With companies increasingly prioritising their employees, they are also recognising that productivity and engagement are driven by how, when, and with whom they collaborate rather than solely where they work.
Organisations of all sizes are embracing flexible and hybrid working models to attract and retain the best talent. Recent technological advancements will further accelerate this shift, enabling smarter collaboration and more dynamic ways of working as businesses invest in data-driven workplace design and AI-powered personalised experiences. Increasingly, career pathways will be defined by skills rather than traditional degrees – and personalised human-AI collaboration will become an increasingly valuable skill for business success.
“Continuous improvements in technology including AI and new approaches to training and development will be significant drivers of productivity, engagement, and loyalty, enabling companies to create a future-ready workforce and working environment that propels business growth,” says Mark Dixon, founder and CEO of International Workplace Group ( IWG). “We will continue to see a fundamental shift in the geography of work with the centre of gravity moving towards local communities.
“The remarkable advances in cloud technology and video conferencing software – both vital to enabling effective hybrid working – mean workers no longer need to travel long distances on a daily basis,” he adds. “Innovations in technology will continue to advance in years to come and will radically underline and fuel the flexibility of location.”
In 2026, Dixon says, the attention will now turn from where work happens to focus on a company’s profitability, productivity, and the wellbeing of their teams. Businesses will invest in flexible workspace memberships, allowing employees to work closer to home where they will be most productive and avoiding costly, unnecessary commutes. For most, this will mean working from suburban commuter hubs, small towns, or emerging 15-minute cities with work becoming more local, more personal, and more intelligent than ever before.
IWG has identified 10 top trends that shape global working next year:
The rise of AI: Your work co-pilot
In 2026, hybrid teams will more regularly integrate AI co-pilots into their daily operations. These systems will significantly reduce the need for simple tasks such as admin, knowledge retrieval, and scheduling. Employees will find themselves with more time for creative work, able to tackle complex problem-solving tasks, and develop meaningful relationships. Moreover, this transformation will enable individuals to better manage their work-life balance ultimately leading to increased productivity and job satisfaction.
This shift is being accelerated by a new wave of intergenerational collaboration.
Research from IWG reveals that 62% of Gen Z employees are already coaching older colleagues on how to use AI to boost productivity and efficiency. In turn, 77% of directors and senior directors have said this has boosted productivity levels, while 80% said it unlocked new business opportunities. Capitalising on this trend, employers will increasingly use AI and workplace analytics to create “personalised hybrid plans” for each employee including optimised schedules, ideal collaboration days, and preferred office or co-working locations.
Return-to-several-offices
Companies of all sizes are moving away from loosely defined hybrid policies to more structured, multi-location models with teams increasingly empowered to work from more convenient places closer to home. Rather than insisting on a “Return to the office”, it’s a case of a “Return to several offices”.
Microsoft recently announced that by 2026 many of its US employees will need to be in their closest Microsoft office at least three days per week, while many corporates are empowering their teams to work from a network of co-working or flexible workspace locations.
Micro-certifications as currency
Hybrid workers will stack “micro-certifications” (bite-sized, skill-focused credentials) instead of relying on traditional degrees or annual performance reviews. Employers will support this by funding on-demand learning platforms, creating more agile talent pools. This trend will change internal mobility with skills becoming more portable and accessible.
Reversing the quiet crack
Unlike “quiet quitting”, where employees deliberately do the bare minimum, “quiet cracking” describes something subtler: employees who are still performing, but feel mentally and emotionally checked out resulting in burnout, stalled progression, and a lack of purpose.
With 57% of workers saying they’re more likely to disengage when they feel undervalued or micromanaged, companies will put more emphasis on employee wellbeing and flexible work options to remain competitive and keep people engaged. As wellbeing becomes a bigger focus, companies are also expected to move past traditional perks and start using new “well-tech” tools such as stress-tracking wearables, AI mental health reminders, and wellness challenges that gamify healthy habits and make them more engaging.
Fractional C-suite and executive talent
As they navigate economic uncertainty, more companies are turning to fractional executives, opting for part-time or contract-based C-suite talent who bring in laser-focused expertise without the cost of full-time appointments.
With nine in 10 (87%) CEOs and CFOs concerned about the impact of ongoing macroeconomic instability and two thirds (67%) already reducing operating costs, businesses are looking for smarter leadership models. This flexibility allows companies to secure world-class strategic insight when needed, while enabling experienced professionals to work across multiple organisations.
Building 15-minute cities from the ground up
The 15-minute city concept, where everything from work to leisure is accessible within a short walk or cycle is entering a new phase in 2026. Until recently, this has mainly been a story of adaptation: retrofitting existing neighbourhoods to bring work, living, and recreation closer together. In the year ahead, 15-minute cities will be taking an entirely new form – they will be built from the ground up, designed to encourage connectivity, sustainability, and community.
Hybrid work is making urban ecosystems viable as professionals choose to live and work locally while businesses decentralise their footprints to be closer to where people actually are – saving up to $30 332 a year thanks to the reduced need for lengthy commutes.
The local loyalty effect
Hybrid work will foster a renewed connection to local communities. Companies may encourage employees to integrate volunteerism, local partnerships, or skill-sharing into their workweek – strengthening employer brands while supporting civic engagement in the communities where employees live and work.
The hospitality-infused office
The workplace will increasingly look and feel like boutique hotels. In 2026, expect concierge-style services, curated food and beverage options, and sensory design that mirrors boutique hotels. IWG’s latest partnership with YOO is an example – blending design-led hospitality expertise with IWG’s flexible workspace network, these spaces will fuse work, socialising, and wellbeing together transforming the office into a lifestyle experience.
Rising day office demand
Day offices are set to become a key part of the landscape, providing a professional and productive office space whenever and wherever it is needed. Whether employees are seeking quiet, focus rooms, or collaboration spaces for ad-hoc team days these “on-demand” options eliminate the need for long-term commitments while offering all the amenities of a traditional office.
With wellbeing firmly on the agenda, features such as natural light and on-site wellness amenities will differentiate day offices – helping employees work efficiently, flexibly, and with purpose.
The new workforce demographic: Why business leaders need to know what Gen Z wants at work
Gen Z is entering the workforce with clear expectations that go beyond pay: they prioritise wellness, mental health, flexible hours, and meaningful work that aligns with their core values.
With an aging global population, rising retirements, and widening talent gaps it is critical that business leaders understand and react to these changing priorities in order to stay competitive. Companies that embrace flexibility, autonomy, and meaningful work will attract and retain the next generation of leaders – those that don’t, risk falling behind.