In a challenging economic environment, US and UK companies operating on a hybrid model reported being significantly more optimistic about growth in 2025 than more traditionally focused 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 main findings of a study conducted by the International Workplace Group (IWG) – the world's leading provider of hybrid work solutions and owner of the Regus, Spaces and HQ brands – with more than 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 enabled many companies to cut overhead costs by reducing office space and taking advantage of short-term workspace solutions. More than three-quarters (79%) of flexible companies reported cost savings, while a similar percentage (75%) say that hybrid work is useful for mitigating future economic pressures such as rising taxes and tariffs and market trends.
Research indicates that, as business confidence worldwide comes under increased scrutiny, companies that prioritize 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 only 44% of non-flexible companies.
Workforce productivity is fundamental to a more positive outlook.
Flexible work models are also boosting productivity and talent retention. 72% of flexible companies report higher productivity in their workforces, and a similar percentage (71%) believe their policies have increased 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 turnover rates by a third (33%), without harming productivity.
Greater confidence in workforce growth and expansion.
Flexible companies in the US and UK are also more confident in their growth and workforce expansion. More than two-thirds (67%) of hybrid companies are confident that their businesses will grow in 2025, and almost half (48%) are confident in expanding their workforce, compared to only 51% and 38% of non-hybrid companies, respectively.
Leaders of hybrid companies cited broad benefits, including increased employee satisfaction (53%), retention (43%), and productivity (46%).
“The study results reflect a reality that we also observe in Brazil. Companies that adopt the hybrid model here are reaping clear benefits in productivity, cost savings, and talent retention – factors that strengthen confidence in growth in 2025. The optimism seen among leaders in the US and the UK is also evident in the Brazilian market, where work flexibility is becoming a strategic differentiator for companies that want to grow sustainably,” says Tiago Alves, CEO of the International Workplace Group (IWG) in Brazil .
“In these challenging times, CEOs and business leaders are contemplating the way forward. Companies aiming for peak profitability understand that the key to success lies in retaining and attracting the best talent – their greatest intellectual capital. This strategic focus is essential to maintaining a competitive advantage in a rapidly evolving world,” says Mark Dixon, CEO of the International Workplace Group (IWG).
“By adopting hybrid work, companies are reducing costs and increasing the happiness and productivity of their teams. It is not surprising that the companies that adopt this model are the ones looking to 2025 with optimism,” adds Dixon.
