A recent report highlights the significant advantages of implementing a hybrid work arrangement for organizations. Beyond its effectiveness in attracting and retaining top talent, this approach is proving to be a valuable tool for cost reduction as well.
In a survey conducted by IWG, which included input from more than 250 full-time Chief Financial Officers (CFOs) across the United States, it was revealed that the adoption of hybrid work has financial benefits. According to the findings, a substantial 81% of the surveyed CFOs identified hybrid work as a cost-saving measure. Furthermore, an overwhelming 87% expressed their intentions to continue implementing the hybrid model over the next five years.
Mark Dixon, the Founder and CEO of IWG, emphasized the diverse motivations behind this shift in working patterns, stating, “The research shows that CFOs and business leaders are adopting hybrid working for many reasons. Not only does it support employee work-life balance and well-being, but it also provides a meaningful boost to a company’s bottom line.”
In response to these findings, 64% of the respondents revealed that they have already downsized their office space to accommodate hybrid work, while 74% indicated that they are in the process of transitioning or actively seeking shared office or flexible space options.
It provides a meaningful boost to a company’s bottom line.
This embrace of the hybrid work model is just one of the strategies being employed by employers to mitigate the economic uncertainties affecting their organizations. The report also highlighted that 92% of the CFOs surveyed reported financial challenges due to uncertainties and inflation over the past year, with 66% of them expressing the belief that the country is currently experiencing a recession.
To address these challenges, CFOs have been implementing several measures:
Reducing new hires (54%)
Transitioning to short-term lease agreements for office space (48%)
Implementing staff reductions through layoffs (42%)
Not filling vacant roles to reduce staff (42%)
These responses mirror the widespread layoffs seen in major organizations such as Meta, Amazon, and Disney, as they strive to manage costs amid the ongoing economic uncertainties.