IWG Says Hybrid Work Tops Pay in Tech Talent Race

20 May 2026 CW Team

Hybrid working has emerged as the leading strategy companies use to attract and retain technology talent, surpassing competitive pay, according to research by International Workplace Group (IWG).

The study found that 78 per cent of business leaders believe organisations offering hybrid work have a recruitment advantage, while 37 per cent identified flexible working as their primary strategy for competing for technology talent, ahead of salary at 35 per cent.

According to IWG, demand for AI, coding and data analytics skills is reshaping hiring and leadership decisions. More than 83 per cent of business leaders said advanced technology skills are crucial for leadership promotion, while 22 per cent value such skills significantly above traditional university degrees.

The research also highlighted growing competition for digital talent, with 67 per cent of leaders saying attracting and retaining skilled professionals is becoming increasingly challenging and half reporting shortages of suitably skilled candidates.

The study found that nearly 23 per cent of organisations are appointing technology professionals under 30 to leadership positions earlier than conventional career timelines, rising to 45 per cent among Gen Z-led businesses.

Mark Dixon, Founder and CEO, IWG, said organisations that fail to integrate hybrid working into their culture risk losing access to critical technology talent required for future competitiveness.

IWG said the findings reflect a broader shift towards skill-based hiring and greater workplace flexibility as businesses compete for AI and digital expertise.

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