The hybrid work model is proving to be more than just a perk – it’s becoming a game-changer for employee wellbeing and business productivity.

New research from International Workplace Group (IWG), the world’s largest operator of flexible workspaces, highlights how hybrid arrangements are leading to fewer sick days, lower stress levels, and better overall health for employees.

The study, which surveyed over 4,000 hybrid workers, found that 36% take fewer sick days when given the flexibility to choose where and how they work.

More importantly, 74% are making time for preventative health care, including regular screenings and check-ups – something that often takes a backseat in traditional office-based roles.

Hybrid work, which allows employees to split their time between home, a head office, or a local workspace, is also improving work-life balance and delivering cost savings for both individuals and businesses. It’s not just a win-win – it’s a strategy that’s paying off in more ways than one.

The financial burden of poor health and absenteeism

The findings come against the backdrop of a growing economic challenge: rising sick days and chronic illnesses are taking a heavy toll on productivity.

Research suggests that long-term sickness is costing businesses and the global economy around US$42 billion (approx. SG$56 billion) annually, with projections indicating that this figure could double by the end of the decade.

Mental health is a major contributor to lost productivity, particularly in Singapore, where nearly a third of workers score low on mental wellbeing indicators.

A study by Duke-NUS Medical School revealed that employees experiencing anxiety and depression miss an additional 17.7 workdays per year and are 40% less productive when they are at work.

In financial terms, poor mental health is costing Singapore’s economy an estimated US$11.8 billion (approx. SG$15.7 billion) annually – almost 3% of the country’s GDP.

For businesses, ignoring workplace wellbeing is a costly mistake. Stress-related illnesses, such as severe headaches, digestive issues, and tension-related pain, are declining among hybrid workers, with 70% reporting fewer symptoms.

Reducing commuting time has also played a significant role, with 80% of hybrid employees citing it as a key factor in lowering their stress and anxiety levels.

The business case for hybrid work

For companies looking to stay ahead of the curve, hybrid work is proving to be a competitive advantage. Research indicates that 75% of CEOs believe hybrid work has led to higher productivity, while 77% report that employees are more engaged in their work as a result of flexible arrangements.

Mark Dixon, CEO of IWG, shed light on the broader implications of these findings: “Hybrid and more flexible ways of working are incredibly beneficial for both employees and their employers. Not only is it universally popular with workers, with higher levels of satisfaction and an improved work-life balance reported.”

“But as this research shows, employees are taking fewer sick days, managing stress better, and adopting healthier lifestyles.

“Meanwhile, companies are enjoying higher levels of productivity and lower costs.”

The government in Singapore is also taking proactive steps to support workplace wellbeing.

The Tripartite Guidelines on Flexible Work Arrangement Requests, which 81% of employers feel ready to implement, aim to embed flexible work into corporate culture.

In addition, new guidelines from the Workplace Safety and Health Council – set for release in 2025 – will provide businesses with actionable strategies to better support employees facing or recovering from mental health challenges.

Health strategies for hybrid employees

Dr Sara Kayat, a TV doctor, highlighted how hybrid workers can further optimise their health and wellbeing. She shared three key strategies:

1) Prioritise preventative health care

Use the flexibility of hybrid work to schedule routine health check-ups, from medical screenings to dental appointments. “Having the flexibility to fit these into your day means you’re not waiting for a sick day to prioritise your health,” said Dr Kayat.

2) Stay active with a social twist

Exercise isn’t just about fitness; it’s also about community. Dr Kayat noted the growing trend of local running clubs and group workouts, which provide both physical and social benefits. “It’s about more than just moving. Rather, it’s about connection,” the doctor said.

3) Fuel your brain with better nutrition

Hybrid work offers the opportunity to make healthier food choices. Simple, nutrient-rich meals – such as a spinach and quinoa salad or a berry and almond butter smoothie – can boost focus and energy throughout the day, she suggested.

Hybrid work and workplace wellbeing

Hybrid work is beginning to cement its place in modern work, and organisations that embrace flexibility stand to gain a healthier, happier, and more productive team.

With stress levels down, absenteeism reduced, and work-life balance improved, businesses are seeing tangible returns on investment.

The study findings suggest that employee wellbeing and business success are closely linked. The hybrid model can thus serve as a blueprint for the future of work.