Hybrid Work May Hold Key to German Talent Retention

Rhea-AI Summary

German businesses are embracing a hybrid work model, investing in end-user technology to support it, according to a report by ISG Provider Lens.

Positive

• German businesses are investing in end-user technology to support the hybrid work model, which blends in-office, at-home, and on-the-go work environments.
• Organizations that focus on employee experience and workplace well-being will be well positioned to attract and retain talent needed for success.

Negative

• Reluctance to embrace the hybrid work model may be impacting German recruitment efforts.
• Only 16 percent of German workers consider themselves engaged, according to a recent Gallup survey.

Enterprises need to cultivate an environment that encourages collaboration and creativity while enabling remote work, ISG Provider Lens™ report says

FRANKFURT, Germany--(BUSINESS WIRE)-- German businesses are increasingly embracing a work model that seamlessly blends in-office, at-home and on-the-go work environments and are investing in end-user technology that supports this paradigm, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ Future of Work (Workplace) Services report for Germany finds businesses that embrace the hybrid reality by focusing on employee experience and workplace well-being will be well positioned to attract and retain the talent needed for success. Hybrid work challenges German organizations to reinvent the office while at the same time coping with government regulations, increased security concerns and flexibility demands, the ISG report says.

“Managed service providers are facing a fundamental shift in the traditional norms and expectations of work,” said Martin Mitrega, director, EMEA collaboration and experience solution center, for ISG. “German firms are moving toward more people-centered approaches in employee experience and workplace well-being.”

Some traditional German businesses, known for their preference for established structures and face-to-face interactions, have been reluctant to embrace the hybrid work model, the ISG report says. Unfortunately, that reluctance may be taking its toll on the German workforce. A recent global study by Unispace found that mandatory return-to-office policies are having a detrimental impact on German recruitment efforts. According to that study, 34 percent of employers (one of the highest rates in Europe) say they have struggled to attract talent since the introduction of such a policy.

And yet a hybrid model is no automatic panacea for dissatisfied workers. A recent Gallup survey found that only 16 percent of German workers consider themselves engaged. According to the ISG report, organizations need to tailor their hybrid working models carefully to avoid disengagement and increased stress. To that end, many organizations in Germany and elsewhere are turning to providers to help them find appropriate strategies to balance the expectations of new employees and improve the onboarding experience, ISG says.

“For enterprises, moving to a hybrid work model requires a profound change in the social and technical foundations of collaboration,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “This transition calls for conscious and purposeful planning and design as well as innovation partners that can drive and manage change.”

The report also examines the comprehensive strategy required to successfully integrate AI and AR into the workplace.

The 2023 ISG Provider Lens™ Future of Work (Workplace) Services report for Germany evaluates the capabilities of 27 providers across three quadrants: Employee Experience (EX) Transformation Services, Managed Workplace Services – End-User Technology and Digital Service Desk and Workplace Support Services.

The report names Bechtle, CANCOM, Capgemini, Computacenter, DXC Technology, Fujitsu, HCLTech and Unisys as Leaders in all three quadrants, while Accenture and Wipro are named as Leaders in two quadrants each. Atos and Infosys are named as Leaders in one quadrant each.

In addition, Lenovo and TCS are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

Customized versions of the report are available from Bechtle, CANCOM, Computacenter and Lenovo.

The 2023 ISG Provider Lens™ Future of Work (Workplace) Services report for Germany is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231017206567/en/

Philipp Jaensch, ISG

+49 151 730 365 76

philipp.jaensch@isg-one.com

Matthias Longo, for ISG

+49 152 341 464 63

matthias@longo-pr.de

Source: Information Services Group, Inc.

FAQ

What is the work model that German businesses are embracing?

German businesses are embracing a work model that seamlessly blends in-office, at-home, and on-the-go work environments.

What are German businesses investing in to support the hybrid work model?

German businesses are investing in end-user technology that supports the hybrid work model.

What is the impact of mandatory return-to-office policies on German recruitment efforts?

According to a global study by Unispace, 34 percent of employers in Germany say they have struggled to attract talent since the introduction of mandatory return-to-office policies.

What percentage of German workers consider themselves engaged?

According to a recent Gallup survey, only 16 percent of German workers consider themselves engaged.

How can organizations avoid disengagement and increased stress in a hybrid work model?

According to the ISG report, organizations need to tailor their hybrid working models carefully to avoid disengagement and increased stress.