Remote work exposes culture gaps

In its 2026 Employment Survey, leading UK law firm Freeths found that the biggest challenges associated with hybrid and remote working are not technological but human.  

45% of respondents highlighted concerns around sustaining team culture, maintaining effective communication, ensuring fairness and managing performance across dispersed teams. 

These findings reflect a broader reality.  

Hybrid and remote work are no longer temporary shifts but structural changes in how we work. And for small and medium-sized enterprise (SMEs), this creates a unique tension.  

While large corporations can often invest heavily in human resource infrastructure and culture-building initiatives, smaller businesses must find smarter, more resourceful ways to build connection and cohesion, often on tighter budgets. 

We asked Rena Magdani, partner and national head of employment, pensions and immigration at Freeths, how SMEs can respond to the very challenges highlighted in the firm’s survey. Here’s what Rena said.  

With concerns about cultural drift rising, clarity becomes critical. SMEs should define a small set of core values that guide behaviour across all locations. 

• Make values practical and actionable, not just statements on a website. 

• Reinforce them consistently in meetings and decisions. 

• Recognise employees who demonstrate them. 

A clearly defined culture reduces ambiguity, especially when teams are not physically together. 

Freeths’ findings highlight communication as a key pressure point in hybrid environments. Without intentional structure, silos and misunderstandings quickly emerge. 

• Set clear expectations around channels and response times. 

• Use regular team check-ins to maintain alignment. 

• Document decisions to ensure visibility across locations. 

Done well, structured communication becomes the backbone of remote culture. 

Concerns around fairness – especially between in-office and remote workers – are increasingly common. 

Wider research supports this: hybrid workers can feel overlooked for promotions or recognition compared to office-based colleagues.  

• Standardise performance reviews and promotion criteria. 

• Ensure equal access to opportunities and leadership visibility. 

• Be transparent in how decisions are made. 

Fairness isn’t just a policy; it’s a cultural signal.

Performance management remains a challenge in dispersed teams, as highlighted by Freeths. 

The solution is a shift in mindset. 

• Focus on outputs and results, not hours or visibility. 

• Set clear, measurable goals. 

• Build regular feedback loops. 

This reduces micromanagement while increasing accountability and trust.

One of the biggest risks in hybrid work is the erosion of informal connection – the glue of company culture. 

• Create regular team rituals (weekly check-ins). 

• Celebrate wins and milestones openly. 

• Encourage informal interactions (virtual coffees, interest groups). 

These moments replicate the social fabric of in-office environments. 

Managers are the frontline solution to many of the challenges companies face. 

• Train them in remote leadership and communication. 

• Encourage frequent one-to-ones focused on wellbeing and engagement. 

• Help them identify early signs of disengagement. 

In SMEs especially, culture is often shaped manager by manager. 

Hybrid work is still evolving, and so is culture. 

• Use pulse surveys and informal feedback channels. 

• Act on feedback visibly to build trust. 

• Be willing to iterate your approach. 

This responsiveness is where SMEs can outperform larger, less agile organisations.

Culture, communication, fairness and performance are not barriers to hybrid work; they are signals of where leadership attention is needed most. 

For SMEs, the opportunity lies in being deliberate.  

Without the layers and complexity of large organisations, smaller businesses can build cultures that are not only resilient to remote working but strengthened by it.