IWG CEO Mark Dixon discusses the business benefits of the shift to hybrid working as part of the European Chamber of Commerce of the Philippines’ C-Suite Conversations webinar series.
In the first of a series of webinars, the European Chamber of Commerce of the Philippines invited IWG’s Founder and CEO Mark Dixon to share his take on how the world of work has changed in the wake of Covid-19, and predict how companies will need to adapt as we continue to recover from the pandemic.
The event, chaired by Amor Maclang, co-founder of GeiserMaclang, explored the benefits of the hybrid shift for people, company profits and the planet, alongside the challenges it can present for business.
Introducing Dixon, ECCP director Paco Milan explained: “Organisations are grappling with the question of what the future of work will look like – how to navigate the challenges and opportunities, [in order to] create a sustainable future.”
“Digital disruption”
The hybrid approach – spending part of the week at the corporate office and the remainder working from home or a local flexible workspace – is the clear preference of a majority of employees, with research from McKinsey, the UK’s Office for National Statistics and Forrester emphasising its importance in the aftermath of Covid-19.
According to Dixon, though, hybrid working isn’t a change that employees and employers are embracing as a direct result of the crisis. “This trend has been some time in the making,” he told webinar participants. “It’s really to do with digital disruption.”
The availability of high-quality broadband, as well as the presence of communications platforms such as email, Skype and Zoom on people’s laptops and mobile devices, means businesses were well set up for remote working long before many of them were pushed to allow it during periods of lockdown. “The reality is that your office migrated to the Microsoft or Google platform some time ago,” said Dixon. “You just didn’t see it happen.”
The pandemic accelerated adoption of technology that was already there for people, Dixon explained. “It showed that companies and individuals could operate effectively, sometimes even more effectively, using a distributed platform based on the internet – with people working where it’s convenient, rather than where they’re told to go.”
Research from Accenture confirms this, showing that 63% of organisations with high-growth characteristics have enabled ‘productivity anywhere’ workforce models. On the other hand, 69% of companies with negative or no growth characteristics are still focused on where people are going to work, rather than what they do.
“Hybrid working delivers cost savings”
Improved organisational performance is just one way in which the hybrid approach can boost the bottom line. Dixon is clear that “hybrid working delivers cost savings”, not least through reducing real estate expenses.
When Maclang suggested that flexible workspace is now attractive to “business behemoths” as well as the small and startup firms traditionally associated with it, Dixon cited IWG’s enterprise success as evidence of the shift. Global organisations including NTT and Standard Chartered bank have inked deals with the flexible workspace provider in 2021, with new partnerships adding an overall two million new customers to its global network of flexspaces so far this year.
One reason for large companies’ interest in flexible workspace is the enhanced agility it offers: firms can scale up or scale down their office footprints at short notice, and there’s no need to commit to a tenancy agreement that might last five or ten years. “Real estate tends to be a long-term play,” Dixon pointed out. And, in the current climate, “Businesses should be asking themselves where they will be in three years – as well as how difficult it might be to get people into those [traditional office] spaces by then.”
“A lot more choice, a lot more talent”
What’s more, Dixon explained, a hybrid approach to hiring opens up “a lot more choice and a lot more talent” for firms. No longer bound to find employees who are based within a commutable distance of the company HQ, recruiters can cast the net wider and look for true best-fit candidates.
Employees who are empowered to work from locations that are convenient for them tend to be happier and more loyal, as well as more productive, Dixon argued. Allowing staff to work from local flexible workspaces “gets them off the road, stops their time being wasted and ends the long commutes that can disrupt family life.”
And in terms of future-proofing the workforce, it seems that adopting the hybrid model will be non-negotiable for firms who want top talent. “The next generation [of workers] are digital natives,” Dixon pointed out. “When they come into the workplace, if you suggest to them that they have to travel long distances to use a computer and a phone [like the ones they have at home] they’ll say ‘No – that doesn’t make any sense.’”
“Sustainability is the big driver”
In addition to its benefits for employers and employees, Dixon pointed out the environmental advantages of hybrid working.
“The whole concept of hybrid is attractive from an ESG point of view,” he explained, outlining his belief that companies’ environmental, social and governance agendas will take centre stage once Covid-19 is behind them. “It’s what investors ask about even before, ‘How much money have you made?’ Sustainability is the big driver.”
For an international company such as Standard Chartered, Dixon said, being seen as environmentally responsible is key. The firm’s ambition to cut real estate by 50% chimed with its desire to reduce its carbon footprint by 50%. This will be achieved via employees’ short and less frequent commutes and the use of fewer, less energy-intense office buildings.
From a more macro perspective, Dixon argued, hybrid working and flexible workspaces “can regenerate the rural parts of any country and rebalance development away from a few big cities towards a much flatter, [fairer sort of growth].” So long as people have strong enough internet connections, he said, hybrid working can help to build healthier local communities with a more sustainable future.
In addition, Dixon said, IWG’s own commitment to sustainability can help clients achieve their environmental goals. “Our location designs are constantly evolving,” he said. “But some of the new buildings we’re putting up have more or less a zero carbon footprint. We’re looking at completely green interiors, too – one of our prototype launches had more than 5,000 plants and a low energy footprint.”
Not the end for the office
However, Dixon was keen to point out that hybrid working doesn’t spell the end for the corporate HQ. “Young workers learn by observing,” he said, and pointed out that while digital ‘buddy’ systems can help to integrate new, remote starters, there will always be a place for whole company meetings or team get-togethers.
The key, Dixon argued, will be for firms to invest in bringing staff together usefully – organising curated events or activities with a clear sense of purpose.
This sort of contact, Dixon said, is “important for everyone in the workplace” – but in the new world of work, when companies ask their people to journey into the HQ, they’ll need to make the trip worth it.
Looking to the future
All in all, Dixon told the webinar guests, thriving in the new world of work will depend on businesses’ ability to pivot and adapt. “Things change,” he said. “What you think is normal today can be something quite different tomorrow.”
However, “change always brings opportunity” – and it’s possible for companies to find more success than ever in the new world of work.
One thing is for certain, Dixon explained: “This change is universal. I predict that in 15 years, or ten – possibly even in five years’ time – people will look back on [our pre-pandemic routines] and say, ‘How on earth did we use to work like that?’”
IWG has been helping businesses like yours with corporate flexspace solutions for the last 30 years. Find out how we can support you today.
