Owl Labs’ 2025 State of Hybrid Work Report finds the brand new frontier of flexibility is when workers work, not the place

Owl Labs, the primary firm to construct AI-powered, 360-degree video conferencing options for hybrid organizations, right this moment launched its ninth annual State of Hybrid Work Report. Owl Labs surveyed 2,000 full-time information staff in the USA to unpack the most recent developments and views round distant, hybrid, and in-office work. The report finds that as in-office attendance quietly rises, schedule flexibility, AI and IT have turn into more and more essential to staff who’re making an attempt to reclaim their time whereas balancing rising in-office pressures.

“Our newest report reveals that office flexibility has entered a brand new period: it’s not nearly the place we work, but in addition when,” mentioned Frank Weishaupt, CEO of Owl Labs. “As employers push for extra in-office days, workers are pushing again for management over their time. Employers ought to take into account how they’ll present extra flexibility for workers to get work achieved on their very own phrases, preserving their general happiness and satisfaction at work.” 

The brand new frontier of labor flexibility is when workers work as a substitute of simply the place

After spending the previous 5 years debating very best working areas, when folks work is the most recent matter within the flexibility dialog. Practically half of staff (47%) should not have the general work flexibility they need, with 37% of workers saying they wouldn’t settle for a job provide from an organization that doesn’t enable versatile working hours, in comparison with simply 35% final 12 months. A 4-day work week is without doubt one of the most coveted advantages, with 27% of staff saying it will be interesting if a potential employer provided it. Staff would even be keen to sacrifice 9% of their salaries for versatile working hours and eight% for a 4-day work week.

Work-life calendar boundaries have gotten extra fluid, as almost one in three staff (30%) should not have a transparent begin or finish to their workdays. Greater than half of staff (59%) schedule private appointments throughout conventional working hours, with 38% taking as much as an hour and 17% taking as much as 90 minutes a day, lunch break excluded. Staff’ differing schedules are evident within the discovering that almost all (82%) want conferences to finish by 4 pm. The idea of “microshifting,” or structured flexibility with brief, non-linear work blocks, can also be gaining traction, with 65% of workplace staff within the concept, rising to 69% for Gen Z and 73% for millennials.

This might be as a result of work hours typically battle with the timing of household duties, as 62% of workers surveyed are caring for kids at house. Of people who have kids at house, 76% are millennial and 52% are Gen Z. The “second shift” has lengthy been a pattern for folks within the office who must take a while within the night for college pickup, dinner and bedtime routines, after which end up their work after their kids have gone to mattress. Nevertheless, 68% of fogeys are involved that their little one caregiving duties may have an effect on their job efficiency, and these worries enhance for full-time in-office workers (71%) when in comparison with distant workers (48%). In response, 63% suppose corporations ought to provide extra flexibility for these with childcare duties.

The rise of “hybrid creep” to name staff again to workplace

Return-to-office mandates stay in play – 23% of employers have made formal adjustments to their distant or hybrid insurance policies up to now 12 months. However for a lot of staff, the shift again to the workplace is occurring extra quietly by means of “hybrid creep,” the place the variety of required in-office days steadily will increase 12 months over 12 months. Immediately, a couple of in 4 staff (28%) are hybrid, whereas 9% stay totally distant and 63% are totally in-office. Amongst hybrid workers, in-office days proceed to climb: 34% now go into the workplace 4 days per week, up from 32% in 2024 and simply 23% in 2023. At 39%, three days within the workplace is probably the most prevalent hybrid mannequin. This implies that even with out a sweeping mandate, many workers are experiencing a slow-motion return to workplace.

The variety of days workers want to work within the workplace additionally continues to rise, with 21% of workers now saying they’d wish to be there 4 days per week, a rise from 17% final 12 months. 1 / 4 of workers (25%) would additionally want to be in-office full time, and 21% want to be in workplace three days per week. This might be as a result of workers mentioned they really feel best within the workplace when managing others (58% mentioned they like to do that on the workplace as a substitute of at house), assembly new folks (56%), collaborating (55%), and being mentored (52%). This 12 months, staff are discovering it simpler to remain on job on the workplace, with 43% focusing higher there versus 34% preferring focusing at house; in 2024, it was equal, with 41% focusing higher in every location.

Elevated in-office time comes with issues about “quiet cracking,” worker happiness + psychological well being 

“Quiet cracking” is rising as the most recent office crimson flag for workplace staff, which occurs when staff really feel harassed and silently burn out whereas nonetheless going by means of the motions of their jobs. Managers appear to sense the chance: 33% are involved about in-office workers’ satisfaction and 27% are anxious about their groups overworking and burning out. Alternatively, solely 26% of them are involved about their distant workers’ satisfaction, whereas 21% are anxious about overwork and burnout. 

Burnout could also be pushed by lengthy commutes (averaging 62 minutes a day), rising stress ranges (90% of all staff mentioned their work stress ranges are the identical or worse than final 12 months), and job insecurity (47% of staff are anxious about stability) – all of that are fueling widespread disengagement. In truth, 46% of full-time workplace staff report feeling disengaged, in comparison with simply 30% of distant workers. But with a cussed job market, many workers are “job hugging,” holding on to their present place even when they really feel sad or unfulfilled. In consequence, 92% of staff haven’t modified jobs this 12 months, leaving many feeling caught of their present place. 

Assembly setup is losing time within the workplace, driving extra funding in IT

With hybrid and on-line conferences nonetheless the norm within the workplace, corporations are investing extra in IT employees and know-how, as 85% of staff mentioned good know-how is a prime issue of their work life. The highest adjustments to the workplace this previous 12 months included new assembly room video and audio tools (27%) and elevated IT employees and assist (29% of workers talked about their corporations doing this). Regardless of this, staff have a mean of 5 on-line / hybrid conferences per week, and people in-office spend six minutes getting every assembly began, with greater than 1 / 4 (27%) saying they spend 10 minutes or extra on setup. On prime of that, 77% have misplaced extra time as a result of conferences began late on account of technical difficulties, and greater than two-thirds (67%) of staff have tried to arrange video know-how for a gathering however gave up as a result of it was too troublesome. 

Staff are embracing AI to lighten their workload, and even want avatars may be a part of conferences for them

To reclaim time misplaced to commutes and irritating assembly setups, staff are more and more turning to AI. They’re quickly increasing their utilization of AI instruments, as 80% have experimented with AI, a 45% enhance from March 2025. Over half of workers (51%) even want they may have an AI avatar sit in on a gathering for them, highlighting a brand new frontier within the quest for getting time financial savings again. With leaders additionally keen to spice up productiveness, 64% of staff say their corporations are encouraging workers to make use of AI at work, up from 56% in March. 

Regardless of extra IRL work, worker surveillance remains to be rising

Though extra persons are bodily within the workplace, solely 19% of staff say their corporations aren’t utilizing worker monitoring software program, with an extra 14% saying they’re uncertain. These surveillance ways are worrying workers, with 78% of staff saying they suppose their corporations are imposing RTO insurance policies to keep up oversight, and 47% citing monitoring as a prime office concern. A convincing 85% of staff consider it must be a authorized requirement for employers to reveal if they’re utilizing these instruments.