As economic uncertainty continues, business leaders are increasingly turning to hybrid working models to reduce costs, boost resilience and drive growth. A recent survey by International Workplace Group (IWG) reveals that nearly nine in ten CEOs and CFOs are taking active financial steps to manage ongoing macroeconomic challenges, with many highlighting hybrid work as a central part of their strategy.
The global study underscores a shift in how leaders are rethinking operations and workforce management to balance short-term pressures with long-term goals.
Cost savings and operational flexibility
According to the IWG survey, 86% of executives are taking proactive steps to strengthen their companies financially. Among them, 83% view hybrid working as a crucial tool for cost savings. The model, which allows employees to split their time between home, local offices, and corporate hubs, has helped companies cut down on real estate, utilities and support services.
In fact, 77% of leaders report a noticeable drop in overheads and operational expenses after implementing hybrid arrangements. This operational flexibility enables businesses to reallocate resources to growth initiatives or cushion against shifting market conditions. Nearly four in five respondents (79%) are also exploring additional flexible workspace options to better manage financial risks.
In Singapore, this shift is particularly relevant. Businesses, especially SMEs which make up a large share of the economy, face rising costs, global tariff changes, and tight labour supply. With 44% of SMEs in Singapore planning to expand regionally, flexible workplace strategies offer a practical path to scale while managing risks.
Supporting productivity and growth
Beyond cost-cutting, hybrid working is seen as a tool to boost productivity and employee satisfaction. The survey found that 83% of leaders noticed improved performance under hybrid models, citing the positive impact of greater autonomy and flexibility for staff. This shift has also allowed 74% of companies to explore new business locations more freely, supporting decentralisation and regional expansion.
Mark Dixon, CEO and Founder of IWG, said: “In times of economic volatility, CEOs are carefully evaluating how to navigate uncertainty while driving efficiency and growth for their business. They recognise that flexibility is not only crucial when it comes to safeguarding their operations but also enhancing the productivity of their teams.”
He added, “By empowering their teams to work closer to home in local workspaces and offices, companies operating in the hybrid model are able to significantly reduce their costs and improve the work-life balance of their people.”
Long-term value beyond cost
While 67% of executives are actively cutting or planning to cut operational costs, the survey suggests that most leaders see hybrid work as more than just a cost-saving measure. Many are integrating it into broader workforce strategies. CEOs noted benefits such as increased productivity (37%), stronger employee wellbeing (23%) and better talent retention (17%).
In Singapore, findings align with other market trends. A report by Knight Frank notes a rising preference among local firms to optimise office space use, reflecting growing interest in hybrid models as a sustainable approach.
Overall, 88% of business leaders believe hybrid working boosts employee satisfaction, pointing to its long-term value in building resilient, adaptable, and competitive organisations.
