HR Benefits of Hybrid Working in 2026

Hybrid working has become a standard feature of the modern workplace rather than a temporary measure. In 2025, the Chartered Institute of Personnel and Development reported that around 74% of organisations have a hybrid working model in place, with many citing benefits for recruitment, retention and employee wellbeing.

HR managers are increasingly recognising that hybrid working is central to people strategy. Many employees now expect flexibility, and research links hybrid models to improved wellbeing, engagement and retention, making a hybrid approach a key recommendation for organisations seeking to remain competitive and meet modern workforce expectations.

Here are five well‑known companies with hybrid working models

• Microsoft (228,000 employees)
• HSBC (211,000 employees)
• Google (190,000 employees)
• American Express (75,100 employees)
• Shopify (8,100 employees)

We also know HR experts are saying businesses who are not offering flexible working of some kind are likely to lose out on as many as 70% of candidates in the US. It is clear to see flexibility really matters to employees, but what are the benefits of hybrid working to human resources? It turns out there are more than we may have imagined.

HR plays a crucial role in designing hybrid working policies and frameworks that support employee mental health, engagement and work-life balance. Clear guidance and flexible structures help employees get the most out of hybrid arrangements while also supporting organisational performance. Keyways HR can support hybrid working include:

• Implement clear hybrid policies – HR policies can provide structured frameworks and guidance that help employees understand expectations, navigate flexible schedules, and make the most of hybrid work arrangements.
• Enable flexible working arrangements – HR can support employees in managing workloads and taking necessary breaks, helping prevent fatigue and emotional exhaustion.
• Provide mental health resources and guidance – HR can offer tools and support that help employees feel more in control of their work environment and reduce anxiety related to office pressures.
• Support work-life balance – HR can design policies that allow employees to balance personal commitments with professional responsibilities, improving focus and job satisfaction.
• Facilitate meaningful social interactions – HR can structure office days and team check-ins to prioritise collaboration and relationship-building, supporting engagement and a sense of belonging.

Organisations are increasingly recognising that hybrid working delivers benefits beyond operational efficiency, with employee wellbeing and mental health emerging as key drivers of engagement and performance. Evidence suggests that adopting flexible work models can deliver significant cost savings while supporting a more engaged and productive workforce.

A report by Global Workplace Analytics and DPG based on US employees found that hybrid working could save employers $500 billion annually for a combination of reasons including:

One of the notable benefits of hybrid working is the removal of the morning and evening commute for part of the week. Often seen as ‘dead time’ sitting in traffic or on public transport, removing the commute allowed families to have breakfast together, get some exercise or enjoy more sleep. A FlexJobs survey of more than 4,000 US employees found that 73% said working from home improved their work life balance.

This isn’t always the case though, an international study by SAP, Qualtrics and MindShare of employees located in Australia, France, Germany, New Zealand and Singapore found 40% of employees believed their mental health had declined while they were working from home. A separate survey by Twingate said more than 1 in 5 employees acknowledged missing something from their office life they weren’t expecting to.

Employees’ experiences of work-life balance while working remotely are mixed, which is where HR input is critical. Outcomes can be influenced by industry, role, and organisational culture. HR leaders should understand how employees in their business are experiencing hybrid working and provide guidance to help them achieve the right balance between work and personal life.

Hybrid working has been shown to correlate with fewer sick days and lower rates of absence compared with traditional office-only or fully remote models. Research by the International Workplace Group found that more than a third (36%) of employees take fewer sick days now that they have some flexibility over how and where they work, with greater flexibility allowing them to manage minor illness while remaining productive and engaged.

This suggests that hybrid working not only supports employee wellbeing but can help maintain workforce continuity, as staff feel supported to balance health needs with work demands rather than needing to take formal sick leave.

If there is one thing that the pandemic finally put to rest, it was the misconception that employees are less productive working from home. HR leaders discovered that employees were more adaptable than anticipated.

Research by Accenture supports this with 40% of employees feeling as productive working from home as they do in the office or doing a combination of both. When it comes to choosing an overwhelming 83% preferred a hybrid working model where they could spend 25% of the time in the office. Hybrid working enables employees to enjoy the best of both worlds, and HR experts suggest this balance is likely to have a positive impact on overall productivity.

Employee retention continues to be a key priority for HR leaders, as flexibility has become a major factor in career decisions. Research from the Chartered Institute of Personnel and Development shows that around 1.1 million workers in the UK left a job in the past year because it did not offer sufficient flexible working options. Offering hybrid working can help retain valuable talent, reduce turnover, and demonstrate that your organisation prioritises employee wellbeing and work‑life balance. 

The hybrid model of working is also effective for attracting new talent. Flexible working is now a key consideration for jobseekers when evaluating roles. A survey by NIJobs Recruiter News found that 84% of jobseekers are more likely to apply for positions with a clearly defined hybrid working policy, and 60% prefer a mix of office and home working.

Offering hybrid options can therefore broaden your talent pool and make your organisation more competitive in the job market.

Hybrid working can be a benefit to your diversity and inclusion strategy too. If clearly communicated and pursued by all employees, flexible working should make it easier for a broader spectrum of society to join your workforce.

People with caring duties, disabilities or other responsibilities that make full time office attendance challenging can work with HR to find a schedule that works for you both. However, it is important to remember for true diversity and inclusion, it must be possible for those who are not able to work from home to have the option to work from the office on a full-time basis.

For additional insight into how work arrangements affect wellbeing, the Allianz Partners Global Working from Home Report highlights the emotional and psychological experiences of people working remotely, including aspects of connectedness, support and overall wellbeing.

Hybrid working offers clear benefits for both employees and organisations, from improved wellbeing and mental health to increased productivity and talent retention. HR leaders and managers play a crucial role in designing policies, supporting flexible arrangements, and fostering a positive hybrid culture.

Implementing thoughtful strategies and monitoring outcomes helps organisations create a work environment that meets modern expectations while driving engagement, performance, and long-term success.