Hong Kong finance chiefs seen favouring hybrid work arrangements with eye on ‘meaningful boost’ to firms’ bottom lines amid economic uncertainties, IWG says

Hybrid work arrangements, which include some combination of working from home, working at a desk in remote co-working spaces and coming into traditional offices, are a way to create significant cost savings.

“Echoing global economic headwinds, the economy of Hong Kong also faces similar challenges,” IWG said in a statement on Wednesday. “Finance chiefs are looking at cost savings across their businesses as they brace for a potential local economic downturn and possible global recession.”

In Hong Kong, office vacancy rates remained high at 12.7 per cent as of last month, only marginally lower than the vacancy rate of 12.8 per cent in August, according to JLL.

While the “IWG CFO and Hybrid Work Survey” data was generated in the US, similar economic uncertainty is also evident in Hong Kong, IWG said. “Businesses in Hong Kong are [also] adopting hybrid working modes, as they are among the most effective ways to reduce costs.”

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Given recent uncertainties, CFOs are implementing various cost-saving strategies, such as reducing new hires, laying off staff and not filling vacant roles, and changing to short-term lease agreements for office space.

In the next two years, 21 per cent of office tenants in Hong Kong are likely to downsize their footprint, according to a Colliers poll released last month.

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“Hybrid working helps businesses stay competitive and resilient, especially in times of economic uncertainty,” Mark Dixon, IWG’s founder and CEO, said in the statement.

“The research shows that CFOs and business leaders are adopting hybrid working for many reasons. Not only does it support employee work-life balance and well-being, but it also provides a meaningful boost to a company’s bottom line.”

The company operates 21 locations in Hong Kong under the Regus, Spaces, Signature, HQ and OpenOffice brands. IWG has added 612 locations to its global network since January and plans to add 1,000 more over the next year.