The COVID-19 pandemic just may have changed the traditional, in-office, 9-to-5 workday forever. Working from home became necessary to keep companies running and to keep their employees safe. As the pandemic continued, employees welcomed the flexibility, while many companies managed to run their businesses effectively and at a reduced cost. With the transition to a return to travel, we ask the question: How will the new hybrid/remote work model affect employee business travel?
As we start the vaccine roll-out and turn the corner on the pandemic, many companies anticipate continuing to utilize remote work across their organizations – most likely in a hybrid form. The hybrid model combines work-from-home practices with in-person onsite work.
Companies had already been moving to increased work-from-home flexibility; the pandemic accelerated the momentum. Connectivity has made it possible for employees to work from home, which a 2019 “State of Remote Work” study by Buffer showed that 99 percent of workers prefer to work remotely, at least part of the time. Even employers have begun to embrace the model because 60 percent have reported increased individual employee productivity.
While employee productivity has not taken a severe hit in most cases, an increasing number of employers notice declining levels of happiness and mental well-being in their workforce. A significant number of these workers are feeling confined by virtual meetings and desperate for in-person interaction. This group tends to be more professional, experienced white-collar workers who most frequently travel for business and are anxious to get back on the road.
Many CEOs have made comments that focus on the workforce, considering their employees’ well-being by moving to a hybrid work model. Satya Nadella of Microsoft said in a 2020 Verge article that he is looking to reduce the time an employee spends in the office to less than 50 percent. He also talks about empathy and wellness as the “hallmark” of the company culture. A June 2020 Gartner survey showed that 82 percent of executives are willing to let employees work remotely – at least part of the time, and 47 percent were willing to allow employees to work remotely full time.
But What About Travel?
April to December 2020, global business travel saw a staggering drop of more than 68 percent drop (79 percent for North America), according to a GBTA February 2021 report. The study also does not anticipate a full recovery until 2025.
The inability to meet in person has placed everyone on a level playing field. Many companies found their business could continue to grow during this period. However, all salespeople know that the goal of most sales calls is to get a face-to-face meeting. Once you see your competitor is out there, you’ll want to be there too. Events and trade shows would follow after internal meetings, according to the report.
It is becoming clear that a combination of remote work, video conferencing and in-person meetings can come together to form a new way of working. What will the hybrid working model mean when it comes to business travel? Several points come to mind:
Duty of care – Mitigating risk is paramount. The lasting impact of COVID-19 will have a lingering effect on people’s perception of travel risk.
Essential travel only – Unnecessary trips will be declined by management; only trips deemed necessary will get the green light.
Return on investment – Assessing the necessity of business trips to the bottom line.
Longer trips – Extended stays with multiple engagements will become preferred versus shorter day trips or overnight travel.
Geographic options – Destinations are enticing workers to come to their locales to work. Several countries are offering new visas for travelers willing to make a move. (Aruba, Bermuda, Mexico, Dubai, and many others)
Diminished trip options – With airlines slowly coming back online, availability is limited, and pricing will reflect the reduced supply. Travelers will have to be more flexible.
Reduced travel budgets – No longer is travel the second largest controllable expense for most companies.
Re-prioritizing employee benefits – More emphasis is placed on family care benefits, moving ahead of others, such as commuter benefits and office meals.
Industry Hubs – Similar businesses’ prominence is diminishing. (Ex. New Jersey – Pharmaceuticals, Silicon Valley – High Tech).
Brave New (Hybrid) World
Many aspects of business travel and the new hybrid/remote work model are still to be determined. One thing is sure – the employee’s health and well-being will be among the primary concerns of companies as we advance.
As remote workers for years, we have always welcomed the opportunity to meet face-to-face with clients and co-workers. Video conferencing has enabled us to continue to work during the pandemic, even expanding our geographic reach. However, in-person human connections are a vital component of our organization’s success and longevity of relationships. In talking with many companies, they, fortunately, understand this and are anxious to empower their employees to travel again with new safeguards and protections as the pandemic subsides.
So what can you do to prepare for this new hybrid world?
Create Agile Teams – focus your teams in flexible units with the ability to zero on areas of opportunity and enhancement
Embrace Hybrid Practices – dynamic sourcing, flexible pricing models, variable demand management and hybrid solutions combining virtual and in-person meetings and interactions will give the flexibility to adjust your program quickly and safely
Be Inclusive – remember that a diverse geography does not mean you can’t have a unified team where each member contributes and takes part in your vision and goals
Commuter Flexibility – less staff commuting to an office every day means a change in the way employees engage with mobility services – adapt your working spaces and team engagements to reflect this reality
We’re looking forward to exploring these new working practices with you – we’d love to hear your feedback! debbie.thomas@ninaandpinta.com, michael.morrison@ninaandpinta.com
Debbie Thomas and Michael Morrison are consultants with the corporate travel and expense management consultancy Nina & Pinta.
Debbie is a travel industry veteran with over 35 years’ experience spanning sales, business development, coaching and training. Her extensive resume includes work at United Airlines and the Association of Corporate Travel Executives.
Michael combines a background in financial services with travel industry experience that includes Rosenbluth International and Travel Leaders Corporate, to bring unique insights in global corporate sales, strategic program management, and business analytics.
