As organisations continue to navigate the evolving landscape of work, many are finding that typical hybrid workplace models no longer align with operational needs or employee expectations. The widespread adoption of hybrid and distributed work has created new challenges, but it has also opened doors to innovative solutions that can enhance productivity, wellbeing and employee satisfaction while managing costs effectively.
The impact of remote work on employee wellbeing
The impact of remote work on employee wellbeing is multifaceted. While remote work offers flexibility, it can also lead to feelings of isolation. A survey by ResumeBuilder.com found that 25% of remote workers feel their social skills have declined since working from home, with challenges in initiating conversations and participating in group discussions.
Conversely, remote work is also associated with happier employees and reduced stress levels. According to the U.S. Career Institute, 48% of remote workers report less stress and have the lowest stress levels compared to hybrid and in-office employees.
How a global professional services firm addressed these complexities
For many organisations, addressing these complexities requires innovative solutions that strike a balance between operational efficiency and employee wellbeing. A global professional services firm provides a prime example of adapting to these challenges through a partnership with a workplace aggregator platform. This offers Pay-As-You-Go access to professional workspaces around the world in addition to fixed HQ sites and the option to work from home (WFH).
Faced with the need to optimise its real estate portfolio, the firm closed several offices in response to broader industry trends – with 90% of CEOs claiming that adopting a hybrid work model has reduced business costs.
To maintain access to professional meeting spaces however, the firm gave employees access to NearU, a Future of Work tool that includes a booking platform with access to on-demand workspaces. This enabled teams to select an environment best suited to their needs – whether for client meetings, team collaborations, or simply as a local alternative to WFH.
Their staff now have on-demand access to professional workspaces across different regions, regardless of business unit. This approach has proven particularly valuable for distributed teams within the business who need space to collaborate in person.
Rather than being constrained by traditional office boundaries, teams now choose a workspace that best suits their specific needs, whether for client meetings, team workshops, collaborative projects, or simply as a local alternative to WFH. This flexibility has enabled the organisation to maintain its professional standards while adapting to a more dynamic way of working.
How a global IT company addressed the impact of remote work on wellbeing and team cohesion
One of the less discussed aspects of remote work is its impact on mental health, wellbeing, and team cohesion. This challenge became particularly evident in the case of a multinational IT company headquartered in APAC after switching to a hybrid/remote set up.
Despite the many well-documented advantages of remote work, the organisation observed concerning feedback trends relating to employee wellbeing. Many workers were reporting feelings of isolation and decreased opportunities for meaningful collaboration.
Previous research from the Royal Society for Public Health underscored this concern, finding that 67% of workers who felt isolated in their remote work environment reported higher stress levels and decreased job satisfaction.
In response, the company’s HR department partnered with NearU to establish an approval process for employees to access professional third spaces when needed for wellbeing reasons.
This approach recognises that while remote work offers basic flexibility, some employees still require the option to access a workspace to maintain their productivity and mental health. By implementing this system, the company demonstrates a commitment to employee wellbeing while maintaining the benefits of a predominantly remote work model.
This approach also aligns with findings from the Royal Society for Public Health, which reported that 67% of workers felt less connected to their colleagues when working remotely, highlighting the importance of providing alternative workspace options and an environment to collaborate outside of the primary HQ.
How a large Indian technology company balanced cost reduction through office closures with legal obligations to provide workspace access
A third and final case study highlights how global organisations must consider and navigate varying regional requirements while implementing wider workplace changes. In this example, a large Indian technology company sought a solution to balance cost reduction through office closures with legal obligations to provide workspace access across certain European markets.
Their solution involves utilising flexible third spaces in markets where they have closed permanent offices but retain staff who need workspace access. This approach ensures compliance with local regulations while providing employees with professional work environments, whether they need them occasionally or on a full-time basis. It’s a prime example of how companies can maintain their legal obligations and support employee needs while pursuing operational efficiency.
Meeting employees’ diverse needs
Beyond these examples, the broader implications of hybrid and flexible work arrangements cannot be ignored. Employers adopting hybrid models are seeing significant savings on real estate costs, a significant benefit in an era of economic uncertainty. Moreover, employees with access to local, flexible workspaces often report increased productivity, primarily due to fewer distractions and the elimination of lengthy commutes.
Global studies have shown that the average commuter spends over an hour each day travelling to and from work. By offering flexible arrangements with options to work near home, organisations allow employees to reclaim this time, enhancing both professional output and personal wellbeing.
Despite these benefits, challenges remain. Remote work, while popular, does not suit every role or personality type. Some employees thrive in an office environment, where spontaneous collaboration and in-person interactions can drive creativity and innovation. Others face difficulties setting boundaries between home and work life, which can rapidly lead to burnout.
Organisations must therefore embrace a nuanced approach to workplace strategy. By adopting employee-centric policies, such as hybrid models and access to on-demand third spaces, companies can cater to the diverse needs of their workforce. The key lies in flexibility: recognising that one-size-fits-all solutions are not viable in a rapidly changing work environment.
The future of work is not about choosing between remote and in-office setups; it is about creating a fluid toolkit that offers employees the choice to thrive in an environment that suits them best. As these case studies demonstrate, organisations that embrace flexibility and innovation will not only enhance employee satisfaction and productivity but also position themselves as leaders in the evolving world of work.
About the author
James Solomides is the Co-founder and Chief Commercial Officer at NearU. With 15 years of flexible workspace industry expertise, he has established himself as a trusted adviser to many of the world’s largest companies. Throughout his career, James has demonstrated a keen ability to solve complex workspace challenges and guide organisations through workplace transformations. As businesses continue to navigate the shift towards distributed and hybrid work models, he plays a pivotal role in shaping these modern workplace strategies, helping companies adapt and thrive through Future of Work (FoW) and PropTech solutions.
James will be exhibiting at The Watercooler Event on the 30th April and 1st May.
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