Transforming Work Dynamics in Mexico and Latin America
Five years after the onset of the pandemic, work dynamics in Mexico and Latin America have undergone a profound transformation. What began as an emergency measure—remote work—is now a new standard that many workers are reluctant to relinquish.
According to WeWork Latam data, two-thirds of workers in the region operate under hybrid models. Of this universe, 85% report feeling more productive and 79% happier.
The Rise of Coworking as a Balancing Solution
In this context, coworking—shared and flexible offices—has emerged as an alternative that can reconcile both interests. However, the path towards a definitive balance between corporate needs and employee expectations is just beginning.
According to Álvaro Villar, Director of Sales for WeWork in Latin America, there is a growing trend, especially among large corporations, to return to full-time presence. Just a year ago, only 9% of companies required full-week attendance.
Today, that percentage has started to grow. Although we see companies making this change and, shortly after, having to reverse it because they lose talent, they face problems in hiring personnel and internal complaints increase.
— Álvaro Villar (@alvarovillar) March 18, 2020
Expansion of Coworking and its Benefits
The advancement of hybrid work has significantly transformed the corporate real estate market in Mexico. A clear example is the recent expansion of coworking-type offices by firms like WeWork, International Workplace Group (IWG), and Flex Offices.
Our openings come at a time when companies are discovering that flexible and remote work is extremely popular among employees. It has been proven that our model increases productivity and allows a company to scale up or down with significantly reduced costs.
— IWG (@IWG_Global) March 18, 2020
“As per our firm, migrating to hybrid models allows companies to save up to $11,000 per employee annually. Moreover, they benefit from increased productivity and operational efficiency,” asserted Mark Dixon, CEO of IWG.
By 2030, it is predicted that 30% of commercial real estate will be dedicated to coworking, with a market potentially surpassing $2 trillion. This boom is largely due to the need to adapt spaces to new work realities.
Challenges of Full-Time Presence
Mandatory return to offices has generated internal friction in some organizations. According to real estate services firm Colliers, six out of ten companies in Latin America have implemented mandatory return-to-work policies. However, these do not always translate into increased productivity.
Forced attendance has increased what is known as silent resignation, where employees only fulfill the minimum requirements, neglecting proactivity and innovation.
— Alejandra Hernández (@AleHernandez) March 18, 2020
“In many companies, forced presence has increased what is known as silent resignation, where employees only fulfill the minimum requirements, neglecting proactivity and innovation,” explained Alejandra Hernández, a specialist in workspaces at Colliers.
87% of organizations that maintain rigid models will face severe difficulties in talent development over the next five years. The key, according to experts, is not to impose universal models.
— McKinsey & Company (@McKinsey) March 18, 2020
“The best ideas come from collaboration, but it cannot be an imposition. Factors such as location, operation, salary, and emotional benefits should be combined,” opined Arturo Bañuelos, Director of Projects and Developments at JLL Latin America.
New Flexible Models
Besides coworking, some companies have opted for customized flexibility schemes. Nubank, for example, implemented a 7×1 model: seven remote weeks and one in-office, which has favored its organizational culture and reputation as an employer.
In the public sector, Tokyo’s government launched a 4×3 scheme where employees work four days a week and rest three. This measure has demonstrated improvements in productivity and well-being.
The best work practices today are not replicable on a generalized basis. They must be adapted to each company and its organizational culture. We move from the era of average models to the era of personalized solutions.
— Alejandra Hernández (@AleHernandez) March 18, 2020
This shift in mindset opens the door to mixed models where workers can alternate between home, corporate offices, or coworking spaces to create a more adaptable work environment.
Impact on Quality of Life
Beyond productivity, the hybrid model has had direct implications on the quality of life of Mexican workers. In a country where labor stress is among the highest globally, working from home—even partially—has become a relief.
According to WeWork, 42% of employees live between 10 and 50 kilometers from their workplace, implying long and exhausting commutes. Apart from lost time, transportation costs increase employees’ monthly expenses and affect their physical and emotional health.
Our study, Hybrid Work: A Path to a Sense of Belonging, reveals that 62% of those attending one to three days a week report increased well-being.
— IPSOS (@IPSOS) March 18, 2020
“The data doesn’t lie, though a hybrid work model may not have a significant impact on employee engagement, the increase in well-being and decreased labor stress points towards a work scheme with two or three days of in-office work,” said Héctor Jaso, Employee Experience Leader at the firm.
