Flexibility meets impact: generational insights on hybrid work and performance

Abstract

This study investigates the influence of hybrid work arrangements on employee satisfaction and productivity, and how these factors collectively impact organizational performance. With a focus on office-based employees from private-sector organizations in Ho Chi Minh City, the research specifically compares the perceptions and responses of Generation Y (Millennials) and Generation Z (Digital Natives). Grounded in Organizational Support Theory, Flexibility Firm Theory, and Work– Family Balance Theory, the study applies a mixed-methods approach, combining qualitative interviews with a comprehensive quantitative survey. A total of 410 valid responses were analyzed using the PLS-SEM method via SmartPLS. The results indicate that hybrid work significantly enhances both employee satisfaction and productivity. These, in turn, positively influence overall organizational performance. Among the enablers of hybrid work, work time flexibility and infrastructure flexibility exert the strongest impact. Additionally, working conditions and environmental facilities were found to support employee satisfaction. Notably, the generational analysis reveals that Generation Z exhibits a stronger positive response to hybrid work than Generation Y, particularly in terms of perceived productivity and satisfaction. These findings provide theoretical contributions by contextualizing hybrid work in a developing economy and highlighting generational dynamics. Practically, they offer valuable insights for organizations to design adaptive, inclusive, and performance-enhancing hybrid work strategies.