Hybrid Work May Hold Key to German Talent Retention

German businesses are increasingly embracing a work model that seamlessly blends in-office, at-home and on-the-go work environments and are investing in end-user technology that supports this paradigm, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens Future of Work (Workplace) Services report for Germany finds businesses that embrace the hybrid reality by focusing on employee experience and workplace well-being will be well positioned to attract and retain the talent needed for success. Hybrid work challenges German organizations to reinvent the office while at the same time coping with government regulations, increased security concerns and flexibility demands, the ISG report says.

“Managed service providers are facing a fundamental shift in the traditional norms and expectations of work,” said Martin Mitrega, director, EMEA collaboration and experience solution center, for ISG. “German firms are moving toward more people-centered approaches in employee experience and workplace well-being.”

Some traditional German businesses, known for their preference for established structures and face-to-face interactions, have been reluctant to embrace the hybrid work model, the ISG report says. Unfortunately, that reluctance may be taking its toll on the German workforce. A recent global study by Unispace found that mandatory return-to-office policies are having a detrimental impact on German recruitment efforts. According to that study, 34 percent of employers (one of the highest rates in Europe) say they have struggled to attract talent since the introduction of such a policy.

And yet a hybrid model is no automatic panacea for dissatisfied workers. A recent Gallup survey found that only 16 percent of German workers consider themselves engaged. According to the ISG report, organizations need to tailor their hybrid working models carefully to avoid disengagement and increased stress. To that end, many organizations in Germany and elsewhere are turning to providers to help them find appropriate strategies to balance the expectations of new employees and improve the onboarding experience, ISG says.