01732 759725 magazine 13 10. The new workforce demographic: why business leaders need to know what Gen Z wants at work Gen Z is entering the workforce with clear expectations that go beyond pay, prioritising wellness, mental health, flexible hours and meaningful work that aligns with their core values. With an ageing global population, rising retirement levels and widening talent gaps, it is critical that business leaders understand and react to these changing priorities. Companies that embrace flexibility, autonomy and meaningful work will attract and retain the next generation of leaders. Those that don’t risk falling behind. www.iwgplc.com blending design-led hospitality expertise with IWG’s flexible workspace network, these spaces will fuse together work, socialising and wellbeing, transforming the office into a lifestyle experience. 9. Day offices on the rise Day offices are set to become a key part of the workplace landscape, providing a professional and productive office space whenever and wherever it is needed. Whether employees are seeking quiet focus rooms or collaboration spaces for ad hoc team days, these ‘on-demand’ options eliminate the need for long-term commitments while offering all the amenities of a traditional office. Features such as natural light and on-site wellness amenities will differentiate day offices, helping employees work efficiently, flexibly and with purpose. are, saving up to $30,332 a year thanks to the reduced need for lengthy commutes.3 7. The local loyalty effect Hybrid work will foster a renewed connection to local communities. Companies may encourage employees to integrate volunteerism, local partnerships or skill-sharing into their working week, strengthening employer brands while supporting civic engagement in the communities where employees live and work. 8. The hospitality-infused office Workplaces will increasingly look and feel like boutique hotels. In 2026, expect concierge-style services, curated food and beverage options and sensory design that mirrors boutique hotels. Take IWG’s latest partnership with YOO: OFFICES References: 1. Research by IWG in collaboration with Censuswide, sampling 1,005 Office full time/ hybrid workers in June 2024 2. Research by IWG in collaboration with Censuswide, sampling CEOs and CFOs (50/50 split) working at companies that operate a flexible working model in the USA and UK in May 2025. 3. IWG Hybrid Working Report in collaboration with Arup, June 2025 AI and hybrid working propel cost-cutting agenda UK CEOs are embracing AI, talent upskilling and more flexible ways of working to fuel growth while also cutting costs In IWG’s latest annual CEO Index, based on insights from more than 1,000 UK business leaders, 99% of CEOs cited cost-cutting as critical to business success as confidence in the economy declines. Just over half (54%) of CEOs described the economic outlook for 2026 as strong, compared to 70% in last year’s survey. Separate research shows that CFOs are trimming budgets by an average of 10%. Three in ten CEOs (29%) said they are adopting flexible workspaces as a way of saving money. According to a recent report by IWG and Arup, companies that implement a hybrid working model and adopt flex space can cut real estate costs by up to 55%. Investment in AI to drive efficiencies Almost three quarters (73%) say investing in digital and AI skills across their entire workforce will be integral to business success this year. Nearly half (46%) have included use of AI and digital tools to automate routine or manual tasks as part of their cost-cutting plans. Eight in 10 say the combination of hybrid working and AI is already boosting their business’s productivity. Focus on upskilling employees and hiring early-career Gen Z talent Upskilling the existing workforce, rather than hiring specialist talent, is seen as a good way to save costs by 77% of those questioned. In addition, 66% of UK CEOs say hiring younger talent has helped them navigate economic pressures, with 63% reporting direct cost savings as a result. Flexibility will remain key in the race for top talent Flexibility has emerged as a critical tool for maintaining employee satisfaction and this year 33% of CEOs plan to expand hybrid, remote or flexible working models both to reduce costs and to keep staff happy. Hybrid working remains one of the most in-demand employee benefits when it comes to attracting and retaining talent. More than twothirds (68%) of business leaders say it broadens access to younger and more diverse talent pools; the same proportion says it has helped them attract and retain the best young talent. Alongside these recruitment benefits, 88% of business leaders report greater employee happiness and wellbeing since adopting hybrid working. www.iwgplc.com “We will continue to see a fundamental shift in the geography of work with the centre of gravity moving towards local communities. The remarkable advances in cloud technology and video conferencing software – both vital to enabling effective hybrid working – mean workers no longer need to travel long distances on a daily basis. The rising demand for more localised working has led us to open the majority of our new IWG centres in the heart of local communities, suburbs and rural areas, enabling many people around the world to say farewell to long daily commutes.” Mark Dixon, Founder and CEO of IWG
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