The numbers are in: Companies with flexible work policies are outperforming competitors

By Tony Jamous

In the rapidly evolving business world, flexibility isn’t just a perk—it’s a powerful growth engine. The Q4 2023 Scoop Flex Index offers a deep dive into this phenomenon, showcasing how companies that embrace flexible work arrangements aren’t just staying afloat—they’re thriving.

The data is compelling. Between 2020 and 2022, fully flexible public companies significantly outperformed their less flexible peers, showing a staggering 16% lead in revenue growth on an industry-adjusted basis.

This trend holds even when you remove tech companies from the equation, with fully flexible firms still leading by an impressive 13%. This isn’t a marginal gain; it’s a substantial advantage that underscores the economic benefits of embracing a flexible work model.

But the success of flexibility in the corporate world isn’t limited to fully flexible companies. Structured hybrid companies, which blend remote and in-office work, have also shown their mettle. They’ve outpaced their fully in-office counterparts in terms of revenue growth, albeit by a smaller margin of 3%. While seemingly modest, this difference is a testament to the effectiveness of a hybrid approach in fostering growth.

The shift towards flexibility is further evidenced by the significant increase in companies offering work location flexibility. As of the end of 2023, 62% of U.S. companies now provide some form of work location flexibility, a notable rise from 51% at the beginning of the year.

Conversely, the proportion of companies insisting on full-time office work has dropped to 38%, down 11 points since the start of 2023. This shift isn’t just a reaction to the pandemic; it’s a conscious move towards a more adaptable and resilient business model.

The most telling indicator of the future trajectory of work location flexibility comes from analyzing newer companies. An overwhelming 93% of companies founded since 2010 offer some degree of work location flexibility. This trend remains strong even outside the tech sector, with 87% of non-tech companies founded since 2010 adopting flexible work arrangements.

This data paints a clear picture: The future will be dominated by flexible work models, with expectations that full-time office work will shrink to 15% or less of U.S. companies in the coming years.

RTO mandates aren’t working

The “Back to Work Barometer” from Kastle Systems, a security company monitoring office attendance in major U.S. cities, has been a critical tool in gauging this trend. Despite expectations of a significant increase in office attendance, which hovered around 50% for most of the year, the reality has been markedly different.

Real estate and investment management firm JLL predicted office attendance would climb to between 55% and 65%. This forecast was based on a belief in a post-pandemic return to normalcy, buoyed by organizational efforts and a general sentiment of optimism. Indeed, as the summer of 2023 ended, there was a noticeable, albeit brief, uptick in office attendance, increasing from 47% to just over 50%. This initial increase seemed to validate the post-Labor Day RTO strategy, indicating a shift back to traditional office work.

However, this rise in office attendance proved to be short-lived and potentially misleading. Instead of the sustained increase that pro-office advocates expected, the data revealed a different story. Following the initial spike, there was a notable decline in office attendance, bringing the numbers back down to an average of 50% or lower, similar to earlier points in the year.

This downturn wasn’t just a fleeting anomaly; it has persisted, challenging the notion that the traditional office model would rebound to pre-pandemic levels. The Scoop Q4 Flex Index also finds the stalling of RTO using a different methodology, with this alignment strengthening the finding of no rise in office occupancy since the start of 2023.

The implications of this trend are significant. It suggests that the initial increase in office attendance might have been more a product of temporary factors, such as the end of summer vacations and the immediate impact of RTO campaigns, rather than a lasting desire to return to physical office spaces. The decline following this brief increase highlights a fundamental shift in employee preferences and work habits.

This persistent preference for flexibility over traditional office attendance signals a profound change in the workforce’s approach to work. The data makes it clear: The future of work will likely not be anchored in the traditional office setting as it once was and the unfulfilled promise of office returns isn’t just a trend.

Pioneering the flexible work revolution

The landscape of flexible work is not just shaped by policies and preferences but is fundamentally underpinned by technological innovation and visionary leadership. I interviewed technology leaders redefining the future of work to learn more about how they are supporting flexible work, and their groundbreaking contributions show how the future is flexible.Frank Weishaupt, CEO of Owl Labs, focuses on making hybrid meetings feel as natural and inclusive as in-person interactions. With 360-degree videoconferencing technology, Owl Labs ensures that remote participants are active, equal participants in meetings.

Nancy Knowlton, CEO of Nureva, underscores the importance of optimizing the remote worker experience for effective hybrid work. Nureva’s innovative audio-visual solutions, including intelligent audio systems and AI-powered smart cameras, are revolutionizing hybrid meetings. These technologies ensure full room coverage and active engagement of remote participants, simplifying the technology and allowing organizations to focus on seamless collaboration.

John Selldorff, president and CEO of Legrand, describes how Legrand, known for its expertise in power, lighting, and data management, has partnered with Microsoft to integrate its products into Microsoft’s Signature Teams Rooms. High-quality audio and video equipment, attention to room acoustics, and large, high-resolution screens are key to creating inclusive and effective hybrid meeting spaces.

Prakash Arunkundrum, chief operating officer at Logitech, described how hardware and software combined to facilitate hybrid and remote work effectively. With home offices increasingly replacing or at least complementing on-campus environments, workers need to be able to have quality technology in order to be productive.

Bobak Tavangar, CEO of Brilliant Labs, shared about how Augmented Reality (AR) glasses, such as Monocle, are transcending their reputation as futuristic gadgets to become essential tools in the hybrid work environment. They offer functionalities like real-time transcription and translation, remote manipulation of 3D models, and visual guidance for off-site experts, enhancing cross-border communications and collaborative problem-solving.

Tony Jamous, CEO of Oyster, advocates for the benefits of remote work for businesses, the planet, and people. Jamous’ vision is democratizing job opportunities worldwide, making remote work not only a business strategy but a mission-driven pursuit.

Bjorn Reynolds, CEO of Safeguard Global, also leads an organization that supports companies in recruiting, hiring, and paying workers globally.

Job van der Voort, CEO of Remote, similarly facilitates helping companies hire remote workers around the globe.

Alexandre Wentzo, CEO at iGrafx, highlights the role of process automation in supporting hybrid and remote work. Firms with more flexible work arrangements tend to adopt automation processes to manage their workflows more deliberately, showcasing how technology can streamline operations in a distributed work environment.

Mike Nash, is the founder and CEO of Trelliswork, a platform that helps managers orchestrate everyday work, from meeting agendas to one-on-ones, ensuring teams remain aligned, focused, and accountable, crucial in dispersed work environments.

Vahagn Sargsyan, founder of WebWork, offers a time-tracking and workflow management software that empowers remote and hybrid companies to enhance productivity through data-driven decisions. WebWork’s comprehensive dashboard reports and all-in-one tools facilitate effective workflow and communication management.

These technological innovations and leadership insights are driving the flexible work revolution. They are not only addressing the challenges posed by remote and hybrid work models but are also unlocking new potentials for collaboration, efficiency, and global inclusivity.

Fast Company – work-life

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