The hybrid work compromise may be short-lived as CEOs secretly plan to reimpose pre-pandemic norms

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The following step after return-to-office mandates? CEOs intend to kill hybrid work. The most recent KPMG 2023 CEO Outlook, a survey performed with 1,325 CEOs of corporations with revenues over $500 million, discovered that 64% of CEOs of enormous corporations envision a reversion to the pre-pandemic workplace routine inside the subsequent three years. In flip, 87% try to realize this objective by linking monetary rewards and promotion alternatives to in-office attendance.

Nonetheless, as CEOs steer their employees towards pre-pandemic norms, they might be buying and selling off long-term organizational well being for short-lived positive aspects. In spite of everything, a new BCG survey of 1,500 international office-based employees discovered that 9 in 10 respondents think about versatile work choices vital when searching for a job. Moreover, workers dissatisfied with their work mannequin are 2.5 occasions extra more likely to think about leaving their group within the subsequent 12 months in contrast with those that have been glad.

Provided that many surveys reached findings just like BCG’s, CEOs should have already got realized the chance of inflexible in-office work insurance policies to recruitment and retention. However there’s an extra danger that CEOs could not notice: the strategies getting used to get rid of flexibility are rewarding presenteeism.

An outdated mirage

The allure of a bustling office, with employees clocking in at nine and leaving at five, may paint a picture of a productive, engaged workforce in the minds of many CEOs. This traditional scene is deeply embedded within the corporate ethos, reflecting a sense of order, control, and business as usual. It’s a scene that resonates with the desire for predictability and routine.

However, as the modern workspace evolves, propelled by technological advancements and a global pandemic, the fallacy of equating presence with productivity becomes ever more apparent. This paradigm, known as presenteeism, is not only outdated but also potentially harmful to an organization’s innovative edge and competitive stance in today’s fluid business environment.

Presenteeism, the act of measuring an employee’s value based on their physical presence rather than their output, is a mirage that many organizations find hard to look beyond. It’s a superficial metric that obscures the true indicators of an employee’s worth and contribution to the organization. When the cornerstone of recognition and reward pivots around the hours spent within the office walls, the focus shifts from what truly matters: the quality of work, the creativity infused, the problems solved, and the value added to the organization.

The pitfalls of presenteeism

The repercussions of this presenteeism paradigm are manifold. It cultivates an environment where the emphasis on actual performance is diluted. Employees divert their energy toward being seen at the office, engaging in conspicuous activities, and networking, rather than channeling their efforts toward impactful work. It’s a scenario that fosters visibility over value creation.

The strategy of rewarding in-office presence over performance sets a dangerous precedent. It sends a clear message across the organizational hierarchy: Your physical presence holds more weight than your actual output. This skewed incentive system can demoralize high-performing employees who thrive in flexible work environments, potentially triggering a talent drain. Talented individuals, upon finding themselves shackled to a system that doesn’t value their actual contributions, might seek greener pastures where performance is the currency of recognition.

This approach starkly overlooks the diverse needs and preferences of a modern-day workforce. The era we live in heralds a diverse talent pool with varied work preferences and life situations. A rigid in-office work model fails to honor this diversity, and instead, shoehorns employees into a one-size-fits-all mold. It’s a mold that not only stifles flexibility but can also quash creativity, innovation, and the rich cross-pollination of ideas that a flexible work setup can foster.

Furthermore, the policy of rewarding in-office presence fuels a culture of compliance over a culture of engagement and innovation. When employees are incentivized merely to show up rather than to contribute meaningfully, the vibrancy, curiosity, and dynamism that drive innovative enterprises get overshadowed by a culture of adherence to norms.

Additionally, the less compliant employees have options like “coffee badging”– workers coming into the workplace for a brief time frame, simply to seize a espresso and meet up with colleagues, after which leaving. Technically, they fulfill the obligations of coming into the workplace that day. Realistically, they don’t comply with the spirit of the coverage of working within the workplace. And why ought to they, given they will get their work executed at house higher than within the workplace?

In dissecting the repercussions, the irony unveils itself. In a bid to revitalize the pre-pandemic work norms, organizations would possibly discover themselves buying and selling off the very essence of a thriving, progressive, and engaged workforce. The mirage of presenteeism is a relic of the previous, one which trendy organizations would do effectively to look past as they navigate the complicated, ever-evolving panorama of labor.

Rewarding the right metrics

In the landscape of modern corporations, the metrics by which success and productivity are gauged bear the imprint of an organization’s values and aspirations. When helping client organizations work out their hybrid work models, I spotlight how the core of this paradigm shift hinges on a transfer from presenteeism towards a extra outcome-centric evaluation. It’s a shift that not solely aligns with evolving work dynamics but in addition resonates with a extra equitable, merit-based organizational tradition.

