Hybrid Work 2025 – driven by technological advances, social changes and, not least, the global pandemic, companies worldwide are having to redefine the way they work. These changes are particularly noticeable in regulated industries such as law and finance, where traditional structures often collide with strict compliance requirements and technological hurdles. Hybrid working is not a new way of working – BMW introduced it as early as 2013. However, there are a number of challenges to be overcome, particularly in heavily regulated industries.
The changing world of work in regulated industries
Hybrid working, a mixture of on-site and mobile working, has established itself as a forward-looking model. A study by a well-known personnel service provider shows that 86% of German executives regard hybrid working as an integral part of the future world of work. The Deloitte CFO Signals survey also comes to this conclusion (see Fig. 1). In volatile times like these (a glance at the USA is enough to see that), this model enables organisations to react to changes in an agile manner while simultaneously driving the digital transformation forward.
At the same time, the pressure to remain competitive, attract talent and comply with strict regulatory requirements is growing. These circumstances are forcing companies to implement innovative and flexible working models.
Hybrid working has also become established in the financial sector to meet these requirements. In doing so, companies must not only ensure that sensitive data remains protected, but also effectively organise collaboration in teams that span multiple locations. This requires a careful balancing act between technological investments and cultural change.
The advantages of a hybrid approach are manifold. Companies report increased productivity, better employee retention and a boost in innovative strength. At the same time, hybrid working models open up new opportunities to drive digital transformation and respond to dynamic market demands. The challenge is to exploit this potential without compromising compliance with regulatory standards. It's a real balancing act.
In the following, we will look at the specific challenges and opportunities of hybrid working models in regulated industries.
Challenges of hybrid work in regulated industries
Hybrid working offers a number of advantages, but in highly regulated industries such as law and finance, the challenges are particularly complex. And above all, it is critical. These sectors are subject to strict legal and industry-specific requirements that demand a high degree of diligence and precision from companies. Cybersecurity, data protection, compliance and managing teams remotely are among the key hurdles to overcome. At the same time, these industries are also at the top of the list of cyberattack targets.
Data privacy: Protecting sensitive data in the hybrid workplace
In industries where handling highly sensitive information such as financial or client data is part of everyday work, data protection and data security are of the utmost importance. The increasing prevalence of hybrid working models brings with it significant challenges in the area of cyber security, as they open up new targets for cybercriminals. This is therefore one of the main reasons (see Fig. 3) against hybrid work. Inadequately secured home networks, the use of private devices and the increased use of digital means of communication increase the risk of data leaks and cyber attacks:
- Technological security: Employees often access central systems from different locations and devices. This requires secure networks, encrypted connections and the use of virtual private networks (VPN). Working with personal devices that may not be adequately protected also increases the risk of malware infections.
- Phishing attacks: The increase in digital communication has led to a rise in phishing attempts, in which attackers try to obtain sensitive information.
- Risk management: Home office environments pose risks, for example due to unsecured Wi-Fi networks or the use of private devices. Companies must establish strict security guidelines and provide regular training for their employees.
- Legal requirements: Violations of data protection laws such as the GDPR can result in heavy fines. Hybrid working models must fully comply with the legal framework.
Compliance: Adherence to regulatory requirements in a flexible working environmentRegulated industries face the challenge of ensuring comprehensive compliance standards in a hybrid context:
- Logging and traceability: Many regulatory authorities require seamless documentation of decision-making processes. Hybrid working models require digital solutions that ensure transparency and traceability.
- Access controls: Employees often need access to sensitive data. Companies must implement clear role and authorisation concepts to prevent unauthorised access.
- Audits and inspections: Hybrid work can complicate the preparation and execution of audits. Cloud-based solutions can help to simplify audit processes and ensure that all relevant documents are available.
Remote leadership: New leadership requirementsWith regard to remote leadership: hybrid work also puts executives to the test, as well as their ability to lead their teams remotely. It is therefore not surprising that more than half of the companies surveyed in the KOFA study say that management requirements are increasing (see Fig. 4). Remote leadership brings with it both cultural and communicative challenges:
- Communication and transparency: The lack of physical presence can lead to misunderstandings. Executives must create clear communication channels and promote regular exchange.
- Engagement and motivation: Employees who work remotely for the most part can feel isolated. Executives must take targeted measures to create a sense of belonging.
- Performance management: Performance tracking becomes more complex because physical presence is less relevant. Organisations should focus on outcome-based approaches and clearly define goals.
Striking a balance between flexibility and regulationThe introduction of hybrid working models in regulated industries requires highly precise planning and implementation. IT security, data protection, compliance and remote leadership are both challenges and opportunities to develop innovative approaches and make the way we work fit for the future. In the next section, we take a look at this potential.
