Home Business Insights & Advice Empty offices cost 88% of London businesses £190,000 a year due to hybrid working

Empty offices cost 88% of London businesses £190,000 a year due to hybrid working

by John Saunders
15th Sep 22 12:44 pm

It’s important not to understate the value that hybrid working has brought to businesses. However, many London companies have failed to fully tap into the financial potential of implementing hybrid working policies.

With more workers having shifted to working from home, physical office space has been left emptier than it once was. This inefficient use of office space has resulted in 88% of London businesses losing an average of about £190,000 a year, as City A.M. reports.

How has hybrid working freed up more space in offices? 

The term ‘hybrid working’ refers to a system where an employee spends part of their working week in the traditional office and the rest working from home. It has therefore become customary for many London firms to let employees spend two or three days a week working from home.

The situation has seen millions of London office spaces left empty on a weekly basis. However, it is financially wasteful for companies in the UK capital to continue spending on office space even when workers are not actually using it.

Why is hybrid working appealing to employers and employees alike?

In recent research among 2,000 office workers, 88% cited hybrid working as a crucial factor when seeking a new job, HR News reports. To these employees, hybrid working was even more attractive than unlimited holiday entitlement and extended parental leave.

It’s consequently clear that businesses have a strong incentive to offer hybrid working, as doing so could help to attract the best candidates to job vacancies advertised by the company.

In the above-mentioned research, 31% of the participating employees also claimed that hybrid working enhanced productivity. Naturally, the more productive your workers are, the more money they can help your business to earn.

How else can your business benefit financially from hybrid working?

Once you have established how many workers tend to be in your company’s office at any given time, you could identify potential for transitioning your business to a smaller office setting and shedding corporate outgoings in the process.

You could ask an office broker to assist you in finding an office space that is just large enough for your practical needs. However, this could also be a great opportunity for your business to move into an office that is in a more convenient location for you, your staffers and your customers.

Hearteningly, an office broker could peruse — for example — a wide range of serviced offices in Soho, a London area well-served with public transport connections due to its broad cultural offering, including a wealth of theatres.

In essence, then, an office relocation could help your business to amass a larger financial haul — such as by making it easier for customers to reach your workplace — as well as lower the amount of money that your company needs to spend in the first place.

A smaller office can, after all, be a cheaper office, too — and your employees could appreciate the ease with which they can save on commuting costs by simply taking a bus or the Tube.

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