Employers supporting wellness will see greater success in 2025

Up to 73% of employees at large companies considered resigning due to return-to-office mandates, survey finds

Mark Dixon, founder and CEO of International Workplace Group (IWG), at Spaces, Liverpool Street Station, London. Photo: Ian McIlgorm

Employees are becoming increasingly resistant to their employers’ return-to-office (RTO) mandates, with huge numbers reaching out to recruitment companies.

A workplace survey by flexible workspace provider International Workplace Group (IWG), parent company to brands such as Regus and Spaces, found that 67% of recruiters have seen a rise in candidates looking to leave companies that implemented five-day central office attendance.

In this Q&A interview, Mark Dixon, founder and CEO of IWG, predicts a number of likely workplace trends for the year ahead, and looks at the links between employer commitments to worker wellness and their ability to attract and retain talent, along with the links between employee satisfaction and productivity.

Do you anticipate employer-employee friction around RTO versus hybrid work options? 

Companies that continue to expect their employees to commute long distances to a central office every day will trigger a wave of resignations, as employees resist their so-called return-to-office (RTO) mandates.

Third party research has already indicated that 73% of employees at large companies such as Amazon considered resigning due to so-called “RTO”, and recruiters are starting to see the consequences of more rigid policies. Our research at IWG also found 67%) of recruiters reported an increase in candidates looking to leave companies due to five-day RTO mandates.

However, research has consistently shown that hybrid working leads not only to greater employee satisfaction but also greater productivity. Companies that embrace the hybrid model and empower their employees to work when and where they prefer will fare much better than those that don’t.

Are employees more or less productive when working from home? 

We have long highlighted that productivity hinges on good management and clear KPIs, not location. And over 80% of HR executives also believe hybrid working boosts productivity, with 75% of employees feeling more productive and motivated under this model. Professor Nicholas Bloom also suggests a 3-4% average productivity increase with hybrid working.

In 2025 and beyond, we believe that employers will increasingly prioritise outputs over traditional 9-to-5 hours and progressive companies will empower their employees to achieve them thanks to hybrid working.

Gen Z will make up a third of the workforce, influencing workplace norms with their digital prowess and expectations for flexibility. As digital natives who are accustomed to working anywhere – whether school, college or personal – two-thirds of new graduates reject the idea of a five-day commute to a central office, valuing work-life balance and empathetic leadership over traditional rigid structures.

Companies that fail to adapt to 'Generation Hybrid' and their preferences for flexibility, diversity, and authenticity risk missing out on top tier talent.

What do employees cite as their main reasons for preferring hybrid work choices?

Employers and employees alike realises that the long daily commute to a city centre office no longer makes sense. They both see the cost-saving and time-saving benefits of working locally.

In the US, we collaborated with consultancy firm Development Economics, finding that 76% of workers save significantly on travel costs due to hybrid working. Commuters could save up to $30,332 annually by switching from commuting to a city-centre daily to working locally four days a week.

For Gen Z, who face inflation and debt at the same time as starting out on their careers, this could mean significant financial relief. For example, a young worker in Red Bank, New Jersey, might save $388,320 over the course of their career by working locally and commuting into a central office once a week.

Hybrid working not only makes us happier, healthier and more productive, but also better off – and that is something that everyone will be thinking of moving into 2025.

Is there any evidence to show a link between hybrid working and employee wellness?

Flexible and hybrid working arrangements are set to become as coveted as health insurance in compensation packages. Research has demonstrated the significant benefits that hybrid work can have on employees' overall wellbeing.

Improvements in stress levels, physical health, diet and nutrition are positively impacting productivity and motivation at work. This trend will manifest itself in new ways next year – from more robust hybrid working policies, to greater access to fitness facilities, to improved employee assistance programmes and mental health days off.

Do you expect hybrid working to also have an impact at boardroom level?

The tide is turning for women's advancement into C-suite roles. Despite the progress in workforce equality and diversity, senior roles have remained elusive for many women.

Hybrid working, offering 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.

Beyond the basic demands of equity and fairness, companies have a real incentive to increase female representation in the C-suite: research has shown that firms with more women in senior positions are more profitable and more socially responsible.