Months into hybrid work, not everyone agrees on how it’s going. Employees and employers are divided. Employees have embraced flexible work and its benefits and are rejecting a return to hustle culture.
In today's rapidly changing economic environment, many leaders find themselves yearning for the office life of 2019—bustling hallways filled with conversation and the aroma of fresh coffee. Yet, they now face a uniquely challenging recession characterised by rising inflation, shrinking budgets, and an unexpectedly tight talent marketplace. This paradox makes it more critical than ever for leaders to strike a delicate balance between employee satisfaction and organisational success, aligning everyone around the most impactful work.
As Satya Nadella, Chairman and CEO of Microsoft, puts it, "Thriving employees are what will give organisations a competitive advantage in today’s dynamic economic environment." To foster such a thriving workforce in a hybrid work environment, where employees are digitally connected and often distributed, leaders must adopt a fresh approach.
To address these challenges, we conducted a comprehensive survey of 20,000 individuals across 11 countries and analysed trillions of Microsoft 365 productivity signals, in conjunction with LinkedIn labor trends and Glint People Science insights. The findings emphasise the urgent need for leaders to make three pivotal shifts to drive alignment and empower their teams within the new hybrid work environment. This approach acknowledges both the risks and benefits of hybrid working, highlighting the complexities of creating a meta work environment that integrates digital tools like Microsoft Mesh to enhance collaboration and employee experience. After all, when employees thrive in this hybrid world, organizations flourish.
1.
End productivity paranoia
People are working more than ever, while leaders—already worried by signals of macroeconomic decline —are questioning if their employees are being productive. The majority of employees (87%) report that they are productive at work, and productivity signals across Microsoft 365 continue to climb. This spring, we found that the number of meetings per week had increased by 153% globally for the average Microsoft Teams user since the start of the pandemic, and there is still no indication that this trend has reversed, suggesting this peak could become the new baseline.
Amid an already heavy meeting load, there has been a 46% increase in overlapping meetings (being double-booked) per person over the past year. In contrast, declines and tentative RSVPs have surged dramatically by 84% and 216% respectively in the past two years. This added pressure is evident as, in a typical week, 42% of participants multitask during meetings by sending emails or pings, not accounting for other distractions such as checking incoming messages, working on non-meeting files, or browsing the web.
At the same time, 85% of leaders report that the shift to hybrid work has made it difficult to confidently assess employee productivity. With some organisations using technology to monitor activity rather than actual impact, employees often lack context about why and how they are being monitored. This lack of clarity can erode trust and contribute to “productivity theatre,” where tracking metrics create a façade of productivity without reflecting true work effectiveness. Consequently, leaders experience productivity paranoia, fearing that decreased productivity is due to employees not working, despite increases in hours worked, meeting counts, and other activity metrics. This issue highlights both the risks and benefits of hybrid working and underscores the need for a balanced approach in a hybrid work environment.
85% of leaders say the shift to hybrid work has made it challenging to have confidence that employees are being productive.
Many leaders and managers are struggling to gauge productivity in a hybrid work environment because they lack the traditional visual cues of in-person supervision—such as seeing employees at their desks or in conference rooms. Compared to their in-person counterparts, hybrid managers are significantly more likely to express doubts about their employees' productivity, with 49% reporting trust issues versus 36% of in-person managers. Additionally, 54% of hybrid managers feel they have less visibility into their employees' work compared to 38% of in-person managers. As employees face pressure to demonstrate their productivity, digital overwhelm is becoming increasingly prevalent.
This productivity paranoia poses a serious risk to the sustainability of hybrid work. Leaders need to shift their focus from merely ensuring employees are working enough to helping them concentrate on the most impactful tasks. While 81% of employees believe it’s crucial for managers to assist with workload prioritisation, only 31% report receiving clear guidance during one-on-one meetings.
Clarity is key
Employees who report having clarity about their work priorities are:
- 3.95x as likely to say they plan to stay at the company for at least two years
- 7.1x as likely to say they rarely think about looking for a new job
- 4.5x as likely to say they’re happy at their current company
With 48% of employees and 53% of managers reporting burnout at work, prioritisation needs to go beyond merely reorganising an overwhelming to-do list. Leaders must provide clarity and purpose, aligning work with the company's mission and team objectives. Equally important is identifying which tasks are less critical—when everything is deemed important, nothing truly stands out. The risk of overwork and burnout has reached a critical point, and without intervention from leaders, productivity is at risk.
To demonstrate genuine care for employees, leaders should establish a continuous feedback loop, consistently listening and acting on employee input. Currently, only 43% of employees feel their company actively seeks feedback at least annually, leaving over half of organisations (57%) potentially neglecting to understand their employees' experiences. Even among those collecting feedback, 75% of employees and 80% of managers believe it is collected too infrequently, while 75% of decision-makers feel the feedback is not actionable enough.
In the context of hybrid work, where managing productivity and engagement is increasingly complex, timely and actionable insights are essential for maintaining a competitive edge.
Productivity Paranoia
There is a stark disconnect between the portion of leaders who say they have full confidence their team is productive (12%) and the portion of employees who report they are productive at work (87%).
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