The adventof the choiceeconomy —and why it’sa good thing.

For more information, visit dropbox.com/business1

Introduction

The choiceeconomy is here
Since the start of the pandemic, we’ve witnessed digitaltransformation happen on an unprecedented scale.
Few could have predicted the level of innovation that

Typically, this level of freedom and choice has been

COVID-19 has sparked. So how did we arrive at thereserved for the consumer market, where experience isfuture of work so fast?

everything, and success relies on giving customers what
they want, when they want it. On the other hand, oficeArguably, the shift to fully remote working was the cat-environments have been characterised by restrictions,alyst. Many organizations needed to fnally revisit theirprescribed tools, and controlled environments.

outdated infrastructure, policies, and tool choices.
But employee experience matters, too. Employees
And choice is the key word here. After a year of working

don’t want to be bound to a single location—whether

how, where, and when they want, with whichever tools

it’s home or the ofice—and they don’t want one-size-

they want, employees now have the freedom to work

fts-all solutions.

more fexibly.

For more information, visit dropbox.com/business2

Amid all the chaos of the early months of the pandemic,
few would believe that employees would be happier, moreproductive, and more likely to stay in their jobs, just by
going remote. But that’s very much the reality.

The logical end point of this journey is what we have arrived at today the ‘choice economy’. A world where employee experience is elevatedto a strategic level, and employee preference serves as a guide forsystems, policies, and processes. It’s a world of fexible work, where
employees have the power to choose how, when, and where they
approach their daily tasks.
What does this choice economy really entail—and ultimately mean for businesses? What are the best ways torespond to the challenges it’s bringing about, and what
impact is this having on the employee experience? And in
the end, what’s at stake for businesses that don’t adapt?
To fnd out, we’ve partnered with research agency Vanson Bourne to survey 2,000 small business leaders andemployees in the US, Canada, the UK, France, Germany,
Australia, New Zealand and Japan*.
Our goal? Discover what the choice economy looks likein action, how it’s fundamentally changing the way welook at work, and what businesses can do to unlock thebenefts of fexible working.

Here’s what
we found...
For more information, visit dropbox.com/business3

Table ofContents

Section 1:
The COVID-19 efect: The origins of the choice economy

5

Section 2:
How businesses are responding

7

Section 3:
Striking the right balance — remote, hybrid, or in-ofice?

9

Section 4:
How to enable the choice economy

13

Section 5:
Your organization’s checklist for enabling the choice economy

16

For more information, visit dropbox.com/business4Section 1

The COVID effect:
Origins of the
choice economy

The pandemic served as a reset for many businesses,

But if the reception from employers is cautious or mut-

who adopted new measures to meet the organizationaled, employee reactions are far clearer.

challenges created — or exacerbated — by COVID-19.
Most employees have taken to the new found freedoms
This rapid change was met with a mix of enthusiasm

with a strongly positive outlook, with over 40% of re-and trepidation by many employers, many of whom

spondents to a recent McKinsey report saying that they

have been hard at work trying to balance the benefts ofare more productive, and a further 28% saying they’re at

remote work with the dificulties.

least as productive when working remotely as they are
when in the ofice.

“We’ve faced a lot of uncertainty over the past 18 months,
and that uncertainty has bred feelings of anxiety,” says
Michael Gutman, afiliate consultant at the Remote
Working Institute. “Leaders are now wrapping theirhead around what the remaining ‘unknowns’ are, andtrying to create fexible policies around them, so we canget back to our lives as best as possible.”

For more information, visit dropbox.com/business5

It’s a pretty huge shift, as Paul Wolfe, SVP and head ofglobal human resources at Indeed explains:“Before the pandemic, we were so used to the paradigm
of working we were in that we couldn’t think beyond
what was so ingrained in our mind about how we work.
Pre pandemic, 5% of our workforce were remote. Now,
11,000 Indeed employees are working remotely and“Pre pandemic, 5% of ourworkforce were remote. Now,
11,000 Indeed employees areworking remotely and doing
their jobs very efectively.”

doing their jobs very efectively.”Paul Wolfe,
Alastair Simpson, VP of design at Dropbox, agrees that

SVP and head of global human resources,

there’s been a real sea-change in how we view work:

Indeed“I think one of the biggest assumptions that we’ve had
to challenge in the last [18] months has been that great
work only happens in the same place, at the same time,
between 9-5.”
It’s interesting to note that it’s not just existing jobs

Kate Lister, president of Global Workplace Analytics,

that are changing, with current workers having theirdescribes it as symptomatic of a greater ‘push toward

contracts changed to refect new circumstances. This

purpose’ driven by the pandemic and the hybrid-work-

shift to remote work is fundamentally changing how job

ing boom:

openings are positioned and advertised, and how job
seekers are looking for them — a sign of a much greater“We’ve been talking about engagement for years, but all

development in work habits.

we really need is something that we were really passionate about – whether that’s at work, or in our personal“Many employees have thrived in this kind of fexible

lives – so we can we can really feel good about who

work-from-home environment,” says Scott Blumsack,

we’re working for and what we’re doing in the world.

SVP and global head of strategy at Monster. “Flexibility

Smart employers will try to marry both.”continues to be one of key elements employees andcandidates are looking for in a job. Searches for remote

Many executives are sensing the way the wind isjobs have risen signifcantly, and ‘remote’ remains one ofchanging. A recent PwC study found that US executives

our top fve search keywords.”

are planning considerable new investments to support

While the world of work is the origin of all these chang-and connectivity. In fact, nearly half of CEOs surveyed

es, that’s not to say it afects work alone. One of thesay they plan to increase long-term investment in digital

greatest revelations of the past year for many employ-transformation by 10% or more, including technology

ees has been what working from home has enabled out-

solutions to support higher levels of remote working.

hybrid working, particularly around virtual collaborationside of the workplace. Employees, liberated from longcommutes, have found more productive ways to spend

Workers are clear about what they want, and businesstheir time, and enjoy the greater fexibility in balancing

leaders are willing to spend to address the situation.

work and personal lives.

But what pivots are businesses making?

For more information, visit dropbox.com/business6Section 2

How businesses
are responding
Our survey results of 2000 business leaders acrossNorth America, Europe, ANZ and Japan ofers a clear
picture of the situation on the ground.
One of the clearest takeaways from the research is that

3 in 4businesses are well aware of the benefts of remote orbusiness leaders recognized increased

hybrid working on a variety of diferent areas:

productivity and innovation as a beneftof remote working•

Employee wellbeing - 82%•

Employee retention - 77%•

Productivity - 74%•

Innovation - 74%•

Meeting business objectives - 73%

For more information, visit dropbox.com/business7

Elsewhere, the data shows that businesses have beenworking hard to respond to the challenges of the COVID
pandemic. Most have invested in a variety of diferent
tools to smooth the way, including:

100
90
80
70
60
50

60%
45%

40

Video conferencing
44%

41%

37%

37%

Messaging and/or chat
Project management software/tools

30

Collaboration tools

20

Digital whiteboarding or

10visualization tools0e-Signature

Despite massive investment in the tools above, only
1% of those we surveyed said no further improvements
were needed to make remote working easier — and astaggering 65% said signifcant or notable improvements were still needed.
While businesses have tried their best in a dificult
situation — and many have made huge strides towards
more fexible, more efective ways of working — it’s clearthat even greater, more tailored eforts are needed.
“There’s no going back to the way we used to work. It's
just diferent now. So we need to focus on what’s next,
what I call ‘the next normal’.” says Paul Wolfe at Indeed.

For more information, visit dropbox.com/business8Section 3

Striking the rightbalance — remote,hybrid, or in-office?

Among those we surveyed, 72% of respondents reported
that traditionally ofice-based employees will be expected to work in a hybrid way by the end of 2021.
Despite the fact that most employees want choice, we
found only 3% of businesses will actually give them thefreedom to choose how they want to work. Meanwhile,
a quarter of businesses revealed they would implement74%
of business leaders admitted theiremployees may leave if they wereunable to work fexibly‘full-time remote’ or ‘full-time ofice’ policies when asked
how they’ll be working by the end of 2021.
•

13% will opt for remote all of the time•

12% ofice based all the time•

3% of businesses saying employees have thefreedom to choose how they want to work.