Opportunities and potential of hybrid working
For companies, hybrid work simultaneously opens up far-reaching opportunities to sustainably increase efficiency, employee satisfaction and competitiveness. In regulated industries such as law and finance, which are often considered traditional and not very flexible, the potential of hybrid work models is clearly evident.
A key advantage of hybrid work lies in employee satisfaction and the employee experience. Hybrid working allows a better balance between professional and private commitments, and thus reduces stress and the risk of burnout. This improved work-life balance has a positive effect on employee motivation and commitment. Flexibility is currently at the top of the list of employee priorities. This increases a company's attractiveness as an employer in the form of employer branding. Younger talents, in particular, who place a high value on flexibility and self-determination, appreciate hybrid models and often see them as a decisive criterion when choosing their employer.
The next important advantage: hybrid work increases a company's competitiveness by promoting innovation and agility. And we need that now more than ever. The increased use of digital technologies enables teams to work more creatively and efficiently. Hybrid structures that integrate employees at different locations bring together a wide range of perspectives and increase innovative strength. At the same time, greater flexibility makes companies more resilient to external influences and market changes, as they can operate more independently of geography and more adaptably in organisational terms.
This also benefits the company's image. Implementing hybrid working models shows partners, customers and the public that an organisation is willing to break new ground and adapt to modern requirements. This is particularly valuable in regulated industries, as such sectors are often perceived as conservative. Companies that impress with progressive approaches in this area strengthen their market position and build trust.
And last but not least, efficiency gains can be realised. By reducing attendance times, companies can save on office space, which not only reduces costs but also aligns with the sustainability and ESG goals of many organisations. At the same time, employees benefit from the flexibility to work in an environment that promotes their productivity – whether in the office or from home. The increased use of digital tools and automated processes further accelerates workflows and enables seamless collaboration, regardless of where teams are located. This is also a strong signal to young talent, who can directly recognise the modernity and digital maturity of organisations.
Hybrid working offers companies a strategic basis for ensuring efficiency, employee satisfaction and competitiveness in the long term. The challenge is to consciously and sustainably exploit the diverse potential of this model in order to meet the demands of the future. We will take a closer look at this in the next article.
Conclusion: the path to a future-proof way of working
The introduction of hybrid working models represents a groundbreaking step into the future of work – especially in regulated industries such as law and finance.
However, hybrid work requires a well-thought-out implementation. Taking into account IT security, data protection, compliance and the right technological infrastructure is critical to maintaining the security, but also the quality of work. In addition, executives must find new ways of communicating and motivating in order to effectively lead hybrid teams. Continuous adaptation and collecting feedback are fundamental factors in flexibly adapting the model to changing needs.
Overall, hybrid working offers more than just a response to current challenges. It is also a long-term strategy that makes companies fit for the future in a dynamic and increasingly digital world of work. The road ahead requires a clear vision, investment in technology and training, and a corporate culture that promotes change and flexibility. Companies that successfully integrate these elements will strengthen their employer branding while also becoming significantly more resilient and innovative. In our next Numeris Insight, we will take a closer look at how organisations can achieve this.
Frequently Asked Questions (FAQ) about hybrid working in the finance and property industry
1. What is hybrid work?
Hybrid work refers to a flexible working model in which employees work both in the office and on the road/remotely – for example, from home or other locations. This model makes it possible to combine periods of on-site work at the company with phases of mobile working.
2. What advantages does hybrid work offer in the finance and real estate industry?
Hybrid work usually improves employees' work-life balance and thus makes the workplace more attractive. Happy employees are more productive and more loyal to the company.
3. How can data security be guaranteed in hybrid work?
Data security is an extremely important topic for hybrid working! Ensuring data security requires clear guidelines and the use of appropriate technologies. Companies should offer regular training on how to handle sensitive data and use secure communication solutions and encrypted cloud systems to prevent unauthorised access.
4. What are the technical requirements for hybrid work?
A robust technological infrastructure is critical. This includes cloud-based tools for document management and virtual meetings, reliable IT support, and security solutions such as multi-factor authentication and access controls.
5. How can the corporate culture be adapted to hybrid working models?
Corporate culture should not be forgotten either. Executives should therefore promote a culture of trust and personal responsibility. Regular communication, feedback loops and team-building activities – both virtual and on-site – are important to strengthen cohesion and ensure effective collaboration.
6. Are there industry-specific challenges to hybrid working in the finance and real estate sectors?
Absolutely. Particularly with regard to data protection and compliance. Adherence to regulatory requirements demands particular care when handling sensitive data and using digital tools. In addition, managing teams remotely can be challenging, which should be addressed through targeted training and adapted management strategies.
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