The C-suite is entering 2026 with bolstered confidence. According to International Workplace Group (IWG)’s 2026 State of the U.S. C-Suite Report, 95% of U.S. CEOs are optimistic about 2026 and 84% expect economic conditions to improve, after a year marked by economic volatility and caution.
This rising optimism is paired with clear, disciplined execution. According to new research from IWG, a unanimous 100% of CEOs say cost control is essential, and CFOs are trimming budgets by an average of 10%.
To cut costs, leaders are leveraging the power of AI and flexible work solutions to operate more efficiently, which will enable investments in other parts of their business. AI can save businesses 20-40% in operational costs, while flexible working can reduce organizations’ real estate costs by 55%, making them both cost-effective ways to fuel growth.
In addition to cost savings (83%) over four in five of all C-suite executives say that investment in AI/automation (82%) and productivity (82%) will be prioritized in 2026. AI can drive notable productivity gains; previous IWG research found that 78% of workers report AI saves them time, with an average of 55 minutes gained per day or nearly the equivalent of a full extra day of productivity per week.
Companies of all sizes are empowering their employees to work across multiple locations, splitting their time between local workspaces, a central office and home. This is not simply a change in how people work, rather a rebalancing of where economic value is created. The days of needing to be tethered to a central HQ are behind us. Technology has changed everything, effectively removing the need for long and expensive daily commutes.
2026 is the year of “work from an office,” not “the office,” with 83% of CEOs already enabling teams to work from multiple locations. Primary reasons include shorter commutes (43%), wider talent pools (37%), employee happiness/employee preference (37%), workforce productivity (37%), and the ability to take office or co-working space in areas with lower real estate costs (37%). In 2026, 56% of CEOs will seek shorter-term leases or opt for co-working solutions/membership to a network of flexible workspaces (54%).
“There is no longer a binary choice between work from home and work from the office,” says Mark Dixon, founder and CEO of IWG. “By reducing daily, costly commutes to faraway offices and empowering people to spend more time working closer to where they live and want to be, leaders can cut costs, maximize productivity, increase employee satisfaction and retention, and drive better ROI. And while the business benefits are clear, additional research conducted by IWG shows U.S. employees can also save up to $30,000 per year by working closer to home in high quality, professional workspaces in the heart of their local communities.”
Key findings from the report specific to chief human resources officers include the following.
- Most (95%) of CHROs, chief people officers, and chief talent officers say flexibility is one of the most in-demand benefits prospective employees are seeking.
- The majority (94%) agree that if their company increased flexibility and employees avoided lengthy commutes, it would have a positive impact on business outcomes.
- The top benefits of increased flexibility include higher productivity (43%), profitability (41%), and employee well-being (40%), followed by stronger talent attraction (37%) and retention (35%).
- Conversely, 90% believe reducing flexibility would have a detrimentall effect on their business, particularly impacting retention (40%), profitability (39%), and trust (37%).
- Looking to 2026, more than four in five HR leaders say improving engagement (84%), boosting productivity (83%), and supporting well-being (86%) will be top business priorities.
“Productivity and performance come down to good management of people,” said Mark Dixon, CEO and Founder of International Workplace Group plc. “As leaders navigate AI, cost savings and retention – noting the high costs of attrition – the benefits of flexible work are allowing them to shore up their businesses and prepare for growth.”
