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2024 has been another challenging year for the workplace. Many employers are once again pushing for a full return to the office while employees, especially Gen Z, are resisting and setting boundaries. The tension of that push and pull will continue in 2025, and is likely to become even more heightened.

In our eighth annual State of Hybrid Work report, we found that the "full return" has failed - hybrid work is here to stay. Full-time office work is down 6%, with remote roles up 57% year-over-year. The flexible “3-2” hybrid model is set to become the norm, while companies still mandating five-day in-office work face the threat of increased employee turnover. Of the 2,000 employees surveyed, 55% said they would leave a job for work-life balance, 25% said they would depart for greater flexibility in work locations, and 25% for greater flexibility in work hours.

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The report also discovered that workers remain stressed, with 89% of employees seeing no improvement in work-related anxiety. In-office employees report 47% higher stress levels than remote workers, with women and millennials reporting the greatest spikes in stress. In 2025, we expect the workplace mental health crisis to deepen. Companies that ignore rising stress, especially among in-office staff, risk employees looking for the exits.

Adding to the stress, disconnect, and distrust: more employers are using tracking software to manage employees. Almost half of employees surveyed (46%) said their companies added or increased the use of employee tracking software in 2024. Eighty-six percent of employees believe that employers should be legally required to disclose if they are using these tools. In a fluctuating job market, some companies are under the impression that tracking software is a great means to monitor and quantify employee productivity, however we believe it breeds mistrust and people should be able to work where and how they want.

We also predict that frustrated employees, particularly Gen Z, will continue to reflect their workplace dissatisfaction on social media. According to our data, a third of U.S. workers (34%) have shared negative work experiences online, and nearly half (48%) of Gen Z employees are doing so. Platforms like TikTok and Glassdoor have become outlets for frustrations, possibly in lieu of the traditional “watercooler conversation,” with men nearly twice as likely as women to post negative comments about work. Whether or not we see a TikTok ban in 2025, employees will find a way to air their grievances, on whatever platform is most prevalent. This trend underscores the importance for employers to ensure fair policies and transparent communication, as internal issues can quickly gain public attention. For employees, understanding their company's social media policy is essential, as negative posts may lead to disciplinary action.

How can companies support their employees in 2025? Flexibility and supportive managers are key. Ninety-two percent of employees rate supportive management almost as high as pay. In 2025, a “green flag boss” will be an important recruiting differentiator, pushing companies to prioritize management training to retain talent.

Benefits that impact their pocketbooks remain popular, including better health care offerings (29%), increased 401K contributions (28%), and better work from stipends (22%). Employees are demanding better work stipends because the cost of going to the office has risen and likely will continue to rise. Hybrid workers say they spend an average of $61 a day at the office, a 20% increase from $51 in 2023. The cost to work from home also increased, but only slightly up to $19 per day, compared to $15 a day in 2023. Without subsidies, office space utilization could drop below 40%. As a result, we don’t expect the significance of pocketbook issues to change with experts forecasting some economic uncertainties next year as administrations change.

Another area that we anticipate will add to the push-and-pull between employers and employees is the aging of the largest work cohort right now, millennials. They will be stretched between caring for their children, their parents, and themselves. Nearly half of parents feel overwhelming stress compared to just 25% of non-parents, with the constant demands of family life and work life. We anticipate benefits and policies that address those areas will be heavily debated and compromises made. After all, we believe that employees with work-life balance make for successful companies.

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