ML22271A898

Appendix D - Review of Literature and Other Products

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Issue date:	09/29/2022
From:	Aaron Mccraw, Sean Peters NRC/EDO/AO
To:	NRC/EDO
Peters S
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Appendix D - Review of Literature and Other Products Introduction The NRC Executive Director for Operations tasked the Hybrid Environment Assessment and Review Team (HEART) with providing recommendations to optimize the NRCs organizational health in its hybrid work environment. To support this assignment, the HEART performed a literature review in an effort to capture the latest views from academia, research organizations, popular press and other sources on the effects of the hybrid environment on organizational health issues. The HEART also went beyond conventional written articles and research papers by poring over blog posts, viewing online videos and listening to podcasts devoted to the subject.

What became quickly apparent was that the situation is continuously evolving as we emerge from what was, hopefully, the worst of the pandemic. For instance, coverage of return-to-the-office approaches as of early 2022 focused on employee resistance to spending more time in the physical workplace despite entreaties from managers and executives. As we move closer to the end of 2022, some employers are increasingly stepping up efforts to increase the number of days staffers must report to the office. Two examples are Apple and Comcast, both of which are now calling for workers to spend three days per week in the office. However, whether they are outliers remains to be seen. To wit, CNN reported in early September 2022 that only 27 percent of U.S. employers were requiring three days per week on-site while 17 percent were mandating a two-day minimum. However, a full 31 percent had established no minimum, and there continues to be strong worker resistance to return-to-the-office mandates in many quarters.

Many of the articles we reviewed focused on the idea that the pandemic has fundamentally altered the views of knowledge workers (we focused on this group because of the parallels with the NRC workforce) as to whether they can effectively perform their duties while teleworking. The prevailing view was that the time spent teleworking during the period(s) when knowledge workers could not be in the office affirmed that this was not only achievable but likely resulted in higher levels of productivity. For example, a Pew Research Center survey of more than 10,000 U.S. adults in late January 2022, found that as more workplaces reopen, most teleworkers say they are working from home by choice D-1

rather than out of necessity. Most of those teleworking full- or part-time (64 percent) find it easier to strike a better work-life balance and, many (44 percent) said telework has made it easier to complete work and meet deadlines. On the negative side, 60 percent feel less connected to co-workers.

At the same time, there are managers and executives who maintain that the loss of culture and collaboration that comes with time in the office cannot be replaced by virtual meetings and other interactions. Not every organizational leader aligns with this point of view, though, as underscored by what Airbnb CEO Brian Chesky told Inc. magazine for its May 11, 2022, edition: At the end of the day, I think talent wins. I think ultimately people are going to make a calculation, that the efficiency of being in close proximity is less than the efficiency of having more capable people if they're dispersed, because ultimately every company is in the market for talent. Or as Jason Bram, a NY Fed economist, told Axios in September 2022: "Things are not likely to go back to 'normal,' the way it was before the pandemic in most industries.

Another noteworthy theme was that even before COVID-19 struck, the working world was moving towards new ways of accomplishing tasks. A research paper published in June 2021 that considered changes under way in the European Union found that, The pandemic has demonstrated more flexible working conditions are possible without necessarily affecting workers productivity or increasing costs. More flexible working conditions are desired by workers, insofar as embracing them does not put remote workers at a disadvantage or negatively affect their well-being. There is thus a potential new demand for flexible working arrangements. A hybrid form of work may come to dominate:

a model in which employees can work at the office or from home or can mix it up during the working week. Depending on the nature of their tasks and their own personal needs or preferences, workers and managers will need to find new ways of working that combine the benefits of face-to-face contact with the flexibility of telework.

Because of the profound effects of the COVID-19 Public Health Emergency, the ways in which employees - and in particular, knowledge workers - carry out their duties will continue to change, and there are still chapters in this story yet to unfold. At the same time, the HEART review of available literature and other media to date indicate that there has been a paradigm shift, with many lessons already available for the taking.

