How Does Hybrid Work Improve Diversity, Equity, and Inclusion in the Workplace?

Why Is a Flexible Hybrid Work Schedule Essential for Employee Retention and Team Building?

Learn how hybrid work models support diversity, equity, and inclusion. This McKinsey survey analysis explains why flexible schedules boost retention and team building.

Read the full article to learn practical strategies for building an inclusive hybrid workplace that supports employee well-being and prevents costly turnover.

Recommendation

A survey conducted by McKinsey & Company reveals how much employees want to maintain hybrid work. Having gotten accustomed to its flexibility during the pandemic, the overwhelming majority prefer it to the old daily commute. McKinsey authors Bonnie Dowling, Drew Goldstein, Michael Park, and Holly Price report that this employee preference is even more pronounced among “traditionally underrepresented groups.” A significant number of employees, some 70% of respondents, say they would jump ship to be able to keep working from home for at least part of the week. Executive and HR officers who aim to avoid turnover and pursue diversity, equity, and inclusion need to consider ways to continue offering hybrid work.

Take-Aways

• During the pandemic, employees reconsidered the relationship between work and the rest of their lives.
• Underrepresented groups particularly value hybrid work options.
• Employees prioritize “work-life balance,” but they also emphasize “team building.”

Summary

During the pandemic, employees reconsidered the relationship between work and the rest of their lives.

Employees who responded to a McKinsey & Company survey recommended that organizations should provide more work-from-home options, as well as flexible hours and more parental and sick leave. During the pandemic, many companies experimented with policies permitting employees to work from home or pretty much anywhere else. Surveys show that while employees want hybrid work to continue, employers would prefer to have everyone return to the office.

“Empowered employees who have tasted the benefits of hybrid work seem determined to retain them.”

This preference is so strong that nearly 70% of employees who prefer hybrid work say that they would seek an alternative job if their current employer no longer offered a hybrid schedule. Workers sought flexibility even before the pandemic. Now, more than eight out of ten of those working a hybrid schedule want to continue.

Underrepresented groups particularly value hybrid work options.

Millennials, Blacks, women, LGBQ+ employees, and those with disabilities are all more likely to say they would quit their job if their employer made it compulsory to return to the office full-time. Companies reap rewards from offering hybrid options to foster inclusion and diversity, and they often find that staff members see hybrid work arrangements as liberating.

“Despite such popular support, the experience of employees with hybrid work during the pandemic has varied widely in key areas, such as a sense of inclusion and the work–life balance. For some traditionally underrepresented identities, this variability is exacerbated.”

Employees are more apt to stay with an inclusive employer, more likely to help their colleagues in such cultures, and much more likely to recommend the organization to potential employees. Respondents said hybrid work improves three important aspects of employment: “work-life support, team building” and “mutual respect.”

Employees prioritize “work-life balance,” but they also emphasize “team building.”

Staff members’ colleagues and managers make a huge contribution to their job satisfaction by making work-life balance real and supporting it instead of just talking about it. Still, bringing new people aboard in a hybrid work environment requires extra effort. Miscommunication can happen easily and remote employees may feel less connected to their company and their colleagues if all of their communications are virtual or digital. Managers should emphasize the well-being of their employees as individuals by asking about their “work styles” and demonstrating concern for their well-being.

“The way managers and teams behave day-to-day is the most powerful determinant of the individual employee experience. Regardless of working model, inclusive organizational cultures that foster trust and a sense of support increase retention, collaboration, and job satisfaction.”

Survey results indicate that companies should experiment with bringing people together in different ways, state their expectations for how remote workers should check in, and offer opportunities to get together in person. Checking in should be more personalized than just covering scripted agenda points. Respondents also prefer “two-way feedback” since it gives them opportunities to suggest improvements.

One company established a channel for internal “shout-outs,” so employees could praise their teammates’ exceptional contributions. Companies that can provide flexibility will find that it benefits their inclusion and diversity strategies. That strategy requires managers to be aware and creative, but it comes with potentially significant payoffs.

About the Authors

The authors all hold positions with McKinsey. Bonnie Dowling (Denver) is an expert associate partner, Drew Goldstein (Miami) is a solution associate partner, Michael Park (New York) is a senior partner, and Holly Price (Houston) is a knowledge expert.