Five Hybrid Work Models and The Challenges and Implications For Agencies

What do we mean when we say a hybrid work model? As a simple definition, hybrid work is where employees of an organization can choose to do their job from different locations: home, the office, or anywhere. However, there are many ways to operationalize a hybrid model.

If you were to ask ten agency principals what their hybrid model looks like, there’s a good chance you’ll hear ten different answers. That’s because there’s not a one-size-fits-all solution. And that’s OK. Each agency will and should have its own point of view about what’s right for them.

If you’re planning or evaluating a hybrid model for your own agency, then you should start with an understanding of the five most common types of models and their implications.

Each model offers a different degree of company control over employees and different levels of agility, and each requires a different level of “intentional leadership.” Models that offer less company control mean employees will have greater autonomy. These models require agency leadership to be more intentional about redesigning how their agency operates, how teams work together, how relationships are formed, and how growth and performance are measured.

Five Hybrid Work Models and Their Implications For Agencies
Source: lodestaragencyconsulting.com

In the hybrid-remote model and the others that offer more autonomy to employees, it becomes more challenging for teams to perform at their best. The reason is that most agencies and teams are not experienced working with the increased degrees of autonomy, agility, and intentionality. They are not often equipped with the right mindset, skills, or structure and managers require upskilling.

In speaking with different agency principals, most seem to initially gravitate toward a model that matches with their agency’s cultural values and their own personal beliefs about which would be best for productivity, culture building, and clients. This makes perfect sense. The hybrid-remote model has been emerging as the most popular.

I’ve also looked at how other organizations in industries outside of advertising are adopting hybrid models. What I’ve learned is that companies like Hubspot and others that started with “company control” models have typically worked their way over to the models that instead offer employees more autonomy. More often than not, they seem to land on a hybrid-remote or fully-flexible model.

Which of these five models feel right for your agency?

1. Office-first

What is it?

All employees come into the office most of the time (3-4 days). The agency designates one or two days each week for staff to work from another location. As an example, “all staff needs to be in the office every day except Wednesdays, but on Wednesdays, employees can not only work remotely, they can also decide their working hours.”

How would it impact communication, collaboration, and relationships?

  • Primarily in-person.

  • Minimal amount of video calls/meetings.

  • Relationships can develop naturally through in-person interactions.

How would it impact recruitment/hiring?

  • You’ll focus on local talent.

How would it impact your office space?

  • You’ll maintain your local dedicated office space.

What are the benefits?

  • You don’t need to rethink all that much about how your people work.

  • Employees will have a dedicated office space.

What are the challenges?

  • You’ll be communicating that you know what’s best for your people’s productivity and making the decision for them about how they should work. This message may not resonate with your employees or talent pool in our current environment.

  • You’ll be limited by local talent.

2. Remote-allowed

What is it?

Some employees are allowed to work remotely either all or part of the time. Local employees would be required to come into the office, but they can schedule work-from-home (WFH) days. Out-of-state employees work remotely but are typically expected to travel to be with others in the office on a periodic basis (i.e., monthly, quarterly, etc.).

How would it impact communication, collaboration, and relationships?

  • Primarily in-person.

  • Minimal amount of video calls/meetings except when working with the minority of remote employees.

  • Relationships can develop naturally through in-person interactions.

How would it impact recruitment/hiring?

  • You’ll focus on local talent unless there was a reason to look out-of-region.

How would it impact your office space?

  • You’ll maintain your local dedicated office space.

What are the benefits?

  • It offers more flexibility compared to the office-first model.

  • You won’t need to rethink all that much about how your people work, except for the minority of remote employees.

  • Employees will have a dedicated office space.

What are the challenges?

  • This approach will seem unfair to some.

  • The onus will be on remote employees to be intentional about interacting with others and traveling to the office.

3. Hybrid-remote

What is it?

Employees have a range of options to choose from. They can choose to work remotely full-time, work from the office a certain number of days per week, or work from the office every day. They must commit to one of those three options.

How would it impact communication, collaboration, and relationships?

  • It will be mixed.

  • Moderate amount of video calls/meetings to support remote employees.

  • Moderate asynchronous communication.

  • Only some relationships will still develop naturally through in-person interactions.

How would it impact recruitment/hiring?

  • You’ll have the flexibility to focus on local or out-of-region talent.

How would it impact your office space?

  • You’ll want to rethink the size and configuration of your office space based on the number of employees that commit to in-office work.

What are the benefits?

  • Employees can opt for an arrangement that is best for them.

  • It offers predictability for colleagues and the business.

  • You could potentially downsize your office.

What are the challenges?

  • Individuals may want to change their preferences for where they work further down the road.

  • You’ll need to rethink how hybrid teams work and meet to ensure they are properly supported and to maintain an inclusive environment.

  • Communication can become more transactional for remote members, while in-office employees will have greater relational interactions.

  • The onus will be on all employees to be more intentional about their interactions and planning work with others.

  • You’ll need to rethink how professional growth and career advancement is handled to ensure that remote employees are not at a disadvantage.

  • You’ll need to plan and budget for bringing everyone together in-person for relationship- and culture-building.

  • Agency leaders and managers will likely need training to help manage hybrid teams.

