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, said the International Workplace Group (IWG).
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.
IWG's 2026 predictions include:
AI in the daily workflow
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.
Recognising this profound shift, Singapore is taking decisive action to secure its future as a leading AI hub and ensure its workforce is AI-ready, IWG said, pointing out that under the refreshed National AI Strategy 2.0, the government has earmarked over S$1 B for AI development and deployment over the next five years.
Speaking at Singapore FinTech Festival 2025, Singapore's Deputy PM Gan Kim Yong reinforced the importance of upskilling in AI, urging employers to treat training as a form of investment in their workforce, and for Singapore workers to proactively seek out training so that they are “able to adapt, evolve together with the evolution of jobs.”
This proliferation of AI copilots within the workplace is being accelerated by a new wave of intergenerational collaboration. Research from IWG has revealed 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.
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.
Reversing a S$73.6B productivity loss
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.
In Singapore, the related concept of “job hugging,” where employees stay in their roles despite dissatisfaction, has gained attention. Annual resignation rates hit a historic low of 1.3% in 2024, despite low employee engagement, IWG said. The country ranks second-lowest across Southeast Asia for employee engagement, with 61% of employees reporting burnout and rising stress levels. Experts estimate this disengagement is costing the nation S$73.6 B annually in productivity loss, putting Singapore’s status as a high-performance hub at risk.
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, IWG said. 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.
Fractional C-suites
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 nearly 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. This flexibility allows companies to secure world-class strategic insight when needed, while enabling experienced professionals to work across multiple organisations.
The concept is only beginning to gain traction in Asia. Organisational consulting firm Korn Ferry reported six times more requests from Singapore-based firms seeking fractional leaders in 2025 compared with last year. This trend is set to accelerate with increased support for Singapore organisations exploring solutions such as fractional work.
For example, the Association of Small and Medium Enterprises (SMEs) in Singapore is developing a fractional talent model to help SMEs engage senior professionals on a part-time or project basis – a solution which it hopes will address SME’s challenge of attracting and retaining skilled leadership.
Rising Gen Z workforce
Gen Zs account for nearly a third of the labour force and are projected to be the largest generation in the workplace by 2035. They come with clear expectations that go beyond pay, prioritising wellness, mental health, flexible hours and meaningful work that aligns with their core values, IWG said.
In Singapore, this is no different. A recent survey saw Gen Z workers ranking work-life balance (65%), high wages (62%), and flexible work arrangements (53%) as the main factors contributing to their desire to stay in a job.
As the global population ages, retirements accelerate and talent gaps widen, business leaders must understand and respond to these shifting priorities to remain competitive. Companies that embrace flexibility, autonomy, and meaningful work will attract and retain the next generation of leaders; those that fail to do so risk falling behind.
Multi-office work
Companies of all sizes are moving away from loosely-defined hybrid policies toward more structured, multi-location models, IWG forecasted. Employees are increasingly empowered to work from more convenient places closer to home. Instead of a traditional Return to the Office, the shift is now toward a Return to Several Offices.
Microsoft recently announced that by 2026, many of its US employees will need to work from their nearest Microsoft office at least three days per week – a policy expected to be implemented across its international offices, including Singapore, IWG noted. Elsewhere, companies are enabling staff to work across a network of coworking or flexible workspace locations.
Skills stacking
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.
Fifteen-minute cities
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 had been a story of adaptation: retrofitting existing neighbourhoods to bring work, living, and recreation closer together. In 2026, 15-minute cities will be taking an entirely new form, built from the ground up and designed to encourage connectivity, sustainability and community.
According to IWG, Singapore’s URA Draft Master Plan 2025 outlines a future built around self-contained neighbourhoods, with upcoming housing areas, parks, community hubs and local centres designed to support work-live-play needs within short distances. These developments reflect the broader move toward compact, connected urban districts characteristic of 15-minute cities.
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 are.
Hospitality-led environments
The workplace will increasingly look and feel like a boutique hotel, IWG believes. "In 2026, expect concierge-style services, curated food and beverage options, and sensory-led design that elevates comfort and wellbeing," the company predicted.
IWG’s March 2025 partnership with residential design brand YOO exemplifies this shift: by combining design-led hospitality expertise with IWG’s flexible workspace network, these new spaces will blend work, social connection and wellbeing, transforming the office into a lifestyle experience.
Sensory-led design prioritises wellbeing with the use of lighting, texture and similar design characteristics.
On-demand offices
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.
Local loyalty
Hybrid work will foster a renewed connection to local communities, IWG predicted. Companies may encourage employees to integrate volunteerism, local partnerships, or skill-sharing into their work week, strengthening employer brands while supporting civic engagement in the communities where employees live and work.
Mark Dixon, Founder and CEO of IWG, said: “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.”
IWG’s 23 centres in Singapore are positioned across major residential and commercial zones, supporting the city’s shift toward decentralised, close-to-home work options.
