Hybrid Work Model Linked to 35% Reduction in Employee Turnover, Study Finds

Employers who neglect to adopt a hybrid work model may face significant employee turnover. In contrast, companies that allow employees to work from both the office and home—or nearby locations—tend to experience higher productivity levels.

These insights come from a recent study by the International Workplace Group, the parent company of Regus and Spaces, which focuses on shared workspaces. The research explores the factors that lead employees to seek new job opportunities or engage in what is known as a "quiet exit," a term that refers to employee demotivation, where individuals only perform the bare minimum required of them.

According to the International Workplace Group, their findings align with existing academic research, indicating that organizations providing flexible work arrangements can see attrition rates decrease by as much as 35%. Over half of employees (57%) stated they are more likely to leave a job if they feel undervalued, overly monitored, or lack workplace flexibility from their managers.

Additionally, 40% of office workers reported a lower risk of demotivation when offered a hybrid work model. Notably, 78% of those who engage in hybrid work indicated that this flexibility has enhanced their productivity.

Companies that do not provide hybrid work options risk losing top talent; 62% of hybrid workers expressed they would consider leaving if required to return to the office five days a week. Furthermore, 71% indicated they would reject a job offer that involved a lengthy commute.

Hybrid work not only boosts productivity but also empowers employees to choose their work schedules based on when and where they are most effective—key factors in preventing them from disengaging. Half of the workers currently lacking workplace flexibility believe their satisfaction and productivity would improve significantly if their managers permitted a hybrid model.

The study identified three essential traits of effective management: promoting work-life balance, trusting employees to work from anywhere, and being approachable and open to discussions about alternative working methods.

Mark Dixon, CEO of the International Workplace Group, emphasized that the latest research offers valuable insights for companies looking to reduce turnover and sustain productivity. He noted that the most significant improvements in employee efficiency, productivity, and satisfaction arise when workers are relieved from lengthy and costly commutes to city center offices, where they could be accomplishing tasks closer to home. By allowing employees the freedom to work when and where they are most productive, businesses can mitigate the risk of creating a culture of disengaged and dissatisfied workers.