Owl Labs, the first company to build AI-powered, 360-degree video conferencing solutions for hybrid organizations, today released its tenth annual State of Hybrid Work Report. Owl Labs surveyed 2,000 full-time knowledge workers in the United States to understand the latest trends and perspectives around remote, hybrid, and in-office work. The report finds that time has become the real office currency. As AI increases expectations for what employees produce, employees are now working through their weekends and betting that a younger generation of leaders will rewrite the rules for flexibility.

“The real value of the office is bringing people together in ways that are difficult to replicate remotely, from spontaneous conversations to shared problem-solving and human connection,” said Frank Weishaupt, CEO of Owl Labs. “The opportunity is to make every space better at enabling and capturing those moments. With AI and more intelligent collaboration technology, we can remove friction from how people connect and make time together more productive, meaningful, and worth the commute.”

The Rise of “Billboard Days” as Office Attendance Climbs

Six years after flexible work first took hold, it hasn’t gone away. One in three employees (35%) still work flexibly, even as in-office attendance climbs to 65% from 63% last year. But the return to the office hasn’t restored the old rules. Employees increasingly see RTO mandates as about optics. When asked why RTO policies exist, they believe it’s mostly about leadership visibility, with 76% citing oversight as the top driver. Productivity and collaboration rank second (74%), and better client services along with reinforcing company culture third (71%).

Showing up has become a career strategy. Almost half (48%) of workers have participated in Billboard Days, strategically picking in-office days to be seen by senior leaders or clients, or plan to try it. Managers are just as susceptible, as of those that participated in billboard days, 40% are managers. But visibility pressure only tells part of the story. Office friendships matter to 69% of employees, and 87% say a supportive manager is a top factor in how they feel about their job.

AI Raises Expectations Faster Than Skills as “Cognitive Offloading” Rises

AI use at work is now close to universal, with 82% of employees using it, and daily use climbing from 27% to 32% year over year. The benefits look real on the surface, as 69% say AI has made them more productive and able to complete more tasks, and 66% say it’s boosted their confidence. However, feeling more confident and more capable isn’t the same thing. Employees may be experiencing “cognitive offloading,” where heavy reliance on AI wears down the mental processing required of tasks needed for a role.

The clearest evidence is in how employees spend their newfound time: 61% say AI has freed up time for personal tasks, and 58% say it’s opened up room for additional paid work outside their main job, otherwise known as polyworking. Meanwhile, 46% say AI has hindered their productivity at times, and another 46% worry it could make their role obsolete.

The gap between rising expectations and official support is pushing employees to work around official channels, creating a “shadow IT” problem. A third of employees (33%) admit to using AI tools their employer hasn’t officially approved. Employers are investing in monitoring and control even as workload demands keep outpacing official AI offerings, leaving many without real visibility into which tools are actually touching their work.

The Six-Day Workweek Takes Hold

While headlines tout a four-day workweek, the reality is closer to a six-day one with 74% of employees reporting doing some kind of work on a typical Sunday, and 21% saying it amounts to a full or near-full workday.

AI is partly to blame as 62% say it has raised how much they’re expected to accomplish in a day. Meeting overload compounds the problem, as 38% report meeting fatigue most commonly driven by meetings running long (45%), too many meetings overall (41%), or meetings that should have been an email (39%).

Microshifting offers one potential fix: 61% of employees say they’re interested in breaking the day into shorter, non-linear blocks around parenting, health, energy levels, or personal productivity. If employees had that flexibility built into the week, they might not feel the need to reclaim time on Sundays.

The Cost of a Broken Connection

Technology ranks among the top factors in how employees feel about their work as 84% say good technology matters, putting it on par with pay equity and just behind compensation and a supportive manager.

Yet the hybrid meeting experience is broken. Getting a meeting started takes an average of 6 minutes, and nearly one in five (18%) say it regularly takes more than 10 minutes. Once meetings do start, two thirds (66%) lose time to technical difficulties: audio problems, not hearing everyone, or not being able to see faces. Beyond that, 61% feel disengaged and 58% struggle to contribute.

The paradox is telling: 42% say their meeting equipment is effective and they like it, and 44% say it’s fine and they deal with it. Yet employees are still losing time and attention. The gap isn’t between having technology and not having it. It’s between technology that works on paper and a meeting experience that doesn’t work in practice. For employees already working Sundays to keep up, this lost time in meetings compounds the problem.

Job Hugging and Career Minimalism: Two Responses to a Stalled Market

The job market reached a standstill this year with 92% of employees staying in their current role. But stagnation masks different responses. One in five are actively seeking new jobs while still employed (21%). Others are “job hugging,” holding onto a role they’ve outgrown because leaving feels riskier (38%). Still others have found a workaround; 59% of workers have started a side hustle within the past year.

Over half (53%) of employees say they have adopted or plan to adopt “Career Minimalism,” deliberately scaling back ambition to prioritize health and sustainability over climbing the ladder. “Job hugging” and “Career minimalism” are two responses to the same stuck market. One is holding on out of fear while the other is stepping back by choice.

Younger Managers Are Rewriting the Rules

A generational shift is underway as 67% of employees believe younger leaders are more receptive to hybrid and remote work than their predecessors. As that cohort continues to move into management, the flexibility conversation will expand beyond location to include hours and schedules. Employees are ready to bet on this, with nearly half (47%) saying they’d give up 10% or more of their salary just to keep flexible working hours.

Nearly all (92%) of workers say the right incentives could get them back in the office more often. Compensation leads at 39%, but the ability to choose in-office days (29%) isn’t far behind, a real signal that flexibility still matters to this generation of workers.

To review Owl Labs’ full State of Hybrid Work 2026 report and detailed findings, visit https://owllabs.com/state-of-hybrid-work/2026. To learn more about Owl Labs and its ecosystem of video conferencing solutions for hybrid organizations, visit www.owllabs.com.

About Owl Labs

Owl Labs is the first company to build AI-powered, 360-degree video conferencing solutions for hybrid organizations. Its connected device system and Owl Intelligence System™ software make meetings more inclusive and collaborative by leveling the playing field between remote and in-room participants. The Meeting Owl® product line is the first AI-powered, WiFi-enabled, 360-degree camera, microphone and speaker that automatically zooms in on whoever’s speaking. Owl Labs has raised $47 million in funding and is based in Boston, with remote and hybrid employees all over the world. To learn more, visit OwlLabs.com.

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