The Impact of Remote and Hybrid Work Models on Employee Performance: Evidence from Pakistan's IT Industry

Abstract

The increasing adoption of remote and hybrid work arrangements has significantly changed how employees perform, communicate, and collaborate within knowledge-based organizations. This study examined the impact of on-site, fully remote, and hybrid work models on employee performance in Pakistan’s Information Technology and knowledge sectors. It specifically assessed differences in task performance, contextual performance, employee engagement, and collaboration. The study was theoretically grounded in the Job Demands-Resources Model and Social Exchange Theory. A quantitative, cross-sectional, and correlational research design was adopted. Data were collected through a structured online questionnaire from 89 knowledge workers with experience in on-site, hybrid, or fully remote working arrangements. IBM SPSS Statistics was used to perform descriptive analysis, reliability testing, correlation analysis, one-way ANOVA, and hierarchical regression. Hayes’ PROCESS Macro Model 4, using 5,000 bootstrap samples, was applied to test the mediation hypotheses. Hybrid employees reported the highest average scores across all four outcomes, indicating that hybrid work offers an effective balance between flexibility, autonomy, social interaction, and organizational coordination. Fully remote work did not consistently produce lower performance than on-site work; therefore, the hypothesis proposing universally poorer remote-work performance was rejected. Perceived organizational support reduced the negative effects associated with fully remote work, whereas unreliable internet and electricity infrastructure intensified performance challenges. Leader-member exchange fully mediated the relationship between hybrid work and collaboration, while employee engagement partially mediated the relationship between job resources and task performance. The study concludes that the effectiveness of flexible work arrangements depends on organizational support, leadership quality, employee engagement, digital capabilities, and infrastructure reliability. Pakistani organizations should therefore adopt structured and role-sensitive hybrid policies, strengthen managerial support, invest in reliable technological resources, and maintain inclusive communication practices to improve employee performance.