IWG, plc, provider of flexible workspaces and hybrid work solutions, recently studied CFO sentiments on workforce options. The findings from its CFO & Hybrid Work Survey showed that 78% of CFOs are cutting costs because of ongoing economic uncertainties and 81% see hybrid work as a top way to meet savings targets. The report examines findings from a new poll of more than 250+ U.S.-based Chief Financial Officers.
Hybrid work has rapidly increased in popularity over the last three years and in today’s economic landscape, the survey findings reinforce that the cost-related benefits will continue to accelerate its growth. The report highlights that moving to shared office or co-working space, downsizing a company’s owned space, or a combination of the two are effective ways of reducing significant costs.
IWG Founder and CEO Mark Dixon commented: “Hybrid working helps businesses stay competitive and resilient, especially in times of economic uncertainty. 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 wellbeing, but it also provides a meaningful boost to a company’s bottom line.”
Top takeaways of the IWG U.S. CFO & Hybrid Work Survey include:
- CFOs feel the financial impact of the last year and close to two-thirds believe we are in a recession
- Nearly all (92%) of CFOs surveyed said their company has been financially impacted by economic uncertainties and inflation over the past year, with 93% saying they have been significantly or somewhat impacted.
- Two-thirds (66%) of CFOs surveyed think we are currently in a recession.
- CFOs say hybrid working creates significant cost savings in the current environment and plan to embrace hybrid working for the long-term
- 81% of CFOs surveyed see hybrid working as a cost saver and more than two-thirds (67%) of CFOs surveyed say their business will continue to work in the hybrid model, splitting time between the company’s headquarters or local office/workspace and home in five years.
- 74% are moving or actively looking to move to shared office or flexspace and 64% have already reduced their space to accommodate hybrid work.
- 79% of survey respondents say CFOs act as a decision maker when it comes to office space decisions
- In addition to changing their office footprints as a cost-cutting measure, CFOs are also:
- Reducing new hires (54%)
- Changing to a short-term lease agreement on office space (48%)
- Reducing staff with layoffs (42%)
- Reducing staff by not filling vacant roles (42%)
The report is the latest research from IWG, underscoring the company’s commitment to sharing its wealth of insights and data on hybrid work.
This month, IWG reported its half-year system-wide revenue — the highest ever reported for the 34-year-old company — grew 14% to a record 1.68 billion pounds ($2.13 billion U.S. dollars), as the company continues its growth trajectory to meet the increasing demand for hybrid work through franchise and joint-venture partners and adding 500 locations in the U.S. over the course of the next year.
Research by Global Workplace Analytics also shows that hybrid working can save organizations an average of more than $11,000 per employee. Cushman & Wakefield July data showed office vacancies of 22.4% in New York and 31.8% in San Francisco, as companies of all sizes shift away from the traditional real estate model.
Most of IWG’s new locations are planned in the heart of local communities, providing a workplace close to home, reducing the need for long commutes, and giving employees a better work-life balance and time to spend with their friends and families.
Recent research by Stanford University Professor of Economics Nicholas Bloom showed that “organized hybrid raises employee and firm productivity” as workers cited face-to-face collaboration (54%) and clearer boundaries between work and personal time (43%) as top benefits of working in person in a space provided by their employers. And an earlier National Bureau of Economic Research (NBER) study conducted by Professor Bloom found that the adoption of a work-from-anywhere approach yielded a 4% productivity gain.
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Tags: Benefits, Firm Management, Payroll, Small Business
