While the latter stage of 2024 saw some media commentators increasingly talk about the so-called ‘Return to Office’ or ‘Return to Work’, the reality of how and where teams operated was far more nuanced than these headlines seem to imply. The reality for many companies and their people across the world is that hybrid working continues to empower millions of employees to work how and where they want and most CEOs of white collar businesses believe in its benefits long-term.
Next year will see organisations increasingly shift their focus towards enhancing the productivity and happiness of their people, rather than focusing on where they work from. Recognising that employees can deliver quality work from a multitude of locations - not just city centre HQs - will lead to more onus on outputs and meeting business objectives.
The hybrid working model will gain traction for another important reason; more businesses will re-size their traditional real estate footprint as longer-term leases continue to expire, ensuring hybrid working becomes a strategic business choice, minimising overheads while providing a range of benefits to workers.
Below, International Workplace Group, the world’s largest provider of flexible workspace including brands such as Regus and Spaces, reveals the top 10 trends that are set to shape global working in 2025.
1. The Rebuff of the So-Called ‘RTO’
Companies that continue to expect their employees to commute long distances to a central office every day will trigger a wave of resignations, as employees resist their so-called return-to-office (RTO) mandates.
Third party research has already indicated that 73% of employees at large companies such as Amazon considered resigning due to so-called “RTO”, and recruiters are starting to see the consequences of more rigid policies. Research by International Workplace Group also found that two-thirds (67%) of recruiters observed an increase in candidates looking to leave companies that implemented five-day central office attendance.
However, research has consistently shown that hybrid working leads not only to greater employee satisfaction but also greater productivity. Companies that embrace the hybrid model and empower their employees to work when and where they prefer will fare much better than those that don’t.
2. Outputs Will Transcend Hours
In 2025 and beyond, employers will increasingly prioritise outputs over traditional 9 to 5 hours and progressive companies will empower their employees to achieve them thanks to hybrid working.
International Workplace Group’s founder and CEO Mark Dixon has long highlighted that productivity hinges on good management and clear KPIs, not location. He is not alone - over 80% of HR executives also believe hybrid working boosts productivity, with 75% of employees feeling more productive and motivated under this model. Professor Nicholas Bloom also suggests a 3-4% average productivity increase with hybrid working.
3. There Will Be a Continued Need for Quality, Professional Workspaces in Suburbs and Small Towns by Growing Startups and SMEs
As the surge of small businesses continues post-pandemic, the demand for scalable, flexible workspaces is set to rise even further in 2025.
Small and medium-sized enterprises now account for around half of global GDP and around 40% of all employment. SME numbers worldwide are anticipated to almost double between now and 2031 – and with over 4,500 flexible workspaces worldwide, International Workplace Group’s sites are becoming increasingly located in suburbs and small towns – with plans to expand even further in 2025.
4. Commuter Towns are Set to Boom Thanks to Hybrid Working
Hybrid working is revitalising commuter towns and reshaping economic landscapes. Former sleepy commuter towns are being brought back to life as workers choose to embrace workspaces closer to where they live, reducing reliance on daily commutes to city centres.
This boost is set to grow even further in 2025 as people opt for a more fulfilling work-life balance, forgoing long commutes for a mix of home, flexible workspaces, and occasional central office visits. In the US, towns like Westport, Connecticut could see a 72% increase in skilled workers thanks to local working, while UK commuter towns might experience a surge of up to 175% over the next two decades - injecting vitality and a substantial economic boost into local communities.
5. Generation Hybrid Will Continue to Change the Way We Work
By 2025, Gen Z will make up a third of the workforce, influencing workplace norms with their digital prowess and expectations for flexibility.
As digital natives who are accustomed to working anywhere – whether school, college or personal - two-thirds of new graduates reject the idea of a five-day commute to a central office, valuing work-life balance and empathetic leadership over traditional rigid structures. Companies that fail to adapt to 'Generation Hybrid' and their preferences for flexibility, diversity, and authenticity risk missing out on top tier talent.
6. The Traditional Commute Defies Logic: Calculating the Money Savings
There is a growing appreciation by both employees and employers of the cost- and time-saving benefits of working locally – and a realisation that the long daily commute to a city centre office no longer makes sense.
International Workplace Group collaborated with consultancy firm Development Economics, finding that more than three-quarters (76%) of workers save significantly on travel costs due to hybrid working. Commuters could save up to $30,332 annually by switching from commuting to a city-centre daily to working locally four days a week.
For Gen Z, who face inflation and debt at the same time as starting out on their careers, this could mean significant financial relief. For example, a young worker in Red Bank, New Jersey, might save $388,320 over the course of their career by working locally and commuting into a central office once a week.
Hybrid working not only makes us happier, healthier and more productive, but also better off – and that is something that everyone will be thinking of moving into 2025.
7. Hybrid Working is Set to Boost Gender Parity in the Boardroom
As we approach 2025, the tide is turning for women's advancement into C-suite roles. Despite the progress in workforce equality and diversity, senior roles have remained elusive for many women. Hybrid working, offering flexibility for those juggling child and family care, is proving invaluable for women, with two-thirds reporting that it has opened up work opportunities that they would not otherwise have had.
Beyond the basic demands of equity and fairness, companies have a real incentive to increase female representation in the C-suite: research has shown that firms with more women in senior positions are more profitable and more socially responsible.
8. The Right to Switch Off Will Gather Pace
The advent of technology has granted us the flexibility to work remotely, but it has also led to the potential for constant availability, blurring the lines between work and personal time. In response, several countries, including France, Greece, and Australia, have enacted 'right to switch off' laws to protect employees' off-hours.
This trend is set to expand, with the UK's Make Work Pay Plan proposing legislation to foster mutually beneficial work policies, and the US seeing movements towards similar laws with California leading the charge. Employees place a great value on the work-life balance afforded by hybrid working, and both governments and businesses are recognising the importance of safeguarding leisure time from work intrusions.
9. Hybrid Working as a Wellness Benefit
By 2025, flexible and hybrid working arrangements are set to become as coveted as health insurance in compensation packages.
Research has demonstrated the significant benefits that hybrid work can have on employees' overall wellbeing. Improvements in stress levels, physical health, diet and nutrition are positively impacting productivity and motivation at work. This trend will manifest itself in new ways next year - from more robust hybrid working policies, to greater access to fitness facilities, to improved employee assistance programmes and mental health days off.
10. Mixed-use Developments Will Transform City Centres
Dynamic mixed-use developments are changing the face of business districts in cities around the world. The impact of hybrid working has reduced the number of inner-city commuters, and is driving investors, landlords and developers to reimagine the commercial cores of cities with a wider mix of uses and experiences beyond the basic provision of office space.
In London, HSBC's move to vacate the HSBC Tower in Canary Wharf by 2027 for smaller premises reflects a permanent shift to flexible working, prompting the conversion of an office tower into a mixed-use building. Similarly, Atlanta's Star Metals district integrates urban lifestyle with its blend of workspaces, residences, and leisure facilities.
As work geography shifts, and as employees increasingly work closer to their homes in the suburbs, cities whose economy has been geared to meet the needs of millions of office workers will need to evolve to become hubs for collaboration and entertainment.
Mark Dixon, Founder and CEO of IWG, comments:
“In 2025, we will see increasing time and focus from business and HR leaders on improving the productivity, happiness and loyalty of their people.Hybrid working and its far-reaching benefits are now firmly on the boardroom agenda - providing a blueprint for a sustainable, agile, and resilient future of work.”
IWG
