New economic modelling by workspace provider International Workplace Group (IWG) and engineering consultancy Arup estimates that hybrid working could deliver large productivity gains over five years, with keeping employees accounting for the biggest share.

IWG, the parent of the Regus and Spaces brands, says better employee retention could be worth about $204.7 billion in the United States and £10.8 billion in the United Kingdom five years. It describes retention as the largest single driver of gains in both countries.

The other estimated gains, over the same five years:

• Knowledge continuity: $65.5 billion in the US and £5.7 billion in the UK, from less disruption when experienced staff leave.
• Talent attraction: $98.3 billion in the US and £6.5 billion in the UK.
• Recruitment and onboarding efficiency: about $9.4 billion in the US and £0.6 billion in the UK.

Separately, IWG says lower turnover could help companies avoid up to $40.9 billion a year in lost gross value added in the US and £2.2 billion in the UK. The release does not give a combined total for the gains.

Survey findings

IWG cites its own research of business leaders. It says 81% of chief human resources officers consider hybrid working critical to retaining top talent, and 86% name flexible working as the most in-demand benefit among prospective employees. Nearly three quarters (72%) of business leaders say hybrid or flexible work is key to attracting younger leaders, and 78% believe organisations offering it have a clear advantage.

On competing for tech talent, 37% say hybrid working is the most common strategy, just ahead of competitive pay at 35%. The release does not say how many people were surveyed or when, so it is unclear whether a two-point gap is meaningful.

It also says more than a third of US workers cite remote work as the leading factor when choosing a new job, ahead of salary. On AI, 80% of CEOs say it boosts productivity when combined with hybrid working, and around 60% of US workers and 68% of UK workers say it is already improving their experience of hybrid work.

India

For India, the release leans on outside data. It cites the Cisco Global Hybrid Work study 2025, in which 88% of Indian employers say the ability to work remotely is important for retention, and the Deloitte India Talent Outlook 2026, which put attrition at 17.6% in 2025. The Arup-IWG modelling covers the US and UK only, not India.

“This research quantifies something many leaders already understand,” said Christian Schmitz, CEO of International Workplace Group.

Harsh Lambah, Country Head India at IWG, said: “India’s hyper-competitive talent market is making business leaders think differently about workplace flexibility.”

IWG sells flexible workspace, so it has a commercial interest in the finding. The release does not describe the modelling method, its assumptions or who paid for it, and the survey and third-party figures were not independently checked. The savings are modelled estimates, not measured outcomes.