In a challenging economic environment, new research has revealed that businesses operating in the hybrid model are significantly more optimistic about growth in the year ahead than those which do not offer employees flexibility about where they work. This follows a space of return-to-office-mandates from major corporates including Amazon and WPP.
A study of more than 500 CEOs and senior business leaders by International Workplace Group (IWG) found that 69 per cent of businesses offering hybrid working had a positive outlook for 2025 compared to 44 per cent of non-hybrid companies.
Flexible working has allowed many businesses to cut overheads by reducing traditional office space and taking advantage of flexible solutions that offer localised workspaces. More than three quarters (77 per cent) of flexible businesses reported cost savings and 55 per cent say hybrid working is incredibly helpful in mitigating pressures like rising National Insurance contributions.
The research, conducted by IWG, the provider of flexible workspace, comes as business confidence in the UK is under scrutiny. In December, The IOD reported the lowest levels of business confidence since the pandemic.
IWG’s data indicates that businesses prioritising flexibility are significantly more optimistic. 58 per cent of hybrid businesses reported feeling more positive about the British economy than they did a year ago, compared to just 30 per cent of non-flexible businesses.
Flexible working models are also driving productivity and talent retention. 69 per cent of flexible businesses report improved productivity in their workforces, and the same percentage believe their policies have enhanced their ability to attract and retain top talent.
This is supported by Stanford academic Professor Nicholas Bloom’s recently published study which found that hybrid working improved job satisfaction and reduced quit rates by one-third (33 per cent), without damaging productivity.
Flexible businesses are also more confident in their growth and workforce expansion. Nearly 60 per cent of hybrid businesses are optimistic about growth in 2025, and 41 per cent are confident in expanding their workforce, compared to only 19 per cent and 9 per cent of non-hybrid companies, respectively.
Hybrid leaders cite wide-ranging benefits including increased employee satisfaction (55 per cent), retention (40 per cent), and productivity (48 per cent).
“In these challenging times, CEOs and business leaders are contemplating and planning how to move forward the most effectively,” commented Mark Dixon, CEO of International Workplace Group. “Successful businesses understand that their people are their greatest intellectual capital and attracting and retaining their best talent is a key competitive advantage.
“By empowering their teams to work closer to home in local workspaces and offices, companies operating in the hybrid model are reducing their costs and enhancing their team’s happiness and productivity. It’s no surprise therefore that it is these businesses that are the ones looking forward to the year ahead with the greatest levels of optimism.”
