FTSE 250 companies moving to hybrid work: Study

87 percent of FTSE 250 companies in the UK are not expecting to return to the five-day office week by the end of 2021, according to a new study by commercial office space operator IWG. Furthermore, they are becoming more open to hybrid work and decentralized workplace models, and are planning to maintain these approaches in the long term.

Out of the 501 companies surveyed, 32 percent currently have their entire workforce operating remotely, and 40 percent say they have become more accepting of a flexible way of working, including allowing employees to engage in personal activities such as exercise or parenting during the daytime.

As a result, businesses are reviewing their use of office space and their locations. 38 percent are outright downsizing their space, 42 percent are looking to either move to or invest in a shared office, and 49 percent are considering adopting a hub-and-spoke model, including moving their offices out of expensive city center locations and closer to where their employees actually live.

Mark Dixon, Founder and CEO of IWG said of this trend: “The pandemic has proven the ability of global workforces to work effectively in different ways and in different places. Our research shows that hybrid working will continue to be very popular with employees and businesses. Employees have realized that hours have been wasted commuting to an office that they don’t need to be in, whilst businesses have seen that a hybrid model not only means happier and more engaged employees, but also significant cost savings.”

Separate figures from IWG indicate that the demand for office space in suburban and even rural areas has been increasing compared to pre-pandemic numbers.