Hidden Costs, Visible Challenges: Diagnosing the Dysfunctions that Lead to Hidden Costs in Hybrid Work Models of ICT Companies

Abstract

Hybrid work has emerged as a significant paradigm shift, particularly emphasized by the pandemic-induced lockdowns, and is now considered the ‘third way’ of future work arrangements, allowing individuals to vary their work location, schedule, or both (Gratton, 2021). Some benefits associated with this work arrangement are flexibility, increased productivity (Oppong Peprah, 2023), reduced attrition, and improved job satisfaction (Bloom et al., 2022). On the other hand, challenges like substantial investments in technology, IT support, and training, the need for redesigning organizational control, organizational identity, and organizational learning can arise (Petani and Mengis, 2023). It has been recognized that hybrid work also has hidden costs, which are indirect costs not readily apparent in standard financial accounting (Deco et al., 2023). They often result from poor management practices that significantly impact an organization’s performance and profitability (Savall and Zardet, 2010). Hidden costs frequently occur when new technologies are introduced in the organization. This research aims to explore the hidden costs of hybrid work.