Are Hybrid Work Models More Attractive Than High Salaries?

Hybrid or flexible work models are now considered more appealing than high salary offers, driven by increasing demand for human resources in artificial intelligence (AI), data analysis, and programming. According to a recent International Workplace Group (IWG) study, 37% of companies prioritise hybrid work systems as a key strategy for recruiting top tech talent, surpassing competitive salary offers at 35%. IWG founder and CEO Mark Dixon stated that companies not adopting flexible work practices risk falling behind in the competition for digital talent. ‘Companies that fail to integrate hybrid work into their culture risk falling behind in recruiting tech talent and accessing the skills needed to remain competitive,’ Dixon said in a written statement received in Jakarta on Tuesday, 26 May 2026. He added that the research also shows 78% of business leaders believe companies offering hybrid work have a greater recruitment advantage over those still enforcing full office-based conventional work. Moreover, 72% of business leaders cite work flexibility as a crucial factor in attracting tech talent, particularly among younger generations. On the other hand, over two-thirds, or 68%, of respondents stated that high salaries alone are no longer sufficient to retain top digital talent. The research also found that tech professionals under 30 prioritise work-life balance and flexible work as ideal company culture, at 42%, compared to financial compensation at 30%. IWG noted intensified competition for tech talent as companies increasingly require AI and digital skills. 83% of business leaders say advanced technical skills such as AI, data analysis, and programming are vital for promotion to leadership roles. In fact, one in five business leaders view technical skills as more important than conventional degrees in determining candidate quality. Additionally, nearly a quarter of companies are placing tech professionals under 30 into leadership positions earlier than traditional career cycles. ‘This trend reflects a global shift in work patterns, increasingly placing flexibility and technical skills as key factors in building future company competitiveness,’ he said.