For more information, visit dropbox.com/business9

TotalUS andUK

FranceGermany

CanadaAustralia

Japan

and New
Zealand

Remote all of the time

13%

16%

7%

6%

20%

7%

12%

Hybrid, but the majority of

41%

34%

43%

42%

45%

51%

43%

31%

31%

34%

34%

26%

34%

29%

Ofice based all of the time

12%

14%

12%

15%

6%

6%

14%

Employees will have the

3%

3%

2%

1%

4%

2%

2%

1%

1%

2%

2%

0%

0%

1%

their time will be remoteHybrid, but the majorityof their time will be in theoficefreedom to choose how theywant to work
Don’t know – it’s hard to sayat this point

This kind of one-size-fts-all approach isn’t ideal for ev-

While fully-remote working is great for many, it’s noteryone. Our survey also found that while employees seealways right for everyone, says Paul Wolfe from Indeed:

the benefts of diferent ways of working, 71% strongly
or somewhat agree that it would be dificult to fulfll“We may have all been working from home, but the play-their career ambitions if they aren’t ofice-based at leasting feld isn't level by any stretch of the imagination. The

some of the time.

only thing that's level is that we're all dialing in; we're all
joining the meeting in the same way. Personally, I have a“Many employees have reasons to work from home,

separate space I can go and work in and get the peace

whether they’re personal, technical, or just a matter ofand quiet I need, but not everyone has that, and theirpreference,” says Perrine Farque, an award-winning

remote-working experience is markedly diferent.”

diversity and inclusion expert at Inspired Human andbest-selling author of Inclusion. “But, whether con-

Getting the balance wrong isn’t just a zero-sum game,sciously or subconsciously, managers tend to promotehowever. Our respondents foresaw a range of issues if

the people they see more face to face. We need to makethey weren’t able to adapt to the choice economy in thesure that, just because remote workers are less ‘visible’,right way, with 74% admitting that employees at their

they’re not overlooked. Extra efort is required to avoidorganization could start to leave if they do not enable

this kind of ‘two-tier’ workforce that might emerge in athem to work fexibly.

hybrid world, and ensure everyone gets the promotions
and growth opportunities they deserve.”

For more information, visit dropbox.com/business10Kate Lister puts it bluntly: “If employers don’t adapt, em-

The fnal barrier in the graph below — the lack of collab-

ployees are going to vote with their feet. We've alreadyoration tools — is particularly damaging to businesses.

seen it in a lot of the companies that we're working with,

Respondents noted that failure to collaborate efectively

particularly those that have not communicated withon projects impacted a range of aspects, including:their people about what their intent is. People are now
desperate for this kind of fexibility, especially as many
have now reevaluated their goals and, ultimately, how
they want to live their lives.”

50

48%

43%

40

Dr. Britt Andreatta, an expert in neuroscience and CEOof 7th Mind, Inc concurs.

40%

38%

32%

30
20
10

“Companies that don't adjust andmake some of these shifts are
simply not going to be here in a
decade. They might not even be
here in two years.”

0

Employee productivity
Team work
Customer satisfaction
Employee satisfaction
Employee loyalty

According to Scott Blumsack, it’s not just about losing

Ultimately, the lesson here is that businesses mustn’t

existing talent, but struggling to fnd new talent, too.

assume that one solution works for everybody:
fexibility is key.

“The majority of businesses [who fail to adapt to hybrid
working] will see their ability to attract talent really collapse. One of the top things we’re hearing from employees and candidates is how much they value fexible andhybrid work environments, and it’ll be far more challenging now to try and go back to the way things were.”
Making hybrid work successful is not only about where
employees work, but also how they do it. Respondents
saw a range of potential barriers to productivity whenworking remotely, including:

50

44%

40

41%

40%

36%

36%

30
20
10
0

Communication breakdowns
Too many video calls/meetings
Hindered creativity
Workfows are not streamlined
Lack of the right collaboration tools
For more information, visit dropbox.com/business11

Secondly, businesses can’t consider their shift to fexible
working complete just because they’ve fnished bedding
in new technology.
The potential benefts and drawbacks to implementing
technology well — or badly — are signifcant. Businesses should know how to implement new systems efectively to ensure employees use them correctly and get
the most value out of them.

