In today's economic landscape, many countries are grappling with slow growth and surging prices. This cost of living crisis isn't just worrying for employees—it's a concern for businesses, too. Financial stress can diminish productivity and increase absenteeism, directly affecting a company's bottom line.  As a business leader, supporting your team in these challenging times isn't just about empathy; it's a strategic move to maintain operational efficiency.

Adopting a hybrid work model is a tangible way to support your team. By empowering  employees to work from a flexspace closer to home with occasional trips to the central office as needed, you're not just showing understanding — you're also easing their commuting costs and the financial stress of a traditional office setup.

The financial benefits of hybrid

Implementing a hybrid model that uses a network of local flexspaces can ease the financial burden on employees in a number of ways.

Saving on commutes

The traditional commute is expensive. According to Confused.com, workers saved up to £544 a month by not travelling to their company's central office during the pandemic lockdowns. Working locally more often means direct savings on fuel, train tickets, or bus fares.

Health and time benefits

Besides money, employees also save valuable time that would've been spent stuck in traffic or waiting for a train. There's also the health aspect to consider. The UK’s Royal Society for Public Health found that long commutes can lead to increased stress, higher blood pressure, and weight gain. Healthier employees generally mean fewer sick days and better overall productivity.

Indirect savings

There are also indirect economic benefits to consider. This includes less wear and tear on their cars, fewer lunches out, and not having to buy as many office-ready outfits.

As IWG Founder and CEO Mark Dixon puts it: “Nowadays the daily trip to a city centre office is a considerably more expensive endeavour – and that’s even before you’ve bought yourself a sandwich and a drink for lunch. Add in the health and environmental benefits, and cutting down on commuting is a no-brainer.”

Childcare savings

For parents, the costs and logistics of childcare can be daunting, and may even be a reason some employees decide to leave their job. More flexible work arrangements can help parents better manage these demands. In fact, over half the CHROs surveyed by IWG are now considering hybrid work as a solution to childcare challenges.

Side hustles and personal growth

With the extra time saved from commuting, employees might dive into personal projects or even side businesses. This isn't just good for them; it can also benefit their employers. As workers pick up new skills or deepen existing ones, they bring more to the table. This boosts their overall happiness, job satisfaction, and value to the company.

Business savings

It's not just employees who benefit. Companies can eschew long, expensive leases along with the associated operating costs, bringing added agility and enabling them to focus more resources on growth. Mark Dixon, in a recent interview with CNBC, shed light on the trend, saying that over half the businesses surveyed by IWG have chosen office or coworking spaces in suburban areas. This strategic move has led to considerable savings. In fact, research by Global Workplace Analytics shows that on average, hybrid companies can save US$11,000 each year for every employee.

Why employees' financial well-being matters to businesses

When employees are financially secure, they're more focused and productive. This can lead to lower turnover and a stronger pull for top talent. Offering financial support can uplift morale and improve company culture, and fewer employees might take sick days due to financial stress. Moreover, a company that visibly supports its employees' financial well-being often earns a positive reputation in the industry.

Hybrid: A win-win for employees and business owners

In this evolving economic landscape, hybrid isn't just about flexibility or work-life balance; it has real economic benefits for employees. These, in turn, benefit businesses who can rely on a happier, healthier, and more productive workforce.

With 4000 locations worldwide, Regus helps to enhance this well-being by slashing commuting costs and empowering employees to decide their optimal work time and place.