Hybrid working cuts emissions and saves businesses costs: IWG

Singapore

THE global Covid-19 pandemic has accelerated the world's shift to a hybrid working model - a transformation that is expected to save not just the environment but also money for businesses, while imparting a host of benefits to employees that might lead to a more engaged workforce.

"Hybrid working saves money and we can expect an employer in Asia to save at least US$11,000 (S$15,005) yearly for every employee who works remotely half of the time," said Darren Rogers, country manager for IWG in Singapore, in an interview with The Business Times.

"(It also) has the potential to promote broader sustainability benefits, as well as encourage equality at the workplace and healthier lifestyles as a result of reduced commuting."

IWG, or the International Workplace Group, is headquartered in the United Kingdom and provides flexible workspace solutions for businesses.

In a recent white paper, titled Hybrid world: sustainable world - How hybrid working can help to build a better future, IWG said the world has reached a tipping point, in that the hybrid working model now has the potential to promote sustainability and transform the world for the better.

For one, a hybrid working model will drastically reduce the commutes that need to be made by employees, which will cut carbon emissions, save on workers' travel times and improve their well-being; it will also reduce the need for office space, which will have a positive impact on emissions.

"Pre-pandemic, Singaporeans and people across Asia were spending a lot of time commuting every day to the office - Singaporeans spent an average of 84 minutes commuting in 2019, just slightly longer compared to cities like Hong Kong, Sydney and Melbourne," Rogers said.

"Now with the rapid adoption of the hybrid work model, the need to travel has been significantly reduced. It has almost halved. We expect the average commuting time to reduce further as organisations increasingly adopt permanent flexible work policies, allowing employees to work from wherever they want - be it at home, a central office, a near-home office or a co-working space."

Having that extra time would also allow employees to either get more sleep, or have more time for their family, or exercise - improving their quality of life.

Hybrid work arrangements also mean a reduced need for office space - and a smaller carbon footprint for businesses. IWG has noted that businesses in Singapore are beginning to downsize their offices, looking to free up or vacate permanent office spaces in light of the pandemic.

"Many studies have shown that working from home results in a net reduction in emissions, with one suggesting it can be as much as 77 per cent," Rogers said.

He did stress, however, that hybrid working on its own is not the answer to the climate emergency: "The greater challenge and opportunity for organisations now is ensuring that they keep carbon emissions low by redesigning office spaces and looking to alternative working models such as flexi-workspaces (where businesses offer a variety of workspaces closer to where their employees live) - especially for those who choose to retain some degree of a physical workspace."

The reduced need for office space can lead to substantial cost savings. IWG, in its white paper, cited research from consulting firm Global Workplace Analytics that said that a typical employer can save around US$11,000 every year for every person who works remotely half of the time.

"These savings stem from a variety of factors - one of which is reduced office costs which tend to be one of the main business expenses. When multiplied across a whole organisation, this can amount to a significant amount of cash that can be redirected into employee training, for example," Rogers explained.

IWG also found that employers benefit from a more productive and engaged workforce when working under a hybrid model. "Providing employees with the flexibility to choose when and where they're likely to be at their most productive and effective, works great for business outcomes. A study by the National Council of Social Service in Singapore found that for every S$1 invested into workplace adjustments such as flexi-work arrangements, an average of S$5.60 of return of investment was generated," said Rogers.

But there are potential negatives to working from home that employers need to be aware of: employees can suffer from feelings of isolation and loneliness, as well as "Zoom fatigue", if kept away from the office for too long.

IWG said in its white paper that social moments and chance encounters at the water cooler, which are almost impossible to recreate when working at home, offer the opportunity for idle gossip, creative discussion and the growth of personal relationships - which can be particularly crucial for new entrants to the workplace. More seasoned employees would also benefit from brainstorming and collective problem-solving in face-to-face meetings.

This means maintaining a proper balance through hybrid and flexible workspaces is crucial - a trend which IWG believes the world in general, and Singapore in particular, are definitely embracing.

"In Singapore, we saw demand for decentralised locations increase by 30 per cent at the peak of the pandemic, compared to pre-pandemic levels, showing that there is a desire to work closer to homes," Rogers said.

Over the longer term, IWG sees flexible workspaces as having a positive impact on gender equality in the workplace as well, by allowing women to more effectively manage their work-life balance.

"We have seen that many organisations are not blind to the exodus of women from the workforce, with many already wondering what they can do to support their female employees in the months and years ahead. And offering flexibility is emerging as a key tool," Rogers said.