Research Shows Hybrid Working Saves Businesses $13,000 Per Employee Annually

• Hybrid working is predicted to save organizations an average of CDN $13,000 per employee per year [1]
• Hybrid working can save employees up to $457 per month on train travel and up to $1,200 per month if they commute by car [2]
• Businesses can save as much as 51 per cent on suburban office spaces vs. city centre locations
• Recent research also shows the positive impact of hybrid working on both environmental sustainability and employee productivity

IWG, the world’s largest flexible workspace company, with brands including Spaces and Regus, forecasts that the hybrid work model will continue to accelerate throughout 2022. As Canada’s labour market continues to recover amidst the easing of workplace restrictions, more businesses are recognizing the economic, social, and health benefits of hybrid working.

Research shows that the adoption of hybrid working and utilization of flexible office space can significantly
reduce a business’ bottom line. Companies are now saving on traditionally fixed overhead costs, including
rent, heating, and support staff — adding up to an annual average of CDN $13,000 in savings per
employee.

This results in substantial savings whatever the size of company, as the modeling below suggests:

• A major Canadian bank with 89,000 employees would save $1.1 billion
• A tech company with 5,000 employees would save $65 million
• A services company with 1,000 employees would save $13 million
• A marketing agency with 50 employees would save $650,000 [3]

Financial savings for businesses aren’t only generated by reducing utilities needed within an office, they
can also be created by changing the location of the offices themselves. Office buildings are typically
concentrated in expensive city centres, which often means long commutes for staff. These commutes
require both time and money that could be spent elsewhere. For example, hybrid working can save
workers who make the daily commute from Barrie-to-Toronto up to $457 per month on train travel (GO
Train) and up to $1,200 per month if they commute by car. [4]

According to data from TREBB Commercial Realty Watch, businesses can save as much as 51 per cent
on suburban office spaces compared to city centre locations. For example, a 100,000 square foot Toronto
office could save almost $8M a year by moving 50 per cent of its footprint to the suburbs, closer to where
its employees live.

Businesses are also responding to calls for better work-life balance for employees in light of the great
resignation. A recent global IWG survey found that almost half of office workers (49%) would quit their job
if asked to return to the office five days a week, while three quarters (72%) would prefer the long-term
ability to work flexibly over going back to the office five days a week with a 10 per cent pay rise.

Hub-and-spoke locations, such as those provided by IWG with its 130 Regus and Spaces brands
throughout Canada, offer a level of flexibility enabling employees to work wherever they need to, whether
that be at home, in the city centre, or at a local flexible workspace. IWG Canadian footfall data
demonstrates a steady increase in visits to its suburban workspaces, with IWG’s Regus locations in
Dartmouth increasing its office visits by 163 per cent in March alone, followed by Hamilton (121%) and
Waterloo (116%).

There is also a positive environmental impact to consider, as employees reduce their commuting carbon
footprint. Research shows that allowing staff to work from home, at least a portion of the time, could
reduce emissions from car exhaust by up to 10 per cent, as a result of minimizing commutes for
employees throughout the week. [5]

Finally, hybrid working isn’t just saving money for both businesses and employees, it is also creating a
positive impact on employees’ abilities to work. A PWC poll conducted last year found that 57 per cent of
business leaders said that, thanks to a more flexible working policy, their firms have performed better
against productivity measures than ever before, with a mere 4 per cent of business leaders reporting a
decline in employee productivity. [6]

IWG CEO of Americas, Wayne Berger said, “The rapid global rise in the adoption of the hybrid-working model, where companies use technology to give their employees effective remote access and home working, in combination with easy-to-access local centres and traditional head-office sites, is here to stay. Not only do employees benefit from a dramatically improved work-life balance, but the model also represents a significant win for a company’s bottom line as well as employee bank balances. By switching to a hybrid model, businesses can expect to save an average of $13,000 per employee, all while minimizing their carbon footprint.”

[1] Global Workplace Analytic
[2] Commute Solutions | Go Transit
[3] Global Workplace Analytic
[4]
[5] IWG, WHY EMBRACING THE HYBRID SHIFT WILL HELP THE FIGHT AGAINST CLIMATE CHANGE, August 2021
[6] PwC, Building tomorrow’s workforce: Six no-regrets plays to make today