2026 will see businesses doubling down their focus on their people. As not only their biggest asset, but also one of their greatest investments – companies are ensuring that their teams are being offered the wellbeing, training, development and new technology-driven learning opportunities that they need to thrive.
With companies increasingly prioritising their employees, they are also recognising that productivity and engagement are driven by how, when, and with whom they collaborate rather than solely where they work.
Organisations of all sizes are embracing flexible and hybrid working models to attract and retain the best talent. Recent technological advancements will further accelerate this shift, enabling smarter collaboration and more dynamic ways of working as businesses invest in data-driven workplace design and AI-powered personalised experiences. Increasingly, career pathways will be defined by skills rather than traditional degrees, and personalised human-AI collaboration will become an increasingly valuable skill for business success.
In 2026, the attention will now turn from where work happens to focus on a company’s profitability, productivity and the wellbeing of their teams. Businesses will invest in flexible workspace memberships, allowing employees to work closer to home where they will be most productive, avoiding costly, unnecessary commutes. For most, this will mean working from suburban commuter hubs, small towns or emerging 15-minute cities, with work becoming more local, more personal and more intelligent than ever before.
Below, International Workplace Group, the world’s largest platform for work with brands including Spaces and Regus,rev
In 2026, hybrid teams will more regularly integrate AI copilots into their daily operations. These systems will significantly reduce the need for simple tasks such as admin, knowledge retrieval, and scheduling. Employees will find themselves with more time for creative work, able to tackle complex problem-solving tasks, and develop meaningful relationships. Moreover, this transformation will enable individuals to better manage their work-life balance, ultimately leading to increased productivity and job satisfaction.
This shift is being accelerated by a new wave of intergenerational collaboration. Research from IWG reveals that 62% of Gen Z employees are already coaching older colleagues on how to use AI to boost productivity and efficiency. In turn, 77% of Directors and Senior Directors have said this has boosted productivity levels, while 80% said it unlocked new business opportunities (1). Capitalising on this trend, employers will increasingly use AI and workplace analytics to create “personalised hybrid plans” for each employee, including optimised schedules, ideal collaboration days, and preferred office or coworking locations.
Companies of all sizes are moving away from loosely defined hybrid policies, to more structured, multi-location models with teams increasingly empowered to work from more convenient places closer to home. Rather than insisting on a “Return to the Office, it’s a case of a “Return to Several Offices”.
Microsoft recently announced that by 2026 many of its U.S. employees will need to be in their closest Microsoft office at least three days per week while many corporates are empowering their teams to work from a network of coworking or flexible workspace locations.
Hybrid workers will stack “micro-certifications” (bite-sized, skill-focused credentials) instead of relying on traditional degrees or annual performance reviews. Employers will support this by funding on-demand learning platforms, creating more agile talent pools. This trend will change internal mobility, with skills becoming more portable and accessible.
Unlike “quiet quitting”, where employees deliberately do the bare minimum, “quiet cracking” describes something subtler: employees who are still performing, but feel mentally and emotionally checked out resulting in burnout, stalled progression, and a lack of purpose.
With 57% of workers saying they’re more likely to disengage when they feel undervalued or micromanaged, companies will put more emphasis on employee wellbeing and flexible work options, to remain competitive and keep people engaged (2). As wellbeing becomes a bigger focus, companies are also expected to move past traditional perks and start using new “well-tech” tools – like stress-tracking wearables, AI mental health reminders, and wellness challenges that gamify healthy habits and make them more engaging.
As they navigate economic uncertainty, more companies are turning to fractional executives, opting for part-time or contract-based C-suite talent who bring in laser-focused expertise without the cost of full-time appointments.
With nine in 10 (87%) CEOs and CFOs concerned about the impact of ongoing macroeconomic instability and two thirds (67%) already reducing operating costs, businesses are looking for smarter leadership models (3). This flexibility allows companies to secure world-class strategic insight when needed, while enabling experienced professionals to work across multiple organisations.
The 15-minute city concept, where everything from work to leisure is accessible within a short walk or cycle is entering a new phase in 2026. Until recently, this has mainly been a story of adaptation: retrofitting existing neighbourhoods to bring work, living, and recreation closer together. In the year ahead, 15-minute cities will be taking an entirely new form, they will be built from the ground up, designed to encourage connectivity, sustainability and community.
One standout example is The Ellinikon in Athens, one of Europe’s largest urban regeneration projects, built on the site of the former airport with over $8 billion in funding. Similarly, in the US, The Point in Utah is transforming the site of the former state prison into a model community designed around 15-minute city principles.
Hybrid work is making these urban ecosystems viable, as professionals choose to live and work locally while businesses decentralise their footprints to be closer to where people actually are – saving up to $30,332 a year thanks to the reduced need for lengthy commutes (4).
Hybrid work will foster a renewed connection to local communities. Companies may encourage employees to integrate volunteerism, local partnerships, or skill-sharing into their workweek, strengthening employer brands while supporting civic engagement, in the communities where employees live and work.
The workplace will increasingly look and feel like boutique hotels. In 2026, expect concierge-style services, curated food and beverage options, and sensory design that mirrors boutique hotels. Take IWG’s latest partnership with YOO – blending design-led hospitality expertise with IWG’s flexible workspace network, these spaces will fuse work, socialising, and wellbeing together, transforming the office into a lifestyle experience.
Day offices are set to become a key part of the landscape, providing a professional and productive office space whenever and wherever it is needed. Whether employees are seeking quiet, focus rooms or collaboration spaces for ad-hoc team days, these “on-demand” options eliminate the need for long-term commitments while offering all the amenities of a traditional office.
With wellbeing firmly on the agenda, features such as natural light and on-site wellness amenities will differentiate day offices, helping employees work efficiently, flexibly, and with purpose.
Gen Z is entering the workforce with clear expectations that go beyond pay: they prioritise wellness, mental health, flexible hours and meaningful work that aligns with their core values.
With an aging global population, rising retirements and widening talent gaps, it is critical that business leaders understand and react to these changing priorities in order to stay competitive.
Companies that embrace flexibility, autonomy, and meaningful work will attract and retain the next generation of leaders – those that don’t, risk falling behind.
Mark Dixon, Founder and CEO of IWG, comments:
“Continuous improvements in technology including AI and new approaches to training and development will be significant drivers of productivity, engagement, and loyalty, enabling companies to create a future-ready workforce and working environment that propels business growth.
We will continue to see a fundamental shift in the geography of work with the centre of gravity moving towards local communities. The remarkable advances in cloud technology and video conferencing software – both vital to enabling effective hybrid working – mean workers no longer need to travel long distances on a daily basis. Innovations in technology will continue to advance in years to come and will radically underline and fuel the flexibility of location.
The rising demand for more localised working has led to the majority of our new IWG centres opening in the heart of local communities, suburbs and rural areas, enabling many people around the world to say farewell to long daily commutes.”
(1) Research by IWG in collaboration with Mortar, sampling 1007 UK office workers in June 2025.
(2) Research by IWG in collaboration with Censuswide, sampling 1,005 Office full time/hybrid workers in June 2024
(3) Research by IWG in collaboration with Censuswide, sampling CEOs and CFOs (50/50 split) working at companies that operate a flexible working model in the USA and UK in May 2025.
(4) IWG Hybrid Working Report in collaboration with Arup, June 2025
