Why are we still talking about Hybrid Work?

Why the Hybrid Work Debate is Still Raging

The debate around hybrid work has been ongoing since the early days of the pandemic, and yet, in 2025, it remains a hot topic among business leaders, HR professionals, and employees alike. While many assumed hybrid work would settle into a new way of working, the reality is that opinions remain divided, and the conversation is far from over. So, why is the hybrid work debate still raging?

1. The Productivity Paradox

One of the biggest points of contention is productivity. Some leaders argue that remote work enhances focus, reduces commute-related fatigue, and enables employees to work in a way that suits them best. Others maintain that in-person collaboration fosters innovation, team cohesion, and better decision-making. 

In the most part there is no substantial evidence to suggest hybrid work has a negative impact on productivity including a recent study by Stanford WFH expert, Dr. Nicholas Bloom. You can read more about it here: CEDA - More than a third of Australians still work from home.

The data does indicate a dip in productivity with a fully remote workforce (Fully Remote? It Could Be 10% to 20% Less Productive) so there are nuances to be considered.  

With mixed research findings supporting both perspectives, businesses struggle to find a one-size-fits-all solution.

2. The Employee vs. Employer Divide

Many employees have embraced hybrid work as the new norm, enjoying the flexibility it provides for work-life balance, caregiving responsibilities, and overall well-being. Conversely, some employers worry about maintaining a strong company culture, ensuring accountability, and developing early-career professionals who benefit from in-office mentorship.

Given the flexibility benefits, research indicates that the groups most impacted by return to the office mandates are women & care-givers (Companies with return-to-office mandates are hemorrhaging female talent | Fortune), potentially causing a further divide. Further supporting this, data from HRD Australia Magazine indicates female workforce participation increased 9% between 2019-2023 which can be attributed to greater flexibility and hybrid work options. 

The latest trend hitting Australia is coffee badging, which is essentially when a worker comes into the office, swiping in/logging on to show proof they have been in and staying in the office long enough to have a coffee then return home. This trend shows just how much impact forced mandates are having as if employees are going to all this effort, there must be an obvious gap they are having in their experience in the office (Coffee Badging: Unveiling the Latest Corporate Trend and Its Impact).   

As employee needs continue to evolve, this creates tension as organisations attempt to strike a balance between employee preferences and business needs.

3. Generational Expectations and Workplace Evolution

Different generations view hybrid work through different lenses. Gen Z, for example, values in-person learning and networking opportunities, while Millennials and Gen X have settled into remote-friendly lifestyles that accommodate family responsibilities. Baby Boomers, who spent the majority of their careers in traditional office environments, may view remote work with skepticism. 

As workplaces evolve, aligning these varying expectations is a challenge for People & Culture teams.

4. The Role of Technology and AI

Advancements in digital collaboration tools and AI-driven workplace solutions have made remote work more viable than ever. However, these tools can’t fully replace the value of human interaction. The use of tracking technologies has become more commonplace, however, organisations who use these tools in place of having open and transparent communication & trusted relationships run the risk of higher turnover and lower engagement as their employees don’t feel valued.  

In addition, while technology enables hybrid work, it also creates new challenges around security, engagement, and digital fatigue, adding another layer of complexity to the debate.

5. The Corporate Real Estate Dilemma

Many companies made long-term investments in office space before hybrid work took off. Now, they face difficult decisions—should they downsize, repurpose, or attempt to bring employees back in greater numbers?  

The financial and operational implications of office space management continue to play a significant role in shaping hybrid work policies as organisations are having to find levers to pull to address the financial impacts (despite there being no clear data to suggest productivity increases).  

6. Legislative and Compliance Considerations

Governments and regulatory bodies worldwide are still catching up with hybrid work models. Issues related to workplace safety, tax implications, and employment laws remain murky. We have all heard the stories of employees dialling in from Europe, hoping their employers are none the wiser. Or, organisations who have gone all in in their ‘Work from Anywhere’ policies without understanding the tax implications and then facing huge bills.  

Organisations must navigate compliance risks while trying to offer the flexibility that employees demand.

7. The Culture and Engagement Question

Perhaps the most complex aspect of hybrid work is maintaining a strong, engaged culture. How do leaders foster belonging, drive collaboration, and ensure employees remain connected when teams are dispersed? Gallup confirms that one of the biggest challenges is reduced cross-functional communication and collaboration.  

Although not new, one question to ask is how can we create a magnet not a mandate — essentially meaning how can we make the office so attractive that employees are drawn to it, without being forced to (The Magnet, Not The Mandate: A New Approach To Hybrid Work).  

Companies that fail to address this risk disengagement and attrition, while those that succeed will build workplaces that thrive in the new world of work.

Conclusion

The hybrid work debate persists because there is no universal answer. Ask an organisation whether they need to focus on development or their employees wellbeing and the answer would be a resounding (and consistent) yes.  

However, given the nuances of the issue, each company must tailor its approach based on industry needs, employee expectations, and organisational goals. People and Culture professionals and business leaders must remain agile, continuously evolving their strategies to find the right balance. 

At Nine Yards, we know this is a hot topic and that leaders need support to navigate it, so the second blog in this series will be tips for Top Tips for Managing Hybrid work.  

While the debate may never be fully resolved, one thing is certain—flexibility and adaptability will define the future of work.