What’s going on:
According to research by IWG, 77% of small and medium enterprises (SMEs) have found that adopting flexible work practices has boosted their profitability. 74% of the businesses surveyed said that their workforces are generally happier, and 63% stated that they are more productive.
The study also found that 83% of respondents have reduced their office size, with half of them relocating to spaces outside city centers. This move has allowed around 45% of SMEs to raise salaries, according to Business Money. Many respondents also believe they’d lose talented employees if they returned to a full-time in-office model, and 63% have seen reduced staff turnover since adopting hybrid working.
Why it matters:
The data emphasizes the importance of hybrid work models in today’s post-pandemic workforce. The research reflects the sentiment that hybrid and remote work models play an important role in talent retention and attraction. The shift away from traditional office-centric models has tangible benefits for businesses — especially SMEs.
How it’ll impact the future:
The data on hybrid-working in relation to SMEs suggests a broader change in work culture, where physical presence in offices might become less important for businesses operating on this scale. The growing trends of hybrid and flexible work options might also lead to a decentralization of business districts as companies seek cost-effective spaces outside city centers.