Hybrid Working Emerges As Key Talent Advantage For HR Leaders: Study
New Delhi, October 28, 2026: Flexible working arrangements could generate substantial productivity gains by aiding companies in talent acquisition, retention, and knowledge preservation, according to new economic modelling released by Arup and International Workplace Group (IWG) and detailed in an IWG press release.
The analysis indicates that improved employee retention serves as the largest single contributor to potential economic value, accounting for approximately $204.7bn in the US and £10.8bn in the UK over a five-year period. According to IWG research, 81 percent of chief human resources officers identify hybrid working as critical to retaining key employees, with 86 percent recognizing flexible work arrangements as the most requested benefit among job applicants.
In terms of recruitment, 72 percent of business leaders report that flexible schedules assist in attracting younger executives. Hybrid working has also become the primary strategy for recruiting technology professionals (37 percent), surpassing competitive salary offers (35 percent).
The report notes that reducing turnover mitigates productivity losses from diminished institutional knowledge, contributing to estimated productivity gains of $65.5bn in the US and £5.7bn in the UK over five years. Enhanced talent attraction accounts for an additional $98.3bn in the US and £6.5bn in the UK over the same period. Furthermore, 80 percent of chief executive officers surveyed stated that combining artificial intelligence tools with hybrid models increases overall employee output.
Commenting on the findings, Christian Schmitz, Chief Executive Officer of International Workplace Group, said, “For every business, having the right people is fundamental to performance. This research quantifies something many leaders already understand: retaining experienced people, attracting talent from a wider pool and giving them the flexibility to do their best work can have a significant impact on productivity.” He added, “Technology is making that opportunity even greater. AI is changing how and where work gets done, while more flexible ways of working give businesses access to people wherever they are. Together, they can help companies build more agile, productive organisations.”
Highlighting the domestic landscape, Harsh Lambah, Country Head India of International Workplace Group, said, “India’s hyper-competitive talent market is making business leaders think differently about workplace flexibility. While all companies compete for specialised talent, the ability to offer greater choice in where and how people work can become an important advantage in attracting and retaining the right skills. For employers, flexibility is increasingly becoming a strategic consideration in how they build productive, resilient and talent-rich organisations.”
