About IWG
IWG is the largest provider of hybrid working services globally, operating more than 4,000 workspaces across 120 countries through our brands such as Regus and Spaces. Just over 10% of our $4 billion+ global revenues come from the UK, where we operate c.400 locations, 70% of which are outside London.
IWG was founded in 1989, and since then we have built knowledge, market understanding and research over many decades. Around 83% of the Fortune 500 are our customers and our workspaces are used by over 8 million people annually.
Hybrid working benefits
The term ‘hybrid working’ is often interpreted to mean working either at home or in a central office. IWG sees hybrid working as the ability to work anywhere, but particularly in office locations which are close to where people live.
Remarkable advances in cloud technology and video conferencing software – both vital to enabling effective hybrid working – mean workers no longer need to travel long distances on a daily basis. As a result, we are seeing a fundamental shift in the geography of work with the centre of gravity moving towards local communities.
The rising demand for more localised working has led to most of our new IWG centres opening in the heart of local communities, suburbs and rural areas, making 15-minute cities a reality to more people who are rejecting the commute and saying clearly that hybrid working is essential, not optional.
During 2024, the vast majority of IWG’s new locations were in the suburbs and smaller towns where people actually live. Places like Cheadle, in Staffordshire with a population of just 12,000.
As a result of this shifting geography of work, white-collar workers are enjoying a significantly improved work-life balance with more time to spend with their families including caring responsibilities, as well as lower costs from less commuting. Meanwhile, companies are benefiting from increased productivity levels (see report findings below) and a more engaged workforce.
Research conducted by IWG
IWG has conducted research both independently and in conjunction with leading consultancies including Arup and Development Economics to understand the value and potential of the hybrid model for businesses and individuals.
We would like to specifically draw attention to key areas highlighting the benefits of hybrid working. Each area is supported by a bespoke report which includes footnoted references to research cited and summaries are included within the Appendix.
On behalf of International Workplace Group Plc, we would like to once again thank the Committee for considering our submission and reviewing the considerable benefits that hybrid and home working can bring to firms and individuals across the UK.
Research Appendix
A report developed by IWG and Arup investigated the economic opportunities generated by hybrid working for the local economies of 10 commuter towns in the United Kingdom and 10 in the United States. The report revealed that hybrid working will have a beneficial effect on commuter towns, boosting local businesses and creating new jobs.
In the UK, the report predicts that the presence of white-collar workers will increase by up to 175% by 2043 in the commuter towns identified, with a 44% increase in those choosing to work from local flexible workspaces.
Chippenham, for example, a market town to the east of Bristol, currently has a low number of white-collar workers employed locally, and a much larger number who commute to other locations. The continued and accelerated uptake of hybrid working could see the presence of skilled workers in the town increase by up to 120%.
By 2043, the increase in annual local spending by UK residents who switch to hybrid working from the 10 selected towns could be as much as between £72m and £157m. This increase in spending would offer security to around 5,800 existing local jobs per town and support the creation of a further 155 to 235 full-time jobs per town in the same timeframe. Extrapolating from these figures, the report suggests that the GDP of smaller communities in the UK could grow by 6% thanks to the increase in hybrid working. The potential economic effects of hybrid working are staggering and will be a major shot in the arm for communities.
The increased demand for localised working has led to IWG opening up the vast majority of its new locations in the heart of the suburbs and in small towns. It’s a major economic shift that will bring greater prosperity and greater opportunities to formerly sleepy satellite towns.
Further reading and findings can be found in the full report: IWG_ARUP_White_Paper_The_Commuter_Town_Boom_January_2024.pdf
In this section, we are providing a preview of the results of an upcoming IWG and Arup report on the productivity and organisational benefits of hybrid working. The report has found that organisations switching to a decentralised model with distributed staff in local offices can expect to boost their productivity by up to 12% as a result of lower real estate costs and more efficient workers. In this context by 2030, the UK can expect to see the equivalent to £7.4bn in increased output, saving £4.4bn from real estate costs and £690m from retention.
The report found that employees who work flexibly report fewer distractions and interruptions, which enhances their focus and efficiency. The rate of employees reporting their productivity levels as ‘excellent’ in flexible spaces is 67% higher than those working from home. A study by the Economist Unit reported that on average workers lost 28% of their time to distractions. The same report also highlighted that the main sources of distractions when at home came from “The need to respond to demands from others in the household” (39%) followed by “Browsing social media or consuming other media content” (31%), while for office workers, 36% reported face-to-face interruptions as a top distraction in 2023, along with 25% citing peripheral noise. Flexible office spaces provide an environment where these distractions are much less likely to happen, potentially boosting productivity of employees making use of them.
The report found that those spending half their time working from a flexible office space where they can focus better than at home, would gain around 170 hours of productive time per worker per year. As a result, the UK economy could benefit from the equivalent of £5.7bn GVA per year in 5 years and £11bn by year in 20 years.
Employees working primarily remotely also reported improved productivity thanks to reduced loneliness through connections made with other individuals in local workspaces, and on occasional ‘away days’ with other colleagues working remotely. In return, reduced loneliness and improved mental health reduces absenteeism through the number of sick days taken by employees.
Note, IWG will share a copy of this upcoming report with the Committee on publication.