“We can't just have great technology without having great learning,development, and management
behind it.”“We really need to be morethoughtful about when webring people together, andhow we use in-person time,
whether it’s on a screen or ina physical space.”Dr. Britt Andreatta
An expert in neuroscience,
CEO of 7th Mindsays Perrine Farque. “Most managers have never been
trained on how to manage a distributed workforce. And
people aren’t born managers or leaders, it’s something
they need to learn. And it’s hard work, especially if
you’re managing teams across diferent countries, continents, and cultures.”
It also means we’ll need to reevaluate the situations
where we do and don’t use technology.
“We really need to be more thoughtful about when webring people together, and how we use in-person time,
whether it's on a screen or in a physical space,” says
Britt Andreatta. “We should use ofices to do things thatcan only happen when humans are in the room together,like making decisions or bonding; connecting or rebuilding the emotional ties between them.
“But a lot of in-person stuf could be remote. There's
a lot of information-sharing that happens in meetings
that could be done through asynchronous tools instead;
there's a lot of traditionally ‘in-ofice’ work that can now
be achieved with online collaboration tools. We reallyneed to change how we defne work, how it’s measured,
how we do it, and where we do it.”That being said, the solution doesn’t need to be overly
complex, and you don’t need to go it alone. There’s a tried
and tested path to ensuring you and your employees
have everything you need for successful fexible working.

For more information, visit dropbox.com/business

12Section 4

How to enable thechoice economy
For businesses to truly thrive post-pandemic, there’s acase to be made for going back to basics and focusing
on what makes work really happen smoothly. And thebest way to fnd that out is to listen to your employees.
In the opinion of Perrine Farque: “Getting qualitativeand quantitative feedback from employees is essential,
because they should drive what your organization does,
and not the other way round. Starting with employ-87%of business leaders say improving
collaboration is critical to the successof their organization

ees — what they want, what they need — and reallyacting upon that information is key.” According to our
research, the message from employees is loud and clear.
The main area respondents wanted to see change wasaround enabling and supporting collaboration. 87% of
the business leaders we surveyed agreed that improving
team collaboration will be critical to the success of theirorganization in the future.

For more information, visit dropbox.com/business

13

While collaboration is often presented as a goal in itself“Trust from senior leadership is key. Part of what makes— collaborating for the sake of collaboration — the reali-[hybrid working] efective is giving employees agency

ty is that collaboration is more than a buzzword.

in how they design their workday. This requires shifting
mindsets, and role-modeling the behaviors and practic-

Remember, not all collaboration is equal. An always-on

es you want employees to have. Whether that’s adopt-

culture where employees are expected to be ready anding core collaborations hours, being transparent about

waiting to collaborate at all hours of the day can quickly

boundaries, or taking of time to recharge.”

lead to collaboration fatigue, and, ultimately, burnout.
Those we surveyed noted the following aspects of their
The answer is smarter collaboration that allows employ-organization’s workfow could be improved by efective

ees to be agile and eficient so they can take control ofremote collaboration:

their daily workfows.
“Technology is paramount to this hybrid way of working,” says Paul Wolfe at Indeed. “Don’t get me wrong,
Zoom fatigue is a real thing. But, ultimately, technology
can, and is, helping me manage my day better. We justhave to know how to use it correctly.”
Our research confrmed that smarter collaboration within a business has a clear impact on a range of diferent
business processes.
Senior leadership have an important role here, according to Melanie Collins, chief people oficer at Dropbox.

40

35%

35%

35%

32%

30

28%

28%

20

10

0

Task assignment/management
Project monitoring and visibility
Ability to provide/gather feedback in real time
Files/content all accessible in one place
Ability to share large fles
Integration with existing apps/tools

For more information, visit dropbox.com/business14And the following were seen as particularly importantfor fostering stronger team collaboration in the future:

60

52%

52%

50%

48%

50

40

30

20

10

0

Tools/technologies to improve collaboration
Social interaction (e.g., in person and/or virtually)
Flexibility in working location and hours
Collaboration spaces for brainstorming,
being creative etc

56%

So, collaboration is a key driver behind making fexible
work possible. But why should business leaders care?
What is the potential outcome of this more fexible worldof business leaders say fexibleof work?

working would help them prioritize
and manage their time better

Our survey found the following benefts of fexible working were considered most important by business leaders:

100
90

Better time management/

80
70
60

task prioritization
56%

55%

54%

50

Greater productivity/
47%

44%

improved focus
Improved mental and40

physical well-being

30

Increased opportunity

20

for family time

10

Easier to collaborate as/0

when we need to as a teamJudging from our survey respondents, enabling the
choice economy — and reaping all of its benefts —means fnding the sweet spot between fexibility,
technology, and collaboration.
That might sound complex – but it doesn’t have to be.

