New research from International Workplace Group (IWG) shows an executive landscape defined by both confidence and caution.

An overwhelming majority (95%) of CEOs are optimistic about 2026 and a further 84% expect economic conditions to improve, yet every single one also says cost control is essential, with CFOs reducing budgets by around a tenth on average.

For HR, that combination means the people agenda has to deliver efficiency and advantage at the same time.

Mark Dixon, founder and CEO of IWG, is clear that senior leaders are not simply in a cost‑cutting mindset. Instead, they are being more selective about where money goes.

Rather than tying themselves to long, inflexible and expensive leases, organisations are turning to hybrid and platform‑based working models in which employees use a network of flexible workspaces, alongside home and traditional offices.

Dixon argues that flexible work is now a financial as well as cultural lever, allowing companies to relieve pressure on property costs while preserving, and often enhancing, productivity and engagement.

For HR leaders, this unlocks an important opportunity. Savings from real estate and operational efficiencies can be redirected toward talent, development, wellbeing and culture – but only if HR is actively shaping how these new models are designed and implemented, rather than reacting to them after the fact.

From “the office” to “an office”: rebalancing where work happens

The way work is anchored in place is also undergoing a fundamental rethink. Dixon described 2026 as the year of “work from an office, not the office.” A large majority of CEOs already enable teams to work across multiple locations, whether that means a local workspace close to home, a central city office or a home office.

Looking ahead, many plan to rely more on shorter‑term leases and co‑working memberships instead of traditional long‑term headquarters.

What drives this shift goes beyond property strategy. Leaders are looking to shorten commutes, tap into wider talent pools beyond major cities, align work patterns with employee preferences, improve productivity and place teams in areas where the cost base is lower.

As Dixon put it, this is not just a change in how people work, but a rebalancing of where economic value is created. Advances in technology have removed the need for daily long and expensive commutes, breaking the old assumption that being near a central HQ is the hallmark of commitment or performance.

For HR, this has massive implications. Talent strategies can become genuinely location‑agnostic. Recruitment can reach into regional and suburban markets. Policies on commuting, allowances and relocation can be redesigned for a world where proximity to a single office matters less.

There is also a clear employee value proposition angle. IWG’s research suggests that workers can save a substantial amount each year by working closer to home in high‑quality local workspaces, which strengthens perceived reward without increasing fixed salary costs.

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