With companies facing ongoing economic pressures, a growing number of C-suite leaders are turning to hybrid working as a powerful way to cut costs, drive growth and safeguard their operations.

Mark Dixon, CEO and founder of the International Workplace Group (IWG), holds this view: “In times of economic volatility, CEOs are carefully evaluating how to navigate uncertainty while driving efficiency and growth for their business.

“They recognise that flexibility is not only crucial when it comes to safeguarding their operations but also enhancing the productivity of their teams.”

Dixon highlights how empowering employees to work closer to home, in nearby offices and flexible spaces, lets companies significantly reduce their expenses while strengthening their workforce’s satisfaction and output.

“By empowering their teams to work closer to home in local workspaces and offices, companies operating in the hybrid model are able to significantly reduce their costs and improve the work-life balance of their people,” he said.

Business leaders hedging against economic turmoil

This view resonates across the C-suite. According to a new survey by IWG, nearly nine in 10 (86%) CEOs and CFOs are proactively putting measures in place to shield their companies from ongoing macroeconomic pressures.

Among their strategies, hybrid working stands out as a key way to cut expenses and streamline operations. Four in five (83%) say hybrid models play a crucial role in their cost-saving plans, while 77% report a significant reduction in overheads and operational expenses.

For businesses in Singapore, where small and midsize enterprises form the backbone of the country’s economic ecosystem, this flexible approach is especially relevant. Rising operational costs, ongoing tariff fluctuations and a shortage of talent all add pressure to companies trying to pursue growth in a challenging climate.

Hybrid working lets them respond quickly to these pressures, control their expenses and remain adaptable in the face of uncertainty.

Evidence from IWG underscores this adaptability. The survey highlights how companies have successfully cut back on fixed expenses – from large office spaces to utility bills – and redirected those resources into growth initiatives.

In fact, 79% of companies say they are exploring additional flexible spaces to further manage economic fluctuations and match their operations more closely to their financial goals.

Expansion without the need for large physical offices

This flexibility is not just about cost control; it is a powerful tool for securing the future of businesses. Structural workforce trends – from shifting worker expectations to growing skills gaps – are adding a layer of urgency.

Hybrid working lets companies recruit from a wider pool of talent and scale their operations without needing large physical offices in every market. At the same time, 74% of CEOs and CFOs say this approach has opened up new opportunities for regional expansion and workforce decentralisation.

The ability to match resources more accurately to business needs also has a direct impact on productivity and morale. According to the IWG survey, more than four in five (83%) leaders report measurable productivity gains under hybrid working, reflecting a more motivated and engaged workforce.

Meanwhile, 88% say this approach has raised overall satisfaction among employees, a key consideration at a time when retaining talent is a growing challenge.

Hybrid working is not a temporary fix but a long-term strategic tool. The IWG data shows companies are not only cutting costs in the short term – 67% say they are reducing or planning to reduce their operating expenses – but also strengthening their businesses for future growth and expansion.

The benefits of hybrid working go well beyond the bottom line.

Executives say it plays a key role in improving productivity (37%) and retention (17%) while boosting overall satisfaction and engagement.

Nearly a quarter (23%) also view it as a way to enhance the wellbeing of their workforce – a value proposition that resonates in a tight labour market where companies are vying to attract and keep the best people.

As companies move forward, the ability to align their operations with changing conditions and workforce preferences will be a key indicator of future success. Hybrid working is increasingly viewed by C-suite leaders not just as a cost-saving tactic, but as a powerful way to future-proof their businesses in an uncertain world.