The coworking group, IWGwith brands such as Spaces or Regus, anticipates that the hybrid work model will continue to grow exponentially. As the global labor market recovers from the pandemic, a new uncertainty is now emerging in the face of a possible economic recession. In this context, more companies are realizing the economic, social and health benefits of hybrid work, as a key ally in times of financial volatility.
According to an IWG study, the adoption of hybrid working and the use of flexible office spaces can significantly reduce a company’s fixed expenses, such as: rent, heating and support staff. Thus, dispensing with these components can mean savings of approximately €10,000 for each employee on average for corporations, thanks to the flexible format.
The economic savings for companies are generated not only by reducing the necessary services in the workplace, such as heating or cleaning staff, but also by changing the location of the offices themselves. Large corporate headquarters are often concentrated in urban centers, where rents tend to be high and, moreover, often involve long journeys for staff. These trips suppose time and money that could be used in other activities. A study by the web portal Confused.com has revealed that hybrid working can save employees an average of almost 400 euros per month on train trips and up to 150 euros per month if they travel by car, while those who travel long distances save much more.
The positive environmental impact must also be taken into account, since employees reduce their carbon footprint by reducing their commutes. IWG studies show that allowing staff to work from home, at least part of the time, could reduce nitrogen emissionsthe main pollutant emitted by car exhaust pipes, by up to 10%, as a result of minimizing employee travel throughout the week.
Hybrid work before salary increase
Companies are also responding to employee demands for better work-life balance. An IWG survey revealed that nearly half of office workers (49%) would quit their job if asked go back to the office five days a weekwhile three-quarters (72%) would prefer the possibility of long-term flexible work over going back to the office, five days a week, with a 10% pay rise.
The model hub-and-spoke, like the one offered by IWG, allows companies to grant a higher level of flexibility, giving employees the possibility to work where they need to, be it at home, in the city center, or in a flexible local office. IWG client count data demonstrates a steady increase in visits to workspaces in locations outside of major cities. At a national level, with approximately 60 centers in Spain, visits to IWG centers have increased by 50%, from the beginning of the year to the end of June.
The founder and CEO of IWG, Mark Dixon, it states: “The rapid global rise in the adoption of the hybrid work model, in which companies use technology to offer their employees effective remote access and work from home, in combination with easily accessible local centers and traditional headquarters, has come to stay. Employees not only benefit from a radical improvement in work-life balance, but this model also represents a significant gain for the company’s bottom line, as well as for the purchasing power of employees. By switching to a hybrid model, companies can expect to save almost €10,000 per employee, while minimizing their carbon footprint.”
