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5 ways hybrid can help your business overcome economic challenges

Posted on: 17th May 2023

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5 ways hybrid can help your business overcome economic challenges5 ways hybrid can help your business overcome economic challenges

Every company wants to grow its operations, revenues and profits sustainably. But the intricate workings of the global economy are not always aligned with the ambitions of business leaders. This has been especially evident in recent months as the global and national economies alike have proven perilous terrain for businesses.

Rising inflation, high energy costs and climbing interest rates have negatively hit business cash flows and made potential customers less likely to spend. This has led analysts at the World Bank to warn of a recession, while in February 2023 the UN predicted that global economic growth would decelerate to 1.9% in 2023—one of the lowest rates in recent decades.

There’s no denying that the unstable economic climate has made it harder to turn a profit and lay a foundation for growth. But businesses are far from powerless to adapt in these turbulent times. Embracing the hybrid working model can help businesses to reduce their overheads and improve their profitability. There’s a reason why tech giants such as Cisco are operating with hybrid models, and Stanford Professor Nicholas Bloom refers to hybrid as “a no-brainer to increase profit” as referenced in IWG’s 2022 CFO survey.

Let’s take a look at five ways hybrid can help businesses thrive:

1. Improved employee productivity

The flexibility of hybrid working makes for happier and more engaged employees. By dividing their time between a flexible workspace closer to home and company headquarters, employees are able to reduce commuting time, improve their work-life balance and arrive at their desks more focused. A recent IWG study found almost four in five hybrid workers (79%) say they have been more productive since pre-2020.

Hybrid affords employees more opportunities to cook nutritious meals, get the sleep they need for physical and mental health, and get more exercise than their previous commute would allow.

All of this results in a happier, healthier and more effective workforce.

2. Enhanced employee retention and satisfaction

When employees are happier, healthier, and more engaged in their work, they are much more likely to stick around. Not only does this make for a more pleasant workplace and a more cohesive team, but it can also help save businesses a lot of money.

Hiring is an expensive business and a significant drain on productivity. According to Glassdoor, the average company in the United States spends about $4,000 on every new recruit.

Fortunately, the freedom, flexibility and autonomy provided by hybrid are highly desirable, and a major factor in retaining top talent. Nearly two-thirds of Chief Human Resources Officers surveyed in IWG's Hybrid Talent Magnet white paper said that hybrid increases employee retention.

3. Access to a wider talent pool

Hybrid work models enable businesses to tap into a more diverse and extensive talent pool, removing geographic constraints in recruitment and fostering inclusivity by allowing companies to hire the best talent regardless of location. As hybrid working is highly desirable for its flexibility and support of employee well-being, it serves as a powerful incentive for top-tier candidates.

A report by Harvard Business School, referenced in the white paper, supports this idea, stating that companies offering such flexibility are most likely to maintain “A stable and competitive workforce.”

By embracing hybrid work, businesses can effectively expand their reach, gaining access to a broader and more diverse talent pool than ever before.

4. Reduced operating costs

Growth isn’t just about maximising revenues. It’s about reducing unnecessary operating costs to bolster profit margins. The biggest challenge, of course, comes with cutting costs in areas that do not impinge on the quality of service that customers expect.

Downsizing the company headquarters and reducing desk space is a great way for businesses to save money. In fact, research by Global Workplace Analytics has shown that hybrid working can save organisations an average of over US$11,000 per employee per year. As identified in IWG’s CFO survey, the shift to hybrid working has saved tech giant Cisco saved $500m in the last five years.

5. Increased business resilience

The past few years have proven a crash course in business resilience for companies of all shapes and sizes. As many companies found their usual operations untenable almost overnight, businesses either learned to adapt quickly or collapse. By lowering overhead costs, optimising employee productivity, decentralising operational decision making and improving communications between teams and team members, hybrid enables businesses to stay lean and agile in an ever-changing commercial landscape.

From their location and decor to connectivity and tech, Regus flexible workspaces are designed to help users get the most from their hybrid working experience. With 4,000
locations across over 120 countries, your employees are never far from a Regus centre, no matter where your company headquarters is based. Get in touch today to see how you can leverage hybrid to support your business growth.

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