2023 Workplace trends: Activating the future of work as Hybrid flexibility reaches new heights

In its latest report, 2023 Trends Forecast for the Future of Work, IWG says that this workplace mindset evolution might occur within the next five years. When it happens, the proportion of professional employees working out of a single location will be in the minority for the first time.

“Hybrid working is now the preferred solution for millions [of people] as they divide their working hours between company headquarters, a local, flexible workspace and their home,” says Mark Dixon, CEO of IWG.

This method of balancing different working environments boosts corporate productivity and is a more sustainable way of working, says Dixon. "It is clear that yet more change is on the way, as innovations and new thinking in areas such as sustainability, technology, recruitment, and productivity impact our working lives."

Future trends

One of the future trends predicted by IWG is a fundamental corporate mindset shift as companies focus on outcomes rather than count the total number of hours employees work in a week. “Productivity is increasingly a priority for businesses, especially in uncertain economic times,” says IWG.

An increasingly popular idea is the four-day work week, an often-discussed but rarely implemented corporate policy.

According to IWG, the year ahead will see more companies adopt the four-day week model, with the caveat that they are confident it will not result in a drop in overall productivity. Surveys by IWG also indicate that employees who demand improved work flexibility and a healthier work-life balance tend to embrace this model.

Some of the latest additions to IWG’s New centre Openings include Pretoria Central, Middleburg, Witbank and Port Elizabeth in the suburb of Walmer.

The report says that the presence of Gen Z workers will help to accelerate this trend, as 55% of Gen Z workers surveyed by IWG say that they expect the four-day workweek to become the norm in the next few years. Gen Z is the demographic cohort born between the late 1990s and early 2010s.

However, companies should see this as something other than a means to slash salaries by a fifth, says IWG. Workplace trials for the four-day week model typically adopt a 100:80:100 model — this means 100% of the pay for 80% of the time and a commitment to maintaining 100% productivity.

Virtual workspaces

Technology will continue to propel the shape of future workplace trends through advancements in virtual reality (VR) and the use of artificial intelligence (AI), says IWG. The promise of a virtual workspace has convinced companies such as Meta and Microsoft to roll out various workplace tools for VR, and some companies are investing in creating their own virtual spaces and real estate.

As a result, the idea of working from anywhere around the world will increasingly become a reality for more workers.

As one of the world's largest operators of flexible workspaces, IWG points to its 3,500 locations across 120 countries as a means for these itinerant workers to plug in and work.

"It makes sense for those who want to experience more of the world while continuing to work as efficiently and comfortably as they might previously have done at home, in an office close to home or at a central HQ," says Dixon.

In South Africa, IWG has 62 locations, with a noted growth of 30% recorded in 2022 and substantial growth expected for 2023.

Technology is also being deployed to help landlords and employers better understand how spaces are utilised. “Companies are gathering insights from multiple sources such as employee productivity and environmental data, including heat, noise, humidity and power usage to shape the future office while minimising environmental impact," says Dixon.

‘Green leases’

Our reliance on fossil fuels to power our buildings and cities is damaging our people's health and environment. There is a better way. Highly energy-efficient buildings can generate the power they need to keep occupants comfortable and productive, on-site and from renewable sources. Known as net zero carbon buildings, they are viable today and crucial for the future.

This greater awareness of their environmental impact comes as companies place sustainability as a vital part of their corporate agenda, says IWG. It says more property owners are upgrading their facilities and developments to offer best-in-class sustainability features. In addition, a growing number of corporate tenants want to sign so-called "green leases", which allow owners and occupiers to work together to make buildings more sustainable and less environmentally harmful.

Typically, "green lease" provisions cover issues such as carbon emissions, compliance with local energy-efficient regulations, waste reduction strategies and green transport measures.

This focus on sustainability ties in well with the rise of hybrid work. On the one hand, companies downsize their corporate real estate portfolio and focus on high-grade and environmentally efficient buildings and workspaces. On the other hand, a decrease in daily commuting by employees contributes to a cleaner and greener environment.

In South Africa, it has been shown that in many areas, well-designed buildings can operate without mechanical heating, ventilation and cooling for most of the year. Building performance simulations make it easier today to understand and predict how a building will perform, allowing us to intervene and ultimately design and construct the best spaces possible.

‘Great Lease’ Resignation

All these factors contribute towards a so-called “Great Lease Resignation”, a term coined by Dixon. This refers to corporate tenants shunning conventional long-term office leases in favour of more flexible arrangements.

This trend is likely to accelerate as more leases expire and companies seek to capitalise on the cost-saving benefits of hybrid work. The shift towards hybrid work will also contribute positively towards talent retention and attraction, especially among the emerging cohort of Gen Z workers.

On the other hand, this means that time spent in the office is even more precious, says IWG. The report says that “connecting and collaborating in person is an essential part of the hybrid equation. But it needs to be done in an intentional way. Just announcing anchor days doesn’t cut it — team days need to be planned and have a clear purpose. And the same goes for meetings”.

Dixon says: "The most successful companies are now very focused on how meetings work. It's not enough anymore to schedule a meeting and then try to wing it. If people are going to make an effort to come together in the office, their time must be spent productively."

The future of work continues to be led by focusing on enriching employees' workplace experience, and utilising new technologies to boost efficiency and productivity, says IWG. A greater awareness of sustainability and well-being will also colour much of the discussions on the future of work.

About IWG

IWG is the global operator of leading workspace providers. Our companies help more than 2.5 million people and their businesses to work more productively. We do so by providing a choice of professional, inspiring and collaborative workspaces, communities and services. 

Digitalisation and new technologies are transforming the world of work. People want the personal productivity benefits of living and working how and where they want. Businesses want financial and strategic benefits. Our customers are start-ups, small and medium-sized enterprises, and large multinationals. With unique business goals, people and aspirations. They want workspaces and communities to match their needs. They want choice. 

Through our companies, we provide that choice, and serve the whole world of work: Regus, Spaces, No18, Basepoint, Open Office and Signature. 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 flexible working to increase their productivity, efficiency, agility, and market proximity. 

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