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HEART External Research Findings Challenges with the NRCs implementation of its existing hybrid model The implementation of a mandatory number of days in the office takes away some of the autonomy, flexibility and sense of trust that many employees have had during the pandemic. The removal of autonomy triggers a threat response in the brain that makes people feel frustrated, anxious, and uncertain. Adding this stress and uncertainty while the pandemic is raging further exacerbates those stress levels. Managers, on the other hand, can experience higher levels of certainty, status, and relatedness when physically in the office. These rewarding feelings are overshadowed by the much larger threat responses experienced by employees.

Negative emotions from a reduction in autonomy are likely to be stronger than the positive emotions from gaining a similar amount of relatedness. This can lead to reduced employee engagement, reduced motivation to use work flexibilities for mission-related purposes - being present in the office on a regular telework day to attend a critical meeting in person, and increased turnover to jobs with more telework flexibility - loss of skilled workers. Additionally, a strict, mandated model can harm overall productivity for the staff (Cassiday, Rock (1)).

Effective work in a hybrid environment requires trust, accountability, and a focus on outcomes. Work location and in-person interactions need to be seen as tools for accomplishing the mission and are not the mission itself. Coming into an office to have office coverage or a minimum office presence makes the staff work for the office, instead of the office working for the staff, and it detracts from accomplishing the agencys mission.

Finally, the staff is not a monolith, and that is essential to understand when designing any work structure. Highly prescriptive criteria are not optimal for all situations. Some staff work best in-office, some work best when remote, and others fall somewhere in-between. When given a choice, people tend to gravitate towards what is most effective for their particular work style, personal situation, and team needs. Figure 1 shows how people tend to fall out for in-office presence when given a choice.

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Figure 1 - What might the future of telework look like Improvements made by the transitions to hybrid work models, specifically because of the increase in telework and remote work capabilities Ability to adapt and cope with change The ability to have workplace flexibility may improve resiliency of employees to work during events causing workplace displacement (Sarnosky, et al (2)). As seen during weather-related phenomena and public health catastrophes, and quite possibly during Continuity of Operations related events, the NRC is now more capable of continuing operations and coping with a wide variety of challenges than it had been pre-pandemic.

Ability to meet the mission Transitions to flexible work locations can create efficiencies in processes. At the NRC, the transition of paper-based processes to electronic, the move of some on-site inspection and oversight activities to remote, and the improvement to remote team interactions through widespread use of videoconferencing are examples of improved processes. One of the best examples at the NRC is the removal of the paper-based concurrence processes, thereby eliminating the printing and internal and external mailing of documents. These changes allowed D-4

for enhanced collaboration, faster concurrences and routing, and significant reductions in printing costs. Because of these improvements, the NRCs e-Concurrence process won the NRCs 2022 Innovation Success of the Year Award.

Better work-life balance On average, the daily commute for workers in the Washington DC Metro Area was 71.2 minutes and the average across the United States was 55.2 minutes in 2019 (Burd, et. al (3)). Prior to the pandemic, government workers averaged about 42 minutes per day to get ready for work(Lepore (4)). But data shows that teleworkers spend around 9 fewer minutes per day grooming and getting ready for work(Reuter (5)). Overall, for NRC employees who telework, the time savings per day would be around 80 minutes. Studies also show that people use this time to work more - between 20 to 30 minutes per hour saved (Barrerro, et al (6)).

For an NRC commuter, this would be between 27 and 40 minutes per day of extra work time for the agency.

Teleworkers reported waking up more naturally than commuters, with the percentage of people setting an alarm falling from 87.6 percent on in-office days to 77.4 percent when staying home (Reuter (5)). More natural sleep cycles and extra time for sleep can support higher cognitive functioning and a more effective workforce.

Finally, the elimination of commuting time from the schedule leaves more time for family engagements and personal errands. And the relaxed dress code of telework allows for greater comfort and less stress.

Higher productivity Because of the wide variety of business and work functions across America, there is significant uncertainty as to what works best for all enterprises, tasks, and employees. However, most studies show productivity increases for those in a telework status (Appollo (7)) and most managers and employees surveyed indicate productivity increases while teleworking (Adrjan (8)). Finally, based upon a study of inventor productivity versus commuting distance, a 5-percent loss of productivity and 7-percent drop in quality can be attributed to every 10 kilometer-increase in commuting distance. The removal of the commute provides for more staff time and energy to apply towards accomplishing the agencys mission (Xiao, et al (9)).

