Future Work
9
min read

Why 100% of Fortune 500 Companies Embrace Hybrid Work (with Sodexo's Henrik Järleskog)

Hybrid work is now the standard for leading companies. Still, challenges persist. Sodexo's Henrik Järleskog shares valuable insights into the future of work and practical strategies to help hybrid models succeed.
Published:
November 26, 2024
Last updated:
November 27, 2024

Also available on:

Future Work - Listen on Spotify
Future Work - Listen on Apple Podcasts
Future Work - Watch on Youtube
deeper-dive-into-hybrid-work-with-henrik-jarleskog

“Hybrid work isn’t just about where people work—it’s about how they work.”

This insight from Henrik Järleskog, Sodexo’s Head of Future of Work and Workplace Experience for Continental Europe, captures the transformative moment we’re living in.

As hybrid work becomes the dominant model for leading organizations, the challenge is excelling in this new paradigm. But not every company is thriving.

Some, stuck in outdated habits, face disengaged employees, inefficiencies, and high turnover.

Others, like NVIDIA, exemplify a flexible, forward-thinking approach that delivers better business outcomes.

In this exclusive interview with FlexOS, Henrik unpacks why flexibility isn’t a trend but a proven strategy and offers actionable steps for leaders to create thriving, hybrid-ready organizations.

Q: Welcome, Henrik, thank you for taking the time to share your insights. To start, let’s talk about how hybrid work has become the dominant model for leading companies?

Henrik Järleskog: Hybrid work has become the gold standard because it aligns with how people want to work and delivers proven business benefits. Among Fortune 500 Europe companies, 100% of the top 10 performers in October 2024 had embraced hybrid models, while none required full-time office attendance. This isn’t a coincidence. 

Flexible companies outperform others because they foster greater employee engagement, attract diverse talent, and reduce overhead costs like real estate. – Henrik Järleskog
The Fortune 500 Europe Top 10 List of Q4 2024 is: Volkswagen (Germany), Shell (UK), TotalEnergies (France), Glencore (Switzerland), BP (UK), Stellantis (Netherlands), BMW Group (Germany), Mercedes-Benz Group (Germany), Electricité de France (France) and Banco Santander (Spain). All of these are offering hybrid work options for their employees. Source: Fortune

However, hybrid success depends on moving away from outdated management practices. Traditional methods often emphasize presence over performance, but hybrid work demands an outcome-focused approach.

Leaders need to trust their teams, set clear goals, and measure success by results, not physical attendance. - Henrik Järleskog

Q: You’ve mentioned two frameworks: “The Three-Stage Rocket” and “The Beehive Model.” Can you elaborate on how they represent different organizational approaches to work?

Henrik Järleskog: The “Three-Stage Rocket” is how I’d describe companies that respond to prolonged underperformance with drastic changes.

First, they replace the CEO. Then, they often mandate a full return to the office, hoping to restore productivity—though this is rarely backed by credible data.

Finally, they invest heavily in AI to regain a competitive edge.

While these three stages may create short-term gains, they often alienate employees, increasing turnover and disengagement.

The “Beehive Model,” on the other hand, represents organizations that thrive by embracing flexibility. Like bees in a hive, employees work independently yet collaboratively, bringing value back to the organization.

Companies like NVIDIA exemplify this model, maintaining strong stock performance through a balance of innovation, adaptability, and employee empowerment.

This approach highlights the power of hybrid work when supported by strong leadership and a clear vision.

Like bees in a hive, employees work independently yet collaboratively, bringing value back to the organization in the “Beehive Model,” with NVIDIA a notable example of this model. - Henrik Järleskog

Q: What are the most significant challenges organizations face when implementing hybrid work?

Henrik Järleskog: One major challenge is aligning hybrid work with business objectives while addressing cultural resistance. Many companies adopt hybrid policies without rethinking their workflows, essentially overlaying old in-office habits onto a digital framework. This creates inefficiencies, like calendars overloaded with back-to-back meetings, leaving little time for deep work.

To succeed, organizations must enable asynchronous work, where employees can collaborate without being bound to the same schedules. This requires shifting from rigid, top-down policies to decentralized, team-level agreements. 

For instance, teams can collectively decide how and when they work best, ensuring productivity and flexibility.

Q: This is interesting! We’ve talked about this same concept with Brian Elliott, our mutual friend, who agreed that teams should be empowered to decide how and when they work best in order to build a better workplace culture!

Henrik Järleskog: Exactly! Team-based agreements are crucial because they allow groups to define their own optimal ways of working. This decentralized approach aligns with Elliott’s perspective by fostering intentionality and clarity around the purpose of work. It’s about enabling teams to collaborate effectively while maintaining flexibility, which is key in hybrid models.

Q: Let’s talk about the role of offices. How should they evolve to support hybrid work effectively?

Henrik Järleskog: Before we dive into that, picture yourself walking into an office building. What happens on the entrance floor?

Q: I’ll see a reception desk, a security guard, and, if I’m lucky, some sofas and chairs?

Henrik Järleskog: Exactly! I’m a bit lucky here, but most of the time, when I talk to companies, they respond just like you did. When you walk into a building today, it’s incredibly boring.

And it’s such a waste of space. Think about it: nothing really happens on most entrance floors.

Sure, they’re polished, with furniture, maybe a reception desk and a security guard, and perhaps a logo on the wall. But that’s it. What if we transformed these spaces into the most attractive and dynamic areas in a building?

Imagine walking into a space where a community captain – not just a receptionist – greets you with a warm, 'Hello, welcome to this building! Here’s where X, Y, and Z are located. How can I assist you today?' Perhaps there’s a premium restaurant right there, offering you the option to sit down for a meal or grab a coffee at a fantastic barista service. Meet Goran, our friendly barista, who’s always up for a chat while preparing your drink.

