Business model

Published: September 29, 2024

Many employers are unsure which work model to adopt: onsite, remote, or hybrid. Similarly, employees are also anxious about the future of work, trying to find their preferred place in the post-pandemic work environment.

In this article, we’ll explore the three main work models to help determine which will work best for your company.

What are Work Models?

At its core, a work model describes how a company operates daily, detailing work arrangements for its workforce. It’s not uncommon for businesses to have different work models for various departments. For example, a company may have a remote work model for its sales team but keep an onsite model for its HR department.

For decades, the standard work model was a five-day workweek where most employees worked onsite. However, advancements in technology allowed many employees to work from home even before the pandemic. In fact, a 2019 study revealed that 40% of U.S.-based companies offered at least some remote work options, and experts predicted that half of the U.K. workforce would start working remotely before the pandemic.

The Three Main Work Models

While remote work was slowly gaining traction, the global pandemic forced even reluctant companies to make remote work a reality. Today, businesses worldwide face three viable work models:


1. Onsite Work Model

An entirely onsite work model requires all employees to work at a designated workplace daily. Remote work may be possible in extreme cases, such as for a sick child or adverse weather conditions. Despite this limited flexibility, most tasks must be performed onsite.

Typically, these employees work during specific hours set by employers. However, some companies now offer greater schedule flexibility, such as part-time work or reduced shifts.

When is the onsite work model the right choice?
Some businesses have no choice but to maintain an onsite work model due to the nature of their work. For instance:

  • Hospitals: Require doctors and nurses to be onsite full-time.
  • Construction companies: Need workers at the job site daily.
  • Manufacturers: Require operators and employees to stay on the factory floor.

Startups or companies entering a growth phase may also need the high level of collaboration an onsite model offers. Employers should assess their needs and goals to determine whether tasks can be handled remotely or require an onsite work model.


2. Remote Work Model

A fully remote work model allows employees to work from a location of their choice. Often, there is no central office, although some companies maintain a location for training and employee meetings.

Employees can typically work from home, a local café, a co-working space, or even while traveling. However, some companies may require remote employees to work from a designated space, such as a home office.

As businesses prepare for a post-pandemic workplace, many are divided over whether full-time remote work remains effective. It’s essential for companies to weigh the pros and cons of this model when deciding which option suits them best.

When is the remote work model the right choice?
According to a recent study, only 11% of all workers globally work entirely remotely. This relatively small number reflects the challenges of adopting a fully remote model, which may not suit every business.

However, if employees’ tasks can be performed remotely and your company has a strong communication platform, this model can keep your business competitive and prepared for an uncertain workplace future.


3. Hybrid Work Model

The good news is that employers don’t have to choose between a fully onsite or remote model. They can implement a hybrid work model, combining the best of both worlds.

Hybrid models operate in two main ways:

  1. Split Workweek: Employees work remotely on certain days and come to the workplace on others. For example, an employee may work two days from home and three days at the office.
  2. Split Workforce: Some employees work remotely while others work onsite. This arrangement is common for businesses where only some tasks can be done remotely. For example, a nonprofit may require social workers to meet clients onsite while financial or marketing teams work from home.

When is the hybrid work model the right choice?
A detailed analysis by McKinsey Global of 800 different jobs revealed that 20% of the workforce could effectively work from home at least three days a week. Additional research shows:

  • 41% of global employers allow employees to work remotely on some days.
  • 37% of workers would consider quitting if required to increase onsite hours.

Given these statistics, employers should carefully evaluate job tasks to determine which can be done remotely and which require onsite work.


Pros and Cons of Each Work Model

Onsite Work Model

Pros:

  • Real-Time Communication: Face-to-face contact is 34 times more effective than email communication, allowing for instant decision-making and improved productivity.
  • Enhanced Collaboration: 93% of effective communication involves nonverbal cues, which are easily missed in virtual meetings. Brainstorming, problem-solving, and real-time approvals are more efficient in person.
  • Higher Online Security: A single, secure server for all employees ensures data safety, essential for businesses handling sensitive information.

Cons:

  • Limited Talent Pool: Hiring is restricted to employees willing to relocate, which may be challenging in rural areas.
  • Worker Resistance: Many employees prefer the flexibility of remote work. Studies show two in five workers would consider switching jobs if forced back onsite full-time.

Remote Work Model

Pros:

  • Global Talent Access: Companies can hire employees worldwide, creating a diverse and skilled workforce.
  • Better Work-Life Balance: Flexibility in scheduling improves satisfaction and helps attract top talent.
  • No Commute: Saves employees time and money while reducing tardiness and absences.

Cons:

  • Increased Security Risks: Remote work exposes businesses to potential data breaches due to unsecured networks.
  • Home Distractions: Companies must support employees in creating dedicated home offices to minimize interruptions.
  • Weakened Company Culture: Remote setups may lead to disconnection, requiring proactive efforts to maintain team cohesion.

Hybrid Work Model

Pros:

  • Higher Productivity: Employees can focus without distractions during remote days and collaborate effectively onsite.
  • Job Satisfaction: Offering a flexible model improves morale and reduces turnover.
  • Attracting Top Talent: Hybrid setups appeal to professionals seeking work-life balance.

Cons:

  • Communication Challenges: Hybrid teams may struggle to stay aligned, making clear communication strategies essential.

Ultimately, choosing the right work model depends on your company’s goals, nature of work, and employee preferences.

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