In a challenging economic environment, businesses operating in the hybrid model have reported that they are significantly more optimistic about growth in the year ahead than more traditionally-focused businesses that require their teams to commute daily, according to a recent study.

Three-quarters ( 75% ) of businesses offering hybrid working have a positive outlook for 2025 compared with 58% of non-hybrid companies, finds the International Workplace Group ( IWG ) study, which surveyed more than 1,000 CEOs and senior business leaders in Hong Kong.

These businesses are also recognising, the study notes, that hybrid working allows them to operate with lower business costs, boost employee productivity and attract the best talent - all of which support this optimism.

Flexible working allows many businesses to cut overheads by reducing office space and taking advantage of short-term workspace solutions. More than three-quarters ( 79% ) of flexible businesses report cost savings, and a similar amount ( 75% ) say hybrid working is incredibly helpful in mitigating upcoming economic pressures like rising taxes, increased tariffs and market trends.

As business confidence across the world is under increased scrutiny, businesses prioritizing flexibility, the study states, are significantly more optimistic, with 63% of hybrid businesses reporting feeling more positive about the economy than they did a year ago, compared with 44% of non-flexible businesses.

Flexible working models are also driving productivity and talent retention. Notably, 72% of flexible businesses report improved productivity in their workforces, and a similar percentage ( 71% ) believe their policies have enhanced their ability to attract and retain top talent.

This is supported by Stanford academic professor Nicholas Bloom’s recently published study,  which finds that hybrid working improves job satisfaction and reduces quit rates by one-third ( 33% ), without damaging productivity.

“By embracing hybrid working, businesses are reducing costs and enhancing their team’s happiness and productivity,” says Mark Dixon, IWG’s CEO. “It’s no surprise that businesses adopting this model are the ones looking to the year ahead with optimism.”