#HybridWorking - In today's economic landscape, many countries are grappling with slow growth and surging prices. This cost-of-living crisis is worrying for employees as much as cost control is a concern for businesses.
Financial stress can diminish productivity and increase absenteeism, directly affecting a company's bottom line. As a business leader, supporting your team in these challenging times requires empathy at it’s highest level, which in turn adds to operational efficiency.
Through varied research, IWG – Regus’ parent company – has found that adopting a hybrid work model is a tangible way to support your team. By empowering employees to work from a flex space closer to home with occasional trips to the central office as needed, you're not just showing understanding — you're also easing their commuting costs and the financial stress of a traditional office setup.
The financial benefits of hybrid
Implementing a hybrid model that uses a network of local flexspaces can ease the financial burden on employees in a number of ways:
1. Saving on commutes
The traditional commute is expensive. Workers can save up to ZAR 10 000.00 a month by not travelling to their company's central office every day. Working locally more often means direct savings on fuel or public transport fares.
2. Health and time benefits
Besides money, employees also save valuable time that would've been spent stuck in traffic or waiting for public transport. There's also the health aspect to consider. Long commutes can lead to increased stress, higher blood pressure, and weight gain. Healthier employees generally mean fewer sick days and better overall productivity.
3. Indirect savings
There are also indirect economic benefits to consider. This includes less wear and tear on their cars, fewer lunches out, and not having to buy as many office-ready outfits.
As IWG Founder and CEO Mark Dixon puts it: “Nowadays the daily trip to a city centre office is a considerably more expensive endeavour – and that’s even before you’ve bought a coffee and lunch. Add in the health and environmental benefits, and cutting down on commuting is a no-brainer.”
4. Childcare savings
For parents, the costs and logistics of childcare can be daunting, and may even be a reason some employees decide to leave their job. More flexible work arrangements can help parents better manage these demands. In fact, over half the CHROs surveyed by IWG are now considering hybrid work as a solution to childcare challenges.
5. Side hustles and personal growth
With the extra time saved from commuting, employees might dive into personal projects or even side businesses. This isn't just good for them; it can also benefit their employers. As workers pick up new skills or deepen existing ones, they bring more to the table. This boosts their overall happiness, job satisfaction, and value to the company.
Business savings
It's not just employees who benefit. Companies can eschew long, expensive leases along with the associated operating costs, bringing added agility and enabling them to focus more resources on growth. Mark Dixon, in a recent interview with CNBC, shed light on the trend, saying that over half the businesses surveyed by IWG have chosen office or coworking spaces in suburban areas. This strategic move has led to considerable savings. In fact, research by Global Workplace Analytics shows that on average, hybrid companies can save close to ZAR 200 000.00 each year for every employee.
Why employees' financial well-being matters to businesses
When employees are financially secure, they're more focused and productive. This can lead to lower turnover and a stronger pull for top talent. With more companies embracing ‘Work From Anywhere’ policies and greater flexibility to improve employees' work-life balance, they are increasing their attractiveness as employers.
Offering financial support can uplift morale and improve company culture, and fewer employees might take sick days due to financial stress. Moreover, a company that visibly supports its employees' financial well-being often earns a positive reputation in the industry.
Hybrid: A win-win for employees and business owners
In this evolving economic landscape, hybrid isn't just about flexibility or work-life balance; it has real economic benefits for employees. These, in turn, benefit businesses who can rely on a happier, healthier, and more productive workforce.