In a challenging economic environment, US and UK companies operating under a hybrid model reported being significantly more optimistic about growth in 2025 than more traditional companies that require their teams to commute to the office daily. They also recognize that hybrid work allows them to operate with lower business costs, increase employee productivity, and attract top talent—factors that support this optimism.
These were the key findings of a study conducted by International Workplace Group (IWG)—the world’s leading provider of hybrid work solutions and owner of the Regus, Spaces, and HQ brands—with over 1,000 CEOs and senior business leaders based in the US and UK. The research found that three-quarters (75%) of companies offering hybrid work had a positive outlook for 2025, compared to 58% of non-hybrid companies.
Flexible work has allowed many companies to cut overhead expenses by reducing office space and leveraging short-term workspace solutions. More than three-quarters (79%) of flexible companies reported cost savings, while a similar percentage (75%) stated that hybrid work helps mitigate future economic pressures, such as tax and tariff increases and market trends.
The research indicates that, as business confidence worldwide faces greater scrutiny, companies prioritizing flexibility are significantly more optimistic. According to the study, 63% of hybrid companies feel more positive about the economy than a year ago, compared to just 44% of non-flexible companies.
Workforce productivity is key to a more positive outlook
Flexible work models are also boosting productivity and talent retention. 72% of flexible companies report higher productivity in their workforce, and a similar percentage (71%) believe their policies have enhanced their ability to attract and retain top talent.
This is supported by a recently published study by Stanford academic professor Nicholas Bloom**, which found that hybrid work improved job satisfaction and reduced attrition rates by one-third (33%) without harming productivity.
Greater confidence in growth and workforce expansion
Flexible US and UK companies are also more confident in their growth and workforce expansion. More than two-thirds (67%) of hybrid companies are confident their businesses will grow in 2025, and nearly half (48%) are confident in expanding their workforce, compared to just 51% and 38% of non-hybrid companies, respectively.
Leaders of hybrid companies cited comprehensive benefits, including higher employee satisfaction (53%), retention (43%), and productivity (46%).
“The study results reflect a reality we also observe in Brazil. Companies adopting the hybrid model here are reaping clear benefits in productivity, cost savings, and talent retention—factors that strengthen confidence in growth for 2025. The optimism noted among US and UK leaders is also evident in the Brazilian market, where workplace flexibility is becoming a strategic differentiator for companies looking to grow sustainably,” says Tiago Alves, CEO Brazil of International Workplace Group (IWG).
“In these challenging times, CEOs and business leaders are contemplating the path forward. Companies aiming for peak profitability understand that the key to success lies in retaining and attracting top talent—their greatest intellectual capital. This strategic focus is essential to maintaining a competitive edge in a rapidly evolving world,” says Mark Dixon, CEO of International Workplace Group (IWG).
“By adopting hybrid work, companies are reducing costs and increasing their teams’ happiness and productivity. It’s no surprise that companies embracing this model are the ones looking at 2025 with optimism,” adds Dixon.
