In this article, we will be discussing the pros and cons of hybrid teams from a financial standpoint. That said, this article is best suited for finance directors, managers and company owners.
When it comes to comparing hybrid working to the traditional office 9-to-5, the opinions are still very split. Although the new approach is proven to be highly effective, companies with a strong office culture or those with a majority of older workers seem to still favour the old setup. Is it wise to give them what they want, or should you prioritise keeping the team hybrid to improve its efficiency? There are pros and cons to both sides of the coin. Both approaches offer a unique set of challenges.
We believe that hybrid working is the future. However, this is not an approach that works for absolutely everyone. In this article, we will lay out the key advantages and disadvantages of it from the perspective of the finance team as their lives are the most affected. And then it’s up to you to decide whether the pros outweigh the cons.
What are the Challenges of Hybrid Working for Teams?
While regarded as an innovative and more flexible way of working, the hybrid approach still comes with a set of challenges. Here are some of the most common ones:
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Ineffective onboarding;
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Difficulties in communication;
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Lack of employee engagement;
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Overhead and labour costs;
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Difficulties calculating correct rates;
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Collaboration barriers;
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The team’s unwillingness to adapt
There are more, but these are the most common offenders. While all these challenges are very valid and important, our focus today is looking at the pros and cons of hybrid teams from a financial standpoint and how they affect the day-to-day operations of the finance teams.
Benefits of Hybrid Teams
We will start with the positives. Although there are plenty of challenges to overcome, hybrid teams are known to excel in efficiency and therefore bring back a hefty return on investment. But there is more than that. Going hybrid can significantly cut your overall costs and improve multiple areas of the business.
Multi-purpose Digital Tools
One of the key benefits of utilising hybrid teams is the fact you will need digital solutions to support this work arrangement. Now this does sound weird - how is spending money on new software a benefit? Simple. SaaS technology is often rather competitive price-wise and yet it offers many features, most of which can be utilised across different areas of the business. That said, most of today’s digital tools are multi-purpose.
For example, a timesheet solution your teams might use to build smooth workflows when working both on-site and remotely can help you easily calculate how much each employee is owed for the hours they worked. Alternatively, it can ease the task of raising invoices if you’re using the help of contractors. Even if all your employees are salaried, a timesheet solution often comes with other useful features such as holiday management, onboarding and so on. This is just one example. Different tools will bring different benefits to the table.
Cutting Costs on Office Maintenance
Going hybrid can do wonders for your budget for the simple reason of needing less office space and using fewer utilities within it. Amidst the cost of living crisis, this can be a huge game changer. Fewer people in the office means you might be able to downsize the premises, which can help you cut rental costs. Also, since it won’t be an everyday commute to the most, you may even relocate the office to a more remote but more affordable location.
Even if getting a different office location isn’t an option, you will still save a lot of the budget by moving your teams to the hybrid model. Some costs are evident: electricity, water, gas, internet broadband… While others are often forgotten, despite still stacking up in the account books. Think water cooler, snacks, toiletries and other everyday things we take for granted. Naturally, with fewer people around at all times, these consumables won’t need to be replaced as often. While some may call this penny-pinching, you need to remember that every penny matters when it comes to speeding up towards your goals.
Disadvantages of the Hybrid Approach
Unfortunately, everything can’t be perfect and hybrid working also has areas it falls short of. There are solutions to these caveats, and we will offer them alongside the common issues that arise from employing this working approach.
You Will Most Likely Face Irregular Rates
The hybrid office doesn’t always mean simply having some of the team work remotely, and some work on-site. There are many variations of it as it’s a highly flexible approach, offering every company to tailor their own twist on it. For example, some companies like to experiment with flexible hours, which is also part of a hybrid. The problem that stems from it, however, is that often working different hours means different pay. With every employee working a mixture of differently-priced hours, this can easily turn into an accounting nightmare.
Irregular rates are generally a massive headache, so why would you subject yourself to dealing with them further? The answer is that this is an inconvenience modern digital solutions easily tackle. In other words, you don’t have to postpone going hybrid for fear this will increase your workload in terms of processing payments due to irregular rates. The right time tracking and accounting tools will do all the heavy lifting for you.
Adjusting to New Solutions
Even if your business is ready to embrace the innovative way of working… Your team may not be. Not everyone likes the change, especially when it comes to the day-to-day processes they are used to. Going hybrid is bound to bring the said change, not only in how your business operates but also in solutions your workers will now be expected to use. Be prepared that some of your employees will be very hesitant to start utilising them.
This is why it’s best to not only give your team a heads up but also start training them on using the tools before they are left with no other choice. Don’t try to force them on. Instead, focus on communicating and proving their use to each team member individually, especially the stubborn one. Understanding the benefits is crucial for one to invest time and effort in mastering a new tool, especially if it brings significant change to their usual processes. Patience and willingness to educate your staff will sway even the least tech-savvy workers.
Determining if Hybrid is for You
As we’ve stated in the beginning, hybrid is gaining popularity across all industries, but it’s still not a one-fits-all approach. Before you take the steps to make your team hybrid, make sure it is the best way forward for you.
Do Pros Outweigh Cons?
Realistically, only you can answer this question. While we are firm believers that the hybrid model is the future and is highly beneficial to all companies, you know your organisation and your team the best. Sometimes it’s something as simple as the office culture that makes the change of the working arrangements counter-active. In other words, we encourage you to make the decision based on your own judgment.
Take into consideration what are the overall values of your company and what goals you are striving to achieve. Compare them against your existing team and their dynamics, work preferences and the office climate. Lastly, pull your budget into the equation. With these things aligned, you should be able to reach a conclusion easily. A hybrid model is highly flexible, but it is not a solution that will work for every business with no exception. Just like everything, it has its own flaws. And it’s up to you to decide whether these flaws will disrupt your journey or if they only cause mild inconveniences.
Summary
Just like anything, hybrid working has its pros and cons. While it’s a very liberal working model that allows companies to create their own system to match their needs, it may still not be the best option for everyone. One of the main pros is that tools adopted to support hybrid working can be effectively used across other areas of the business, making them more efficient through automation. And while purchasing these tools brings additional costs, it is somewhat evened out by the fact working hybrid reduces office-related costs.
However, depending on your setup, this can make the calculation of irregular rates more complicated. With the right software, however, you will never have to worry about handling this process manually and making mistakes. On the other hand, the next con stems from the fact new tools may not be welcomed by the rest of the team. But that too is easily avoidable by introducing early training and communicating the benefits.
Does hybrid sound like it’s worth a shot? Start adopting it with Timesheet Portal.
