In the wake of the recession, hybrid working is emerging as a cost-cutting measure for businesses.
- A study of UK business leaders reveals a significant move away from city centre offices, with 24% opting for hybrid models.
- Local office footfall is increasing, with suburban and commuter town locations seeing substantial growth.
- The most popular days for in-person collaboration have shifted, with Wednesdays and Thursdays now favoured by employees.
- CEOs anticipate further development of hybrid working, driven by economic challenges and a desire for greater employee satisfaction.
In response to economic pressures, CEOs are increasingly adopting hybrid working models to reduce operational costs. Recent data indicates that 24% of over 500 surveyed UK business leaders have already decreased their city centre office presence in favour of more affordable hybrid options in localised areas.
The trend towards local working has been confirmed by a substantial rise in office footfall across rural, suburban, and commuter town areas. Cities including Cambridge, Leatherhead, and High Wycombe have reported spikes in office attendance, with increases of 112%, 67%, and 59% respectively. This shift underscores a growing preference for work environments closer to home, reflecting a notable change in work habits.
Evidence shows that employees are now favouring Wednesdays and Thursdays for office attendance, with Thursday overtaking Tuesday as a popular day for in-person collaboration. This adjustment highlights the evolving nature of workplace routines as businesses adapt to new operational models.
Looking ahead, one in four business leaders expects an evolution towards a shorter working week, recognising that traditional 9-5 roles may no longer effectively meet the needs of modern employees. Despite the UK’s recession in late 2023 and anticipated economic difficulties in 2024, there is cautious optimism among CEOs, with 74% predicting business growth, albeit accompanied by cost-reduction strategies.
Mark Dixon, IWG Founder and CEO, commented on the transformative impact of hybrid working in response to recent challenges, stating, “CEOs have faced unprecedented challenges over the last few years, impacting every area of business. This study highlights that hybrid working has been central to not only navigating these challenges, but has also brought many benefits including reduced costs and improved employee wellbeing and happiness.”
Hybrid working is poised to play an essential role in enhancing business flexibility and worker satisfaction amid challenging economic conditions.
