Is this the End of the Office?
Just 12 months ago, work from home was viewed with scepticism by most employers. Despite pre-COVID19 studies pointing to increased productivity and other benefits, it’s taken a pandemic to get employers to try it. All over the country, office based employees have grappled with new digital systems and remote access to complete their daily tasks. While some have adapted better than others, overall the work from home solution for managing business in lockdown has proven to be a roaring success. Now figures are in, many businesses are seriously considering the permanent closure of their office spaces.
The rise of remote work and digital commerce
The ability to ditch the daily commute, work in comfortable attire and even see to some household chores while working from home has long been a siren call for many. At last, technology is up to speed with these desires and the pandemic has pushed businesses to give remote work a try.
Teething problems such as poor connections, getting to grips with video conferencing and finding a home space conducive to work have been managed and mostly eliminated. Continued technological advances such as the roll out of 5G across Australia, more robust supply chains, and the automation of some processes and functions, will further enable businesses to approach work from this new perspective.
Furthermore, the trend of changing organisational structures from rigid top-down hierarchies to flatter more fluid ones will enhance workplace productivity even more. Already, focus has had to shift from time logged to the quality of output. This more flexible approach to work and how tasks are completed has opened the door for greater understanding between employees and organisational leaders. In many cases, it’s a win/win situation – businesses enjoy increased productivity levels and lower overhead cost. Employees are able to achieve a more balanced work/life situation and feel more engaged than when commuting to a shared central office.
Working from home with a dedicated workspace provides better life balance for employees (Photo by Roberto Nickson on Unsplash)
Already big corporations like Twitter and Facebook have announced that remote work will be a permanent shift for them. But it’s not all sunshine and roses. Not everyone is prepared or able to manage work from home effectively. 70% of Australians welcome the switch to remote work conditions but that leaves a substantial 30% longing for the comradery and support of a traditional office setting.
Finding a balance for office workers
CEO’s across the nation are eager to leverage the increase to productivity and the massive reductions in costs that abandoning traditional office spaces will bring. However, to find the sweet spot for company workforces and maintain a culture that’s engaged and accountable, it could be too early to bring about the death of central office spaces.
What is far more likely to become commonplace over post-pandemic years, is the creation of hybrid work arrangements. In some sectors, work from home will become part of the ‘new normal’. Employees in Technology, Finance, Recruitment and many other knowledge-based sectors may elect to remain at home for their jobs. Other industries such as manufacturing and mining will find that only portions of their workforces will be able to make the shift. In all cases, a smaller central or even satellite shared office spaces located in suburbia could provide the solution.
Not everyone is equipped to, or wants to, work from home permanently (Photo by Standsome Worklifestyle on Unsplash)
A hybrid office allows for an equitable split between work from home and joining colleagues in a shared space. This split also supports workers who find working from home difficult or impossible. Already, coworkspaces and flex space offices are providing the answer to these new demands and expectations. Businesses benefit from the lower overheads and minimal office management. Facilities are overseen by the landlord providing the managed workplace solution and companies simply pay for the type of space they need. This leave businesses free to focus on what they do best while catering to the different needs of their workforce at a lower cost.
The ripple effect of these changes will certainly impact real estate too, some agents predict this will be for the better too. Smaller suburban offices may become an attractive option for businesses, tiny inner city apartments could lose their attraction for buyers as they look for homes with dedicated workspace. This shakeup of property use may well provide an answer not only for businesses looking to reduce costs and increase worker productivity, but also property owner looking to unlock the potential of their portfolios. The advantages and opportunities COVID19 and work from home has brought for business and workers alike is only just becoming apparent.