The crucial of specializing in output versus bodily presence within the workplace is underscored by a number of aspects. When the emphasis is on the output, workers are motivated to optimize their efficiency, improve their expertise, and contribute meaningfully towards the group’s objectives. It fosters a tradition of accountability and self-management, the place people are acknowledged for his or her tangible contributions quite than their skill to adapt to a inflexible work schedule.

An output-focused system of evaluation and reward is inherently inclusive. It honors the varied work preferences, life conditions, and productiveness rhythms of a modern-day workforce. Whether or not an worker performs their finest within the early hours from the consolation of their house or prefers the collaborative buzz of an workplace atmosphere, what finally counts is the standard and impression of their work. This inclusivity not solely nurtures a constructive work tradition but in addition faucets right into a broader expertise pool, unhindered by geographical or temporal constraints.

When workers are evaluated based mostly on their outcomes, there’s an inherent drive to boost effectivity, foster innovation, and search higher methodologies to realize and surpass their targets. It’s a tradition that celebrates problem-solving, creativity, and a relentless pursuit of excellence.

Moreover, an output-centric mannequin aligns with the ethos of transparency and equity. It sheds the paradox that always surrounds the evaluation of an worker’s efficiency based mostly on subjective parameters. As an alternative, it gives clear, measurable metrics which might be indicative of a person’s contribution, making the evaluation course of clear and goal.

The transition towards an output-focused mannequin isn’t with out challenges. It necessitates a sturdy framework of efficiency metrics, common check-ins, and an open channel of suggestions. Leaders have to domesticate a supportive atmosphere the place workers are empowered with the required sources, steerage, and belief to handle their work effectively, no matter the place they execute their duties.

Easing the pain

From the employees’ view, the daily commute is a big ask. It’s here that commuting compensation can play a significant role–but it shouldn’t be about paying employees to merely show up. Instead, commuting compensation should focus on easing the burden of commuting so that when employees do come to the office, they’re more focused on productive interactions that drive meaningful outcomes: moments that matter, as recent research by Microsoft discovered.

These embody intense types of synchronous collaboration, similar to decision-making conversations, mentoring and on-the-job coaching, intricate discussions that profit from speedy suggestions, or socializing and group bonding. These components are important for constructing a powerful group and a tradition of steady studying and innovation.

In essence, it’s all about making a win-win situation. Staff really feel supported of their commuting efforts, and organizations profit from the precious in-person interactions that happen when groups come collectively. Via commuting compensations, corporations can promote a tradition that values significant work and productive collaboration.

In the long term, the businesses that insist on a inflexible in-office routine are poised to face a expertise drain, being left with a graying, high-cost expertise pool. Rigidity stifles innovation, curtails engagement, and finally, renders such organizations much less interesting within the aggressive expertise market.

The undercurrents of the shift towards the in-office work mannequin reveal a myopic view that neglects the need to evolve and adapt to at this time’s dynamic work panorama. The hybrid work mannequin, with its mix of flexibility and engagement, isn’t merely a reactionary measure to the pandemic however a progressive stride towards a balanced and inclusive work tradition. The highway forward beckons a departure from outdated work fashions, embracing practices that worth output over attendance, and nurturing a tradition of innovation, engagement, and holistic well-being.

Gleb Tsipursky, Ph.D. (a.ok.a. “the workplace whisperer”), helps tech and finance business executives drive collaboration, innovation, and retention in hybrid work. He serves because the CEO of the boutique future-of-work consultancy Disaster Avoidance Experts. He’s the bestselling writer of seven books, together with Never Go With Your Gut and Leading Hybrid and Remote Teams. His experience comes from over 20 years of consulting for Fortune 500 corporations from Aflac to Xerox and over 15 years in academia as a behavioral scientist at UNC–Chapel Hill and Ohio State.

Extra must-read commentary revealed by Fortune:

  • Indeed CEO: ‘AI is altering the best way we discover jobs and the way we work. Individuals like me shouldn’t be alone in making choices that have an effect on hundreds of thousands’
  • Why critics love to hate Elon Musk–and why his followers adore him
  • Burnout is attacking our brains and making it tougher to excel at work. ‘Deliberate calm’ might help us adapt
  • The U.S.-China commerce battle is counterproductive–and the Huawei P60’s chip is only one of its many unexpected ramifications

The opinions expressed in Fortune.com commentary items are solely the views of their authors and don’t essentially replicate the opinions and beliefs of Fortune.

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