As companies compete for tech talent, hybrid working offerings outpace pay as the top priority
More flexible ways of working have become the decisive factor for competing for leading tech talent, as businesses vying for top-tier AI and digital skills discover that salary alone is no longer enough to attract or retain the next generation of leaders.
New research from International Workplace Group (IWG), the world’s leading platform for work with brands including Regus and Spaces, also shows that more than four in five (83%) business leaders say advanced technology skills – such as AI, data analytics and coding – are now crucial for promotion into leadership roles. Notably, one in five (22%) value these skills significantly above traditional university degrees.
This growing emphasis on tech capability is accelerating competition. More than two-thirds (67%) of leaders say attracting and retaining top tech talent is more competitive than ever, while half (50%) report a shortage of candidates with the right skills.
Technology itself is also changing how careers develop. Employees with strong AI skills can automate routine work, improve decision-making and unlock new insights far more quickly than before. This echoes Moore’s Law, the principle observed by Intel co-founder Gordon Moore that computing power doubles roughly every two years. Just as that rapid acceleration transformed productivity, AI skills are now amplifying human capability, allowing people to take on higher-value work, unlock their potential and move faster through their careers.
Flexibility becomes the top requirement for tech talent
Nearly three-quarters (72%) of business leaders say offering hybrid or flexible working is important to attracting tech talent, rising to around four in five among Gen Z (80%) and millennial (79%) leaders, as younger generations recognise that work can be done just as productively – if not more – at more convenient workspaces.
As a result, hybrid working is now the most common strategy organisations are using to compete for the best tech talent (37%), ahead of competitive pay (35%). More than three-quarters of business leaders (78%) believe organisations offering hybrid working have a clear advantage over those that do not.
Crucially, flexibility is also central to retaining this emerging cohort, with more than two-thirds (68%) of business leaders recognising that competitive salaries alone are not enough to retain top tech talent. Among tech professionals under 30, work-life balance and flexibility are ranked as the most important aspects of company culture (42%), ahead of financial compensation (30%).
As the competition for AI and digital skills intensifies, the research suggests that organisations embracing hybrid working and flexible structures will be best positioned to attract and retain the talent shaping the future economy.
AI skills determine next-gen leadership and talent
When looking at identifying the best talent, business leaders are also casting their eyes to AI skills – and this shift is reshaping the structure of teams across the globe.
83% say having advanced technology expertise – such as AI, data analytics and coding – is key for evaluating which talent should be promoted into leadership positions, with over half (59%) focused on adding more tech and AI talent into their leadership teams this year.
Nearly a quarter (23%) of organisations say they are appointing tech professionals under 30 into leadership roles earlier than traditional career timelines, rising to 45% among Gen Z-led businesses.
And it’s not just leadership roles that this trend is impacting – tech proficiency is as important as formal university education when evaluating candidates for new roles (31%), with 22% thinking advanced tech skills are now valued significantly above degrees. Only 5% say formal university education remains the primary consideration.
Demand for this talent is highest among Gen Z and millennial leaders, underlining how younger generations are driving both technological adoption and new expectations around how work is organised. Previous IWG research found that more than half (62%) of Gen Z employees actively support senior colleagues in upskilling with AI. These efforts are having a tangible impact: 72% of younger workers say their coaching has improved team productivity, and 77% of directors agree that Gen Z’s AI expertise has boosted departmental performance.
Mark Dixon, IWG Founder and CEO, said: “The message from leaders – and particularly from younger generations – is clear: companies that do not embed hybrid working into their culture risk losing out in the race for tech talent and accessing the skills they need to remain competitive.”
About International Workplace Group PLC
International Workplace Group (IWG) is the world’s leading platform for work enabling companies of all sizes to work more productively and profitably. We create personal, financial, and strategic value for the most exciting companies and well-known organisations on the planet, as well as individuals and the next generation of industry leaders. All of them harness the power of IWG’s platform to increase their productivity, efficiency, agility, and market proximity.
International Workplace Group’s unrivalled network coverage includes more than 4,000 locations across 120 countries and 83% of Fortune 500 companies are amongst our growing customer base.
Our brands including Regus, Spaces, HQ and Signature serve millions of people, providing professional, inspiring and collaborative workspaces and all our digital services are available via the IWG app.
For more information
Visit www.iwgplc.com and for more information on partnering with International Workplace Group, see: https://www.iwgplc.com/develop-a-location
