A recent survey by the International Workplace Group (IWG) reveals that nearly nine in ten (86%) CEOs and CFOs are actively seeking strategies to shield their organisations from ongoing macroeconomic challenges. Among these strategies, hybrid working has emerged as a key approach to reduce operating costs, enhance resilience, and improve employee engagement.
The survey indicates that 67% of executives are planning to reduce operational expenses, with hybrid working cited by 83% of business leaders as a critical element in their cost-saving initiatives. This flexible work model allows employees to operate from various locations, significantly mitigating the impact of economic volatility and market fluctuations.
In Singapore, where small and medium-sized enterprises (SMEs) form the backbone of the economy, hybrid working is becoming increasingly relevant. SMEs are grappling with external pressures, including rising operational costs and talent shortages, while also pursuing growth opportunities. Notably, 44% of these businesses are considering regional expansion, emphasising the need for operational flexibility to manage costs and scalability effectively.
The IWG report further highlights that hybrid working has led to substantial operational efficiencies, with 77% of executives reporting reductions in overheads, including costs related to office space and utilities. This agility allows organisations to redirect resources towards growth initiatives and create financial buffers against unpredictable market conditions. As a result, 79% of leaders are exploring additional flexible workspace options to navigate ongoing economic uncertainty.
Beyond financial considerations, hybrid models are adapting to structural shifts in workforce expectations. Nearly three-quarters (74%) of surveyed executives noted that hybrid working enables greater flexibility in exploring new business locations, facilitating regional expansion and workforce decentralisation. Moreover, 83% of leaders reported increased productivity under hybrid arrangements, attributing it to the autonomy and flexibility afforded to employees.
While over two-thirds (67%) of CEOs and CFOs are actively reducing operating costs, they are doing so with a focus on their most valuable asset: their people. Hybrid working enables organisations to optimise their real estate footprint while providing professional and productive environments for employees. A separate report by Knight Frank confirms that businesses in Singapore are increasingly seeking cost-efficient solutions, including right-sizing office spaces.
The study also underscores the long-term strategic value of hybrid working. CEOs highlighted productivity improvements (37%), employee wellbeing (23%), and talent retention (17%), indicating a shift towards sustainable workforce strategies. Additionally, 88% of business leaders believe that hybrid working enhances employee satisfaction, making it a compelling model for resilience and growth in today’s evolving economic landscape.
Mark Dixon, CEO and founder of IWG, noted, “In times of economic volatility, CEOs are carefully evaluating how to navigate uncertainty while driving efficiency and growth. They recognise that flexibility is crucial not just for safeguarding operations but also for enhancing team productivity. Empowering teams to work closer to home in local workspaces allows companies to significantly reduce costs while improving work-life balance.”
