Hybrid work policies across US regions
September 18, 2024
October 1, 2024
The pandemic is long gone, but one lasting benefit from it has been flexible working. Remote and hybrid working models, have transformed how businesses operate and how they can appeal to current and potential talent.
More recently, hybrid working models have become increasingly popular across multiple industries. These models allow companies to have the best of both worlds: staff in the office and staff working remotely. However, for this to work effectively, you must implement policies that benefit both the company and staff.
In this article, we look at the current state of hybrid working models in the US and how policies can be made to reflect your company and employees' needs. The execution of these policies is also important, as it can decide whether the transition will be successful or not.
Deconstructing regional hybrid work policies
To effectively implement a hybrid working environment, you need to understand your area's regional regulatory framework and cultural needs, which means focusing on laws that vary by state.
Hybrid working policies are policies implemented to ensure fairness and maintain productivity. They are formal documents with guidelines and processes that clearly outline hybrid role expectations, such as which days employees are meant to work in the office and when they are expected to work from home.
The US’s approach to hybrid work is somewhat flexible. Several companies oscillate between a traditional hybrid policy, a structured hybrid policy, and a remote-first policy. Some companies end remote work for their senior staff members and allow employees to determine their work schedules.
US and hybrid work
By the end of 2023, there was a massive push for staff to return to work, especially in the United States. Return-to-work mandates circulated at breakneck speed, and one notable company enforcing this was Zoom, which was instrumental in facilitating collaboration during the pandemic.
While concerns were raised that this was heralding the end of the remote working era, these RTO mandates generally have not had the desired effect. Hybrid work in the US continues to rise. According to a survey conducted by Statista focused on 2019-2024, in the second quarter of 2024, 53% of employees were hybrid workers.
In the U.S., several notable companies had started with great hybrid models, but have recently made changes to push people back to the office. These include Disney, Hubspot, JP Morgan, Zoom, Grammarly, and Meta, to name a few. The industries in which hybrid policies are most practiced include marketing, accounting and finance, computer science and IT, client services, project management, and sales.
Amazon
Up until a few days ago, Amazon offered a flexible hybrid work model, requiring employees to work in the office at least three days a week and two days remotely.
Key challenges include employees being unhappy with the required three days in office. However, a critical success of Amazon’s hybrid model was that it has contributed to increased employee collaboration; its work model works to encourage in-person collaboration. Amazon’s hybrid work model has also ensured it can attract and retain high-quality employees. One of the main lessons learned by Amazon during the introduction of the hybrid model is the value of providing clear communication and the value of regular feedback in helping Amazon refine its hybrid work model against evolving labor needs.
However, with an unespected move, Amazon has started phasing out hybrid work, moving towards a full five-day in-office workweek starting next year, replacing the current three-day requirement.
CEO Andy Jassy emphasized the need for employees to be in the office to "invent, collaborate, and be connected." Despite opposition from workers who favor remote work for its cost and time savings, the company is enforcing stricter policies. Some employees who failed to comply with the previous hybrid rules have been labeled "voluntarily resigning." Amazon also plans to reduce managerial positions by 15% by the end of Q1 2025 as part of a broader restructuring.
💡Learn how you can happily bring people back to the office while maintaining a hybrid work environment.
Disney
Initially, Disney allowed its workforce to work remotely two days a week and be in the office for at least three days.
The main challenge Disney experienced with this hybrid model was transitioning from regular in-office work to a hybrid model. It has also been challenging to ensure consistent productivity across the various divisions, some based in different locations. The main success of this kind of model is that it has improved employee work-life balance and job satisfaction.
But as of March 2023, the company requires employees to be on-site four days a week, primarily Monday through Thursday. CEO Bob Iger emphasized that in-person collaboration fosters creativity and strengthens the company's culture, which is crucial for Disney's creative business
🚀 How do you boost collaboration in hybrid work? Learn deskbird's tips and tricks!
Zoom
Initially Zoom offered a fully remote work model, with employees free to work in the office if they wanted to.
However, this model created a few challenges, especially in maintaining the company culture, effective communication and collaboration. In response to these challenges, as of 2023, Zoom now requires employees who live within 50 miles of a company office to be onsite at least two days a week. This policy aims to foster collaboration and maintain company culture, addressing some challenges associated with fully remote work, like ensuring communication and team connection.
Local state laws - highlights
Local laws regarding hybrid workers vary from state to state. For example, California, New York, and Texas share similarities and differences in employment laws affecting hybrid work. Since hybrid work is relatively new, none of these states have laws specifically designed for it, so general employment regulations apply. Employers must adhere to general in-office employment laws in all three states, regardless of where a remote worker is based.
What sets California apart is Labor Code Section 2802, which requires employers to reimburse employees for necessary work-related expenses, including home office expenses for hybrid and remote employees. New York and Texas do not have similar reimbursement requirements.
