Future Work
4
min read

Google, Microsoft, and Spotify Double Down on Hybrid Work

Are hybrid work policies the secret to happier, more loyal teams? See how top companies are leading the way!
Published:
October 10, 2024
Last updated:
October 24, 2024

Also available on:

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You know that I believe flexibility is a must for a happier future of work.

At the same time, I know there is pressure on HR to rethink hybrid policies, especially with news like Amazon's RTO.

This week’s Charter Workplace Summit saw many conversations about Amazonians being forced back to the office five days a week. 

Also available on:

Future Work - Listen on Spotify
Future Work - Listen on Apple Podcasts
Future Work - Watch on Youtube
TRANSCRIPT

You know that I believe flexibility is a must for a happier future of work.

At the same time, I know there is pressure on HR to rethink hybrid policies, especially with news like Amazon's RTO.

This week’s Charter Workplace Summit saw many conversations about Amazonians being forced back to the office five days a week. 

According to work futurist Sophie Wade, CEOs asked their HR leaders either whether the announcement should change anything for them, or simply said "I told you so."

The facts don't change, however:

Google, Microsoft, and Spotify: Leading the Way in Hybrid Work Flexibility Owl labs

Plus, we saw last week what happens if you take away people's ability to exercise control over their work schedule: 73% of Amazon employees are now looking for other options.

(See more in our recent roundup of key hybrid work charts.)

If you're fighting the good fight, here are a few more case studies highlighting that hybrid work is far from over.

Google: We Will Continue with Hybrid, But Productivity Needs to Remain High

During Google's recent TGIF town hall meeting, John Casey, VP of Global Compensation, informed employees that the current work model would remain in place.

He stressed the importance of employees complying with the system by working from a Google office at least three days per week.

Alphabet CEO Sundar Pichai also emphasized the need for Googlers to maintain their productivity while working from home so that the company can continue with the flexible work model.

Google, Microsoft, and Spotify: Leading the Way in Hybrid Work Flexibility

Employees aren't fully convinced, however.

One Google employee told Business Insider, "People are concerned because Google chases the industry" and that the company's leadership is "great at changing their minds."

Microsoft: Keep Working from Home, If The Work Gets Done

Microsoft's EVP of Cloud & AI Group Scott Guthrie assured employees that the company does not currently intend to follow Amazon's lead and require staff to return to the office full time.

However, according to two employees who were present at the meeting, Guthrie's assurance is similarly contingent upon maintaining high productivity levels.

That should be easy, as our research last year showed that98% of hybrid and remote managers say productivity had remained steady or improved. 49% even said productivity has ‘significantly improved.’ In short, remote work productivity is a non-issue.

Spotify: Don't Treat Grownups Like Children

While Microsoft and Google have shown support for hybrid work, Spotify has taken a stronger stance in favor of flexible work policies.

The music-streaming company introduced its work-from-anywhere model in 2021, allowing employees to choose their work location, and remains committed to providing this flexibility despite many companies scaling back pandemic-era perks.

Google, Microsoft, and Spotify: Leading the Way in Hybrid Work Flexibility

In an interview with Raconteur, Spotify CHRO Katarina Berg emphasized the importance of treating employees like adults and providing them with flexibility:

“You can’t spend a lot of time hiring grownups and then treat them like children. [Companies that have returned to the office] “are going back to what they know.” – Katarina Berg, CHRO, Spotify

Notably, Spotify has observed no negative impact on productivity or efficiency with this distributed working model and experienced a 15% decrease in attrition rates.

Hybrid work still works

It's clear that hybrid work is still a win-win for employees and their companies. No matter the headline, these giants show that hybrid still works. (The more cynical side of me also notes how Google and Microsoft both sell online productivity software.)

Just look at our recent case study of Grammarly's hybrid work model

Starting with employee surveys, Grammarly found that 90% of employees didn't want to come into the office full-time. Instead of mandating them to go back, Grammarly focused on what makes people and teams most effective and supported them in working their way.

Google, Microsoft, and Spotify: Leading the Way in Hybrid Work Flexibility

For those days when working in the office is productive, Grammarly uses technology (including our desk booking software partner Tactic alongside internally built tools) and engagement planning principles. They ensure the physical space is relevant for the work that needs to take place.

Atlassian, one of the remote-first companies we featured last year, is another great example. No one is mandated, but stunning offices are available near where large groups of employees live. As a result, 26% of Atlassians who live within 2 hours of an office visit at least once per week.

"At Atlassian, we don’t have in-office mandates. Instead, Atlassians can choose to work where they work best, every day. Since we implemented this policy, our candidate offer accept rate has increased by 20%, 92% of Atlassians say our distributed work policy allows them to do their best work, and representation of women at Atlassian in certain regions has doubled." – Annie Dean, Head of Team Anywhere, Atlassian

The Bottom Line: Defending Hybrid Work

If you're feeling the heat from your CEO to bring everyone back to the office, take a deep breath. The data is on your side, and you're in good company with tech giants like Google, Microsoft, and Spotify.

Here's your playbook:

  1. Arm yourself with facts: Hybrid work isn't just a pandemic hangover. It's up 1% from last year, while in-office work is down 4%. Plus, 90% of companies founded since 2011 offer flexibility, highlighting that this isn't a fad; it's the future.
  2. Highlight productivity gains: 98% of hybrid and remote managers report steady or improved productivity. Nearly half say it's "significantly improved." Your job isn't to manage butts in seats; it's to manage results.
  3. Focus on retention: Flexibility is your secret weapon in this tight labor market. Just look at Spotify's 15% decrease in attrition. Contrast that with Amazon, where 73% of employees are job hunting after their RTO mandate.
  4. Emphasize trust and maturity: As Spotify's CHRO put it, "You can't spend a lot of time hiring grownups and then treat them like children." Trust your employees to do their best work, wherever that may be. As Amy Leschke-Kahle told me, it’s time to ‘grownupify work.’
  5. Propose a data-driven approach: Like Grammarly, start with employee surveys (check out popular employee engagement survey providers here.) Use the results to design a flexible policy that works for your unique workforce.
  6. Suggest a 'magnet, not mandate' strategy: Take a page from Atlassian's book. Create inviting hybrid office spaces for collaboration, but don't force attendance. Let the office become a destination, not a requirement.
  7. Keep the door open: Stress that continuing hybrid work doesn't mean abandoning the office entirely. It's about finding the right balance for your organization.

Remember, you're not alone in this fight. 

Some of the world's most successful companies are doubling down on flexibility. 

Stand firm, back up your position with data, and focus on what really matters: keeping your workforce productive, engaged, and loyal.

Reach out if you need help.

Until next week,

Daan

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