Employee productivity and happiness will be the key focus areas in the world of work in 2025, according to a trends forecast released by International Workplace Group (IWG), the world’s largest provider of flexible workspaces.

IWG’s The Future of Work report reveals that 2025 will be transformative for workplaces, as advancements in technology continue to shape how businesses of all sizes operate and evolve. Even as the ‘Return to Office’ or ‘Return to Work’ mandates made headlines in 2024, the reality for many companies and their people across the world is that hybrid working continues to empower millions of employees to work how and where they want, and most CEOs of white collar businesses believe in its benefits long-term.

Organisations will increasingly shift their focus towards enhancing the productivity and happiness of their people this year, as they recognise that employees can deliver quality work from a multitude of locations, and not just their centralised headquarters.

The hybrid working model will also encourage more businesses to reassess their traditional real estate footprint as longer-term leases continue to expire, ensuring hybrid working becomes a strategic business choice, minimising overheads while providing a range of benefits to workers.

IWG’s top 10 trends that are set to shape global working in 2025

1. The rebuff of ‘RTO’

Companies that continue to expect their employees to commute long distances to a central office every day will face resignations, as employees resist the return-to-office (RTO) mandates.

Third party research has already indicated that 73% of employees at large companies such as Amazon considered resigning due to RTO orders, and recruiters are starting to see the consequences of more rigid policies. IWG’s research also found that two-thirds (67%) of recruiters observed an increase in candidates looking to leave companies that implemented five-day central office attendance.

Research has consistently shown that hybrid working leads not only to greater employee satisfaction but also higher productivity. Companies that embrace the hybrid model and empower their employees to work when and where they prefer will fare much better than those that don’t.

2. Outputs will transcend hours

In 2025 and beyond, employers will increasingly prioritise outputs over the traditional 9-to-5 system and progressive companies will empower their employees to achieve them with hybrid working.

IWG founder and CEO Mark Dixon has long highlighted that productivity hinges on good management and clear KPIs, not location. He is not alone – over 80% of HR executives also believe hybrid working boosts productivity, with 75% of employees feeling more productive and motivated under this model.

3. Demand for professional workspaces in suburbs

As the surge of small businesses continues post-pandemic, the demand for scalable, flexible workspaces is set to rise even further in 2025.

Small and medium-sized enterprises (SMEs) now account for around half of global GDP and around 40% of all employment. SME numbers worldwide are anticipated to almost double between now and 2031; with over 4,500 flexible workspaces worldwide, IWG’s sites are becoming increasingly located in suburbs and small towns – with plans to expand even further in 2025.

4. Commuter towns set to boom thanks to hybrid working

Hybrid working is revitalising commuter towns and reshaping economic landscapes. Former sleepy commuter towns are being brought back to life as workers choose to embrace workspaces closer to where they live, reducing reliance on daily commutes to city centres.

This boost is set to grow even further in 2025 as people opt for a more fulfilling work-life balance, forgoing long commutes for a mix of home, flexible workspaces, and occasional central office visits.

5. Generation Hybrid will continue to change the way we work

By 2025, Gen Z will make up a third of the workforce, influencing workplace norms with their digital prowess and expectations for flexibility.

As digital natives who are accustomed to working anywhere – whether school, college or personal - two-thirds of new graduates reject the idea of a five-day commute to a central office, valuing work-life balance and empathetic leadership over traditional rigid structures. Companies that fail to adapt to 'Generation Hybrid' and their preferences for flexibility, diversity, and authenticity risk missing out on top tier talent.

6. Traditional commute Vs money savings from hybrid working

There is a growing appreciation by both employees and employers of the cost- and time-saving benefits of working locally – and a realisation that the long daily commute to a city centre office no longer makes sense.

IWG’s research revealed that more than three-quarters (76%) of workers save significantly on travel costs due to hybrid working. Commuters could save up to $30,332 annually by switching from commuting to a city-centre daily to working locally four days a week.

For Gen Z, who face inflation and debt at the same time when starting out on their careers, this could mean significant financial relief.

7. Hybrid working set to boost gender parity in the boardroom

As we approach 2025, the tide is turning for women's advancement into C-suite roles. Despite the progress in workforce equality and diversity, senior roles have remained elusive for many women. Hybrid working, offering flexibility for those juggling child and family care, is proving invaluable for women, with two-thirds reporting that it has opened up work opportunities that they would not otherwise have had.

8. The right to switch off will gather pace

The advent of technology has granted us the flexibility to work remotely, but it has also led to the potential for constant availability, blurring the lines between work and personal time. In response, several countries, including France, Greece, and Australia, have enacted 'right to switch off' laws to protect employees' off-hours.

Employees place a great value on the work-life balance afforded by hybrid working, and both governments and businesses are recognising the importance of safeguarding leisure time from work intrusions.

9. Hybrid working as a wellness benefit

By 2025, flexible and hybrid working arrangements are set to become as coveted as health insurance in compensation packages.

Research has demonstrated the significant benefits that hybrid work can have on employees' overall wellbeing. Improvements in stress levels, physical health, diet and nutrition are positively impacting productivity and motivation at work. This trend will manifest itself in new ways in 2025 – from more robust hybrid working policies and greater access to fitness facilities, to improved employee assistance programmes and mental health days off.

10. Mixed-use developments will transform city centres

Dynamic mixed-use developments are changing the face of business districts in cities around the world. The impact of hybrid working has reduced the number of inner-city commuters, and is driving investors, landlords and developers to reimagine the commercial cores of cities with a wider mix of uses and experiences beyond the basic provision of office space.

As work geography shifts, and employees increasingly work closer to their homes in the suburbs, cities whose economy has been geared to meet the needs of millions of office workers will need to evolve to become hubs for collaboration and entertainment.

Image Source: The World of Work in 2025 by IWG

Branko Miletic

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