changing landscape. Meanwhile, companies with anywhere-work models find it harder to replace their cybersecurity staff than those with in-office policies.
With a shortage of talent being the top cause of burnout within cybersecurity teams and an inability to find replacements, automation plays a crucial role in easing burnout. Respondents in cybersecurity teams expect various benefits from automation.
Expected benefits from increased investment in automation
Source: The Distributed Work DilemmaOpens a new window
Companies of all types are investing more in automation. About 87% of respondents said they increased their investments in the last two years. The highest levels of investments are concentrated among companies with anywhere-work or hybrid work policies. Companies have also gone beyond investing in cybersecurity teams. They are making commitments to facilitate company-wide collaboration and security in a distributed environment.
See more: Workplace in Overdrive: 5 High-Impact Use Cases for Automation and Machine Learning
Preparing for the Anywhere Future
While innovation seems to be hampered due to people working remotely, the necessity for work location flexibility is clear. Hence, companies should find ways to make innovation happen in a distributed environment. Undoubtedly, companies plan to and are already making investments in digital culture over the coming year. And yet, as companies, especially those with anywhere and hybrid work policies, invest heavily in digital culture, only a small percentage believe the location policies to be permanent. This indicates that many companies are expecting a complete in-office policy may arrive, which is less likely to happen.
To stay competitive, companies must embrace “permanent flexibility.†They should invest in automation, collaboration tools, and team-building policies to optimize for innovation in today’s era of distributed work.
How are you fostering innovation while enhancing employee experience in today’s distributed working models? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .
Image source: Shutterstock
MORE ON DISTRIBUTED WORKFORCE
Using HCM Technology to Drive Innovation and Empower Employees