Background: When the Covid-19 pandemic was officially recognized, a new way of working was established, remote work, as authorities recommended working from home to the extent possible. Although restrictions have since been lifted, remote work continues in many organizations in the form of hybrid work. This flexible work model presents both opportunities and challenges, especially regarding employee motivation, productivity and management control. In this thesis, the authors has aimed to examine how hybrid work affects employee motivation and productivity, as well as how it may have influenced the corporate profitability.

Purpose: The purpose of the thesis is to describe and analyze how hybrid work affects a company’s profitability, as well as employees’ productivity and motivation.

Research questions:

- How can employees’ motivation be affected by hybrid work?

- What impact can hybrid work have on employee productivity?

- How does hybrid work reflect the company’s profitability?

Method: The study is based on a qualitative interview study in which 15 semi- structured interviews were conducted with respondents in both managerial positions and employees’ roles. The thesis adopts an abductive approach where a combination of theory and empirical data has been used to develop a more nuanced understanding of the effect of hybrid work. The literature review was based on previous research as well as established and well-proven theories.

Conclusion: The study shows that employees generally experience improved motivation and productivity due to increased flexibility and independence. From a management perspective, a more restrictive view of the work model is expressed with challenges noted in terms of management control, monitoring and direct control. The profitability has been affected, in the form of cost savings.