[Lee Myung-ho's Future Preview] Beyond Office Boundaries, Hybrid Work Is Coming

Can hybrid work, where employees work half the week in the office and alternate between home or other locations on other days, become the standard work model? Sundar Pichai, CEO of Alphabet (Google's parent company), announced in December last year that the return of employees to the office would be postponed until September this year. He introduced a "collaboration day" system where employees work in the office three days a week and work from home two days a week as part of a flexible work arrangement. Many companies in the U.S. and Europe have been implementing full or partial remote work since March last year. As COVID-19 vaccinations began, companies started planning office reopenings, with Google being one of the first to announce its stance. In ongoing discussions about whether the post-COVID-19 era's work style and office environment will remain the same or change, Google's plan is expected to play a role in consolidating these discussions.

First, Google believes that experimentation with a flexible work model combining office and remote work is necessary. They plan to test the hypothesis that a flexible work model will lead to improvements in productivity, collaboration, and well-being. A notable aspect is the new office design plan aimed at transforming the office from a 'work' space into a 'collaboration' and 'cooperation' space. They plan to open newly designed offices in areas with low COVID-19 risk, featuring collaboration spaces for up to 12 people, outdoor spaces for large gatherings, and presentation booths capable of professional-level broadcasting. For employees needing quiet spaces, reservable offices and desks will be provided, and measures are being sought to ensure employees do not feel a difference between working in the office and working from home.

Previously, Google's open and casual office model became a standard not only for IT companies but also for large corporations and startups. Office perks such as free snacks and various welfare services spread throughout the corporate world. Could Google's new office policy become another benchmark? By examining the forced experiment of remote work rapidly implemented due to the COVID-19 pandemic and the nearly simultaneous global results, we aim to forecast the future of offices and work styles.

Flexible Work Adoption Centered on Finance, Information Technology, and Education Sectors

First, which industries find it easiest to adopt remote and flexible work? According to a survey conducted by the Pew Research Center in October 2020 during the ongoing pandemic, among nine industry groups surveyed, the majority of employees in four industries responded that they could perform most of their work from home. The finance sector (banking, finance, accounting, real estate) and the information and technology sector each reported 84%, followed by education and professional fields (experts, scientific and technical services) at 59% each. Next was the public sector (government, public administration, military) at 46%, less than half, with other sectors ranging between 16% and 33%. In South Korea, according to a July 2020 survey by the Ministry of Employment and Labor on the utilization of remote work, industries with high responses for operating remote work included finance and insurance, arts, sports and leisure-related services, education services, and information and communication sectors. The similar response rate of 61-67% is likely due to the short duration of remote work. Ultimately, the industries most suitable for flexible work adoption are finance, information technology, education, and professional services?fields where online work is easy or already highly digitalized.

Second is the effectiveness of remote work. Responses indicated that industries with higher remote work adoption found it less difficult to perform work without interruption while working remotely. In other words, industries where remote work is easier had fewer negative responses. Of course, employees across all industries reported feelings of disconnection and difficulties balancing work and family responsibilities. Overall, employee satisfaction with remote work was above 50% in all countries surveyed. In finance and information technology sectors, management also expressed satisfaction, noting that remote work did not reduce productivity but rather increased it. Studies also showed that while commuting time decreased due to remote work, working hours at home increased, and the number of meetings rose, leading to more active work communication.

Hybrid Work Triggered by COVID-19 Will Gradually Become the Standard

Third is the outlook on whether remote work will become the standard work model after COVID-19. Opinions vary, but many research institutions estimate that about 20-27% of total working days will be conducted from home. It is expected that employees will work remotely one or two days out of a five-day workweek. Currently, employees working remotely express a desire to continue remote work for at least two days, and they value flexible work with two to three days of remote work per week at about 15% of their salary. In other words, they would choose remote work even if their salary were reduced by 15%.

Fourth is the issue of how existing offices will change. Although discussions about office space configuration are still limited, it is generally expected that offices will become more meaningful as collaboration spaces rather than just workspaces. Offices have played roles in productivity, cooperation, organizational culture, mentoring (skill development), and attracting talent with attractive spaces. These roles are difficult to replace with remote work. However, the rationale for forcing office attendance when remote work is possible has weakened. Reducing workspace can lower real estate costs for companies. Ultimately, offices will need to strengthen new roles, which are expected to focus on collaboration and organizational culture.

Fifth is the change in work methods. How to maintain productivity, collaboration, and creativity?including ideas arising from casual conversations in the office?using online tools remains a challenge for future work tool developers. Beyond Zoom (video conferencing), various tools such as VR (virtual reality), virtual desktops, and virtual whiteboards are expected to enhance these functions.

Of course, only a few companies in South Korea have announced plans to expand remote work. However, despite differences in pace, hybrid work is expected to gradually become the standard work model as a solution to social issues such as demographic changes including low birth rates and aging, pursuit of work-life balance, and greenhouse gas reduction.

Myungho Lee, Planning Committee Member, YeoSiJae Foundation

This content was produced with the assistance of AI translation services.