Working from home has quickly become the new normal.

When the lockdown was introduced, we suddenly had to acclimatise to conducting our working day from home. Although it was forced upon us, working from home has proved to be a sustainable option with benefits for both employer and employee alike.

As a result, it has meant that the importance of offices and workspaces going forward must be questioned. With the help of Zoom, Microsoft Teams among other platforms, meetings and collaborative work have been able to continue, reducing the need for office space. This provides companies with the opportunity to introduce cost-saving measures, but there are certain drawbacks that will require due consideration before any final decision is made.

Stay at home

In March 2020, online video platforms helped to ease the transition into remote working and collaboration. A report from Zoom found positive responses to using flexible technology to facilitate working from home. Having quizzed 5,820 business leaders across the world, 46% expect one-third of their employees to work remotely in the post-pandemic world. Further to this, 70% of managers are now more receptive to the idea of flexible remote working models. This all points to the likelihood of working from home and flexible work models becoming increasingly popular. Employers have discovered that working from home is not something to shy away from. Although it was a change precipitated by the pandemic, it has nevertheless accelerated a process that was ‘inevitable’ according to Ewan Jones.

Armed with the evidence working from home is a viable long-term option, companies have the opportunity to introduce cost-saving measures. The pandemic created financial instability for smaller companies and so the chance to save money would likely prove welcome. Even as the lockdown measures are eased and people are starting to return to work, the damage already inflicted cannot be undone. Indeed, a study conducted by The London School of Economics (LSE) highlighted the continued risk faced by smaller businesses and their employees. To that end, reducing costs has the potential to relieve some of the pressure these businesses are currently under. On this, Global Workplace Analytics found that 60% of employers view cost savings as a benefit of telecommuting. With employees increasingly working from home, there is no longer the need for companies to spend potentially exorbitant sums on offices and the utility bills that accompany them.

There is the added consideration of the benefits to the environment offered by working from home. The same report from Global Workplace Analytics revealed that the office equipment energy consumption rate is twice that of home office equipment energy consumption. Making companies more environmentally friendly is also popular with employees, as 70% would see their companies in a more favourable light if they helped them reduce their carbon emissions. It would appear then that there are clear benefits to making a transition to a flexible work model. However, it should not be assumed that the workplace is now defunct, as the communal environment of an office provides benefits that working from home simply cannot replicate.

Go to work

The move to remote working was born out of necessity rather than choice. Whilst some have been pleasantly surprised by the reality of working from home, others remain disillusioned and prefer the more engaging and lively atmosphere of the office. This particularly true of more junior employees. Unable to go to the office, the informal interaction and social structure created by a communal office space are eroded. Being able to go into the office and interact builds social bonds which Zoom meetings simply cannot replicate. This informal interaction may evidence itself in the form of ‘water-cooler chat’ or going for drinks after work, but the key takeaway is the importance of informal social activity at work.

One of the key benefits of in-person interactions was emphasised by Andy Haldane of the Bank of England in a speech at the ‘Engaging Business’ Summit. Haldane stressed that creativity is sparked by in-person interactions in an office space. Zoom is best suited for conducting efficient business meetings but it does not offer the same opportunity to explore uncharted territory in the time between meetings. This could be seen as a tangential factor given that it is intangible. However, to do view it thusly would be to ignore the potential for social capital to grow through these interactions. By removing the workplace entirely, companies risk jeopardising the creative spark that helps companies grow.

This presents a challenge for employers who must now seek to strike a balance between maintaining employee wellbeing and creating a safe work environment during a pandemic. The Covid-19 vaccines have given some hope that the workplace could soon return, but it will not be in the same form as before. It is expected that this will take the form of employees being required to spend a certain number of days a week in the office. PriceWaterhouseCoopers (PWC) have already announced their plan for employees to spend an average of two to three days a week in the office after the pandemic ends.

Keeping office space is not just a question of want, but also need. Part of a company’s responsibility is to ensure the wellbeing and happiness of their workers as this plays into their overall productivity. Although working at home generally increased productivity in the pre-pandemic world, the same cannot be said for working at home during the pandemic. In a survey by the Office of National Statistics (ONS), a quarter of respondents said that their productivity had been negatively affected by working from home. Unquestionably, it is in the best interest of companies to maximise the productivity of their employees, meaning that finding the right balance is critical.

Feasible solutions?

The roadmap out of lockdown provides businesses with a blueprint with which they can begin to plan their future. An integral part of this will be deciding how much importance they place on the office. For larger businesses, they have established office spaces which they will retain regardless of the pandemic. It is smaller businesses that must determine whether they forfeit their offices to save money or hold onto them.

There is a potential compromise for these businesses in the form of flexible shared office spaces, such as WeWork. The post-pandemic world will be centred around flexibility and shared office spaces stand to benefit from this change. Axios reported that WeWork is leaning heavily into its short-term, flexible office space offering. Although WeWork has faced financial difficulties in recent years, it is under new leadership and is planning to go public with a $9 billion valuation, which provides some welcome surety for companies looking to rent WeWork offices.

In general, companies are looking to be flexible but without losing the benefit of seeing people. There are advantages to both and companies face the challenge of keeping the benefits of each all whilst ensuring wellbeing and productivity. Accordingly, the role of office space is poised to be redefined in a move that will affect the workforce for years to come.

About the Author: James Hingley

James Hingley is a contributing Features Writer with extensive expertise in International Relations, Politics and Culture