'Businesses are translating their hybrid working savings into real benefits for employees'
Hybrid work can mean big savings for employers, according to a recent report.
Overall, 74 per cent of Canadian business leaders say they have reduced the size of their traditional office footprint by embracing hybrid, reports International Workplace Group (IWG).
As part of office reconfigurations, about half (48 per cent) of the leaders now have office space outside of city centres and 58 per cent have opted to open secondary offices in the suburbs.
Companies are also benefitting financially from their employees having shorter commutes, with 48 per cent saying they are now paying less in expenses for staff travel. Also, 34 per cent of businesses say they now spend less on hosting clients and prospects.
About half of businesses have reduced office-related expenditures on utilities (49 per cent) along with supplies and equipment (48 per cent).
These changes have led businesses to save more than $400,000 a year since adopting a hybrid working model.
Having workers work from home also has a huge positive impact on the environment, according to a Canadian study. On average, remote work could decrease transportation emissions by more than 60 per cent for federal employees — who have been recalled back to the office, found researchers at Carleton University in Ottawa.
What are the financial advantages of a hybrid work model?
With all the benefits that employers get, they are passing those benefits on to workers, according to IWG’s survey of 257 business leaders of companies in Canada that have a hybrid working policy, conducted by Mortar Research in March 2024.
Many employers have increased employee salaries (38 per cent), increased employee bonuses (31 per cent), and enhanced employee benefits and perks (27 per cent) and one-off cost-of-living bonuses (23 per cent).
“It’s encouraging to see that businesses are translating their hybrid working savings into real benefits for employees,” sys Terri Pozniak, EVP, country manager Canada, IWG. "Businesses are realizing that not only does hybrid working make sense for their bottom lines, it also makes their teams happier and more productive.”
But even without employers passing on the cash, workers stand to benefit financially from hybrid working. For example, a 24-year-old Gen Z worker living in a popular commuter town in Oshawa, Ontario could expect to save up to $364,000 throughout their working life on their commute alone, by working locally four days per week, according to IWG.
The number of Canadians who work from home has dropped, according to a previous report from the CD Howe Institute.
How hybrid work impacts culture
Outside of the financial benefits, hybrid work also brings a lot of positives for organizations’ culture, notes IWG. Specifically:
- 70 per cent of business leaders say that switching to a hybrid working model increased their workforce productivity
- 66 per cent say that switching to a hybrid working model reduced staff turnover
- 79 per cent say their workforce is happier since the implementation.
IT’s also helping employers in the area of recruitment and retention: 64 per cent of business leaders say they are able to hire better staff since the implementation of hybrid working model, with 70 per cent agreeing their staff was more engaged since implementation.
"Not only does hybrid working help in the immediate term, with improved productivity and wellbeing, but it will also help them retain and recruit the best talent,” says Pozniak. “These findings underline the mutual benefits that arise when companies prioritize the well-being and financial growth of their workforce."
Recently, the Professional Institute of the Public Service of Canada (PIPSC) joined the Canadian Association of Public Employees (CAPE) in urging the Standing Committee on Government Operations and Estimates (OGGO) to conduct a thorough investigation into the federal government’s return to office policy.
