Herzberg’s Two-Factor Theory and its application in hybrid work model - Evidence from India

Abstract

The topic of remote work and its effect on productivity or employee effectiveness continues to be a contentious subject among CEOs, HR specialists, and employees alike. Notable chief executive officers, such as Elon Musk who owns Tesla and Twitter, have engaged in discussions regarding the benefits and drawbacks of different work patterns and how they affect the employee effectiveness. The rise of more recent work patterns, such as hybrid arrangements and digital nomads, has only intensified this discussion. So, the question is: What effect do these work models have on employee effectiveness? This study attempts to explore the determinants of employee effectiveness in the hybrid model by means of an empirical study set in global organizations with offices in India. With deductive research approach and Herzberg’s Two-Factor Theory as a theoretical lens, the determinants of employee effectiveness in hybrid work model were studied. The main findings of the empirical study are - The Herzberg’s Two-Factor Theory provides a comprehensive explanation of the key aspects that contribute to employee retention in a flexible work culture of a hybrid work model employed in IT and ITES companies. Notably, the hybrid model differs from earlier models in that while the hygiene components are present, the motivators are absent. This implies that there remains a fundamental degree of employee satisfaction, but the motivators to further enhance satisfaction are lacking. Another key take away is that the motivators vary for each employee based on the nature of work and are, to some part, reliant on the hygiene factors. The findings contribute to the studies on emerging trends in work models, trends that have practical implications to achieve organizational and employee goals and for optimizing innovative business operating models.