An IWG report has quantified for the first time the significant savings in both money and time that office workers can achieve by cutting down on the daily commute to a city-centre hub and working closer to home for part of the week. The study, carried out in both the UK and the U.S. with leading economics and data consultancy Development Economics, found that by working locally four days a week, hybrid workers could save as much as £13,188 in the UK. It also found that the hours that workers can reclaim impact positively on their lives, enabling them to spend more time on activities that support their physical and mental wellbeing.
In the UK, 86% of those who already work in a hybrid way say that the reduction in commuting frequency has put them in a better position to meet their financial goals. The money they save is being put to a variety of uses, from paying off debts in full to building up a financial buffer or contributing to a nest egg to pay for a deposit on a property or take a holiday.
Financial wellbeing is one of the most important aspects of general wellbeing. Stress caused by money worries can lead to insecurity, reduced motivation, anxiety and depression, as well as a deterioration in physical health. On the other hand, better financial wellbeing brings improved morale and greater productivity. For younger workers, in particular, the savings brought about by hybrid working have the potential to be life changing. As EY’s latest survey of Gen Z attitudes shows, this is a cohort that worries disproportionately about money, and more than two-thirds rate their current financial situation as just “fair” or worse.
Getting onto the housing ladder has become increasingly difficult for first-time buyers, with average prices trebling in the UK and more than doubling in the U.S. since the start of the century. However, IWG research shows that in the UK, a Gen Z London worker living in Cambridge, 60 miles from the capital, could save enough for an average house deposit in around six years, simply by cutting out the daily commute to a central office three days a week.
Further reading and findings can be found in the full report: IWG_WhitePaper_TheHybridWorkingCalculator_2024.pdf
Little has done more over the years to depress, stress and irritate workers than the daily commute, affecting people in otherwise fantastic careers, in exceptional cities and with great employers. It distances families, dilutes communities, contaminates the environment and wastes vast amounts of time and money. For many, today the daily commute is entirely unnecessary, because the office is no longer a physical place that people have to go to every day. Rather, it has evolved as a space where people meet and collaborate when needed, whilst the cloud has grown as a digital office where data is saved and is accessible at any time, from anywhere.
While sophisticated web-based technology has been around for many years, it has only been since the pandemic when companies have seen first-hand that not only does hybrid work, but they are able to thrive under the model. Firms are able to operate more efficiently with a more productive workforce, while employees are happier as they see hybrid working as the equivalent of a 7% to 8% pay rise.
An environmental impact study by IWG and Arup found that if workers are empowered to split their time solely between a local workplace and home, avoiding a daily commute to a city centre office, the environmental benefits of hybrid working are even more significant, enabling them to reduce their work-related emissions by as much as 70% in the UK.
As well as reducing a company’s carbon footprint, saving energy has a critical impact on the bottom line: more than three-quarters of business leaders in IWG’s survey agree or strongly agree that reducing energy consumption through hybrid working policies has helped to reduce costs. Energy use is the single largest expense in commercial office buildings, so the economic consequences of downsizing their owned space are particularly significant for companies.
The hybrid working model supports a number of the United Nations’ Sustainable Development Goals for 2030. Not only is it particularly effective in terms of Clean Energy (Goal 7) and Climate Action (Goal 13), but it also supports important social issues, such as Good Health and Wellbeing (Goal 3), Gender Equality (Goal 5) and Economic Growth (Goal 8), building the foundation for a brighter, more sustainable future for all.
Further reading and findings can be found in the full report: IWG_Arup_Report_The_Future_of_Work_A_Cleaner_Hybrid_Future_April_2023.pdf
Published to mark International Women’s Day, IWG’s study – Advancing Equality: Women in the Hybrid Workplace – shows that the flexibility of hybrid working is making the workplace more inclusive and levelling the playing field for female employees previously hampered by the demands of a more rigid work structure. The flexibility of the hybrid model enables women to get access to more promotions and higher-level roles, and at the same time, they are finding it easier to balance their working and family lives. The report shows that women from minority groups especially benefit from the hybrid model.
Thanks to hybrid working, professional women are increasingly able to realise their full potential in the workplace. IWG’s research conducted independently with Mortar discovered that more than half of women are now far more likely to apply for senior roles, and the proportion is even higher for women in minority groups. Overall, two-thirds of women say that the hybrid model has given them opportunities at work that they would not otherwise have had, with nearly three-quarters of those from minorities agreeing.
The hybrid working model, which allows people to divide their time between a local flex space, a central HQ and home, is already revolutionising the lives of millions around the world, enabling them to live happier, healthier, more productive lives. For women, the flexibility enabled by hybrid working holds a particularly powerful appeal. Research in 2023 by IWG found that nearly three-quarters of women (72%) would look for a new job if their employer took away the option of working in a hybrid way.
On the question of career progression, IWG’s findings are unequivocal. According to the survey, 68% of women believe that the enhanced flexibility offered by the hybrid model has helped to level the playing field at work. Meanwhile, 67% say hybrid working has positively impacted their career trajectory. Furthermore, according to IWG’s report, half (49%) of women say that hybrid working has helped them to achieve a more senior role at work.
Further reading and findings can be found in the full report: IWG_White_Paper_IWD_Advancing_Equality_Women_In_The_Hybrid_Workplace_March_2024.pdf
24 April 2025