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Candidates, Clients, Executive Search

Remote, Hybrid, RTO: How US Subsidiaries of European Companies Should Approach Work Environments for Executive Employees

Nearly 50% of US companies have issued return-to-work orders since 2022. But with a growing number of Americans demanding access to remote or hybrid roles, choosing the optimal work environment has become a significant challenge.

European companies opening subsidiaries in the United States may face an even greater challenge. These organizations often have a greater need for hiring and retaining C-Suite leaders, which means they need to determine their work environment type before posting a US job description.

“American executives have very different expectations regarding where and how their work can get done,” said Myriam Le Cannellier, Executive Director of DSML Executive Search (an Alexander Hughes company). “Determining a workplace cadence and environment for these individuals can have a large impact on retention, engagement, and recruitment processes.”

Work Environments and Their Differences for Subsidiaries of European Companies Hiring in the US

The American workforce and European workforce have conflicting views about work environments.

For example, a fairly small number of European workers perform their workplace duties at home. Official surveys estimate approximately 6.6% of French workers, 5% of German workers, and 4.3% of Spanish workers currently work remotely.

Across the pond, American workers are increasingly interested in remote or hybrid environments. As many as 14% work fully remotely, while an additional 41% work in a hybrid role.

American executives have an even higher set of expectations. As many as 68% would like remote work to continue, and another 49% would not consider a position without the option to work remotely.

This provides two takeaways for European companies expanding to the US.

First, addressing cultural differences in work environments will be paramount in selecting a right-fit employee.

Second, the structure of your subsidiary’s work environment will have a significant impact on the availability of qualified executive candidates.

Hybrid, Remote, or RTO? Weighing the Options for Subsidiaries of European Companies Expanding to the US

Before agreeing to a specific work environment, it will be important to consider its features, benefits, and limitations “There’s no perfect fit for every company,” Myriam says. “Companies would do well to weigh their options and consider its effects on hiring executives.”

Remote

Remote work environments allow executives to complete their tasks from any location with an internet connection. The employee may be allowed — but not required — to visit the office or manage a physical office space.

Studies show a number of benefits associated with remote work, including a 77% rise in productivity and greater company loyalty. They may also become a ‘talent gold mine,’ attracting some of the best and brightest in the American workforce.

On the other hand, remote work environments could be isolating to new hires, which ultimately makes it more difficult to navigate cross-cultural barriers. This may ultimately lead to communication challenges, which create a loss of collaboration between the C-Suite and the rest of your team.

Pros of Remote Environments

Cons of Remote Environments

  • Potential feelings of isolation
  • Communication challenges
  • Loss of collaboration

Hybrid

Hybrid environments combine the flexibility of remote work with the grounding elements of in-person labor. Approximately three in four US companies offer (or plan to offer) some form of hybrid role, which remains the preference of three in five American employees.

Many hybrid roles offer adjustable work hours and off-site work, which leads to similar benefits as remote work (including productivity gains and higher employee engagement). It also opens your position to a wider variety of candidates, including those unable to relocate, primary caretakers, and those with special needs.

That said, hybrid environments aren’t a fit for every subsidiary. Some foster security risks with off-site data and unsecured networks. Others aren’t fit for heavily in-person industries, including manufacturing, food and beverage, and packaging plants.

Pros of Hybrid Environments

  • Productivity gains
  • Better employee engagement
  • Accessible to more individuals

Cons of Hybrid Environments

  • Employee burnout
  • Security risks
  • Not applicable to all industries

RTO (Return to Office)

Return-to-office mandates have become increasingly common. Approximately one in four US companies plan to increase their in-office work days in 2024.

In-person work environments may offer several benefits, including a 35% boost to team performance through in-person communication. It may also provide additional mentorship for newer subsidiary executives, particularly as they learn your expectations and build a better understanding of your company’s work environment.

Keep in mind that in-person work environments are becoming increasingly unpopular — 65% of American workers want to work remotely all the time. Because of this, in-person roles may also lead to higher turnover, or discourage top-talent from applying to your role. You must also consider the cost of in-person employment, which may include travel reimbursements, office leases, and more.

Pros of RTO Environments

  • More suitable for certain industries
  • Build rapport between an executive and their team
  • Mentorship for new professionals

Cons of RTO Environments

  • Higher lifetime costs
  • Higher chance of turnover
  • May discourage leading talent

Navigating RTO as a US Subsidiary of European Companies

Selecting an effective work environment can be difficult as a European company expanding to the US. On one hand, remote and hybrid work environments may improve productivity and employee retention. On the other hand, in-person environments may be necessary in industries requiring on-site manufacturing directors or cross-cultural collaboration.

The experienced team at DSML Executive Search, a highly respected Alexander Hughes company, with offices in Chicago, Boston, and New York, can help you navigate the complexities of remote, hybrid, and in-person positions. We would be happy to provide our years of experience to help you make an informed decision.

You can contact DSML Executive Search, an Alexander Hughes company, at +1 312 268 6166. Together, we will explore your job description, discuss the expected work environments, and explore avenues for finding a suitable fit.

+1 312 268 6166