• 76% have saved money as a result of adopting hybrid working practices as they choose to work closer to home
• US workers can save up to $30,332 if they switch from a daily commute to a city centre to working locally four days a week, while in the UK savings reach up to £13,188 a year
• Savings could be transformative for consumers navigating their financial lives, especially younger workers looking to pay down debt or create savings
• 84% say working locally has put them in a better position to meet their financial goals
• International Workplace Group has developed an online calculator to help workers find out how much they could save by working locally

New research into the commuting and spending habits of office workers has revealed the significant savings employees can make by working in the hybrid model. The International Workplace Group study has shown employees can save up to $30,332 per year in the US, and £13,188 in the UK, by working closer to home in the heart of their local communities.

The research found that an employee’s daily average expenditure when working from their head office totalled $48.40 (totalling $10,067 a year for workers spending four days a week at their HQ). The items most commonly purchased include lunch (74%), snacks (60%) and coffee (50%).

Working locally can significantly reduce daily commute-related spend, empowering workers to save for other financial priorities. More than three-quarters (76%) said hybrid working had reduced their monthly costs, which considered factors including the cost of public transportation fares, fuel, parking, and daily incidental costs such as morning coffee and meals.

Conducted by International Workplace Group, the world’s leading supplier of hybrid working solutions with brands including Regus and Spaces, and consultancy Development Economics, the study combined research of more than 2,000 office workers with publicly available transport data, analysing multiple hybrid scenarios, with a focus applied on the popular hybrid setup of working locally four days per week.

The study revealed that employees who commute long distances daily are incurring significantly higher costs, while also missing out on the numerous work-life balance benefits of working locally. Workers are now able to better understand the savings they could make by moving to more local working, by using this new International Workplace Group online calculator.

These significant savings could be particularly transformative for younger workers looking to pay down debt or save for financial goals, such as a downpayment on a home. A 24-year-old Gen Z worker living in a popular commuter town in Red Bank, New Jersey, for example, could expect to save up to $388,320 throughout their working life on their commute alone, by working locally four days per week.

Workers across the board are seeing significant cost savings with working locally. Four in five (84%) say reduced commuting has put them in a better position to meet their financial goals. Two in five (38%) report they are adding their savings to a rainy-day fund, while nearly the same are using savings for vacations (37%), and more than one in three (35%) are putting their savings toward paying off credit card debts in full.

Cutting down on daily long commutes is proving to have numerous benefits beyond just cost savings. 84% say spending less time commuting has positively impacted their work-life balance with 40% using the extra time to relax or take part in hobbies, and a significant proportion spending their previous commute time on activities that support their physical (38%) or mental health (34%).

Academics such as Professor Nicholas Bloom of Stanford University anticipate that up to 30-40% of workers will work in the hybrid model long-term.** As businesses permanently shift to hybrid working, additional research from International Workplace Group and Arup has found that the number of office workers in commuter towns could increase by up to 60%.* As more workers embrace this trend, it’s no surprise that two-thirds (60%) express a desire to work within 15-minutes of where they live.

Mark Dixon, Founder and CEO of International Workplace Group, said: “Before long, the concept of a long daily commute will be relegated to the annals of history. The idea that every morning, office workers will wake early, jump into polluting cars or overcrowded trains, and travel many miles to their place of work will, very soon, be a crazy thing people only did in the past.

“Our research with Development Economics highlights the significant savings hybrid workers can now invest in other aspects of their lives, whether that’s helping them get into the housing market or save toward other financial goals and milestones.”

ENDS

Notes to editors

*Analysis undertaken by Arup on the impact of hybrid working on US commuter towns in October 2023

**Forbes, Study shows why hybrid work will triumph over the return to office, March 2023

About International Workplace Group plc

International Workplace Group is the global leader in hybrid work solutions and workspace brands. We create personal, financial, and strategic value for businesses of every size. From some of the most exciting companies and well-known organisations on the planet, to individuals and the next generation of industry leaders. All of them harness the power of International Workplace Group’s hybrid working platform to increase their productivity, efficiency, agility, and market proximity.

International Workplace Group’s unrivalled network coverage includes approximately 4,000 locations across more than 120 countries and 83% of Fortune 500 companies are amongst our growing customer base. 

Through our brands including Regus, Spaces, HQ and Signature, we help millions of people and their businesses to work more productively. We do so by providing the world’s leading hybrid work platform with professional, inspiring and collaborative workspaces and digital services all available via the International Workplace Group’s app.

For more information visit iwgplc.com.