New research1 from IWG, the world’s largest flexible workspace operator, the study, conducted among 250 CFOs found that businesses implementing hybrid working can save big.
Companies have long used office space inefficiently, but the proliferation of hybrid and remote work has them re-evaluating these expenses. In fact, among Fortune 500 CEOs, 74% said they plan to reduce office space.
Hybrid Working – Key Finding
- More than 80% of CFOs say they expect hybrid working to be a cost saver
- 91% of CFOs believe there is a recession on the horizon, and 97% are cutting costs by more than 10% per annum as fears for the economy heighten
- Among global Fortune 500 CEOs, 74% said they plan to reduce office space
- Independent research shows hybrid working could save businesses more than $14,300 AUD per employee per year
IWG’s latest usage data shows that office usage across Australia rose by a 113% since the start of the year, as firms such as Commonwealth Bank and Australia Post ask employees to come back into the office for at least a couple of days a week2.
CFOs surveyed confirm this trend, with half (50%) of businesses saying they have already opted for short term leases or shared workspaces, giving them flexibility to quickly scale up or down depending on budgets, without being locked into lengthy contracts.
Research3 shows that on average, hybrid working can save organisations an average more than $14,300 AUD per employee, explaining why two fifths (39%) of CFO’s are considering moving to exclusively shared spaces.
Global enterprise tech company Cisco went hybrid five years ago, cutting 50% of its real estate footprint and saving the company around $500 million.
But it’s not just the financial savings driving the changes. More than half (53%) say they believe their workforce prefer a hybrid working model, and 87% agree that it is more affordable for employees at a time when the cost-of-living is rising. Data4 suggests that hybrid working can save employees up to $528 a month on train travel and up to S205 a month if they commute by car.
