Hybrid Work
How the benefits add up
The current economic landscape is challenging, with many businesses around the globe feeling the pinch and preparing for a possible recession. In this climate, the popularity of the hybrid work model continues to surge, proving it’s not just a stopgap but a long-term solution to securing cost savings and productivity gains.
According to a survey by International Workplace Group (IWG), 92% of CFOs report financial strain due to economic uncertainties, with two-thirds believing we are currently in a recession. Yet, it’s hybrid working that’s helping companies stay afloat.
As more employees split their time between home and flex spaces, the need for expansive, central offices is giving way to more dynamic and cost-effective arrangements. Businesses once needing to accommodate large staff numbers are recalibrating for a considerably smaller on-site presence, with many opting for flexible leases that prioritise agility over fixed, long-term commitments.
79% of workers said they are more productive since switching to the hybrid model*
Scaling back on square footage not only reduces the physical amount of space needed for work, it can also cut back on operational costs. Benefits include reduced power usage in the face of soaring energy prices, and savings on less obvious expenses, such as cleaning services, office supplies and kitchen provisions.
Global Workplace Analytics puts a number to these efficiencies, estimating that hybrid models can save over $11,000 per employee annually. Such savings can be redirected to invest in growth, a crucial consideration when every penny counts.
92% of CFOs say they have been financially impacted by economic uncertainties in the last 12 months*
And cost-saving isn’t the only headline here. Productivity is also getting a boost from hybrid working. Surveys show that over half of workers report increased productivity when working remotely, with some countries reporting even more significant rises.
There’s also a human aspect to these statistics. Lower stress levels and better wellbeing contribute to productivity. With 79% of hybrid workers citing increased productivity post-switch, it’s clear that reduced stress and better work/life balance play significant roles. Time is a valuable currency in this equation. The saved hours from commuting are often reinvested into work, leading to a reported 3-4% increase in productivity.
Hybrid working can save organisations more than $11,000 per employee a year on average**
Finally, the hybrid work model is central to modern talent strategy, directly contributing to higher employee satisfaction and retention. This, in turn, allows businesses to realise substantial savings on the costs associated with recruiting, onboarding and training.
In a time of transformation, Barfoot & Thompson Commercial is well-placed to provide tailored advice and solutions to businesses adapting to hybrid models. Our expert team is here and ready to help, contact us for all your commercial real estate needs.
* As reported in ‘The Hybrid Cost Saver’, White Paper published by IWC, 2023.
** Analysis by research firm Global Workplace Analytics