Diversity Asia


The Evolving Hybrid Workplace in Asia

Business leaders in Asia have discovered that most employees prefer the hybrid work model. To remain competitive in the labor market, they are developing various best-fit hybrid workforce strategies to meet employee needs. -By Jill Motley

The hybrid workforce in Asia is becoming more prevalent in today's business world. During the pandemic, companies began to realize the benefits of combining remote and in-person work to create a more flexible and efficient workforce for the future. With the rise of technology, it is easier than ever to connect with colleagues and clients worldwide. After the pandemic many employers were taken by surprise, because they believed they could order employees back to the office, only to find resistance. This has led to a more permanent shift in the traditional 9-5 office model, and many companies are embracing the hybrid approach to work. Different work models are emerging, including flex work, flex work schedules, and flex place. The evolving hybrid workforce models being employed in Asia are in response to the post-pandemic employees requiring more than good pay and benefits. They want work-life balance, flexibility, well-being, and to feel happy about their working conditions.

Changing Preferences of the Younger Workforce

A survey by The Center for Creative Leadership of business leaders in 13 Asia-Pacific countries found that nearly twice as many companies had adopted the hybrid work model since the pre-pandemic timeframe. However, the survey also found that 56% of employers did not have a vision of what their organization’s hybrid work model would look like over the long term. Some employers still believed the preferred model is the hybrid work model called “Hybrid, Office-First, " which requires employees to spend most of their work time on-site. In other words, employers are struggling to keep up with people’s changing expectations about work, because most employees today want more flexibility in work and work schedules, but also be offered opportunities to connect with coworkers. It is a highly challenging time for employers adapting to new workforce concepts.

There is a lot of “testing” going on currently, as employers try to establish a suitable hybrid work model for their organization. The various models of remote working, such as flex work, flex time, and flex place, are being adopted by companies across the region to accommodate the changing needs of their employees. Flex work allows employees to work from home or other remote locations part-time or full-time while maintaining a connection to the office. Flex time, on the other hand, will enable employees to set their own schedules as long as they meet the required work hours. Flex place is a model that allows employees to work from any location, as long as they have access to the necessary technology and tools.

Trust-Based Work Models

Gautam Kumra, Chairman of McKinsey Asia, and Diaan-Yi Line, Senior Partner at McKinsey & Company, interviewed Ahmed Mazhari, President of Microsoft Asia and Paul Marriott, President of SAP Asia Pacific Japan, on the topic of hybrid work models in Asia. The executives offered critical insights on how their companies understand and adapt to the hybrid work model. Microsoft surveyed 31,000 full-time and self-employed workers in 31 global markets, of which 14 were in Asia. Mazhari explains that one trend identified is that people are looking for flexible options, because 70% want flexible remote options, and two-thirds want some in-person time with team members. To accommodate these preferences, Microsoft Asia employs “free-dimensional work” in which employees can work from anywhere but also have opportunities for in-person connections that are synchronous, asynchronous, in-person, or remote. Workspaces must be redesigned to accommodate people working in the office and working remotely. Marriott also discussed the results of employee surveys at SAP, with 80% of employees preferring a hybrid model. He believes it is essential to understand the different demographics in the workforce and how they affect how people want to work – generational, cultural, gender, nationality, or location. Organizations must have a trust-based model, in which employees decide and define how they work. Demographic diversity makes a difference. He gives the examples of younger people wanting to be in the office more than longer-term employees, or people in India preferring remote work because the travel time to the office is significant. Mazhari suggests creating hybrid environments such as meeting pods, virtual meeting rooms, and collaboration tools to make hybrid work models successful.

Stepping Up to the Challenges

All these ideas are made within the context of the need to make sure business outcomes are delivered, and creativity has room for transparent expression. One concern is that hybrid work, says Mazhari, has weakened organizational culture because people do not connect with each other as much. One positive is that the shift to hybrid work has led organizations to utilize technology better to reach underprivileged people, like single mothers, people who want to join the contingent labor force, and STEM talent graduating from universities.

There is leadership agreement that adapting to the hybrid workforce is challenging, now that it is considered the work model for the future and not a temporary model for a pandemic. Some companies have mostly frontline workers who cannot work a hybrid schedule. Instead of a hybrid work schedule, the organization can adopt flexible work schedules, like four-day work weeks and allowing employees to exchange shifts to meet personal needs. Though not hybrid, they empower employees to have some control over their work schedules. The hybrid work model is really about employee empowerment.

FedEx formalized hybrid work schedules in May 2022. Called FWAs for flexible working arrangements, staff can work two days in the office and telecommute three days. One of the in-office days is a collaboration day. For Ms Xu working for FedEx in Singapore, the hybrid work model was crucial to her ability to balance caring for her young children and working as a people operations specialist. Over 400 non-frontline FedEx employees were eligible for FWAs, and eight out of ten opted in. Since formalizing the hybrid work schedule, job applications and employee engagement improved significantly. FedEx’s work arrangements are aligned with the Tripartite Standard on Flexible Work Arrangements. According to the Singapore Ministry of Manpower, the range of work arrangements for FWAs includes hybrid work, remote work, staggered start and end work times, and shift swapping.

Clearly Define the Hybrid System

These emerging remote working models are transforming how businesses operate in Asia, and they are likely to become even more popular in the future. As companies continue to embrace the benefits of the hybrid workplace, they must ensure that they provide their employees with the support and resources they need to work effectively and efficiently in this new environment. This includes ensuring employees have time with leaders, the appropriate technology tools, and opportunities to reliably connect with coworkers. Access to the right hybrid work-related technology is crucial to providing more equitable work experiences. It is also imperative to develop a transparent and clearly defined hybrid system, so that employees understand what is expected regarding work schedules and performance.