News: Hybrid businesses more optimistic about 2025 growth, new study reveals

Finito World

New research reveals that UK businesses offering greater workplace flexibility are significantly more optimistic, confident, and prepared for the future compared to those which do not operate in the hybrid model.

Flexible businesses are 25% more likely to be optimistic about the year ahead, with 69% having a positive outlook compared to 44% of non-flexible organisations
Furthermore, 58% of organisations offering some form of flexibility feel more confident than they did a year ago, in contrast to 30% of non-flexible businesses
In a challenging economic environment, new research has revealed that businesses operating in the hybrid model are significantly more optimistic about growth in the year ahead than those which do not offer employees flexibility about where they work. This follows a space of return-to-office-mandates from major corporates including Amazon and WPP.

A study of more than 500 CEOs and senior business leaders by International Workplace Group (IWG) found that 69% of businesses offering hybrid working had a positive outlook for 2025 compared to 44% of non-hybrid companies.

Flexible working has allowed many businesses to cut overheads by reducing traditional office space and taking advantage of flexible solutions that offer localised workspaces. More than three quarters (77%) of flexible businesses reported cost savings and 55% say hybrid working is incredibly helpful in mitigating pressures like rising National Insurance contributions.

The research, conducted by IWG, the world’s leading provider of flexible workspace, comes as business confidence in the UK is under scrutiny. In December, The IOD reported the lowest levels of business confidence since the pandemic.

IWG’s data indicates that businesses prioritising flexibility are significantly more optimistic. 58% of hybrid businesses reported feeling more positive about the British economy than they did a year ago, compared to just 30% of non-flexible businesses.

Workforce productivity key to brighter outlook

Flexible working models are also driving productivity and talent retention. 69% of flexible businesses report improved productivity in their workforces, and the same percentage believe their policies have enhanced their ability to attract and retain top talent.

This is supported by Stanford academic Professor Nicholas Bloom’s recently published study** which found that hybrid working improved job satisfaction and reduced quit rates by one-third (33%), without damaging productivity.

Higher confidence in growth and workforce expansion

Flexible businesses are also more confident in their growth and workforce expansion. Nearly 60% of hybrid businesses are optimistic about growth in 2025, and 41% are confident in expanding their workforce, compared to only 19% and 9% of non-hybrid companies, respectively.

Hybrid leaders cite wide-ranging benefits including increased employee satisfaction (55%), retention (40%), and productivity (48%).

Mark Dixon, CEO of International Workplace Group, commented: “In these challenging times, CEOs and business leaders are contemplating and planning how to move forward the most effectively. Successful businesses understand that their people are their greatest intellectual capital and attracting and retaining their best talent is a key competitive advantage.

“By empowering their teams to work closer to home in local workspaces and offices, companies operating in the hybrid model are reducing their costs and enhancing their team’s happiness and productivity. It’s no surprise therefore that it is these businesses that are the ones looking forward to the year ahead with the greatest levels of optimism.”