4. Fully-flexible

What is it?

Employees choose what they want to do whenever they want. If they want to work remotely or from the office, they can decide as it suits them.

How would it impact communication, collaboration, and relationships?

  • Most work will be done through video calls/meetings and asynchronous communication.

  • Few relationships will still develop naturally through in-person interactions.

How would it impact recruitment/hiring?

  • Location will not matter unless a time zone presents an issue.

How would it impact your office space?

  • You’ll want to downsize your office space.

  • Alternatively, you can close your office and use a co-working membership giving employees access to a limited amount of private dedicated space and the use of always-available open seating (still in a quiet environment).

What are the benefits?

  • Employees can opt for the arrangement that is best for them.

  • With this model, you are communicating that employees can decide how they work best. This message will resonate well with employees and the talent pool in our current environment.

What are the challenges?

  • If you downsize your office, then in-office work will be subject to available space.

  • You’ll want to create a system for letting people know who will be in the office at any given time.

  • If you have roles that must be in the office, this model will feel unfair for them.

  • Similar to the previous model, you’ll need to rethink how hybrid teams work and meet to ensure they are properly supported and to maintain an inclusive environment.

  • Similar to the previous model, communication can become more transactional for remote members, while in-office employees will have greater relational interactions.

  • Similar to the previous model, the onus will be on all employees to be more intentional about their interactions and planning work with others.

  • Similar to the previous model, you’ll need to rethink how professional growth and career advancement is handled to ensure that remote employees are not at a disadvantage.

  • Similar to the previous model, you’ll need to plan and budget for bringing everyone together in-person for relationship- and culture-building.

  • Similar to the previous model, agency leaders and managers will likely need training to help manage hybrid teams.

Suggested requirements:

  • Teams should use a Team Charter, which is a team-level agreement for alignment around how the group will operate to produce their best work. A Charter will help teams get ahead of the common questions and challenges that can come up when working as a hybrid or remote team. It helps teams prevent confusion, feelings of isolation, and frustration.

  • Local and out-of-state team members should have decision-making authority for when to travel for in-person collaboration.

5. Remote-first

What is it?

Employees work remotely from anywhere which helps them be productive. The agency will provide a stipend for a co-working space membership or to help with a home-office setup.

This model is based on a significant philosophical shift from the other models. A remote-first model suggests that employees are expected and empowered to work remotely whereas remote-allowed and office-first allow them to work remotely.

There’s also an operational difference. Remote-first agencies build processes, systems, and culture around remote work first, rather than building around in-office work as the norm or priority.

How would it impact communication, collaboration, and relationships?

  • Video calls/meetings and asynchronous communication is the norm.

How would it impact recruitment/hiring?

  • Location will not matter unless a time zone presents an issue.

How would it impact your office space?

  • You won’t have a dedicated physical office. You’ll use a co-working space, giving employees access to a limited amount of private dedicated space and the use of always-available open seating (still in a quiet environment).

What are the benefits?

  • Employees can opt for the arrangement that is best for them — a remote location or a private co-working space.

  • Everyone will be remote, which creates consistency in how they work. Team members will have fewer hybrid meetings, which have a level of complexity.

  • Co-working space offers flexible commitments compared to long-term leases for traditional office space.

  • Your office costs will be lower (potentially).

  • With this model, you are communicating that you have invested in making remote work a cornerstone of the employee experience at your agency.

What are the challenges?

  • Use of private dedicated co-working space will be subject to availability.

  • You’ll need to rethink how remote teams work and meet to ensure they are properly supported and to maintain an inclusive environment.

  • Communication can become more transactional. You’ll need to be intentional about having relational interactions and developing cultural rituals as a remote company.

  • The onus will be on all employees to be more intentional about their interactions, planning work with others, and relationship building in an all-remote environment.

  • Similar to the previous model, you’ll need to rethink how professional growth and career advancement is handled as a remote company.

  • Similar to the previous model, you’ll need to plan and budget for bringing everyone together in-person for relationship- and culture-building.

  • Similar to the previous model, agency leaders and managers will likely need training to help manage remote teams.

Suggested requirements:

  • Teams should use a Team Charter, which is a team-level agreement for alignment around how the group will operate to produce their best work. A Charter will help teams get ahead of the common questions and challenges that can come up when working as a remote. It helps teams prevent confusion, feelings of isolation, and frustration.

  • All team members should have decision-making authority for when to travel for in-person collaboration.

Brian Kessman

Brian Kessman is the Founder and Principal Consultant of Lodestar Agency Consulting. Brian partners exclusively with agency leadership teams to transition their firms from time-based revenue to value-led growth. He does this through positioning strategy, revenue models, pricing strategy, and operating model design. Brian developed Lodestar’s agency solutions based on his 20+ years as a leader in brand strategy, interactive, product design, and full-service agencies across the US. His work draws on principles and tools from Agile, Lean, and other management innovations and future-of-work movements. Through his consulting and as a frequent speaker for industry associations, such as the 4As, Mirren, AMIN, TAAN, Worldwide Partners, Worldcom, MAGNET, Bureau of Digital, and others, Brian's goal is to help agencies develop focused, value-driven, AI-integrated offerings and operating models. Set a Free Consultation with Brian

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