For more information, visit dropbox.com/business

15

Section 5Your checklist for
enabling the choiceeconomyKnowing how to implement choice for a workforceof any size is a constant challenge. It’s all about
understanding where to start your journey, defning
the right objectives, and creating a compelling
roadmap for continued innovation.

For more information, visit dropbox.com/business16

To help you make the right decisions and drive meaningfulchange, we’ve created a checklist to help guide your thinking:

1.
Listen to your workforce

3.
Invest to create continuous value

While this report has shown that many employeesWith your objectives defned, and the demands of yourare demanding fexibility, you should always collectworkforce assessed, you can begin the task of analyzing

insights and feedback from your own teams ahead

where best to invest budget. Don’t start looking too hardof any decision.

at any particular technology at this stage. It’ll skew yourthinking and have you looking for problems frst, rather

Ask them questions around how they would like to work,than the other way round.

where they’d like to work, and what they are looking forfrom you. You might be surprised at what you fnd.

Consider running workshops with your key stakeholders
and include customer feedback in your analysis.

This kind of pulse survey isn’t just a one-of, either. It

The output from these sessions will give you the crucial

should be conducted regularly as we progress beyond

data you need to identify precisely where you can add thethe pandemic and into the new world of working.

most value.

2.
Outline your core objectives toaddress workforce choice4.
Evaluate potential suppliersWorking through the insights derived from yourworkshops, map out a core list of requirements.

Sometimes, the needs of the business appear at odds

Prioritize feature sets or functionality, and begin

with the demands of the workforce. Giving your em-

talking to suppliers, partners, and consultants toployees everything they want can be costly and may feelassess solutions for your needs.

counter-intuitive. Striking the right balance is key.
Speak to as many potential partners as you can,Find out how investment will impact and flter throughand seek feedback from key stakeholders on yourthe organization. Do you need to boost your commu-

preferred options.

nication, or is it a case of enhancing productivity fromdisparate teams?
Following conversations with other stakeholders acrossthe business, it may become evident that employee
wellbeing is where you should focus your energies, forexample. But wherever the insights and feedback takes
you, that’s where you should focus — even if it makes
you feel a little uncomfortable. A happy workforce will
always reward you.

For more information, visit dropbox.com/business17

5.
Build a cross-functional teamto manage the deployment

7.
Conduct regular surveys toassess your performance

Once you’ve chosen a solution, now you need to build

Regular engagement with your workforce should servea team to ensure you get the most from your invest-

as a benchmark for your ongoing performance, and ament. Consider bringing in stakeholders from acrosssense-check of the wellbeing of your teams.

the business, and harness their diverse skill sets tomanage deployment.

For example, as we move beyond the pandemic, you
may fnd a large shift in sentiment and a gradual shift

Look to get things moving quickly, and evolve as you

back towards more consistent ofice working.

go. Your teams want to feel that you’re listening to themand giving them what they want, so begin implementing

While there’s no indication that this will happen any-

what you can as soon as possible.

time soon, regular surveys and workshops with teams
will help you stay ahead of any sudden changes down
the line. While creating a more fexible working environ-

6.
Defne a roadmap forcontinuous innovation

ment ensures that all options remain open, moving withyour workforce is key to keeping hold of your talent andattracting the best possible new talent, too.

To avoid the ‘big bang’ of large upfront investment, takeadvantage of agile practices and keep improving yourplatform as you go.
Factor these considerations into your potential supplier discussions. And make sure that stakeholders are
involved in the conversations relating to how to progress
and adapt your technology ecosystem as you growand innovate.

Footnotes*Dropbox commissioned Vanson Bourne to conduct 2,000 interviews with decision makers across the HR, IT,
marketing, operations, and sales functions, in organizations of 10-1,000 employees. There was representation
across the US & Canada, Europe, and APAC regions, and the survey was conducted in all public and private
sectors (excluding fnancial services, healthcare, and telecoms)
For more information, visit dropbox.com/business18