Why hybrid working is becoming a competitive advantage for companies

A hybrid work model provides a competitive business advantage to companies that implement it. From hiring and retaining talent to reduced operation costs, the “new work” model gives considerable leverage.


The transition to a hybrid workforce has been debated for a long time before becoming a necessity imposed by the Covid-19 pandemic. The “new work” is here to stay and there are plenty of statistics to support this.

Accenture found that 83% of employees want a hybrid work model.
9 out of 10 companies will combine remote work with in-office presence, according to a survey of CEO's conducted by McKinsey.

Workers don’t want to return to the physical office 9 to 5 because they experienced the advantages of remote working. Some governments now give support to hybrid work due to the energy crisis we are about to face this winter. Businesses have to comply if they want to remain relevant in turbulent economic situations.

Even if the change was forced upon us in unprecedented ways, it's undeniable: hybrid work provides many advantages for businesses that implement it, providing a competitive business advantage.

Let’s talk about the most important reasons why hybrid work offers a competitive business advantage.

1. Reduced operational costs

Operational costs are a very relevant factor in determining the success of a business, especially in a turbulent market. If company A can provide a product or a service at a lower operational cost than company B, it’s just a matter of time before it surpasses it in terms of reach and productivity.

If operational costs are reduced, more funds can be funneled into hiring talent, product development or marketing, which is a strong competitive advantage.

Hybrid work helps companies reduce operational costs by:

  • Reducing renting and technical costs since businesses use less office space.
  • Lowering energy expenses because there is less office space to maintain and heat up.
  • Reducing commuting expenses since workers don’t have to commute as much.

These operational costs will become critical when we take into account the incoming energy crisis and the current world situation.

2. Attracting and retaining talent

The value of businesses can be measured by the people working for them. Considering many companies have already implemented a hybrid work model and also workers prefer to have the freedom to work from where they want, how can businesses that fail to implement such a work model remain competitive in the future?

"Companies should take these needs, which involve a completely new work culture, very seriously. Otherwise, they may find it difficult to attract young and innovative employees in the future." - Nelson Taapken from EY.

The most important HR potential of Hybrid Work for companies lies in the expansion of the search radius for talent. If new employees no longer have to come to a fixed physical office (every day) but can work from home, the search can be significantly expanded geographically.

Workers already gravitate toward companies that offer a hybrid work model, and this number can only increase in time. The freedom and benefits that come from working with such a company will create shockwaves in the workforce, and therefore create a new standard which at some point will become a major deal-breaker.

It’s fair to assume companies that implement hybrid work will be able to attract more talent and keep them for a longer period simply because they took the steps to implement a working model focused on them.

3. Strong ESG proposition

The environmental consequences of daily commuting to work as well as business travels are subject to increasing attention. With climate change induced regulations based on the Paris agreement and the further adoption of the UN's Sustainable Development Goals by companies (e.g. by means of the Global Compact), the role of ESG (Environment, Social and Corporate Governance) becomes increasingly important.

As companies start to implement ESG reporting, hybrid work is very certainly on the plus side, as not only the carbon footprint is reduced but also social criteria such as compatibility of career and family or inclusion can be positively influenced by hybrid work.

A strong ESG proposition will have a positive impact towards the stakeholders of a company, including investors and shareholders. The company can attract more B2B and B2C customers with more sustainable products, retain talent through greater social credibility, and even gain increased community support. All these factors increase the value of the company in the investment market.

4. Keeping the workforce healthy

Another important advantage of implementing hybrid work is keeping the workforce healthy through increased freedom and the removal of an important stressing factor, commuting. Many studies indicate some workers consider commuting to be more stressful than the work itself, which represents a considerable strain on their mental health.

Now people can work from home, enjoying cooked meals and spending time with their family, while also producing amazing work, as they’re less stressed and drained by the time spent in traffic or on public transportation.

And since a business’s success is highly dependent on the health of its employees, hybrid work is an incredible business advantage because it gives a considerable morale boost to the workforce. Happy and healthy people work harder and better for their companies.

Even without considering the economic and environmental necessity of implementing a hybrid work model, there are plenty of advantages for businesses that implement the “new work” model.

Organizations that can successfully navigate these benefits will most likely enjoy a competitive edge. So the challenge for managers is to find the right hybrid model for their organization, and make it work.

A successful hybrid work model requires an adequate technical platform. Current tools, especially video-conferencing solutions fall short of implementing sustainable hybrid work models.  ivCAMPUS combines the benefits of physical offices with those of remote collaboration. We digitalized office interactions to allow people to intuitively work together, socialize, and be part of the company culture just as they would in a real office. And all of this in an immersive platform that they can access from anywhere they want.