Hybrid vs. Fully Remote: What's Best for Your Software Engineering Team?

For those in the tech industry, the work landscape is undergoing significant changes. Previously, the office was the undisputed center of work activities. However, the onset of the global pandemic served as a catalyst, accelerating the adoption of remote work on an unprecedented scale. Teams were forced to adapt quickly, turning kitchen tables into workstations and leveraging digital tools to bridge the gap left by the absence of face-to-face interactions.

Now, as we navigate through this period of adjustment, a critical question has come to the forefront: should we continue to operate in a fully remote environment, or is a hybrid approach—combining both remote and in-office work—the most effective path forward? This article will cover the nuances of these two work models, weigh their pros and cons, and provide actionable insights.

Ditching The Office For Good?

Going fully remote has been the financial game-changer the industry needed. Companies can save an average of $10,601 per year for each employee who works remotely half the time. These savings can be a lifeline for startups and small businesses, allowing them to allocate funds to other critical areas like R&D or employee benefits

But it's not just about the money. A fully remote setup breaks down geographical barriers, opening up a global talent pool. This is especially beneficial for roles requiring specialized skills, which may not be readily available locally.

When it comes to remote work, the main concern is productivity. Most companies fear that without being able to monitor their employees closely, productivity levels will plummet, and the business will inevitably suffer. Chief economist Adam Ozimek talks about how remote work has affected productivity in large companies.

In most cases, productivity while working remotely is better than working in an office setting. At the very least, no changes occur, which, let’s face it, makes sense. At home, you get to customize your workspace, there are fewer distractions on average, and you don’t waste time on the commute.

For example, on average, 40% of employees work longer hours at home than in the office. These extended workdays are about 48.5 minutes longer. Despite the longer hours, most employees attest that their work-life balance has improved since they've been working from home.

The fully remote model, although cost-effective and flexible, has its own set of challenges. The lack of face-to-face interaction can lead to feelings of isolation and affect company culture. Not to mention that managing a fully remote team requires a different skill set, including the ability to maintain productivity and team cohesion without the benefits of physical proximity.

Striking A Balance: The Hybrid Way

Despite the rise in remote work, the hybrid model is increasingly becoming the go-to approach for many organizations. Companies like Zoom are reversing their remote work policies, asking employees to return to the office, despite some opposition and claims that remote work has been beneficial.

Early studies suggested remote work increased productivity. However, newer research, including a study from the National Bureau of Economic Research (NBER), indicates that full-time remote workers may be 18% less productive than their in-office counterparts.

So why the sudden shift toward hybrid work? Quite simple: flexibility. You’d think being remote is synonymous with flexibility, but I’d argue differently. As someone who has tried both versions, I can tell you that being able to be anywhere in the world and doing everything you want (to a degree) are two different things.

Yes, the remote life is perfect if you want to pursue the digital nomad life, but for those who are stuck in one place, the option of occasionally seeing your co-workers, collaborating on tasks, and enjoying some Friday drinks is better by far.

This is especially true for engineering teams, out of which we have found that more than 70% are more productive when having the choice between working from home or joining their peers in the office. The truth is that most industries have adapted their workflow to the hybrid model, but when it comes to the tech sector, there’s a strong demand.

Source: McKinsey&Company

But flexibility isn't the only advantage. Remember when I said something about Friday drinks? Well, the hybrid model also plays a crucial role in keeping the company culture alive. While a fully remote setup can sometimes dilute company culture, the hybrid model allows in-person interactions that are key to team-building and maintaining a strong company culture. Studies show that most employees, when given the opportunity, will choose to work on a flexible schedule.

Source: McKinsey&Company

Tech giants like Facebook and Google have also adopted this approach, allowing for both remote and in-office work. Intel has even implemented "flexible workweeks," allowing employees to choose their in-office days, thereby promoting a more inclusive work environment.

However, the promise of hybrid work can be held to a halt when you think about its challenges. Although there aren’t many, some may argue that this model can create a two-tier system where in-office employees have more visibility and access to opportunities compared to their remote counterparts.

The Legalities Of Both Models

When it comes to hybrid and fully remote work models, the legal landscape can be tricky. According to a Deloitte Dbriefs webcast, employers need to consider a range of issues, from employment tax and compliance to data security and employment law. For instance, each type of remote work—be it temporary, domestic, cross-border, or international—comes with its own set of regulatory considerations depending on location and timeline.

Tax implications are a significant concern, especially for fully remote teams. Companies may need to register, pay tax, and file annual returns in the jurisdiction where the remote employee is located. This could potentially undo a lot of tax planning that's already been put in place.

In a hybrid setup, compliance with labor laws becomes complex. Employers need to be consistent in their assessment processes to avoid discrimination claims. For example, allowing one group of employees to work remotely while denying another could lead to legal issues.

Bottom Line

The future of work is undeniably fluid, driven by technological advancements and shifts in employee preferences. As companies adapt to these challenges, the debate between hybrid and fully remote work models has moved to the forefront.

What's clear is that the work environment is no longer confined to the four walls of an office. Flexibility has become a cornerstone of attracting and retaining talent, and it's forcing companies to reevaluate long-standing practices and policies. This flexibility isn't just about where employees work – it’s about how they work, how they interact with their teams, and how they contribute to the organization's goals.

The key here is adaptability. Organizations that are willing to adapt, to experiment, and to listen to their employees are the ones that will thrive in this new era of work.

Carbon is the go-to staffing specialist for Eastern European and North African technical talent. Trusted by the biggest names in technology and venture capital, Carbon’s hyperlocal expertise makes entering new talent markets for value-seeking global companies possible.

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