New survey finds C-suite leaders turning to hybrid working to build resilience and manage costs amid macroeconomic headwinds.

The International Workplace Group (IWG), the world’s largest provider of flexible workspace solutions, said in a statement on Thursday that it found that nine in ten Chief Executive Officers (CEOs) and Chief Financial Officers (CFOs) are concerned about the business impact of macroeconomic instability.

In response, many are turning to hybrid working—which empowers their people to work from a combination of locations—as a strategy to reduce operating costs, boost resilience, and improve employee engagement.

The findings show that 86% of executives are taking proactive steps to protect their companies financially, with the adoption of more flexible work arrangements emerging as a key strategy.

Nearly four in five (83 percent) say hybrid working plays a critical role in their cost-saving efforts, helping them mitigate the effects of economic uncertainty and market volatility.

In Singapore, businesses, particularly small and medium-sized enterprises (SMEs) which form the backbone of the economy, are navigating external pressures such as global tariff fluctuations, rising operational costs and talent shortages, while also actively pursuing growth priorities – with 44 percent of SMEs eyeing regional expansion.

These dynamics point to a growing need for operational flexibility to effectively balance cost control, talent access, and scalability.

The flexibility that hybrid working provides is increasingly seen as an effective way to enhance productivity, widen access to broader labor pools, and reduce the costs of traditional real estate solutions.

The IWG survey further finds that hybrid work has enabled significant operational efficiencies — with 77 percent of executives highlighting reductions in overheads and expenses, including office space, utilities, and services.

This increased agility is allowing businesses to redirect resources to growth areas or build buffers against fluctuating costs and unpredictable market conditions.

As a result, 79 percent are exploring additional flexible workspaces to further manage economic uncertainty.

Beyond financial resilience, hybrid models are also helping businesses navigate structural shifts in workforce expectations.

Nearly three-quarters of CEOs and CFOs surveyed by IWG (74 percent) say the model has enabled them to explore new business locations more flexibly, offering greater potential for regional expansion and workforce decentralization.

Over four in five leaders (83 percent) also report a measurable boost in productivity under hybrid arrangements, as employees benefit from greater autonomy and flexibility.

Amidst economic instability, companies are strategically rethinking how and where they operate, moving beyond simple cost-cutting.

While more than two-thirds (67 percent) are actively reducing or planning to reduce operating costs, they are doing so with an eye on their most vital asset: their people.

Hybrid work is key to this approach, enabling them to optimize their real estate footprint while still providing employees with professional, productive environments.

A separate report by Knight Frank in Singapore also shows more businesses, are increasingly seeking cost-efficient solutions amid global uncertainty, including right sizing their office spaces to minimize costs.

Finally, the study finds that hybrid working is being recognized for its long-term strategic value.

CEOs cite improvements in productivity (37 percent), employee wellbeing (23 percent), and long-term talent retention (17 percent) — signaling a broader shift toward sustainable workforce strategies that go beyond cost savings alone.

As part of this shift, 88 percent of business leaders say hybrid working boosts employee satisfaction, making it a compelling model for resilience, growth, and competitiveness in today’s evolving economic climate.

“In times of economic volatility, CEOs are carefully evaluating how to navigate uncertainty while driving efficiency and growth for their business,

“They recognize that flexibility is not only crucial when it comes to safeguarding their operations but also enhancing the productivity of their teams,” said Mark Dixon, CEO and Founder of IWG.

“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 added. 

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