Businesses overlook €39 billion hybrid work boost to economy

Only half of businesses have hybrid work in place and are missing growth opportunities

Ricoh Europe, London, 18 May 2023 – British and Irish businesses continue to miss out on the full potential of hybrid work, according to new analysis by Ricoh Europe. 

The research, conducted by Opinium and analysed by CEBR on behalf of Ricoh Europe, polled 1,000 workers and 250 decision makers across the UK and Ireland. Business leaders say that workers are, on average, 4% more productive in a hybrid setting, equivalent to an additional €39 billion to the British and Irish economy compared with pre-pandemic ways of working. 

However, this potential growth – a result of increased productivity levels associated with improved employee satisfaction and reduced commuting time – has not been realised, as only half (66%) of businesses have workers in a hybrid system. If European businesses that intend to shift towards hybrid work accelerated their plans, it could add €9 billion to Europe’s economy according to CEBR. 

Companies run the risk of hampering future growth if they ignore the potential productivity uplift associated with hybrid work. Furthermore, the ability to work flexibly and better manage personal and professional commitments has clear benefits for worker wellbeing and satisfaction. Academic research suggests this positively impacts talent retention and attraction, with a reduction in attrition of 35% for those able to work from home two days a week. 

Yet, over half (51%) of decision makers would like to mandate a full-time return to the office, despite the majority of employees (66%) saying they would prefer some form of hybrid working set-up to a fully remote or office-based alternative. Organisations risk harming their competitiveness as an employer by ignoring workplace friction points that many workers still experience.

For the long-term success of hybrid work, organisations must equip workspaces for a seamless experience, implementing the tools and technology necessary to facilitate efficient communication between office-based and remote colleagues. Without a fully-formed strategy to deliver on hybrid work, organisations will miss out on the associated productivity and financial benefits.

Nicola Downing, CEO, Ricoh Europe, says: “Supporting people to work flexibly will help businesses unlock significant financial gains, while creating a happier and more fulfilled workforce. However, a hybrid work policy is futile without implementing the technology required to facilitate collaboration between colleagues and customers, wherever they are. 

“The office remains an essential environment for social collaboration and building a strong workplace culture. But spaces must be designed with idea sharing and creativity in mind, with digital functions essential to ensure easy communication with those working remotely, too. 

“In a tight employment market, ignoring employee frustrations in the workplace is simply not an option.”

For more information visit www.ricoh.ie/insights.