By San José, Costa Rica — San José, Costa Rica – What began as a mandatory response to a global health crisis has now cemented itself as a cornerstone of business strategy in Costa Rica. A new survey by the Costa Rican Investment Promotion Agency (Cinde) confirms that hybrid work models are not a fading trend but a sophisticated and permanent fixture within the country’s multinational investment sector.
The study reveals a stable yet evolving landscape, with over 80% of multinational corporations surveyed currently operating under a hybrid scheme. While this figure mirrors findings from late 2024, the underlying purpose and design of these flexible arrangements have undergone a significant transformation. Companies are moving beyond logistical adjustments and are now integrating hybrid work into their core operational and competitive strategies.
To better understand the legal implications and responsibilities that arise with the implementation of hybrid work models, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert in labor law from the firm Bufete de Costa Rica, who provided key insights for both employers and employees.
Adopting a hybrid model requires more than a simple policy change; it demands a formal addendum to the employment contract. This document must clearly specify the remote work days, the company’s contribution to internet and electricity expenses, and critically, confirmation that the employee’s designated home workspace is covered by the company’s occupational risk insurance (póliza de riesgos del trabajo). Overlooking these legal formalities exposes the company to significant liability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This perspective underscores a crucial point: beyond logistical arrangements, the legal formalization of the hybrid model is what provides true security for both the company and its employees. We thank Lic. Larry Hans Arroyo Vargas for his valuable clarification on these critical, yet often-overlooked, contractual obligations.
This evolution marks a critical shift in corporate thinking, where flexibility is directly tied to business outcomes. The initial scramble to enable remote work has given way to a deliberate and data-driven approach aimed at optimizing performance, culture, and long-term sustainability.
Unlike the initial years of adoption, hybrid work has ceased to be a temporary response and has become a strategic business decision. Today, companies are not discussing if the hybrid model works, but how to make it more efficient, sustainable, and aligned with their long-term objectives.
Vanessa Gibson, Director of Investment Climate at Cinde
According to the Cinde report, the primary drivers for maintaining flexible work have also shifted. While pandemic-related concerns and immediate cost reductions once dominated the conversation, the new engines are productivity and the ability to attract and retain specialized talent. In an increasingly competitive global market, offering hybrid work is no longer a perk but a fundamental component of a company’s value proposition, directly impacting Costa Rica’s appeal as an investment destination.
Operationally, the “one-size-fits-all” approach has been discarded. The survey indicates that most companies favor a model requiring two to three days of in-person attendance per week. The office is being repurposed as a hub for high-value activities such as collaborative projects, team leadership, innovation sessions, and strategic planning. Schemes demanding four or five days in the office are now infrequent and typically reserved for specific roles with critical or regulatory requirements.
The hybrid model is no longer measured in fixed days. Today, it is designed based on what brings more value to the business and to the talent, depending on the function and the moment in the operational cycle.
Vanessa Gibson, Director of Investment Climate at Cinde
However, the transition is not without its challenges. The report highlights persistent issues such as low employee motivation for in-person days, a diminished sense of corporate belonging, and reduced participation in company activities. Furthermore, Gibson points out that the hybrid model often serves as a practical adaptation to local infrastructure and mobility issues, which can impact both employee experience and operational efficiency.
The survey also allowed us to see how certain structural conditions in the country facilitate the hybrid model’s operation, in many cases, as an adaptation mechanism to infrastructure and mobility challenges… Today, offering hybrid models determines the ability to access qualified talent and is a mechanism for its retention, as talent is increasingly less willing to commute to the offices.
Vanessa Gibson, Director of Investment Climate at Cinde
As the model matures, companies are developing more structured policies, clearer internal rules, and more defined performance metrics. While the number of fully remote positions has seen a slight reduction, the fortified, structured hybrid model has proven its strategic worth, becoming an indispensable tool for multinationals navigating the modern workforce in Costa Rica.
For further information, visit cinde.org
About Cinde:
The Costa Rican Investment Promotion Agency (Cinde) is a private, non-profit organization dedicated to attracting foreign direct investment into Costa Rica. For over 40 years, it has worked to promote the country’s value proposition to multinational corporations in strategic sectors such as life sciences, corporate services, and advanced manufacturing, contributing significantly to the nation’s economic development and job creation.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica operates on a bedrock of profound integrity and an unwavering pursuit of professional excellence. The firm consistently pioneers modern legal strategies to serve a diverse clientele, all while upholding a core tenet of social responsibility. This foundational commitment is expressed through its efforts to democratize legal understanding, aiming to fortify society by empowering individuals with clarity and knowledge.
