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New Study Shows Productivity Steady in Hybrid Work:  Now, The Three Key Managerial Shifts Needed for Success

Updated: Jun 14, 2024

By Amy Manchester Harris, MPA

Transformative Growth Solutions Consulting


Managers initially expected a 2.6% drop in productivity with hybrid work but observed a 1% increase after six months, showing hybrid work's positive impact. The study also showed two other key elements important for employers:


  • Performance Not Affected:  Hybrid work (WFH two days a week) does not affect employee or firm performance, including metrics like grading, promotions, innovation, and productivity.


  • Quit Rate Reduction:  Hybrid WFH reduces employee quit rates by one-third, saving firms millions annually due to reduced turnover costs.  The greatest quit rate reductions are among female employees, non-managers, and those with long commutes, benefiting industries like finance and tech.


As hybrid work becomes the norm, leaders face new challenges and opportunities. Gallup identifies three crucial shifts for thriving in this environment: managing outcomes, adopting enterprise-wide thinking, and transitioning from boss to coach.


1. Shift from Managing Time to Managing Outcomes

Traditional office settings focus on time spent at desks, but hybrid work requires outcome-based management. Leaders should emphasize what employees achieve rather than their hours worked.


Why It Matters: Flexibility and autonomy increase job satisfaction and productivity.

  • Set Clear Objectives: Define measurable goals aligned with organizational objectives.

  • Regular Check-Ins: Focus on outcomes and provide feedback.

  • Performance Metrics: Prioritize the quality and impact of work. Gallup notes that outcome-based management boosts engagement and aligns efforts with company values.


2. Shift from Local to Enterprise-Wide Thinking

With decentralized offices, leaders need a broader perspective to foster collaboration across locations.


Why It Matters: Ensures all employees feel connected to the organization’s goals and culture.

  • Unified Communication Platforms: Use tools like Teams, Slack, and Zoom.

  • Cross-Functional Teams: Encourage diverse perspectives and collaboration.

  • Consistent Messaging: Share regular updates with all employees. Gallup highlights that enterprise-wide thinking creates a cohesive, agile organization.


 3. Shift from Boss to Coach

Leaders must transition to a coaching role, emphasizing personal development and continuous feedback.


Why It Matters: Regular coaching boosts engagement, productivity, and commitment.

  • Frequent Feedback: Encourage two-way dialogue.

  • Development Plans: Align with career goals and provide learning opportunities.

  • Empathy and Support: Understand and address employees' challenges in hybrid work. Gallup finds that a coaching mindset fosters trust and loyalty, crucial for retaining top talent.


To navigate the hybrid workplace effectively, leaders must manage outcomes, adopt enterprise-wide thinking, and become coaches. These shifts enhance productivity, engagement, and create a fulfilling work environment for all employees.

 

1. Gallup. "The Hybrid Workplace: Three Major Shifts Leaders Must Make." Gallup. [Link](https://www.gallup.com/workplace/347957/hybrid-workplace-three-major-shifts-leaders-must-make.aspx)

2. CNBC. "‘Win-win-win’: Three-day hybrid work week is a success, largest study to date published in Nature says." CNBC, June 14, 2024. [Link](https://www.cnbc.com/2024/06/14/three-day-hybrid-work-week-is-success-study-published-in-nature-says.html)

3. Bloom, N., Han, R., & Liang, J. "Hybrid working from home improves retention without damaging performance." Nature, 2024. [https://doi.org/10.1038/s41586-024-07500-2](https://doi.org/10.1038/s41586-024-07500-2) [Link](https://rdcu.be/dKK6i)

4. Nature. "Nature Podcast on the Hybrid work." [Link](https://www.nature.com/articles/d41586-024-01763-5)

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