The future of remote work: comparing virtual, in-person, and hybrid work environments

The purpose of this thesis is to analyze the main advantages and disadvantages of various working structures. This paper specifically evaluates the pros and cons of working fully online, fully in the office, and a hybrid model. This paper also assesses factors that will influence individual companies’ decision for how to organize their workspaces, as well as macroeconomic trends that have emerged from remote work during the pandemic. This paper shows that optimal work setup is a hybrid environment. Although there are distinct advantages to fully online and fully in-person office environments, the hybrid setup stands as the most efficient and practical. It is important to note that every company must consider how their resources can support a hybrid setup, and if they can support a hybrid model at all. Companies that adopt a hybrid setup will capture most of the benefits from both online and in-person work, while limiting the disadvantages caused by each work style. Additionally, hybrid modality will become even more practical as technology continues to progress, and virtual work continues to become more efficient. The main advantages to online work are that it makes employees more efficient, eliminates unnecessary commuting to work, and expands companies’ talent pools for hiring. The main disadvantages to online work are also the main advantage to office work, and that is the knowledge spillovers from having workers physically together. Although knowledge spillovers increase the value of a company’s workforce, virtual work has made in-person work seem inefficient. The hybrid model combines the benefits of both online and in-person work, allowing workers to still be partially together in the office while allowing for better technological integration.