- 69% of businesses working in a hybrid model are confident their business will grow in 2025 despite concerns around unpredictable economic condition and tariffs
- 56% of flexible businesses are confident their workforce will grow this year
- 72% of businesses are implementing or are planning to implement cost-cutting measures with two-thirds of business leaders stating that hybrid working has been central to their cost management strategy
- Three-quarters businesses operating in the hybrid model report improved productivity in their workforces and 68% believe their policies have enhanced their ability to attract and retain top talent
- 65% of companies say that if they abandoned hybrid working, they would lose their best talent to competitors.
Despite a challenging economic environment, Canadian businesses operating in the hybrid model are confident they are positioned for growth and workforce expansion in 2025. Canadian business leaders who have embraced a hybrid working model recognize that flexibility allows them to operate with lower business costs, boosts employee productivity and attracts the best talent, supporting their confidence in business growth despite economic pressures.
A study of more than 400 Canadian senior business leaders by International Workplace Group (IWG), found that 69 per cent of Canadian business leaders offering hybrid working were confident in their business growth in 2025, and 56 per cent are confident in expanding their workforce this year.
With 72 per cent of businesses implementing or planning to implement cost-cutting measures this year, hybrid working has enabled businesses to cut overhead costs by reducing reliance on inflexible and expensive long term real estate leases in favour of flexible and short-term workspace solutions.
Seventy per cent say hybrid working has mitigated economic pressures and two-thirds (65%) say offering hybrid working has been central to their cost management strategy. Other cost saving strategies include reviewing suppliers for cheaper alternatives (26%), delaying (22%) or reducing new hires (20%).
The research, conducted by IWG, the world’s leading provider of flexible workspace, with brands including Regus and Spaces, indicates that while business confidence across the globe is under increased scrutiny, Canadian businesses prioritizing flexibility are feeling optimistic.
Workforce productivity key to brighter outlook
It has been five years since the start of the COVID-19 pandemic, which resulted in a shift to flexible working as the default work model. Five years has proven the benefits of hybrid working, driving an increase in productivity and talent retention. According to the research, almost three-quarters (72%) of flexible businesses report improved productivity in their workforces and 68 per cent believe their policies have enhanced their ability to attract and retain top talent. In fact, 65 per cent of flexible companies agree that if they abandoned hybrid working, they would lose their best staff to competitors.
This is supported by Stanford academic Professor Nicholas Bloom’s recently published study** which found that hybrid working improved job satisfaction and reduced quit rates by one-third (33%), without damaging productivity.
Hybrid leaders also cite a wide range of employee benefits, including happier (54%), more satisfied (44%) and healthier (34%) employees.
Mark Dixon, CEO and Founder of International Workplace Group, said: “In times of economic volatility, CEOs are carefully evaluating how to navigate uncertainty while driving efficiency and growth for their business. They recognise that flexibility is not only crucial when it comes to safeguarding their operations, but also enhancing the productivity of their teams.
“By empowering their teams to work closer to home in local workspaces and offices, companies operating in the hybrid model are able to significantly reduce their costs and improve the work-life balance of their people.”
Terri Pozniak, EVP, Country Manager Canada, International Workplace Group PLC, adds:
“Hybrid working isn’t just about flexibility — it’s a smarter business strategy. Not only does the model retain top talent and boost productivity, it also significantly reduces overhead tied to maintaining large, city-centre offices. Taken together, these advantages are giving Canadian business leaders greater confidence in their ability to navigate potential economic headwinds in the year ahead.”
About International Workplace Group PLC
International Workplace Group is the global leader in hybrid work solutions and workspace brands. We create personal, financial, and strategic value for businesses of every size. From some of the most exciting companies and well-known organisations on the planet, to individuals and the next generation of industry leaders. All of them harness the power of International Workplace Group’s hybrid working platform to increase their productivity, efficiency, agility, and market proximity.
International Workplace Group’s unrivalled network coverage includes approximately 4,000 locations across more than 120 countries and 83% of Fortune 500 companies are amongst our growing customer base.
Through our brands including Regus, Spaces, HQ and Signature, we help millions of people and their businesses to work more productively. We do so by providing the world’s leading hybrid work platform with professional, inspiring and collaborative workspaces and digital services all available via the International Workplace Group’s app.
For more information visit www.iwgplc.com
