Global leaders turn to hybrid work to build business resilience: report

Two-thirds (67%) of executives are actively reducing or planning to reduce operating cost.

Faced with ongoing macroeconomic instability, business leaders across the globe are increasingly turning to hybrid work models to protect their companies and build resilience, according to new research released by International Workplace Group (IWG).

The organization said 90% of respondents reported concerns about the business impact of the current volatile economic climate. In response, 86% said they are taking proactive financial measures to shield their organizations.

Hybrid work — allowing employees to split their time between various work locations — has emerged as a key component of these strategies. The IWG survey found that 83% of business leaders consider hybrid work essential for reducing costs, whilst 77% said they have already seen significant reductions in overheads, including office space, utilities, and services.

Two-thirds (67%) of executives are actively reducing or planning to reduce operating costs, and 79% are exploring additional flexible workspace options to manage ongoing uncertainty.

The shift to hybrid models is particularly relevant in Singapore, where small and medium-sized enterprises (SMEs) — which form the backbone of the local economy — are navigating external pressures such as global tariff fluctuations, rising operational costs, and persistent talent shortages.

Despite these challenges, 44% of Singaporean SMEs are eyeing regional expansion, using flexible work models to balance cost control, talent access, and scalability.

Operational benefits of hybrid work extend beyond cost savings. Nearly three-quarters (74%) of executives say the model enables them to explore new business locations more flexibly, aiding in regional expansion and workforce decentralization.

More than four in five (83%) also reported measurable gains in productivity as employees benefit from greater autonomy and flexibility.

Furthermore, 88% said hybrid working has boosted employee satisfaction, while others cited improvements in productivity (37%), employee wellbeing (23%), and long-term talent retention (17%) — indicating a strategic shift beyond short-term cost cutting.