Image: The impact of hybrid working on work-life balance- developed by author using Open AI (Open AI, 2024)

By Ayah Tarek Moneeb, Lecturer in Business Management and Module Lead, FSB Digbeth, Article Date: 11 Dec 2024

The human resources department within any organisation is responsible for managing all the functions related to the business human resources. It involves numerous employee’s management aspects such as talent management, recruitment and selection, performance management, employee relationship management, compensation and benefits, and training and development (Widarni and Bawono, 2020). On the other hand, the modern human resources management function is more concerned with the strategic aspect, which considers the long-term impact of HR policies and practices on staff development (Dessler, 2013). Human resources management is undoubtedly crucial for business sustainable performance, this should be implemented fairly to promote the organisation’s values and culture (Sims and Bias, 2021). Therefore, managing the employees is not only a day-to-day operational activity. However, it is a continuous staff management and development process, aligning staff individual goals with the whole entity’s strategic mission and achievements. This is supported by the soft HRM theory developed by Michael Beer in 1984, where staff motivation, development, and engagement are prioritised, encouraging long-term commitment and aligning employees own goals with organisational objectives (Storey, 1987). A recent report published by the Chartered Institute of Personnel and Development (CIPD) has shown that the human resources profession has flourished dramatically, with almost a fifty percent increase in the HR workforce during the last ten years (Jackson, 2022).

Staff benefits can be defined as the non-monetary compensation offered to employees rather than their wages, salaries, or bonuses. It mainly aims to increase staff satisfaction, promote their well-being, and accordingly enhance their retention rates (Armstrong and Taylor, 2020).  Benefits can be categorised into statutory and discretionary. In the UK, paid annual leaves, pensions, and sick pay (SSP –Statutory Sick Pay) are among the benefits granted to employees by law (GOV.UK, 2024). However, the voluntary benefits might entail other procedures, such as private health insurance, flexible work schedules, or profit shares (Dessler, 2013; Taylor, 2022; Armstrong and Taylor, 2020).

According to the CIPD (2023), the hybrid working patterns have been widely implemented by most of the organisations in the UK after the pandemic, where employees can fulfil their working hours either on-prem or at home. Work-from-home, as a flexible working arrangement has demonstrated a significant impact on staff retention, this was supported by a study conducted by the Chartered Institute of Personnel and Development (CIPD), where flexible working schemes including remote work, significantly improve employee satisfaction and reduce turnover rates. Accordingly, employees who have access to such benefits are more likely to feel valued and supported by their managers, fostering loyalty and long-term commitment to the organisation itself (CIPD, 2023). Another report by McKinsey & Company (2022) found that more than half of employees surveyed globally would consider leaving their jobs if remote work options were eliminated, underscoring its importance in retaining modern, diverse workforces. In the UK, the work-from-home phenomenal is particularly relevant due to the growing demand for flexible and hybrid work environments after the widespread of COVID-19 virus. Therefore, the impact of work-from-home on the strategic human resources management is becoming debatable among scholars and researchers.

Work-from-home (WFH) patterns have a crucial impact on staff well-being, supported by theoretical frameworks like Maslow’s Hierarchy of Needs and empirical evidence. According to Maslow (1943), meeting psychological and safety needs is vital for overall human well-being. WFH facilitates these by allowing employees to work in a safe, familiar environment while reducing stressors like long travels, which often compromise work-life balance. Statistical evidence corroborates these theoretical insights. A report by Deloitte (2023) highlights that 77% of employees working remotely report improved mental health due to better control over their work environment and schedules. Similarly, the Office for National Statistics (ONS) found that remote workers experience a 36% reduction in work-related stress compared to those in traditional office settings (ONS, 2022). Furthermore, the Job Demands-Resources (JD-R) model posits that reducing workplace demands, such as rigid schedules and interpersonal conflicts, while increasing resources like autonomy and flexibility, positively impacts employee engagement and reduces burnout (Bakker & Demerouti, 2007). WFH aligns with this by offering autonomy, a critical resource that fosters job satisfaction. Nonetheless, challenges remain. The ONS (2022) also noted that remote workers might face social isolation, emphasizing the need for strategies that maintain connectedness. Balancing the benefits of WFH with potential drawbacks is key to optimizing its impact on well-being. However, engaging staff while they are working from home addresses several challenges. One significant issue is maintaining effective communication and collaboration, as remote teams may struggle with reduced face-to-face interaction and misunderstandings (Schiemann, 2021). Additionally, managing employee performance can be more difficult without direct supervision, which may lead to concerns about productivity and accountability (Kniffin et al., 2020). Furthermore, maintaining team cohesion and morale remotely requires extra effort from managers to foster a sense of connection and engagement, particularly in large or dispersed teams (Gartner, 2022). These complexities require strategic planning and adaptive leadership. Moreover, using digital tools like MS Teams, One Drive, or Google meets can help the organisations managing their teams virtually.

In conclusion, the integration of work-from-home (WFH) benefit into Strategic Human Resource Management (SHRM) is a crucial step in enhancing both employee well-being and organizational success. By offering flexibility, autonomy, and a better work-life balance, WFH contributes significantly to employee satisfaction, mental health, and overall job engagement. SHRM practices that focus on the well-being of employees through remote work initiatives not only improve staff retention but also foster a more productive and loyal workforce. However, it is essential for organizations to address potential challenges, such as social isolation, by creating supportive virtual environments and maintaining effective communication. Furthermore, the proper leadership style that make the best use of the current technological developments would add a value for virtual teams’ management. Ultimately, when executed strategically, WFH policies can drive long-term organisational growth while ensuring employees feel valued and supported in their work environments.

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