Working closer to home set to define the coming year
Working closer to home will be a major trend in 2026, according to a new report, as C-suite leaders recognise the value of flexible working arrangements even while introducing stricter office-return policies.
Findings from the International Workplace Group (IWG) revealed that 83% of chief executive officers in the United States are already allowing their teams to work from multiple locations, including local workspaces that are closer to where they live.
"2026 is the year of 'Work from an Office,' not 'the Office," the IWG said in a media release.
Mark Dixon, CEO of IWG, said allowing employees to work in offices that are closer to their homes will generate better outcomes for both employees and organisations.
"There is no longer a binary choice between work from home and work from the office," Dixon said in a statement.
"By reducing daily, costly commutes to faraway offices and empowering people to spend more time working closer to where they live and want to be, leaders can cut costs, maximise productivity, increase employee satisfaction and retention, and drive better ROI."
Recognising flexibility
Permitting employees to work in local workspaces, rather than a single faraway office, may be the solution employers need to bridge the gap between flexibility and office-return policies.
Leaders in the IWG report acknowledged that hybrid or flexible working arrangements delivered the following gains:
- Increased productivity (49%)
- Increased candidate pool (47%)
- Cost savings (45%)
C-suite leaders have also reported increased revenue (45%) and reduced carbon footprint (38%) as a result of adopting hybrid and flexible work arrangements, according to the report.
For HR leaders, productivity is the top area (43%) where increasing flexibility would have a positive impact. Other aspects of work that would benefit include:
- Profitability (43%)
- Employee wellbeing (40%)
- Talent attraction (37%)
- Talent retention (35%)
HR leaders, including chief people officers, chief human resources officers, and chief talent officers, also believe increased flexibility would have a positive impact on culture (35%) and retaining working mothers or caregivers (33%).
Growing office-return policies
Despite recognising that flexibility works, organisations are still pressing ahead with their on-site return plans for 2026, according to a separate report.
Findings from Resume Builder revealed that 30% of employees will be under five-day on-site mandates in 2026.
Stacie Haller, chief career adviser at ResumeBuilder.com, pinned this on "underlying pressures and old habits."
"They equate visibility with productivity and fear losing culture and collaboration," Haller said in a statement.
"Executives still say 'hybrid,' but often mean structured office days rather than true flexibility. The result is a widening gap between leadership intent and employee expectations that's reshaping workplace trust."
But Haller stressed that increasing office attendance may not always improve productivity in the workplace.
"Culture thrives not from proximity but from intentional communication, inclusion, and trust. Forcing more office days can erode engagement and morale, especially if employees see no clear benefit," she said.
"The most successful hybrid models focus on purposeful presence, bringing people together for collaboration, creativity, and connection. In today's workforce, autonomy and meaningful interaction drive culture more than physical attendance."