82 per cent of businesses have changed their office space needs to accommodate a flexible working approach which includes more than half of businesses opening offices or working spaces outside of city centres, according to a new survey from IWG.
The survey of 500 businesses found that 54 per cent of organisations now have offices or co-working spaces outside of main city centres while 38 per cent have second locations in commuter towns as businesses attempt to accommodate staff who desire more flexible working.
Employers are said to face challenges regarding the new flexible approach and the statistics support this claim as businesses attempt to accommodate the needs of staff, while organisations such as HSBC have said they would move their global headquarters away from Canary Wharf to smaller office after more than two decades.
No clear sign of change in productivity!
Assessments on current productivity when compared to pre-pandemic levels show no clear sign of change and the research found that 73 per cent of businesses have been able to cut their office space costs as a result of reduced central city office space needs while 36 per cent say they are paying less in expenses for staff travel.
Sridhar Iyengar, Managing Director for Zoho Europe, commented: “Working models have changed in recent years due to the pandemic. Businesses should focus on adapting to new working models to accommodate the needs and wants of their workers and improve employee experience, in order to stay competitive.
The emergence of hybrid working as a long-term working model has begun to reduced reliance on city centres. It’s good to see some businesses now relocating outside of city centres, which saves money and brings further benefits to employees and communities in addition.
Joanna Kori, Head of People at Encompass Corporation, commented: “Today, flexibility is a key differentiator, with an increasing number of people favouring a hybrid model of working, so it is no surprise that organisations are making changes to accommodate the evolving needs of the workforce.
“While a return to the office, as we have witnessed across many sectors, can bring significant benefits, including in areas such as productivity, team collaboration and engagement, many employees still value all that comes with being able to have some level of choice in where they work.
Mark Dixon, chief executive of IWG, commented: “It’s clear that the old ways of working, with a daily unproductive and expensive commute, are long gone. Businesses are realising that not only does hybrid working make sense for their bottom lines, it also benefits their workforces.”
“It’s encouraging to see that businesses are translating their hybrid working savings into real benefits for employees. Not only does this help in the immediate term, with improved productivity and wellbeing, but it will also help them retain and recruit the best talent.”