Hybrid work to potentially boost productivity and cut costs in Singapore

Businesses could potentially save on 55% real estate costs by shifting to hybrid work.

Hybrid work could potentially improve productivity, reduce employee turnover, and lower business costs like real estate for as much as 55% according to a survey by the International Workplace Group (IWG) and global engineering consultancy Arup.

Citing a US-modelled survey, the study revealed that hybrid working could generate $282b in Gross Value Added (GVA) annually by 2030 and $729b by 2045, through increased productivity, reduced turnover, lower replacement costs, and portfolio savings.

Productivity could also improve by 11% driven by lower commutes, with employees benefiting from increased focus time and fewer distractions, ultimately spending up to 40% of time saved from travelling on additional work. In fact, the rate of employees reporting their productivity levels as ‘excellent’ in flexible workspaces is 67% higher than those working from home.

The report estimates that this could unlock $54.4b in annual GVA within five years, rising to $140.3b by 2045.

In a previous IWG study, 77% of Gen Z workers in Singapore reported higher job satisfaction under a hybrid model, with 34% saying their work-life balance improved. 

IWG estimates that employees working closer to home can save up to $39,400 annually by avoiding daily commutes. Businesses that shift to local hubs or coworking memberships can cut real estate costs by up to 55%. A Knight Frank survey found that 30% of Singapore business leaders consider flexible work a core factor in real estate decisions.

Dr Issac Lim, Social Scientist and Founder of Anthro Insights, said that Singapore is particularly progressive when it comes to hybrid work transformation.

To truly see productivity gains, companies must go beyond simply offering flexibility. They need to implement it thoughtfully. This starts with understanding the nature of the work and designing hybrid arrangements that accommodate both business and employee needs,” Lim said.