Owl Labs’ 2025 State of Hybrid Work Report finds the new frontier of flexibility is when employees work, not where

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 data 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 out to be more and more essential to staff who’re making an attempt to reclaim their time whereas balancing rising in-office pressures.

“Our newest report exhibits that office flexibility has entered a brand new period: it’s now not nearly the place we work, but additionally 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 will present extra flexibility for workers to get work completed on their very own phrases, preserving their total 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 preferrred working places, when individuals work is the most recent subject within the flexibility dialog. Almost half of staff (47%) shouldn’t 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 yr. A 4-day work week is likely 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 prepared 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 practically one in three staff (30%) shouldn’t 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 quick, non-linear work blocks, can be gaining traction, with 65% of workplace staff within the thought, growing to 69% for Gen Z and 73% for millennials.

This might be as a result of work hours usually battle with the timing of household obligations, as 62% of workers surveyed are caring for kids at residence. Of those who have kids at residence, 76% are millennial and 52% are Gen Z. The “second shift” has lengthy been a pattern for folks within the office who have to take a while within the night for varsity 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 youngster caregiving obligations 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% assume firms ought to provide extra flexibility for these with childcare obligations.

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 prior to now yr. However for a lot of staff, the shift again to the workplace is going on extra quietly by means of “hybrid creep,” the place the variety of required in-office days regularly will increase yr over yr. At present, multiple in 4 staff (28%) are hybrid, whereas 9% stay absolutely distant and 63% are absolutely 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 essentially the most prevalent hybrid mannequin. This implies that even with no 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 yr. 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 residence), assembly new individuals (56%), collaborating (55%), and being mentored (52%). This yr, staff are discovering it simpler to remain on activity on the workplace, with 43% focusing higher there versus 34% preferring focusing at residence; in 2024, it was equal, with 41% focusing higher in every location.

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

“Quiet cracking” is rising as the latest office pink flag for workplace staff, which occurs when staff really feel confused and silently burn out whereas nonetheless going by means of the motions of their jobs. Managers appear to sense the danger: 33% are involved about in-office workers’ satisfaction and 27% are fearful about their groups overworking and burning out. However, solely 26% of them are involved about their distant workers’ satisfaction, whereas 21% are fearful 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 yr), and job insecurity (47% of staff are fearful 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. Consequently, 92% of staff haven’t modified jobs this yr, 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, firms are investing extra in IT workers and expertise, as 85% of staff mentioned good expertise is a prime issue of their work life. The highest adjustments to the workplace this previous yr included new assembly room video and audio tools (27%) and elevated IT workers and help (29% of workers talked about their firms doing this). Regardless of this, staff have a median 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 resulting from technical difficulties, and greater than two-thirds (67%) of staff have tried to arrange video expertise 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% increase 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 firms 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 growing

Though extra persons are bodily within the workplace, solely 19% of staff say their firms aren’t utilizing worker monitoring software program, with a further 14% saying they’re uncertain. These surveillance techniques are worrying workers, with 78% of staff saying they assume their firms 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 ought to be a authorized requirement for employers to reveal if they’re utilizing these instruments.