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Reduced absenteeism and decreased turnover The reduction of face-to-face interactions have led to a commensurate reduction in transmission of communicable diseases across the workforce, leading to fewer sick days being taken from the office. Those employees who are sick, but relatively functional, tie into work remotely without the threat of infecting their colleagues (Wright (10)). Further, without being confronted by the disturbance and fatigue associated with the daily commute, remote workers are reporting to work on days that they would have otherwise taken sick leave (Family (11)).

The extension of telework options and employee choice over schedule displays a high level of trust from management, which promotes a sense of loyalty and dedication from the staff. Remote workers that feel like their management trusts them are more likely to develop positive feelings towards leadership and are less likely to seek outside employment and are less likely to miss work because of cultural issues (Stevens (12)).

Organizational learning Telework allows for the advent of training that would have been off-limits because of travel budgets or foreign travel restrictions. For instance, more staff members can now participate in virtual international workshops and workgroups with the NRCs counterparts such as the Nuclear Energy Agency and the International Atomic Energy Agency. The NRC has been able to reach more staff members with virtual offering of the NRCs Technical Training Center classes.

Further, the NRC staff can more easily participate in developmental rotations and have highly effective cross-organizational teams across geographic boundaries without the costs and stresses of relocation. The HEART itself has its Co-Lead and two of its team members regionally-based.

Cost savings Hybrid teams enable organizations to utilize smaller office spaces. In fact, 74 percent of Fortune 500 Companies plan to reduce office space (Lambert (13)).

These changes reduce the costs of rent, utilities, office supplies, and maintenance staff. Further, for remote workers, the government also can save on salaries and transportation subsidies, as some remote workers move from high-cost metro areas to lower cost areas. These reduced costs allow for the reallocation of resources to furthering mission accomplishment.

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Flexibility Hybrid work allows employees more flexibility with how they achieve the mission of their organizations. When combined with flexible hours, it supports optimal work from staff that have schedule conflicts (i.e., child and elder care responsibilities) and those that work better outside core business hours.

Recruitment and Retention Having in-office, hybrid, and remote work options are an attractive benefit that enables employers to draw from the widest array of candidates during the hiring process. Limiting to just one model will unnecessarily limit an organization and prevents it from attracting the top talent. Organizations show significant increases in the number of applicants for flexible-spaced jobs. In fact, a recent study shows that 50 percent of all job applications went towards remote jobs, despite being less than 20 percent of all jobs posted (Lewis (14)).

Diversity and Inclusion Allowing for a greater use of hybrid and remote work options opens up hiring possibilities for minority communities that are not near NRC headquarters or its Regional Offices. For instance, Native American, Hawaiian, and Alaskan Native populations tend to be geographically distant from the NRC. Other populations that also tend to be distant from the NRC include Hispanic Americans, who have denser populations in the American Southwest, and African Americans, who have denser populations in the American Southeast. Remote positions could draw in a greater number of applicants from these groups and allow them to remain in their communities and close to their families while working. These employees would then support local economic development, as the money made through employment at the NRC could remain in their communities.

Additionally, the increased use of telework has decreased some of the cultural and organizational challenges for minority workers. The general sense seems to be that culture is what creates belonging. [But] for underrepresented groups, that might not be truein fact, culture may be the problem, Alan Murray, CEO of Fortune. For underrepresented groups, hybrid and remote work options have significantly increased their sense of belonging and sense of being treated fairly at work(Sarasohn (15)).

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Organizational Health Because of the above-mentioned factors, enhanced telework flexibilities tend to lead to enhanced employee engagement and better organizational health. Figure 2 shows how workers in remote, hybrid, and in-person jobs fare in their organizational experience measures.

Figure 2 - Future Forum Pulse Survey - Organizational Health Measures of Employees Challenges of the hybrid work environment Isolation Telework can lead to feelings of isolation and loneliness (Modi (16)). Employees who work in offices see other people in the common areas and in meetings throughout the day. They also interact with people during lunch and possibly their commutes to and from work, thereby benefiting from in-person social interaction. Teleworking employees may miss out on these interactions.

