The Challenges of Hybrid Work: Striking the Right Balance

Hybrid work has become the standard for many organisations, offering flexibility in how, where, and when employees work. While this shift has delivered efficiency gains, reduced commuting time, and improved work-life balance, it has also introduced challenges around collaboration, inclusion, and employee wellbeing.

For New Zealand employers, the task now is to build hybrid work models that maximise benefits while addressing the very real difficulties this way of working can present.

The Impact of Hybrid Work on Collaboration and Inclusion

One of the main challenges of hybrid work is maintaining collaboration. Studies, including research from Microsoft, show that teams struggle to build strong relationships when connections start online rather than face-to-face. This can affect long-term teamwork and productivity.

At the same time, remote and hybrid work have created new opportunities for inclusion. More than half (52%) of remote workers feel more included in virtual meetings, yet almost 60% also report feeling disconnected from colleagues. These contrasting findings highlight the importance of deliberately fostering a sense of belonging and community in hybrid teams.

If maintaining balance is a challenge, check out our article on Balancing Work and Wellbeing: Strategies for Better Self-Care for practical tips.

The Challenges of Hybrid Work for Businesses

While hybrid work offers many advantages, it also presents risks for organisations if not managed carefully.

• Reduced collaboration and innovation: Without in-person interactions, there are fewer chance encounters that spark ideas, and communication can become fragmented.
• Inequality between remote and on-site staff: Visibility bias can favour those in the office, while remote employees may feel sidelined or miss out on opportunities for advancement.
• Leadership and management difficulties: Monitoring performance and providing on-the-job training for new employees is harder when teams are dispersed.
• Security and compliance risks: Remote work environments can expose businesses to cyber threats, and employers must still meet obligations under New Zealand’s Health and Safety at Work Act.
• Employee wellbeing concerns: Blurred boundaries between home and work can increase burnout risk, while reduced social contact may contribute to loneliness or disconnection.
• Operational inefficiencies: Companies often pay for underutilised office space while also investing in new systems for remote work. Coordinating hybrid schedules can also become a logistical challenge.

These issues highlight that hybrid work is not a “set and forget” model. To avoid negative impacts, businesses must be proactive in designing systems, culture, and processes that make hybrid work sustainable for the long term.

The Challenges of Hybrid Work for Employees

While hybrid work offers flexibility and freedom, it can also create difficulties for employees if not managed well.

One of the most common issues is blurred boundaries between home and work. Without a clear separation, many employees find themselves working longer hours, making it harder to switch off and recharge. Over time, this can lead to stress and burnout. For strategies to help maintain balance, read our article on Balancing Work and Wellbeing: Strategies for Better Self-Care.

Isolation is another challenge. With fewer face-to-face interactions, some employees experience loneliness or feel less connected to their colleagues, which can impact motivation and morale. Career progression is also a concern, as remote staff may worry about being overlooked for promotions or development opportunities compared to those regularly seen in the office. To prepare for these opportunities, check out our article on How to Prepare for an Interview.

Technology use can add to the strain. Back-to-back virtual meetings often lead to fatigue, while employees working from home may also face distractions or lack the right equipment and ergonomic setup. These factors can reduce productivity and affect overall wellbeing.

For employers, being aware of these challenges is critical. Providing support, clear communication, and equal opportunities for both in-office and remote staff helps ensure hybrid models work for everyone.

The Benefits of Hybrid and Remote Work

For many New Zealand businesses, the benefits of hybrid work are significant. Remote meetings are typically shorter and more focused, with meeting times reduced by around 20%, allowing more time for other important tasks.

Stats NZ data shows the average commuter saves approximately 7.5 hours per week by working from home—reducing both costs and stress while helping to ease traffic congestion and cut emissions. Employers are also seeing positive impacts on wellbeing. BusinessNZ has reported a 25% decrease in sick leave applications since the rise of remote work, largely because employees can continue to work from home when mildly unwell. Employment New Zealand has also found that 80% of workers report improved work-life balance thanks to increased flexibility.

Beyond productivity and wellbeing, hybrid work offers businesses and employees a range of additional advantages. Employers gain access to wider talent pools, as geography is less of a barrier when hiring. This is particularly valuable in New Zealand, where certain regions face ongoing skills shortages. Hybrid models also support retention, with flexibility ranking among the top factors that keep employees engaged and loyal. You can read more about these hiring trends in our article on Navigating a Candidate-Rich Market.

From a business perspective, reduced demand for office space and carparks can lower overheads, while fewer commutes contribute to environmental sustainability — aligning with the growing focus on corporate responsibility. Learn more about this in our article on Embedding Corporate Social Responsibility in New Zealand’s Evolving Business Landscape.

Hybrid work also opens doors for greater diversity and inclusion, giving opportunities to parents, people with disabilities, and those outside major centres. Our article on Supporting Parents in the Workplace highlights how flexible arrangements can help businesses create more inclusive environments.

Employee Expectations in 2025

Across New Zealand and Australia, employees increasingly see flexibility as non-negotiable. A global survey by The Adecco Group revealed:

• 85% of Australians believe flexibility is beneficial
• Nearly half (49%) want to spend half their working week at home
• 74% view hybrid work as the ideal model

Locally, SEEK reports that work-life balance continues to be the top driver for job seekers in New Zealand—more important than salary and other benefits. This reinforces the point that organisations competing for top talent must embrace hybrid solutions.

Building a Balanced Hybrid Model

To succeed, employers must actively design hybrid workplaces rather than letting them evolve by accident. This means rethinking:

• Workplace design – offices should be spaces that encourage collaboration, innovation, and community, not just rows of desks.
• Communication habits – inclusive practices are essential so that remote workers feel equally valued and engaged.
• Wellbeing support – employers need to prevent burnout, respect work–life boundaries, and provide access to mental health resources.

Adapting these practices requires consistent feedback loops. By listening to employees and being open to iteration, businesses can create hybrid models that deliver long-term success.

Conclusion: The Future of Work in New Zealand

The future of work in New Zealand is undeniably hybrid. When well-managed, it offers flexibility, productivity, and better work-life balance. But success requires careful planning, inclusive practices, and ongoing support for both employees and employers.

For employers, building a strong hybrid model is also about finding the right people. If your business is looking for talent, you can submit a vacancy with Adecco and connect with skilled professionals across New Zealand.

For job seekers, hybrid work creates new opportunities to shape a career that fits your lifestyle. Explore our latest job listings to see where your next step could take you.

And for all readers, you can keep up to date with workplace insights, career tips, and hiring trends through our full library of articles at adecco.co.nz/news.