At 10 o’clock, maybe there’s a hybrid town hall happening just down the hall, where you can hear the latest updates on the future of work and AI.

Picture glass podcast studios – mobile and visible – showcasing creative energy and exciting discussions. The space would be vibrant, alive with activities, and open to consultants, collaborators, and colleagues alike.

This reimagined entrance floor could become a hub for connection, innovation, and experience. Whether it’s enjoying a great meal, attending cutting-edge meetings, or just soaking in the vibe, this is the potential of the office entrance of the future.

The office is no longer just a place to work – it’s a hub for culture, collaboration, and connection. Organizations need to invest in making offices attractive and functional spaces that provide unique value to employees. – Henrik Järleskog

This shift also means redesigning offices to facilitate activities that are difficult to replicate remotely, like brainstorming sessions, team-building events, and large-scale town halls. The goal is to create a space that employees look forward to visiting because it enhances their experience and productivity.

Read Our 2024 Guide about hybrid office spaces

Q: What is the biggest challenge companies face when transitioning to hybrid work?

Henrik Järleskog: The challenge lies in balancing flexibility with organizational alignment. Many companies struggle with "lifting old ways of working into digital screens” without truly rethinking how work should be done.

Hybrid work demands asynchronous workflows, where employees have the autonomy to work when and where they are most effective. 

Team-based agreements, rather than rigid policies, are crucial. – Henrik Järleskog

This approach empowers teams to define their optimal ways of working, fostering both productivity and engagement.

Q: How can HR leaders navigate workplace transformations while maintaining trust and engagement?

Henrik Järleskog: Transparency is key. HR leaders must communicate the "why" behind any changes, whether it's adopting hybrid models or implementing layoffs. 

For example, in competitive industries like tech, layoffs are sometimes unavoidable, but they should be balanced with upskilling initiatives to retain and develop talent.

Leaders should also prioritize flexibility in contracts and policies to adapt to rapidly changing conditions. A one-size-fits-all approach doesn't work in today's diverse workforce. Instead, empowering teams to create their own work agreements fosters trust, engagement, and alignment with organizational goals.

Q: For companies that fit the Beehive Model, what advice would you give an HR leader for managing layoffs?

Henrik Järleskog: This represents a next-level shift in the future of work, HR, and AI. It directly addresses two of the most significant and enduring structural changes we're witnessing in society: real estate and, consequently, offices and companies.

As I've written before, the first of these structural changes is that companies are achieving much more with fewer people.

For the first time in history, we're seeing tens of thousands of people being laid off simultaneously, even during phases of rapid growth where companies are also recruiting. 

This duality – mass layoffs alongside aggressive hiring – is unprecedented and reflects the significant transformations shaping today's workforce. – Henrik Järleskog

From an HR perspective, it’s about assessing the level of disruption in the industry caused by technological advancements, like AI. If the disruption is significant, organizations need to determine how they can adapt to remain relevant. 

Q: Should they upskill or reskill their workforce, and do they have the time to do so?

Henrik Järleskog: Take the example of AMD, for instance. The HR and leadership teams at AMD likely debated whether they had the time to upskill and reskill their employees. In such fiercely competitive industries, the answer is often no. It’s faster to lay off employees and hire new talent with the required skills than to invest the time in upskilling. I believe this type of workforce management discussion is happening in many companies right now.

Q: This is very interesting because they are doing well, but at the same time they are laying off, like in the case of AMD.

Henrik Järleskog: Exactly. Companies are achieving much more with fewer people, mainly due to technological advancements, with AI being one of the biggest drivers. That’s the first significant structural change. The second is distributed work – not remote work, but distributed work. I think this distinction is crucial. It all started with the concept of distributed work.

Q: Please elaborate on this “distributed work” concept.

Henrik Järleskog: Distributed work is the second major structural change reshaping the workplace, and it didn’t begin with the pandemic. It started over a decade ago when global tech companies established offices worldwide – in places like Singapore, New York, Stockholm, Berlin, and Paris – to access diverse competencies and cultural perspectives. 

This shift wasn’t driven by preference but necessity, as companies recognized the value of global talent.

The combination of distributed work and companies doing more with fewer people represents the most critical transformation in today’s work landscape. These forces far outweigh the noise around hybrid or remote work debates, as they fundamentally redefine how organizations operate and thrive.

Q: What trends do you foresee shaping the future of work in the coming years, and how have your personal insights shaped your perspective on hybrid work?

Henrik Järleskog: The office is evolving into a space primarily for building culture and fostering collaboration. Companies will increasingly invest in making offices vibrant, engaging, and purpose-driven to attract employees. For digital-first companies, the rise of “epic meetings” – large, in-person gatherings to strengthen team cohesion and culture – is becoming a significant trend. 

Meanwhile, hybrid companies are focused on seamlessly integrating remote and in-office work, addressing inefficiencies in workflows and calendars.

Personally, I’ve been working flexibly since 2004, witnessing the shift from rigid workplace models to more adaptable structures. The pandemic has accelerated this change, pushing organizations to rethink traditional practices. 

Hybrid work isn’t just about where people work – it’s about how they work. To succeed, companies must innovate, collaborate, and adopt a people-first approach. - Henrik Järleskog

This transformative period offers immense opportunities to redefine the future of work, and I’m excited to contribute to shaping it.

Q: Thank you so much for the wonderful insights and being here today.

Henrik Järleskog: Great discussion and great interview. Thank you and see you later.

Also available on:

Future Work - Listen on Spotify
Future Work - Listen on Apple Podcasts
Future Work - Watch on Youtube
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