A study among more than 500 CEOs by International Workplace Group found that an overwhelming 95% have invested in new technology over the past year to improve the experience and efficiencies of hybrid working within their company. 43% indicated that it has been their largest investment in the last 12 months, demonstrating the resources that businesses are committing to ensure they benefit from the advantages that hybrid working has to offer.
The findings, which come from International Workplace Group’s latest research on the attitudes and experiences of C-Suite leaders on hybrid working, show that spending on technology is likely to continue. In fact, 87% of CEOs plan to continue investing in new technologies to further enhance the hybrid working experience for their employees, allowing them to avoid long, time-consuming commutes and reap the rewards of an improved work-life balance, significant health benefits and monetary savings.
Local working drives demand for hybrid
Employee demand for working closer to where they live has been one of the principle drivers of the widespread uptake of hybrid working. Research shows that only one in five (21%) would take a new job that requires a daily commute of longer than 30 minutes, while 60 per cent want to work within 15 minutes of home.
Transitioning away from expensive city centre office spaces towards models which utilise smaller, regional offices and co-working buildings has also reduced businesses’ overheads. Previous research shows that almost half of CEOs (44%) have reduced their traditional office space by a quarter (25%), leading to reduced energy consumption and operational costs.
This research suggests that CEOs are now reinvesting these savings into technology to help reap the productivity gains offered by hybrid working. The top areas of investment are cloud technology (62%), AI and automation (52%), security (52%) and generative AI (41%). Almost half (46%) said they plan to significantly invest in their software in the coming years.
This comes as more than three quarters (77%) of CEOs consider hybrid working to be the future, with the same proportion (77%) also agreeing that the advancement in technology is crucial to its further adoption.
Hybrid working improves productivity
CEOs who invest in technology to support their employees’ hybrid working experience can expect productivity gains, too. Recent data from International Workplace Group revealed that 74% of workers said they were more productive when working in a hybrid model, while a similar number (76%) reported being more motivated. 85% of employees said that hybrid work had actually improved their job satisfaction.
HR leaders’ views support this, with four in five (86%) stating hybrid work is now one of the most in-demand employee wellness benefits, and reporting that it increases employee productivity (85%).
This reflects research undertaken earlier this year by The Bank of England, Stanford University, King's College London and Nottingham University, led by renowned economist and academic Nick Bloom. It found that for every day a firm’s employee worked in a hybrid model, that that firm’s productivity is around $19,000 higher.
Mark Dixon, Chief Executive Officer, International Workplace Group commented: “The investment that CEOs of businesses of all sizes are making in technology demonstrates the long-term commitment that companies are making to hybrid working. Advancements in the likes of generative AI, video calls and cloud computing mean it has never been easier for workforces to collaborate wherever they are and we will continue to see a permanent shift towards more localised working.”
IWG
