Businesses are increasingly converting to hybrid work models to provide their teams with flexible work options and a better work experience. The benefits of going hybrid are numerous, but before switching to a new model, weigh your options and consider the opportunities, risks, and of course, costs associated with each one.
If the perceived cost of switching to a hybrid work model has you questioning whether it’s the right choice, you may want to take a closer look. Business leaders may need to know how quickly the costs of operating from a physical workplace can add up. Consider these four ways your workplace adds to your bottom line and how you may reduce these costs by going hybrid.
Real estate is one of the most significant expenses related to a physical workspace. People need a place to work, and it has always been up to the employer to provide a space. In expensive cities, renting office space is a significant expense; until now, there hasn’t been any way to get around it.
As companies switch to hybrid, they can often downsize their physical office space, sometimes up to half or more. This is because every employee no longer needs a dedicated workspace, as they can share time between working remotely and in the office. To help streamline this process, businesses can user intuitive software such as inspace to manage bookings and gain insights through advanced reporting and analytics.
Aside from rent, there are other expenses you will save on as office size decreases. You’ll pay less for utilities and parking with fewer employees in the office. Even savings on company-provided perks like snacks and drinks in the break room will add up over time.
You may wonder, how can your labor cost decrease by converting to a hybrid? Whether your model is in-office, remote, or hybrid, labor is (of course) a necessary expense. Even if your workforce is the same size, you may find that is precisely the case for a few different reasons.
First, finding and hiring employees remotely can be less expensive. When employees are not required to commute daily, they save on transportation, food, and clothing expenses, not to mention significant time savings. You also may be able to hire from a wider pool of candidates from outside typical commuting distance who are willing to work for less to enjoy remote work benefits.
Workplaces that do not adapt to their workers' changing needs may experience higher turnover rates. This can increase expenses for interviewing, hiring, and training new employees.
Meanwhile, companies adopting and using a hybrid work model often enjoy higher employee retention rates. When employees know they are valued and their employer puts their well-being first, they often feel more appreciated and loyal to their teams. Simply put, people appreciate having the option to work from home part of the time, and introducing flexibility and letting people choose how and when they work best creates happier, more satisfied employees.
Many assume that employees are more productive when working in-office than remotely. It is more complicated. In-office tends to be more effective for projects requiring team input and coordination. Simple check-ins or questions can take significantly longer to work out remotely versus connecting in person. While focused or sole work is typically more productive in a remote setting where the employee can set up a space that works best for them. As a bonus, there is no commute time when working from home, so some employees work longer hours and get more done in that time.
The bottom line is that when employees are happier, they are more productive, and the business is more profitable. In addition to improved productivity, employees who are happier and more satisfied with their jobs often make fewer mistakes and improve customer satisfaction. The challenge is supporting in-office and remote work in a way that benefits everyone. That is where technology, like inspace’s hybrid workplace platform, can help create a seamless connection.
When reviewing your options for an updated work model for the future, don’t forget to consider all the costs of doing business related to your workplace. You may find that converting to hybrid improves your bottom line by saving on these workplace expenses.