Covid’s Impact On The Workplace Five Years On

The new normal

Perhaps the most significant workplace shift post-pandemic has been the widespread adoption of remote and hybrid working. Once seen as a temporary measure, working from home (WFH) has now become a permanent feature of many organisations. Globally, about 90% of organisations have embraced hybrid work models that allow employees to work remotely from off-site locations for some or much of the time. [1]

Companies that previously resisted remote work have had to adjust to new employee demands. Tech giants like Google and Meta, both of which have significant operations in Dublin, initially pushed for a full return to the office but eventually adopted hybrid models in response to employee pushback [2]. Irish firms, too, have had to navigate this changing landscape. Financial services, legal sectors, and even traditionally office-based industries like advertising have all restructured their approaches to accommodate remote work preferences.

However, hybrid working is not without its challenges. Employers are grappling with issues of productivity measurement, team cohesion, and company culture. A survey by McKinsey revealed that companies adopting hybrid work models reported higher revenue growth compared to those mandating work from a single location [3]. There is an ongoing debate about whether fully remote employees are as engaged as their in-office counterparts and how best to foster collaboration in a digital-first environment. Data from LinkedIn suggests that most workers think some meaningful office attendance is fair, but 50% do not want more mandatory office days than they have at present [4]. The divergence of opinion between employers and their staff is not an issue likely to go away any time soon.

Digital living

One of the most immediate responses to the pandemic was the mass adoption of video conferencing platforms like Zoom and Teams. Five years on, these tools remain integral to business operations, but the way we use them has evolved. Studies have shown no negative relationship between hybrid work and productivity, suggesting that virtual meetings and remote collaborations can be as effective as in-person interactions. [5]

Beyond video calls, the rapid advancement of AI and automation has also been accelerated by the pandemic’s disruption. AI-driven tools are streamlining project management, automating administrative tasks, and even enhancing recruitment processes. In Ireland, where multinational corporations like Apple and Microsoft have a strong presence, AI integration in the workplace is growing steadily. Ireland’s National Digital Strategy has set a target of 75% of enterprises in Ireland using AI by 2030. [6]

Changing mindsets

Covid changed the psychological contract between employers and employees. Work-life balance, mental health, and job satisfaction have taken on new levels of importance. In Ireland, the government has responded with legislation such as the Right to Request Remote Work Bill, aimed at giving employees greater flexibility in how and where they work [7]. This aligns with broader global movements advocating for worker-friendly policies, including the push for four-day work weeks, which has gained traction in several European countries.

Employee well-being is now a boardroom priority. The pandemic highlighted the need for mental health support in workplaces, leading to increased investment in Employee Assistance Programmes (EAPs), wellness initiatives, and better work-life integration strategies. In 2022, seven in 10 HR professionals told the CIPD that employee wellbeing was on senior leaders’ agenda, while 42% agreed that senior leaders encouraged a focus on mental wellbeing. In 2024, the same survey found that 53% of organisations now have standalone mental health strategies, and 43% continue to support employee mental health. [8]

Additionally, a study found that remote working should improve labour market outcomes for both people with disabilities and those with caring responsibilities [9]. Burnout, which surged during the height of Covid, remains a significant issue, but there is now more awareness and support available.

The office

As hybrid work takes hold, companies are rethinking their real estate needs. In Dublin, office occupancy rates remain below pre-pandemic levels, mirroring trends in global cities like London and New York. Large office spaces are being redesigned to accommodate flexible working models, with an emphasis on hot-desking, collaborative hubs, and social spaces rather than rows of desks.

Some companies have downsized, reducing their office footprint in favour of co-working spaces or decentralised hubs. This shift has had knock-on effects on commercial real estate markets, particularly in major urban centres. In Ireland, this has led to increased vacancies in traditional office districts, prompting discussions on repurposing buildings for alternative uses, such as residential developments or mixed-use spaces.

There can be benefits of this for business. For example, independent research from Global Workplace Analytics reveals that reducing their traditional property footprint by adopting hybrid working enables US companies to realise average annual savings per employee of $11,000 [10].  Businesses can also cut energy usage by a fifth (19%) because of the more efficient use of office space or by providing teams access to flexible workspace. [11]

Retention and recruitment

The pandemic triggered what has been dubbed ‘The Great Resignation’ — a mass movement of employees reevaluating their careers. Five years on, the job market remains dynamic, with workers prioritising flexibility, career development, and meaningful work. Employers are facing new challenges in talent retention, as skilled professionals are more willing than ever to change jobs or seek remote positions with international companies. A survey by McKinsey revealed that nearly 90% of 25,000 working Americans surveyed said they would use workplace flexibility when offered. [12]

Ireland, with its strong multinational presence, has felt this shift acutely. Companies must now offer more than just competitive salaries — they need to provide clear career progression paths, robust well-being support, and flexible work arrangements to attract top talent. Some organisations have leaned into the concept of ‘work from anywhere,’ allowing employees to work remotely from different locations, further intensifying competition for talent.

Meanwhile, some roles have gained in prominence as a result of the events of 2020, HR especially. According to research from HR analyst Josh Bersin, most (53%) HR leaders are now in the C-suite, boosted by their responses to not just the pandemic but also movements such as Black Lives Matter and D&I, the rise of globalisation, and the shift to remote work. [13]

Covid’s impact on the workplace five years on

The workplace of 2025 is unrecognisable from its 2019 counterpart. Hybrid work, digital transformation, employee well-being, and sustainability have become defining features of modern employment. While challenges remain, the long-term legacy of Covid is a more flexible, employee-centric, and tech-driven world of work. Companies that embrace these shifts will be best positioned for success in the years to come.

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