To navigate the economic uncertainty, senior business leaders are adopting flexible working arrangements and hybrid office arrangements. Nearly two thirds (63%) of CFOs and CEOs use cost-reduction tactics that focus on workplace flexibility instead of more disruptive measures.
According to a new study by hybrid work platform International Workplace Group. The study revealed that 90 percent C-suite respondents were concerned about macroeconomic instability’s impact on their business. Many are responding by reducing their overheads and moving away from the traditional office model.
81 percent of business leaders now consider hybrid work to be the cornerstone of cost-saving strategies. This approach has also led to a significant drop in operational costs such as office space or utilities. This shift allows companies to reinvest their profits in core areas of business or maintain a financial cushion against market volatility.
A majority (74%) of executives say that flexible working has allowed them to explore new places, giving them greater agility and access to talent pools. A further 82 percent of managers have observed an increase in productivity since hybrid models were implemented.
Work hybridization, operational resilience and talent retention
Businesses are managing costs by adjusting operations. 63 percent of businesses have reduced or plan on reducing operational expenditure. They are also focusing on their employees. Leaders identified employee productivity (37%), well-being (24%) and retention of talent (17%) among their top priorities during difficult market conditions.
Nearly nine out of ten (88%) business leaders believe hybrid arrangements improve employee satisfaction. Many are making it a key part of their retention and recruitment strategy.
Mark Dixon, Founder and CEO of International Workplace Group said: “In times when the economy is volatile, CEOs carefully evaluate how to navigate uncertainty and drive efficiency and growth for their businesses.” They understand that flexibility is crucial to their business, not just for the sake of protecting their operations but also for enhancing their team’s productivity.
He said that local workspaces allow employees to work close to home. Dixon stated that hybrid models allow companies to reduce costs and improve work-life balance for their employees.
The rise of flexible leases and decentralised offices
Companies are moving away from long-term, fixed leases as economic pressures continue. According to the study, 79 percent are actively looking for flexible workspaces that can support business continuity while allowing for scalability.
Decentralised approaches also help companies to manage real estate risks more effectively and provide options to scale up or down operations in response to changes in the market. This flexibility is essential for many businesses to remain competitive and resilient.
Hybrid working is not a temporary change, but a long-term strategy shift. Recent research has shown that hybrid work arrangements are still widely used in UK organizations despite reports claiming a reduction of hybrid working.
