The Future of Work: A Trends Forecast for 2025

FM newsroom – office, hybrid work. The 2025 International Workplace Group (IWG) forecast highlights the continued evolution of hybrid work, driven by flexible arrangements, employee well-being, and decentralized office locations. As hybrid models redefine the professional landscape, business operations must adapt to ensure success in a more flexible world.

IWG’s 2025 forecast presents hybrid work as a permanent fixture in the global economy, driving economic decentralization, enhancing employee well-being, and improving diversity and inclusion efforts. By focusing on flexibility, results-oriented work, and community-driven office solutions, businesses can create sustainable, resilient workplaces that thrive in the future of work.

The Rejection of Full-Time Office Mandates

The report predicts a strong pushback against mandatory return-to-office (RTO), which may trigger mass resignations. IWG’s survey found that 67% of recruiters observed that candidates prefer roles with flexible working policies over those requiring daily commuting. Organizations that resist hybrid models may face challenges retaining top talent, as employees increasingly prioritize autonomy in where and how they work.

Productivity Transcending Traditional Hours

IWG’s research indicates a gradual departure from the traditional 9-to-5 workday in favour of productivity-focused performance metrics. Over 80% of HR executives reported that hybrid working enhances employee efficiency, with studies pointing to a 3-4% increase in overall productivity. This shift suggests that employee performance is measured by results rather than hours spent at a desk, making hybrid work a key driver of corporate innovation.

In addition, hybrid work, which offers flexibility for those juggling child and family care, is proving invaluable for women, with two-thirds reporting that it has opened up work opportunities that they would not otherwise have had.

The Right to Switch Off

The “right to switch off” is gaining traction globally, supporting workers’ need to step away from work-related communications during off-hours. This trend underscores a growing emphasis on mental health and the importance of leisure time free from professional obligations. As government policies catch up, businesses will need to adjust their expectations to foster a healthier work-life balance.

The Rise of Commuter Towns and Suburban Workspaces

Hybrid work fuels migration from city centres to smaller commuter towns as workers seek affordable housing and better living conditions. This shift has increased demand for flexible offices in suburban areas, which provide employees with convenient local workspaces.

Evolving mixed-use developments

IWG’s report foresees an ongoing transformation of city centres, with traditional business districts evolving into mixed-use developments. As office demand in metropolitan areas declines, urban spaces are expected to accommodate a blend of residential, commercial, and recreational facilities, reflecting the new realities of hybrid work.

SMEs Seek Decentralized Workspaces

Small and medium-sized enterprises (SMEs), contributing to nearly half of the world’s GDP, benefit significantly from hybrid work models. Flexible office spaces in suburban areas offer SMEs cost-effective solutions that foster growth and collaboration without the overhead of large, permanent offices. These businesses can access broader talent pools and improve employee satisfaction by decentralising their operations.

For the full report, visit the IWG Media Centre.

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