Loss of work-life balance Many people find that work-life balance is enhanced by telework, however, others find that the lines between work-life and home-lifework start D-8

disappearing. Answering email, looking at reports, and responding to texts after hours can add hours to each workday. This blurring of the line between work and home can lead to burnout and lower morale (Klinghoffer (17)).

Inconvenient for new hires Developing business relationships and networks of peers can be more difficult without face-to-face interactions.

Training challenges Some training can be performed better in-person, for instance, hands-on simulator training at the NRCs Technical Training Center. Whereas, some training can best be performed on-line, i.e., Annual Computer Security Awareness Training.

Distractions at home Distractions at home may detract from employee focus on work. Some of these factors include pets, other household members, and household activities.

Providing people with the option for in-office space can help with some of these distractions.

Increased need for meetings When employees are in a telework status, management, collaboration, and communication need to be performed via alternative means. The mechanism of choice are videoconferences. The high use of video conference technology has drawbacks on productivity, engagement, morale, etc. (a.k.a., Zoom fatigue)

(Bailenson (18)).

Unstable/inconsistent internet access Unstable connections and IT challenges can make telework capabilities less uniform and reliable. On the other hand, with a distributed workforce, large-scale disruptions to work capabilities can be more limited.

Coordination Challenges As the NRC progressed through its various stages of hybrid work, coordinating among the various work group members became more difficult. The transition to a full-remote environment and the implementation of the use of Microsoft Teams for meetings may have made coordination much easier. Now that the D-9

NRC has transitioned back to a hybrid environment, the act of coordinating various schedules and office locations may be more difficult.

Travel Costs Remote workers may be required to travel to meet with team members or perform work activities in the office. As such, per current travel regulations, the NRC must pay for this travel, thereby, increasing travel costs. These expenses tend to be offset by the lower salary and space costs for remote workers.

Conclusions Based on the extensive research performed by the HEART, we found that there is not a prescriptive work model that is best for all aspects of organizational health.

One-size-fits-all approaches tend to be good in some areas but detract from others. For instance, full in-office approaches promote collaboration and interpersonal connections but significantly underperform in areas of culture, productivity, and work-life balance. Full remote approaches have the exact opposite result. Prescriptive hybrid approaches tend to fall in the middle (neither being the best nor the worst) for the above areas. However, there are organizations, as discussed in Appendixes E and F, that maximize work flexibilities based on the task, individual, and team needs. These flexible, team-based approaches can maximize work-life balance, productivity, and culture based on the teams needs, while designing purposeful in-person interactions to promote connection, collaboration, and team building.

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1) Laura Cassiday, David Rock. Workplace Evolution: Were calling this the worst return to office strategy. Why this hybrid approach wont work Like most compromises, the 3-2 model leaves almost everyone feeling dissatisfied. - June 21, 2022 -

https://www.fastcompany.com/90761863/were-calling-this-the-worst-return-to-office-strategy-why-this-hybrid-approach-wont-work

2) Sarnosky, Benden, Sansom, Cizmas, Regan, Impact of workplace displacement during a natural disaster on computer performance metrics: A 2-year interrupted time series analysis, February 18, 2022, https://content.iospress.com/articles/work/wor210707

3) Burd, Burrows, McKenzie, Travel Time to Work in the United States: 2019 American Community Survey Reports March 2021 -

https://www.census.gov/library/publications/2021/acs/acs-47.html D-10

4) Lepore, Workers in this industry take the longest to get ready for work in the morning, September 17, 2018, https://www.theladders.com/career-advice/workers-in-this-industry-take-the-longest-to-get-ready-for-work-in-the-morning

5) Reuters. Workers spend one third less time on personal grooming when they clock in from home compared with when they commute to the office, January 28, 2022, https://www.businessinsider.com/remote-workers-spend-one-third-less-time-on-personal-grooming-2022-1#:~:text=Working%20remotely%20saves%20employees%20an,working%20on%20their

%20primary%20jobs

6) Barrero, Bloom, Davis, 60 Million Fewer Commuting Hours Per Day: How Americans Use Time Saved by Working from Home, Sep 18, 2020, https://bfi.uchicago.edu/working-paper/60-million-fewer-commuting-hours-per-day-how-americans-use-time-saved-by-working-from-home/

