Research from International Workplace Group reveals that nine out of 10 c-suite executives are concerned about the business impact of macroeconomic instability.
As a result, they are turning to hybrid working, empowering their people to work from a combination of locations as a strategy to safeguard their businesses, reduce costs, and enhance operational resilience.
The new survey of CEOs and chief financial officers (CFOs), conducted by IWG, reveals that 86% are implementing proactive financial measures to protect their companies.
The findings highlight a clear trend toward adopting more flexible work arrangements, as four in five (83%) say hybrid work plays a crucial role in their cost-saving strategies, helping to mitigate the current economic turbulence.
Executives say this model has improved operational resilience, enabling them to significantly reduce overhead costs, such as office space, utilities, and expenses (77%), freeing up resources for reinvestment in other areas of the business or creating a buffer against unpredictable costs and future market fluctuations.
Seventy-four percent of CEOs and CFOs also say the model has enabled them to explore new business locations, offering greater flexibility and potential for growth and 83% report a noticeable boost in employee productivity. The multiple benefits mean 79% are exploring additional flexible workspaces to help manage economic uncertainty.
While more than two-thirds (67%) are scaling back or planning to reduce operating costs amid economic instability, they are not losing sight of one of their most important assets, their people.
Many CEOs say productivity (37%), employee wellbeing (23%) and strengthening long-term talent retention (17%) are essential during challenging economic times.
As part of this focus on talent, 88% of business leaders say hybrid working boosts employee satisfaction, making it a strategic focus for future recruitment.
Mark Dixon, CEO and founder of International Workplace Group, comments: “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.
“By empowering their teams to work closer to home in local workspaces and offices, companies operating in the hybrid model are able to significantly reduce their costs and improve the work-life balance of their people.”