A recent study by the International Workplace Group (IWG) showed that businesses adopting hybrid work models are more optimistic about 2025 compared to those that require employees to commute to the office daily.
The survey, which included over 1,000 CEOs and senior leaders, found that 75% of hybrid businesses have a positive outlook for the future, while only 58% of companies without hybrid options share the same confidence, according to HR World Southeast Asia.
Hybrid companies are also seeing financial gains, with 79% reporting cost savings due to reduced office space and the use of flexible workspaces.
Additionally, 75% of respondents believe that hybrid work helps them better manage economic challenges like rising taxes, tariffs, and shifting market trends. This flexibility enables businesses to navigate economic uncertainties more effectively.
Employee productivity and talent retention are major factors driving confidence in hybrid work environments. The study found that 72% of hybrid companies have experienced an increase in employee productivity, while 71% say hybrid work policies help them attract and retain talent.
Supporting this, research from Stanford professor Nicholas Bloom shows that hybrid work increased job satisfaction and reduced turnover by 33% in Singapore. A joint survey in Singapore revealed that 81% of businesses are ready to adopt flexible work arrangements, with 70% already evaluating such requests.
In Singapore, businesses are also focused on staying competitive in a tight labor market. Half of workers recognize the need to enhance their skills to help drive business growth. In response, the Singapore government introduced several workforce upskilling grants in its 2025 budget. These initiatives aim to equip workers with the skills they need while also improving job matching for better work-life balance.
Hybrid businesses are not only thriving financially but also growing their workforce. The study shows that 60% of hybrid companies are confident in their growth prospects for 2025, and 48% plan to expand their workforce. In contrast, only 51% and 38% of non-hybrid companies, respectively, share similar confidence in growth and hiring plans.
Key benefits of hybrid work include increased employee satisfaction (53%), improved retention (43%), and higher productivity (46%). Mark Dixon, CEO of IWG, emphasized that businesses embracing hybrid models gain a competitive advantage by lowering costs, improving employee engagement, and attracting top talent.
“In times of economic uncertainty, businesses that recognize their people as their greatest asset and adopt hybrid models are ensuring long-term growth and resilience,” Dixon said.
The study suggests that flexible work arrangements will continue to play a vital role in shaping business strategies and long-term success as companies adapt to changing economic conditions.
