Hybrid Work Results in Cost Savings and Increased Employee Happiness

IWG, the world’s largest provider of flexible workspaces and hybrid work solutions with brands including Regus and Spaces, released findings from its inaugural IWG U.S. CEO State of Hybrid Working Survey, which reveals an overwhelming majority (89%) of U.S. CEOs at companies with hybrid working arrangements have seen cost savings as a direct result of hybrid work. Cost savings include reduced office space (25%), less in-office amenities (33%), and lower costs of shared office space (32%).  

In addition, a variety of benefits are highlighted for cost savings. Almost all (96%) believe their reputation as CEO is higher due to implementing hybrid working. Nearly three-quarters (72%) cite increased employee happiness, two-thirds (63%) report improved employee productivity, and more than half (59%) say they experience higher employee retention and attraction. Additionally, nearly half (48%) report that hybrid work has enabled them to widen the talent pool, delivering significant value for their business.  

Illustrating a continued commitment to hybrid working and its associated benefits, 74% of CEOs say they still expect to be operating in a hybrid model within the next five years. Only one in 20 (6%) say they expect less of their team to be hybrid by 2028.  

“This latest research highlights that hybrid working helps businesses stay competitive and resilient, especially in times of economic uncertainty and that CEOs are adopting hybrid working for many reasons,” says Mark Dixon, IWG’s founder and CEO. “Not only does it support employee work-life balance and well-being, but it also provides a meaningful boost to a company’s bottom line.”  

Additional highlights from the survey can be found below.  

• Nearly two-thirds (58%) of CEOs say that hybrid is the future of work, while two-thirds (65%) have either adopted or are considering adopting flexible office hours. 
• More than one-third (36%) of CEOs are implementing a shorter work week. 
• Nearly nine in 10 (87%) are investing in more technology to support a hybrid model.  
• Four in five (82%) of CEOs allow their employees to work from more than one office location, including a headquarters in one city and an office in the suburbs.  
• Three in five (62%) of CEOs offer access to coworking spaces and nearly half (45%) offer a satellite office.  
• One in four (25%) of CEOs plan to move to shared office space.  

A recent IWG survey of U.S. chief financial officers found that 78% were cutting costs due to ongoing economic uncertainties. Approximately 81% of CFOs cited hybrid work as a way to meet savings objectives. With both U.S. CEOs and CFOs reaching consensus on on the financial benefits of hybrid work, coworking spaces present a cost-effective opportunity for employers to maintain company culture.