Hybrid work is evolving. Owl Labs’ ninth annual State of Hybrid Work Report, surveying 2,000 full-time knowledge workers in the US, finds that while in-office attendance is quietly rising, workers are increasingly focused on when they work, not just where.
Nearly half of workers (47 percent) report they do not have the level of flexibility they want, and 37 percent say they wouldn’t accept a job without flexible working hours, up from 35 percent last year.
The appeal of a four-day workweek is growing, with 27 percent of employees noting it would influence their decision to join a prospective employer. Some employees are willing to sacrifice nine percent of salary for flexible hours and eight percent for a four-day week.
Work-life boundaries are also blurring. Almost one in three workers (30 percent) lack a clear start or end to their day. More than half (59 percent) schedule personal appointments during working hours, with 38 percent spending up to an hour and 17 percent up to 90 minutes. Most (82 percent) prefer meetings to end by 4 pm.
The concept of “microshifting”, short, structured, non-linear work blocks, is gaining traction, particularly among younger employees: 65 percent of office workers are interested, rising to 69 percent of Gen Z and 73 percent of millennials.
Family responsibilities naturally remain a key factor. Sixty-two percent of workers care for children at home, with 76 percent of those parents being millennials and 52 percent Gen Z. Concerns over childcare impacting job performance are high: 68 percent of parents worry about this, climbing to 71 percent for full-time office workers, compared with 48 percent for remote employees. A majority (63 percent) believe companies should offer greater flexibility for employees with caregiving responsibilities.
Frank Weishaupt, CEO of Owl Labs, commented:
Our latest report shows that workplace flexibility has entered a new era: it’s no longer just about where we work, but also when. As employers push for more in-office days, employees are pushing back for control over their time. Employers should consider how they can provide more flexibility for employees to get work done on their own terms, preserving their overall happiness and satisfaction at work.”
RTO Mandates and Employee Well-Being
Meanwhile, return-to-office mandates are creeping in subtly. Twenty-three percent of employers formally changed remote or hybrid policies, but hybrid employees report a gradual increase in office days: 34 percent now go in four days a week (up from 32 percent in 2024) and 39 percent attend three days.
Employee well-being is under pressure. “Quiet cracking”, silent burnout, is emerging, with managers noting 33 percent are concerned about office employee satisfaction and 27 percent about burnout. Stress is pervasive: 90 percent say their work stress is the same or worse than last year, commutes average 62 minutes, and 47 percent worry about job security. Disengagement is highest among office workers (46 percent vs 30 percent remote), yet 92 percent remain in their roles, reflecting widespread “job hugging.”
Technology and AI are increasingly central. Six minutes on average are spent setting up each hybrid meeting, with 27 percent spending ten minutes or more and 77 percent losing additional time due to technical issues. Two-thirds (67 percent) abandon setups they find too difficult. AI adoption is accelerating: 80 percent have tried AI tools, with 51 percent wishing avatars could attend meetings for them. Companies are encouraging AI use, with 64 percent noting organizational support, a 13 percent increase since March 2025.
What the Numbers Really Mean
Beneath the stats lies a simple truth: hybrid is no longer about where people sit, but how work flows.
For large enterprises, every lost minute matters. Ten minutes of wasted meeting time, multiplied across 200 employees attending 20 meetings a week, translates into more than 6,500 lost hours, equivalent to several full-time roles sacrificed to technical inefficiencies. For a CFO, that is a direct hit to productivity; for a CIO, it is a justification for investment in smarter, more resilient UC systems.
The employee side is no less stark. Flexibility has become a filter for talent. In a tight labour market, policies that rigidly enforce office days risk draining the talent pipeline. Younger staff, in particular, are voting with their feet: surveys like Owl Labs’ show that many would rather quit than give up hybrid working. Retention and recruitment, once HR’s problem, now bleed into enterprise risk and investor perception.
Tech is the connective tissue holding this together. When remote participants are treated as second-class, peering into grainy cameras, struggling to catch audio, and sidelined from whiteboard sessions, innovation suffers. Teams cluster back into the office to avoid frustration, undermining the very flexibility companies promised.
Conversely, when firms invest in intelligent multi-camera systems, spatial audio, shared digital canvases, and thoughtful meeting protocols, the results can be transformative.
There is also a global dimension. US employers are doubling down on mandates; European firms lean toward trust and discretion; APAC’s long commutes make remote attractive. The lesson is that a one-size-fits-all policy is unworkable. Hybrid initiatives require regional nuance, cultural sensitivity, and, above all, a clear connection between policy, technology, and performance.
Hybrid work is not a compromise between extremes. It is a design challenge at the heart of digital transformation. The companies that thrive will be those that treat every minute, every meeting, and every employee experience as a competitive lever.
Get it wrong, and the costs mount invisibly, in wasted time, lost productivity, attrition, and stalled innovation. Get it right, and hybrid becomes a strategic asset: a way to retain talent, unlock new efficiencies, and future-proof collaboration against the next wave of disruption.
What Does a Positive Return-to-Office Model Actually Look Like?
A positive return-to-office (RTO) model emphasises trust, flexibility, and purpose-driven design over rigid mandates. Instead of imposing blanket policies, successful organisations engage employees through surveys and focus groups to tailor RTO strategies that meet the diverse needs of their workforce.
Designing office spaces with amenities such as private pods and outdoor areas enhances the in-office experience, making it more appealing. This approach fosters better collaboration, reduces turnover, and aligns with employee expectations for autonomy and meaningful engagement. Leaders are encouraged to view the office as a destination that employees choose to visit, not a place they are compelled to go.
