Senior business leaders are adopting hybrid working and flexible office arrangements as part of their strategy to navigate economic uncertainty, with nearly two thirds of CEOs and CFOs are using cost reduction tactics focused on workplace flexibility rather than more disruptive measures.
That’s according to new research from hybrid work platform International Workplace Group. The study found that 90 percent of C-suite respondents are concerned about the impact of macroeconomic instability on their businesses. As a response, many are reducing overheads by moving away from traditional office models and investing in hybrid working approaches.
Four in five business leaders (81%) now see hybrid work as central to cost-saving strategies. A further 77 percent report significant reductions in operating costs, such as those associated with office space and utilities, by using this approach. The shift is also allowing companies to reinvest in core business areas or retain a financial buffer against market volatility.
A majority of executives (74%) say flexible working has enabled them to explore new locations, giving them access to broader talent pools and increased agility. In addition, 82 percent of leaders observed improved productivity among staff since implementing hybrid models.
Hybrid work, operational resilience and talent retention
While businesses are adjusting their operations to manage costs – 63 percent have either reduced or plan to reduce operational expenditure – they are also maintaining a focus on their workforce. Leaders cited employee productivity (37%), wellbeing (24%) and talent retention (17%) as key priorities in difficult market conditions.
Almost nine in ten business leaders (88%) believe that hybrid arrangements increase employee satisfaction. For many, it is becoming an important aspect of their recruitment and retention strategy.
Mark Dixon, CEO and Founder of International Workplace Group, said, “In times of economic volatility, CEOs are carefully evaluating how to navigate uncertainty while driving efficiency and growth for their business. They recognise that flexibility is not only crucial when it comes to safeguarding their operations, but also enhancing the productivity of their teams.”
He added that enabling employees to work closer to home through local workspaces is proving beneficial. “Companies operating in the hybrid model are able to significantly reduce their costs and improve the work-life balance of their people,” Dixon said.
Flexible leases and decentralised office models on the rise
As economic pressures persist, companies are increasingly shifting away from fixed, long-term leases. The study shows that 79 percent of leaders are actively exploring additional flexible workspaces to support business continuity and allow for scalability.
This decentralised approach is also helping companies manage real estate risk more effectively, while providing options to scale operations up or down in response to market shifts. For many businesses, this flexibility is seen as essential to remaining competitive and resilient.
The move towards hybrid working is not just a temporary adjustment, but part of a longer-term shift in workplace strategy. Recent research shows that hybrid working arrangements remain widely used across UK organisations despite reports suggesting a rollback in hybrid working.
