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Hybrid Work 2025: How Leaders Can Get It Right

Since the COVID-19 pandemic upended lives in 2020, hybrid work has evolved. Many employees now expect to work from anywhere at least part of the time. However, return-to-office (RTO) mandates, can trigger negative reactions. But if leaders get hybrid work right, RTO doesn’t have to mean draconian policies, rigid workweeks, or uninspiring spaces.
But getting it right isn’t easy. Creating an office experience that justifies the commute, sparks creativity, and draws top talent means rethinking everything from leadership and work/life balance to technology and office design.
Still, substantial perception gaps remain between employers and employees — especially around RTO policies, hybrid-work flexibility, and technology.
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This was supported by Cisco’s 2025 Global Hybrid Work Study — Navigating Hybrid Work Strategies in Evolving Workplaces. Based on a survey of 21,513 employers and employees across multiple industries and 21 markets, the study follows Cisco’s inaugural Global Hybrid Work Study in 2022, which saw more hybrid work arrangements than we do today.
While the latest report highlights positive employee sentiments about office time, it reveals significant disconnects with employers over workplace policy benefits. These tensions are pronounced among top performers and Gen Z, who favour flexibility: working remotely to boost productivity or maintain balance — and in-office when face-to-face connections matter.
“We have to remember, flexibility doesn’t mean that everyone is working remotely all the time,” said Fran Katsoudas, Cisco’s EVP and chief people, policy, and purpose officer. “It means that there’s an ability to consider every individual’s needs. And one of the big Ah ha’s from the study is that flexibility makes top performers perform better.”
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But even top performers see the merits of the office.
“When we make the office about mentorship, connection, and career development,” Katsoudas added, “people understand the value of being there. But when we lean solely into the work, it’s a less compelling value proposition.”
Here are key learnings to consider:
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- Build trust (and productivity will follow): Employers consistently overestimated the positive impact of RTO policies on employee productivity and wellbeing. From the employee perspective, 77 per cent believed that a lack of trust drove rigid mandates, and only 39 per cent of employees agreed that mandated office days boost productivity. Regarding well-being, only 28 per cent of employees see RTO mandates as beneficial, compared to 42 per cent of employers. However, that does not mean employees never want to go to the office. Ninety-two per cent believe that community and collaboration are key aspects of office culture.
- Draw them back with office experiences: Financial considerations influence both employers’ and employees’ perspectives on the office, but in different ways. Fifty-seven per cent of employers cited real estate and building-maintenance expenses as the primary influencer of their organisation’s preferred work model, while 40 per cent of employees complained about commuting costs. But while employees overwhelmingly prefer flexible choices in where they work, they also enjoy in-person connections. For leaders, that means opportunities to bring teams together in person for high-impact activities (just not every day). By lessening the call for everyday office presence, they can also counter the need for larger office spaces (and their high rents) and leverage smart-workplace tech to optimise the space they have. Moreover, employees are clear on what benefits they seek while in the office, everything from in-person collaboration and mentorship to driving innovation through teamwork and fostering a stronger connection to company culture. Leaders will need to design the in-office experiences that deliver the kinds of unique value that are not as easy to replicate remotely.
- Listen to top talent: High performers expect hybrid-work opportunities, and 78 per cent would even consider leaving a company if the work policies were not flexible enough (only 34 per cent preferred working from the office). Nevertheless, many still saw advantages to spending time in the office — for example, 85 per cent believed it helped their career advancement. Organisations that want to nurture top talent will build autonomy and trust into their work policies and give those top performers the freedom to grow, connect, and collaborate in whatever way is best for them.
- Address the generational divide: Forty-eight per cent of Gen Z employers believe remote work is most productive, while only 28 per cent of Boomer employers agree. Conversely, 40 per cent of Boomers prefer office work compared to 28 per cent of Gen Z. As workforce needs shift with life stages, flexible policies acknowledging these differences boost loyalty and retention. Technology bridges this gap. Fifty-six per cent of Gen Z employers believe digital transformation and collaboration tools are critical, compared to just 34 per cent of Boomers. And a strong majority (64 per cent) of Gen Z employees stressed the value of wellness-related technology in the office (for example, to manage lighting and air quality for an optimal environment). Gen Z are tomorrow’s top performers (if not today’s). Smart organisations will nurture their talents and provide them the flexibility and support they expect.
- Embrace emerging tech: Gen Z may stand out, but they are not the only group that expects great, trusted technology. For example, 90 per cent of employees see value in collaboration tools. However, only 32 per cent of employers are investing in the high-grade collaboration technology that supports flexible, hybrid work models. At the same time, AI is driving a revolution in the workplace (wherever it may be). Yet only 44 per cent of employers are investing in it. Organisations that invest in networking, security, AI, and collaboration foundation to adequately support this future hybrid workforce will draw top talent and stay competitive. Their workers will be both more flexible and productive.
These findings represent a clear wake-up call for leaders and organisations. The employee-employer gap is most pronounced among Gen Z and top performers, who are optimistic about technology and vocal in demanding investments. These trends will accelerate as Gen Z rise in leadership.
Communication is a big part of leadership, but only 36 per cent of employees felt that return-to-office mandates were explained clearly. Katsoudas sees this as an opportunity for leaders to implement clear discussions on what work models are best for a particular team or individual.
“It’s so important for leaders to really lead here and drive the conversation with their team members, asking, “How do we work best as a team?” she said. “How do we improve our performance? What is working and what’s not? What outcomes are we working toward, and how often do we need to be together to reach them? When we have these kinds of discussions, it’s natural to broach the topic of where it makes the most sense to work.”
To remain competitive, organisations must act now to meet evolving workforce needs. Employees — especially the most talented — expect to work from anywhere. The office remains a vital hub for collaboration, socialising, and team building, but success depends on closing the trust gap and upgrading leadership, policies, technology, and office spaces to fit today’s flexible workforce.