New York City Mayor Eric Adams was once a staunch opponent of hybrid work, adamant that city employees should work in person. However, the growing reality of a tight labor market and the success of remote work have finally begun to change his mind. When even the most ardent skeptics are realizing the benefits of hybrid work, it’s clear the future is hybrid, as I tell the 5-10 leaders who contact me about this topic every week.

Related: You Should Let Your Team Decide Their Approach to Hybrid Work. A Behavioral Economist Explains Why and How You Should Do It.

The changing landscape: NYC’s journey to embrace hybrid work

Just last year, Adams proclaimed, “You can’t run New York City from home,” insisting that city workers abandon their pajamas and report to work in person. But the world has changed, and the pandemic has shifted the balance of power in favor of employees.

The recently settled contract with District Council 37, the largest city union, includes an agreement to create a special committee to define and implement rules for hybrid work. Additionally, the Police Benevolent Association’s new contract includes an experimental program allowing 400 officers to work flexible hours. This shift indicates that even the most die-hard opponents of remote work are beginning to recognize its advantages.

The winds of change: How pandemics reshape the workforce

Historically, pandemics have caused massive social and economic shifts, often resulting in improved working conditions and better pay for workers. The Black Death in the 1300s, for example, wiped out a significant portion of Europe’s population, leading to the end of feudalism and an increased demand for labor. Similarly, the 1918 Spanish flu outbreak in the U.S. coincided with a wave of labor unrest and strikes.

In the wake of the Covid-19 pandemic, we are witnessing a similar transformation, with private-sector workers demanding better working conditions and hybrid work arrangements. The labor market is tightening, and even city governments are forced to adapt to compete for talent with the private sector.

The new normal: Adapting to a hybrid work future

The post-pandemic world is one where flexibility and adaptability are crucial for success. In New York City, the office vacancy rate in Manhattan has reached a record high of 16%, and workers are showing up in traditional offices 54% less than in the pre-pandemic era. This has led to a drop in economic activity in the city’s core and an increase in activity in neighborhoods outside of the business district.

Mayor Adams, despite his personal preference for in-office work, has acknowledged the new reality: “My personal beliefs cannot get in the way of running the city of this level of complexity.” The city is now recognizing that it must provide more flexibility and adapt to the changing workforce landscape to attract and retain talent.

New York City’s shift towards embracing hybrid work isn’t an isolated incident. Cities across the nation are starting to acknowledge the benefits of flexible work arrangements, both for employees and employers. By offering hybrid work options, local governments can attract top talent, increase job satisfaction and contribute to a healthier work-life balance for their employees.

Related: Employers: Hybrid Work is Not The Problem — Your Guidelines Are. Here’s Why and How to Fix Them.

How city governments and businesses alike can adapt to the hybrid work era

The rise of hybrid work has significant implications for businesses, both large and small, as well as city governments. Failing to adapt to this new way of working risks losing out on valuable talent and falling behind their competitors. To thrive in the hybrid work era, businesses and governments must:

• Develop clear remote work policies: Establish guidelines and expectations for remote and in-person work, including communication protocols, performance metrics and employee support systems.
• Invest in technology: Provide employees with the necessary tools and resources to work effectively from home, such as reliable internet connections, video conferencing software and project management platforms.
• Focus on employee wellbeing: Encourage a healthy work-life balance by offering flexible work hours, promoting mental health resources and fostering a supportive work environment.
• Reevaluate office spaces: As employees spend less time in traditional offices, companies should consider downsizing their office spaces or adopting a “hoteling” system, where employees reserve shared workspaces as needed.
• Nurture company culture: Remote work can lead to feelings of isolation and disconnection. To maintain a strong company culture, encourage regular team-building activities, both in-person and virtually, and prioritize open communication channels.

By embracing hybrid work and adapting to the changing workforce landscape, instead of falling into mental blindspots, business and government leaders alike can not only survive but thrive in the new normal.

The broader implications: Hybrid work and its effects on society

The shift towards hybrid work has far-reaching consequences beyond the workplace. As more people work remotely, cities and suburban areas must adapt to accommodate the changing needs of their residents. This may include:

• Improved public transportation: As commuting patterns change, public transportation systems need to be more flexible and efficient, with increased service during off-peak hours and better connectivity to suburban areas.
• Enhanced broadband infrastructure: Reliable internet access is critical for remote work. Cities and towns should prioritize expanding and upgrading broadband infrastructure to ensure that all residents have access to high-speed internet.
• Revitalized local economies: With more people working from home, there is an opportunity to boost local economies as employees shop, dine, and spend their money closer to home. This could help breathe new life into struggling suburban areas and small towns.
• Increased focus on sustainability: The rise of hybrid work could lead to a decrease in carbon emissions, as fewer people commute daily to work. This presents an opportunity for cities to invest in more sustainable initiatives and promote environmentally friendly practices.
• Greater emphasis on work-life balance: As the lines between work and home life blur, society may place a higher value on work-life balance and mental wellbeing. This could lead to more policies and initiatives that prioritize employee wellbeing and encourage a healthier lifestyle.

The road ahead: Embracing the hybrid work future

The turn towards hybrid work is more than a passing trend. It is a fundamental transformation of the way we work, live, and interact with one another. As strong opponents of hybrid work, like Mayor Eric Adams, come to understand and embrace its benefits, it’s clear that the future is hybrid.

As we move forward, it’s essential for businesses, governments and individuals to adapt and evolve with the changing landscape. By embracing the hybrid work model, we can create a more flexible, efficient, and inclusive workforce that benefits not only employees but also the economy and society as a whole.

In the end, the hybrid work revolution will lead to a better quality of life, improved mental health, increased productivity and a more sustainable world. By recognizing the potential of this new era and actively working to make it a reality, we can ensure that the future of work is brighter and more equitable for everyone.