CEOs prioritise tech investments to boost hybrid working

New research highlights the significant technology investments CEOs are making to enhance hybrid working experiences within their companies.

An International Workplace Group study surveying more than 500 CEOs reveals that 95% have invested in new technology over the past year as part of efforts to improve hybrid working. For 43% of those CEOs, technology has been their largest investment in that period, signifying a strong commitment to utilising resources for the advantages presented by hybrid working.

Ongoing plans reflect this commitment, with 87% of CEOs intending to continue investing in technologies such as Cloud, AI and security, aiming to enhance employees' hybrid work experiences further. The motivation behind these investments includes mitigating lengthy commutes, improving work-life balance, and achieving associated health benefits and cost savings.

Supporting a shift towards hybrid working, research indicates that a significant demand exists for working closer to home. Only 21% of individuals are willing to accept a job requiring a commute exceeding 30 minutes, while 60% prefer to be within 15 minutes of their residence.

Consequently, businesses are making adjustments away from traditional downtown office spaces in favour of smaller, regional offices and co-working sites, effectively lowering overhead costs. Previous research notes that 44% of CEOs have reduced traditional office space by a quarter, lowering energy and operational costs.

Reinvestment of these savings into technology aims to capture productivity benefits. Investment priorities include cloud technology at 62%, AI and automation at 52%, security at 52%, and generative AI at 41%. Nearly 46% of CEOs plan significant software investments in the coming years.

A large majority, 77%, of CEOs regard hybrid working as the future, with an equal percentage affirming that technological advancements are essential to its expanded adoption.

In Asia Pacific, organisations are already benefiting from technology investments. A Zoom survey reports that businesses frequently leverage AI tools like meeting transcripts and summarisation (53%), and chatbots to streamline processes (59%). Additionally, 85% of regional leaders credit generative AI with enhancing workforce productivity and efficiency.

The correlation between tech investments and improved productivity is further supported by additional insights. A study from International Workplace Group shows that 74% of employees reported increased productivity in a hybrid model and 76% experienced higher motivation. Furthermore, 85% acknowledged better job satisfaction due to hybrid work.

These perspectives are echoed by HR leaders, 86% of whom describe hybrid work as an in-demand employee wellness benefit, enhancing productivity for 85% of them.

This aligns with findings from a broader study involving The Bank of England and multiple universities, led by economist Nick Bloom, which quantified a productivity increase of approximately USD $19,000 per hybrid workday for firms.

Mark Dixon, Chief Executive Officer at International Workplace Group, remarked, "The investment that CEOs of businesses of all sizes are making in technology demonstrates the long-term commitment that companies are making to hybrid working.

"Advancements in the likes of generative AI, video calls and cloud computing mean it has never been easier for workforces to collaborate wherever they are and we will continue to see a permanent shift towards more localised working."