Last Updated on: 22nd November 2023, 02:17 pm
IWG & FSB announce ground-breaking partnership as SMEs turn to hybrid working to reduce costs and boost employee happiness and retention
- New research among small businesses reveals that the majority have adopted flexible working practises to save money
- Rising costs mean that more than half (55%) said their business may not have been viable were it not for hybrid working
- Business owners report happier, more productive workforces and better employee retention
- IWG announces that small and medium business customers will receive a unique business services package to equip them with the tools and services to thrive amidst the challenging economic climate
A new study from IWG, the world’s largest provider of hybrid working solutions, has found that hybrid working is providing a lifeline to small and medium sized enterprises (SMEs) amidst the cost-of-living crisis.
New research among more than 1,000 small businesses found that more than three quarters (77%) said adopting hybrid working had made their business more profitable, while 55% feared the business would not have been viable had they not been able to negate rising costs through flexible working arrangements.
The figures come as IWG and the Federation of Small Businesses (FSB) announce a new strategic partnership in which IWG small business customers will receive benefits worth thousands of pounds per year, to help owners navigate the challenging economic climate through access to a wide array of tools and services.
The IWG business support package for SMEs equips business owners with essential tools, resources, support, and expertise for starting, running, and growing a business. Provided by the FSB, it will encompass a wide range of provisions, including access to legal protection, tax investigation protection, PR and crisis management, a legal hub, and various other essential services.
As companies navigate the post-pandemic era and adapt to the challenging economic environment, IWG’s research shows that more than four in five (83%) SMEs have reduced their office footprint, with half of those (50%) opting to take workspace outside of city centres, giving employees access to a network of locations closer to where they live. This has enabled businesses to remove substantial costs from their bottom line, saving money on their office footprint (77%), reduced utility bills (75%), lower stationery and equipment costs (70%) and fewer expenses for travel and commuting (69%).
This reappraisal of office footprints is also allowing employees to save money. A third (33%) of small business owners said their new office locations had reduce commuting costs for their employees, while 45% have been able to increase employee salaries as a result of savings made.
Hybrid working is also allowing small businesses to attract and keep the best talent. Almost two thirds (63%) say that their business has reduced staff churn as a result introducing hybrid working, and the same number (64%) fear they would lose talent to rivals if they mandated five days a week in the office for their workforce. IWG’s research shows that that the majority of SMEs have their employees in the office 1-3 days a week, with just 8% operating a five-day office week.
SMEs have reported significant improvements in staff morale, productivity, and overall happiness since introducing hybrid working. Three quarters (74%) said their workforces are happier and more satisfied with their work/life balance, while three in five (63%) agree that employees are more productive.
Shorter commutes are at the heart of this improvement in employee work/life balance. A third (33%) of businesses have taken new office space that reduces their workforce’s commute, reflecting wider employee desire to work within their local communities. In fact, a previous study by IWG found that more than half of office workers (58%) would be reluctant to apply for a job that entails a long daily commute.
IWG’s partnership with the FSB not only provides small businesses with essential resources to navigate economic challenges but by co-locating with other businesses in IWG’s co-working locations, they gain access to unparalleled networking and social opportunities with like-minded professionals, fostering collaboration, innovation, and growth.
Mark Dixon, Founder and CEO of IWG said, “We are delighted to partner with the Federation of Small Businesses to support SMEs. Small businesses are integral to the economy, and this partnership means they can now access the combined resources of the world’s largest hybrid working provider and the UK’s leading small business organisation.
This research shows that hybrid working is a win/win situation. It saves small businesses money and helps them hire the best talent while empowering their workforces to be more productive and enjoy a better work/life balance.”