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8) Adrjan, et al., Teleworking is here to stay and may raise productivity if implemented appropriately, Feb 10, 2022, https://cepr.org/voxeu/columns/teleworking-here-stay-and-may-raise-productivity-if-implemented-appropriately

9) Xiao, et al., Commuting and innovation: Are closer inventors more productive? Jan 2021, https://www.sciencedirect.com/science/article/pii/S0094119020300711

10) Wright, Study: Teleworkers More ProductiveEven When Sick, February 13, 2015, https://www.shrm.org/resourcesandtools/hr-topics/technology/pages/teleworkers-more-productive-even-when-sick.aspx

11) Family Safety and Health, Teleworkers more likely to work while sick, study finds, February 1, 2021, https://www.safetyandhealthmagazine.com/articles/20792-teleworkers-more-likely-to-work-while-sick-study-finds#:~:text=Findings%20show%20that%20respondents%20who,employees%20who%2 0teleworked%20less%20frequently

12) Stevens, 15 advantages and disadvantages of remote work, Remote work can save businesses money and reduce absenteeism. But it also comes with its disadvantages,July 16, 2021 https://www.techtarget.com/whatis/feature/15-advantages-and-disadvantages-of-remote-work

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14) Lewis, In a First, Remote Jobs Attract a Majority of Applications on LinkedIn, April 7, 2022, https://www.linkedin.com/business/talent/blog/talent-acquisition/remote-jobs-attract-majority-applications-first-time D-11

15) Sarasohn, Employee experience scores are rising since the broad adoption of flexible work, especially for people of color, Posted February 16, 2022, https://futureforum.com/2022/02/16/employee-experience-scores-are-rising-for-people-of-color%ef%bf%bc/

16) Modi, The Untold Side Of Remote Working: Isolation And Lack Of Career Progression, Sep 27, 2021, https://www.forbes.com/sites/ankurmodi/2021/09/27/the-untold-side-of-remote-working-isolation-and-lack-of-career-progression/?sh=5f8679943d4e

17) Klinghoffer, Hybrid Tanked Work-Life Balance. Heres How Microsoft Is Trying to Fix It.

Dec 08, 2021, https://hbr.org/2021/12/hybrid-tanked-work-life-balance-heres-how-microsoft-is-trying-to-fix-it

18) Bailenson, Nonverbal Overload: A Theoretical Argument for the Causes of Zoom Fatigue, February 23, 2021, https://tmb.apaopen.org/pub/nonverbal-overload/release/1 Materials Reviewed and Not Cited The Great Resignation: An Argument for Hybrid Leadership (2021). Dr. Joseph C. Hopkins and Dr. Kimberly A.

Figaro.

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Is Hybrid Work the Best of Both Worlds? Evidence from a Field Experiment (2022), Harvard Business School As Telework Continues for Many U.S. Workers, No Sign of Widespread Zoom Fatigue (2022),

Pew Research Center COVID-19 Pandemic Continues to Reshape Work in America (2022), Pew Research Center New Normal at Work in a Post-COVID World: Work-Life Balance and Labor Markets (2022),

Oxford Policy and Society Journal 5 Challenges of Hybrid Work - And How to Overcome Them (2022), Harvard Business Review Blending the Physical and Virtual: A Hybrid Model for the Future of Work (2021), Bruegel (European think tank)

Remote Work Can Be Better for Innovation than In-Person Meetings (2021), Scientific American Were Fumbling the Return to Physical Offices (2021), Scientific American The Next Great Disruption is Hybrid Work - Are We Ready? (2021), Microsoft Impact of Workplace Displacement During a Natural Disaster on Computer Performance Metrics: A 2-Year Interrupted Time Series Analysis (2021), IOS Press Commuting and Innovation: Are Closer Inventors More Productive? (2021), Journal of Urban Economics Remote Work Productivity Status Finds Surprising Reality: 2-Year Analysis (2021), Great Place to Work Surprising Working from Home Productivity Statistics (2022), Apollo Technical Employee Experience Scores Are Rising Since the Broad Adoption of Flexible Work, Especially for People of Color (2022), Future Forum Statistics on Remote Workers That Will Surprise You (2022), Apollo Technical D-13

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Teleworking is here to stay and may raise productivity if implemented appropriately (2015),

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