As the world continues to evolve, businesses must adapt to the rise of hybrid and remote work or risk becoming obsolete. Full-time in-office work for remote-capable employees is now a relic of the past, with a Pew Research Center poll finding that only 12% of remote-capable workers are working in the office full-time.
Embracing the Hybrid Work Model
The largest segment of remote-capable employees, 41%, have embraced a hybrid model. Hybrid work allows employees the flexibility and autonomy to work from home while still maintaining in-person connection and collaboration. Fully remote work has steadily risen, with 35% of remote-capable employees choosing to work entirely from home. Companies must be prepared to accommodate the needs of their remote employees and acknowledge the fact that a one-size-fits-all approach to work is no longer viable.
Impact on Commercial Real Estate
Remote work, rising vacancy rates, and falling property values are contributing factors to a potential crisis in the commercial real estate market. With $1.5 trillion of US commercial real estate debt due for repayment before the end of 2025, Morgan Stanley analysts predict a peak-to-trough price decline of up to 40%, worse than the Great Financial Crisis. This crisis may lead to increased risks of defaults, distress, and delinquencies in the industry, with small and local businesses being disproportionately impacted.
Adapting to Remote and Hybrid Work Environments
Despite the challenges, companies must not revert to the traditional in-person work model. Instead, they should adopt methods of building culture, collaboration, team bonding, and communication that are tailored to remote and hybrid work environments. Scenario planning is crucial for companies’ investment decisions, with futurists analyzing external factors, trends, and signals to build possible scenarios. Investment decisions should consider potential future scenarios and organizational resilience.
Investing in Innovation and Sustainability
Measuring return on investment for innovation can be challenging, but employee engagement and staff retention are crucial indicators of growth in the long term. Partnering with consultants can help with change management and increase agility. Technology should solve a problem for a business, not be implemented for technology’s sake. Digital transformation and sustainability are key areas dominating investment discussions, ensuring businesses are prepared for the future of remote work.