• New research* reveals that businesses offering greater workplace flexibility are significantly more optimistic, confident and prepared for the future compared to those which do not operate in the hybrid model
• Three-quarters (75%) of organisations that offer some form of flexible working are more optimistic about the business environment than they were a year ago, compared to 58% of leaders at non-flexible working businesses
• Furthermore, 58% of organisations offering some form of flexibility feel more confident than they did a year ago, in contrast to 30% of non-flexible businesses

In a challenging economic environment, businesses operating in the hybrid model have reported that they are significantly more optimistic about growth in the year ahead than more traditionally- focused businesses that require their teams to commute daily. They are also recognising that hybrid working allows them to operate with lower business costs, boost employee productivity and attract the best talent – all of which support this optimism.

A study of more than 1,000 CEOs and senior business leaders by International Workplace Group (IWG), found that three-quarters (75%) of businesses offering hybrid working had a positive outlook for 2025 compared to 58% of non-hybrid companies.

Flexible working has allowed many businesses to cut overheads by reducing office space and taking advantage of short-term workspace solutions. More than three-quarters (79%) of flexible businesses reported cost savings and a similar amount (75%) say hybrid working is incredibly helpful in mitigating upcoming economic pressures like rising taxes, increased tariffs and market trends.

The research, conducted by IWG, the world’s leading provider of flexible workspace, with brands including Regus and Spaces, indicates that as business confidence across the world is under increased scrutiny, businesses prioritising flexibility are significantly more optimistic. 63% of hybrid businesses reported feeling more positive about the economy than they did a year ago, compared to just 44% of non-flexible businesses.

Workforce productivity key to brighter outlook

Flexible working models are also driving productivity and talent retention. 72% of flexible businesses report improved productivity in their workforces, and a similar percentage (71%) believe their policies have enhanced their ability to attract and retain top talent.

This is supported by Stanford academic Professor Nicholas Bloom’s recently published study** which found that hybrid working improved job satisfaction and reduced quit rates by one-third (33%), without damaging productivity.

Higher confidence in growth and workforce expansion

Flexible businesses are also more confident in their growth and workforce expansion. Over two-thirds (67%) of hybrid businesses are confident their business will grow in 2025, and nearly half (48%) are confident in expanding their workforce, compared to only 51% and 38% of non-hybrid companies, respectively.

Hybrid leaders cited wide-ranging benefits including increased employee satisfaction (53%), retention (43%), and productivity (46%).

Mark Dixon, Founder and CEO of International Workplace Group, commented: “In these challenging times, CEOs and business leaders are contemplating the path ahead. Businesses that are aiming for peak profitability understand that the key to success lies in retaining and attracting the best talent – their greatest intellectual capital. This strategic focus is essential for maintaining a competitive edge in a rapidly evolving world.

“By embracing hybrid working, businesses are reducing costs and enhancing their team's happiness and productivity. It's no surprise that businesses adopting this model are the ones looking to the year ahead with optimism.”

ENDS

Notes to editors

*Research among 505 UK and 515 US business leader participants in January 2025 by Mortar Research. Mortar is Market Research Society (MRS) accredited and the research adhered to MRS guidelines.

**Bloom, N., Han, R. & Liang, J. Hybrid working from home improves retention without damaging performance. Nature 630, 920–925 (2024).

About International Workplace Group plc

International Workplace Group is the global leader in hybrid work solutions and workspace brands. We create personal, financial, and strategic value for businesses of every size. From some of the most exciting companies and well-known organisations on the planet, to individuals and the next generation of industry leaders. All of them harness the power of International Workplace Group’s hybrid working platform to increase their productivity, efficiency, agility, and market proximity.

International Workplace Group’s unrivalled network coverage includes approximately 4,000 locations across more than 120 countries and 83% of Fortune 500 companies are amongst our growing customer base.

Through our brands including Regus, Spaces, HQ and Signature, we help millions of people and their businesses to work more productively. We do so by providing the world’s leading hybrid work platform with professional, inspiring and collaborative workspaces and digital services all available via the International Workplace Group’s app.

For more information visit iwgplc.com.