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 1000 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 a 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, 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.”
IWG