Another key difference is that California mandates that employers ensure hybrid workers comply with CAL/OSHA health and safety regulations, even in home offices. In contrast, New York and Texas apply more general workplace safety standards, which do not impose specific obligations on employers regarding home office safety.
Despite these distinctions, general employee protections and regulations, such as anti-discrimination and wage laws, apply to hybrid workers in all three states. All three states enforce general wage and safety laws, though California has more specific requirements, while New York and Texas enforce similar standards to those for in-office employees.
In the U.S., hybrid work status can also result in various tax implications, determined by the nature of employment and the tax laws in different states. Employees working in multiple states may face challenges related to state income taxes and claiming home office expenses. On the other hand, employers must comply with numerous state tax laws, ensuring accurate reporting and compliance based on employees’ locations.
Workers want flexibility
Another critical factor to consider in the rise of hybrid employment is the changing attitudes in the U.S. towards work-life balance and flexibility. For many U.S. workers, hybrid work is highly valued as it provides better work-life balance, with 87% of workers reporting that it has had a positive effect on this aspect of their lives. Workplaces offering flexible arrangements are increasingly more attractive than those requiring full-time office attendance, and studies show that 84% of employees report higher job satisfaction under hybrid models.
Hybrid work arrangements have also been shown to boost productivity and the quality of work output, benefiting both employees and companies. This is especially true in industries like technology and finance, where the necessary tools to support and maintain a hybrid working culture are already in place.
Cultural attitudes toward work-life balance continue to evolve, with a growing preference for flexibility.
However, there is still a divide between those who thrive in flexible hybrid environments and those who prefer the structured routine of office-based work. As the hybrid model continues to expand, it is expected that more people will embrace this flexible approach, contributing to a broader cultural shift in how we view work and life balance.
Industry-specific hybrid models
A key point to note is that industries in the U.S. are adopting hybrid working policies in different, organization-specific ways. The finance industry has largely embraced a blended approach, where employees work part-time in the office and remotely. This division often depends on the role, with client-facing positions requiring more in-office presence.
On the other hand, the healthcare industry is increasingly integrating telehealth services, allowing patients to consult remotely with healthcare professionals. However, on-site presence remains essential for direct patient care and administrative functions in hospitals and clinics.
In contrast, the tech industry is a leader in flexible hybrid working policies. Microsoft and Google offer flexible work arrangements, enabling employees to work remotely or between remote and in-office work. For instance, Microsoft allows employees to work remotely up to 50% of the time without requiring formal approval.
The hybrid work policy is still a relatively new concept in the US and inevitably faces several challenges. These include managing tax issues, coordinating across different time zones, and navigating healthcare benefits. Some of the solutions to these challenges involve using tax software, and if you are still unsure of how to move forward, consult a tax expert to help ensure tax compliance. When coordinating across different time zones, the best thing to do here would be to implement flexible scheduling and asynchronous communication to manage time zone differences effectively. Furthermore, the best way to navigate healthcare benefits for its workers no matter where they are is to offer a unique and unified healthcare benefits package that employers, whether hybrid or in-office, can access easily.
Companies can leverage technology to help mitigate some of the challenges they run into with hybrid workers to ensure seamless integration of hybrid working policies.
-> Discover how deskbird can assist you in creating and managing your hybrid office rules
The pros and cons of going hybrid
Like any working model, implementing it has pros and cons. Individual companies need to assess how to remain operational while promoting employee satisfaction. They must also consider whether their industry can implement a hybrid working model.
Benefits
• Hybrid working models have been shown to improve employee retention and satisfaction rates.
• It provides the best of both worlds: in-house collaboration and remote work flexibility.
• It can reduce overhead costs, especially around real estate, furnishing, and general office maintenance.
• It helps improve the work-life balance of employees. The reduced time for commuting to and from the office allows them to spend more time on personal activities.
• There is access to more talent, as remote options allow candidates from other areas to apply to your company. In conjunction with a skills-based hiring approach, you will see more of a cultural fit for your company. According to Women For Hire, a large American job board for women, over 70% of female employees consider whether employers offer hybrid work models when comparing similar job opportunities at different companies.
Drawbacks
• Some employees may experience burnout, especially if there aren’t clear guidelines provided.
• There is an increase in cyber security risks, especially as employees will be using private networks.
• The risk of an insider threat from a malicious employee becomes a significant cybersecurity concern, especially when they operate outside of a corporate network.
• Collaboration issues will occur if there are no strict policies in place.
• It may cause certain employees to feel alienated or lonely without in-person collaboration.
Conclusion
Hybrid working environments are an integral part of the new normal.
This resulted in countries all over the world creating policies that make working remotely and in the office achievable for companies to implement. There are many ways that companies in the US can benefit from in-office workers and remote working staff that appeal to both management and employees. This can be achieved by creating clearly communicated company policies.
