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Businesses could lower their costs and potentially pass on those savings to their employees by changing their office footprint.
Canadian companies have saved more than $400,000 a year since adopting a hybrid working model, according to a survey by International Workplace Group PLC.
The survey said that in addition to the savings from a smaller office footprint, about half of businesses have reduced office-related expenditures on utilities along with supplies and equipment.
As a result, companies are able to pass these savings on to their employees through higher salaries and bonuses, enhanced benefits and perks, and one-off cost-of-living bonuses, it said.
"Businesses are realizing that not only does hybrid working make sense for their bottom lines, it also makes their teams happier and more productive," Terri Pozniak, International Workplace Group's country manager for Canada, said in a press release. Businesses are translating those savings into real benefits for employees, she added.
International Workplace Group, which offers hybrid working solutions through brands such as Regus and Spaces, said almost three-quarters of employers have reduced the size of their traditional office footprint by embracing hybrid working and enabling their teams to work in remote offices and co-working spaces closer to where they live.
The report said those significant savings could be particularly transformative for younger workers' financial goals. For example, a 24-year-old generation Z worker living in a popular commuter town such as Oshawa, Ont. could expect to save up to $364,000 in commuting costs throughout their career by working locally four days per week, it said.
As part of office reconfigurations, 48 per cent of Canadian businesses now have office space outside of city centres, and among these, 58 per cent have opted to open secondary offices in the suburbs of a major city.
The shorter commutes and reduced costs for staff also benefits companies, with 48 per cent saying they were now paying less in staff travel expenses.
The rise of video meetings has also saved companies both time and money, with 34 per cent of businesses saying they now spend less on hosting clients and prospects.
Another benefit of the hybrid work model is in human resources. The survey said 70 per cent of employers that have switched to a hybrid model increased their workforce productivity, while 66 per cent said they had reduced staff turnover.
Happiness levels were also considerably higher with a hybrid workforce, with 79 per cent of respondents saying their workforce is happier since the implementation. Hybrid work has enabled companies to attract better talent, with 64 per cent of employers saying they were able to hire better staff and 70 per cent saying their staff was more engaged.
The poll, conducted by Mortar Research in March on behalf of International Workplace Group, surveyed 257 business leaders of companies in Canada that have a hybrid working policy.
— Denise Paglinawan, Financial Post
