An increasing number of Hong Kong-based companies are using affordable hybrid work arrangements in response to elevated office vacancy rates. Furthermore, this pattern is a component of the global movement towards more adaptable work arrangements.
According to a poll conducted by IWG in the US, over 80% of CFOs stated they think hybrid work arrangements are helping their companies save money. CFOs in Hong Kong are likewise following this pattern, as they search for methods to reduce expenses ahead of any prospective economic slump.
According to JLL’s most recent statistics, the figure that was recorded in August 2023 is at 12.8% which is slightly higher compared to the office vacancy rates in Hong Kong were still high at 12.7%. Despite the fact that the IWG CFO and Hybrid Work Survey was carried out in the US, IWG also observed that “Organisations in Hong Kong are [also] adopting hybrid working models, as they are among the most effective ways to reduce costs,” indicating that the economic instability in Hong Kong is consistent with the feeling throughout the world.
CFOs have been putting different cost-cutting measures into place in reaction to the current unpredictability. These include hiring fewer people, laying off employees, not filling open positions, and switching to short-term office space leasing arrangements. Furthermore, according to a Colliers survey, 21% of Hong Kong office renters want to downsize their footprint in terms of office space over the next two years, as reported by SCMP.
“Hybrid working helps organisations stay competitive and resilient, especially in times of economic uncertainty,” stated Mark Dixon, the founder and CEO of IWG. According to the report, corporate executives and CFOs are embracing hybrid working for a variety of reasons. Lastly, it not only promotes the welfare and work-life balance of employees, but it also significantly increases an organization’s bottom line.
