The majority of employers are suffering from "productivity paranoia" due to hybrid working, according to the latest Work Trend Index Pulse report from Microsoft.

The research found that 85% of business leaders say the shift to hybrid work has made it challenging to have confidence that their employees are being productive.

It states 87% of employees meanwhile report they are productive at work.

The study reveals that 73% of employees say they need a better reason to go into the office besides company expectations, but that they would be motivated to go in if they could socialise with co-workers or rebuild team bonds.

Around 55% of employees say the best way to develop their skills is to change companies.

However, they also say they would stay longer at their company if it was easier to change jobs internally or if they could benefit more from learning and development support.

Microsoft says its data shows that hybrid work has created a growing disconnect between employees and leaders and that they are at odds about what constitutes productivity, the benefits of flexibility and the role of the office.

"Thriving employees are what will give organisations a competitive advantage in today's dynamic economic environment," said Satya Nadella, chairman and CEO of Microsoft.

"Today, we’re announcing new innovations across our employee experience platform Microsoft Viva to help leaders end productivity paranoia, rebuild social capital, and re-recruit and re-energise their employees," Mr Nadella said.

The Work Trend Index Pulse report is based on an external study of 20,000 people in 11 countries, along with analysis of trillions of Microsoft 365 productivity signals, LinkedIn labour trends and Glint People Science insights.