Rosalind Evans
The leading flexible workspace provider, IWG, recently announced unprecedented revenues alongside a 100% increase in profits during the first six months of the year. This surge can be attributed to the company’s prediction that the post-pandemic “hybrid work boom” is here to stay.
Between January and June, IWG inked almost as many lease contracts as the entirety of the previous year. This shift in global work culture, ignited by the pandemic, appears to be lasting both in the UK and internationally.
Of the 400 new workspaces launched worldwide in the first half, only 5% are directly owned by IWG. This giant in the flexible workspace sector, which operates brands like Regus and Spaces, reported an impressive operating profit of £94m up to June 30, doubling the £37m profit of the previous year.
Driven primarily by its dominance in Europe, the Middle East, and Africa, as well as its digital platform, Worka, the company witnessed a 14% rise in system-wide revenues, totalling £1.7bn.
Post-pandemic, the popular trend among businesses has been a blend of office and remote work. However, some critics argue this hybrid model may negatively impact team collaboration, overall productivity, and employee well-being.
In a twist, the video-conferencing giant Zoom, which became a household name during Covid-19 lockdowns, revealed plans to have employees commute at least two days weekly, provided they live within a 50-mile radius of an office.
As the future of workspaces continues to evolve, a recent study by property consultants Knight Frank and real estate firm Cresa found that many top global companies are considering reducing their office footprint over the next three years. This could potentially translate to decreased rental expenses for these businesses.
With nearly 3,400 venues spread across 120 countries, including over 300 in the UK alone, IWG foresees further expansion opportunities in the blossoming hybrid work sector, as businesses and property owners rethink their real estate approaches.
Mark Dixon, the founder and CEO of IWG, expressed confidence in the company’s prime positioning to capitalize on the ever-growing demand for hybrid workplaces. He stated, “With more companies permanently favouring the hybrid work model, IWG is set to gain the most.”
The pandemic also led IWG to increase its presence in UK suburban areas. As the cost of living has risen, employees have shown a preference for working in offices closer to home to minimize commuting expenses. Recent footfall data from the company also indicates a noticeable change in the structure of the workweek, with many employees primarily working from offices during midweek and ending the week from home – a trend mirrored by public transport patterns.
As the lines between traditional office spaces and home-working continue to blur, companies like IWG are riding the wave of this change, innovating to cater to the evolving demands of businesses and employees alike. The success of the hybrid model not only reshapes the concept of ‘going to work’ but also showcases the adaptability of the global workforce in a post-pandemic era.
