Hybrid work, where employees split their time between the office and remote work, has become the norm. However, it comes with challenges, particularly the “coordination tax,” which complicates productivity and meeting arrangements.
This tax refers to the time and effort required to coordinate meetings when team members have varying in-office days, a common scenario as companies often allow teams to choose their schedules instead of enforcing company-wide in-office days.
The coordination tax involves navigating the logistics of meetings in hybrid settings. This can include finding common in-office days for team members and using technology to facilitate meetings. Flexibility in hybrid setups means only a small percentage of companies mandate specific in-office days.
This flexibility, while offering autonomy, makes it difficult for cross-functional teams to collaborate and stifles opportunities for mentorship and spontaneous interactions, undermining one of the key benefits of in-person work.
The impact of this coordination tax is significant. According to a Reclaim AI report, workers spend about 37% of their work time in meetings or coordinating them, costing employers an average of over $29,000 annually per employee.
Brief meetings, while often seen as inefficient, are necessary for decision-making and clarifying tasks. Many workers report losing substantial time daily due to the need for additional clarifications, which adds up to lost productivity and financial costs for employers.
Solving the coordination tax involves smarter software and improved team practices. This includes making team schedules visible to enhance coordination and using facilities management tools to track team locations.
Better communication is key to reducing misalignment and ensuring efficient use of time. Publishing team-level agreements can help other teams align their schedules, reducing wasted time and improving prioritization.
Experts like Rob Sadow and Roy Schwartz remain optimistic about resolving these challenges. They believe that with improved communication practices and better tools, organizations can reduce the coordination tax.
As companies adapt to hybrid work and refine their coordination strategies, they are likely to see enhanced productivity and smoother collaboration, ultimately making hybrid work more efficient.
