How is this impacting hiring decisions?
A majority (80 per cent) of Canadian business leaders believe that Canada is either in a recession or entering one.
In anticipation, nearly three-in-four (72 per cent) have started implementing, or are planning to implement, cost-cutting measures.
The top way? Delaying (32 per cent) or reducing (30 per cent) new hires.
And one-quarter (23 per cent) have started, or plan, to downsize or reduce office space/costs, according to a survey by IWG, a flexible workspace operator.
The study found that 80 per cent of Canadian business leaders who plan to cut costs are targeting an annual cost reduction of five per cent or more, while 31 per cent are targeting a reduction of at least 10 per cent.
Hybrid brings savings
Fifty-five per cent of business leaders agree that a hybrid workforce is more affordable to operate than a fully in-office workforce and 50 per cent said giving staff the option to work in a hybrid way would save their company money, finds the survey of 210 business leaders (which includes owners, founders and executives).
“In economic uncertain times, companies should be assessing cost-cutting strategies – and hybrid working is one measure that can help businesses stay competitive and resilient,” says Wayne Berger, CEO of IWG Americas.
“Adopting a hybrid work model achieves two powerful outcomes: meaningful cost savings for the company and a better work-life balance for employees. It’s rare to see a single strategy have such a positive impact across the board, but flexible workplace policies can improve the bottom line while simultaneously supporting the well-being of employees.”
In talking about best practices, Matthew Davis, associate professor in organizational psychology at Leeds, says an effective hybrid workplace is more than a HR policy or office design issue.
“It is a socio-technical problem, essentially affecting all aspects of work and requiring knock-on changes to IT, work processes, organizational goals and culture to be successful,”
According to the IWG survey, Canadian business leaders say giving staff the option to work in a hybrid way:
- will help them save money (70 per cent)
- will help them work around personal commitments (69 per cent)
- will boost morale (62 per cent).