A recent survey reveals that more businesses are investing in technology to support hybrid work models as employees increasingly seek work closer to home. Over 500 CEOs participated in the International Workplace Group's study, showing that 95% have spent on new technologies in the past year to enhance their hybrid working environments. This trend highlights the growing importance of hybrid work, with 43% of CEOs identifying these investments as their largest expenditure over the past 12 months.

The continued growth of hybrid working is largely driven by employees' preference for work near their homes. Research shows that only 21% of people would accept a job that requires a daily commute longer than 30 minutes, while 60% prefer positions that are within a 15-minute commute from their homes. This shift in expectations is prompting businesses to adjust, and many are opting to scale back expensive central office spaces in favor of more affordable regional offices and co-working spaces. According to previous research, 44% of CEOs have downsized their office spaces by at least 25%, helping companies reduce overhead costs like energy consumption.

The money saved from these reductions is being reinvested in technology, with cloud technologies, artificial intelligence (AI), automation, and cybersecurity among the most popular areas for investment. For example, 62% of CEOs are investing in cloud technology, 52% in AI and automation, and 41% in generative AI. These advances in technology are seen as crucial for supporting employees' hybrid work needs and improving their productivity. In fact, 87% of CEOs plan to keep investing in tech tools that will further enhance the hybrid work experience.

Employees appear to benefit from this shift. Data from the International Workplace Group suggests that 74% of employees feel more productive when working in a hybrid model, while 76% report higher engagement levels, and 85% say their job satisfaction has improved since moving to hybrid work. Additionally, research from leading academic institutions suggests that hybrid working can boost company productivity by about $19,000 per employee per day.

Human resources leaders also support the growing emphasis on hybrid work. About 86% of HR professionals agree that hybrid working has become a crucial element of employee well-being and productivity. This sentiment reflects the increasing recognition that offering flexible work options can lead to happier, more efficient workers.

In the background, the shift to hybrid working began as a response to the COVID-19 pandemic, which forced many businesses to adapt to remote and flexible working arrangements. Over time, the advantages of hybrid working, such as improved work-life balance, health benefits, and cost savings, have become more apparent, leading to its widespread adoption. The combination of technological advancements and changing employee expectations suggests that hybrid work is here to stay, with businesses and workers alike continuing to reap its benefits.

Mark Dixon, CEO of the International Workplace Group, emphasized the lasting nature of this shift, noting that the investments made by CEOs reflect a long-term commitment to hybrid work. He pointed to advancements in technology such as video conferencing, generative AI, and cloud services as key enablers of effective remote collaboration, suggesting that businesses will increasingly move toward localized working arrangements in the future.