How do you lower your costs thanks to the hybrid work model’s best practices?
August 22, 2023
September 13, 2023
Many organizations don’t realize they can reduce office costs by 30% by simply allowing flexible work arrangements and adopting the best practices for a hybrid work model. But 82% of CFO agree that hybrid work is a more affordable business model. When companies put the right strategy in place and genuinely try to implement this new way of working, the outcomes go far beyond their expectations. To do so, everyone has a role to play from top to bottom.
So, how can a “work from anywhere at any time” model help you decrease your corporate costs? So many aspects should be considered, some more obvious and some having a longer-term ROI (Return On Investment) than others. The key is to prioritize the ones that make the most sense and impact your budget first.
From space optimization to cybersecurity and workplace experience, we’ve reviewed the most efficient cost-cutting measures to lower expenses in a hybrid work setup.
Investigate your flexible office space occupancy rate and usage
Real estate and associated costs like energy bills are the most efficient and popular areas to save money when switching to a hybrid work model. However, you don’t want to downsize your office too much and end up with a frustrated and unhappy workforce.
To proceed wisely, you must first look at the data and determine how employees use the physical workspace. Essential queries include:
- What is your occupancy rate?
- What are the most demanded workspaces (single desks, meeting rooms, collaborative areas, etc.)?
- What’s the primary mode of transportation of your staff?
- How satisfied are your team members with the office environment and functionalities
All this information can be found via the data collected by the workplace technology tools you use and employee satisfaction questionnaires. Your rent, utilities, and other costs decrease with the right office size and a people-centric layout.
Do a benchmark of the best tools and solutions for hybrid work models
Flexible work practices are rising, and so does technology. The market of hybrid workplace technology is booming, and organizations are exposed to a wider choice of tools every day. It is essential to find the most suitable digital solutions to answer their needs as a hybrid workforce. Not only does it enhance higher productivity and greater collaboration, but it also supports businesses in managing workspaces and optimizing costs. For example, a desk booking platform like deskbird allows you to implement hot desking efficiently thanks to our workspace reservation system. On one side, workers book the workstation they need as well as a parking spot if they come on-site by car. On the other side, facility and finance professionals have access to workplace analytics. This data is crucial for improving the employee experience and lowering costs through office space optimization.
Regularly doing a benchmark of the different resources available is essential. It enables you to determine if you are properly prepared to promote a successful hybrid work model. Moreover, it gives you the chance to pinpoint better options for your business and your workforce. You might realize you can replace some of your current tools with new ones and let your team perform better while reducing equipment expenditures.
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Review your equipment and team up with technology
When you shift to the hybrid mode, your equipment may no longer meet your staff’s expectations. For example, on-premise software and hardware may not be as relevant as they used to be. Therefore, you can embrace digital transformation by switching to cloud-based solutions. On top of answering the requirements of a hybrid workforce, it also helps you decrease your bills, as it is cheaper and demands less maintenance than on-site equipment.
The BYOD (Bring Your Own Device) concept is also getting more and more attention. Why would employees need a laptop or desktop in the office plus another one at home? For some job positions, one computer is enough. This method enables you to reduce costs while supporting more sustainability in business.
The point here is that adopting a flexible work model reshuffles your work environment entirely. People have started to view the physical workplace as a space to focus on collaborative work more than individual tasks. New expectations arise, such as the need for modern technology and digital resources. Reviewing your equipment and being aware of the tech that can help you foster a thriving hybrid work landscape is essential.
Increase the cybersecurity budget of your hybrid workplace
With or without a BYOD policy, remote work practices increase the risks of data leaks and cyberattacks. Moreover, employees use personal devices and connect to public WIFI more often than when working from the office. So, although the purpose of this article is to share with you the best methods to save money in a hybrid work environment, we recommend you invest more in cybersecurity. We insist on the word “invest.”
Protecting your data should be at the top of your priorities. A data leak or breach can cost your business in the worst-case scenario, which we hope will never happen. In 2025, the price of cybercrime could reach up to $10.5 trillion, according to the Cybersecurity Ventures’ 2022 Official Cybercrime Report.
Therefore, putting money into ultra-performant tools and hiring the best talents in cybersecurity management is crucial to avoid your data getting into the wrong hands. The day your organization is the target of a cyberattack, investing in your hybrid workforce security will be one of the best decisions you have ever made.
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Focus your attention on employee well-being and health
The hybrid work model’s best practices are not just about optimizing the office space and lowering energy bills. For example, employee burnout has increased for a couple of years. While Millennials and Gen Z represent the biggest demographic groups in the workplace, they are also the most affected by mental health issues. Having team members facing work depression can profoundly impact your budget. Burnout influences productivity and performance. People who experience it may need a break to go through this challenging period and get healthy again. Consequently, projects may get delayed. You might hire someone to replace these people during their sick leave, which also generates unexpected costs. Moreover, it can increase employee churn as burnout workers might choose not to come back and quit.
Employee well-being and health are not as apparent as office space downsizing. Yet, it is an area where hybrid work has an impact too. Although mostly positive, it can also be harmful if not considered.
Focus on other financial pitfalls unrelated to corporate real estate or technology
As we just highlighted, financial pitfalls are not always where you think. Yes, renting an office space planned for 100 employees when only 40 people come on-site daily is a loss of money. But other areas might take a big chunk of your annual budget and aren’t related to real estate or technology. By gathering data and looking for the sectors where the company spends the most, you can build a cost-saving strategy tailored-made to your business. Have sick notes increased since your staff works from home more often? If yes, try to figure out why. They might feel workplace disconnection and loneliness, leading to poor mental health. They can also work from their kitchen table, sitting on a bench for 8 hours a day and developing back problems. For this example, but also as a preventive and people-centric measure, investing in employee experience and well-being solutions is fundamental. It reduces the risk of workers being mentally or physically unfit while increasing the chances of a happy and productive workforce.
👉 Read this article to learn more about the powerful connection between employee happiness and productivity.
Make feedback and conversation a central pillar of your strategy to reduce costs
Last but not least, you can also organize a meeting with leaders from other departments to discuss where they think hybrid work has a critical effect on the company’s finances. Each team faces its problems, and together you can figure out the most critical areas to tackle to significantly impact your budget. For example, some managers might tell you that team members complain about having too many online tools and that some of them are never used. This becomes an opportunity to save costs on technology and collaborate with the IT departments to find new digital solutions that match employees’ needs better. Analyzing numbers is essential, but collecting feedback and leaving room for discussions are fundamental practices to develop a thriving and cost-efficient work environment. It brings a human touch, creates a sense of workplace connection, and opens the path to new ideas.
The most important takeaway is to think outside the box about real estate and corporate technology expenses. The key is consideringyour colleagues’ experience and opinions to detect potential financial pitfalls while making data-based decisions. Office space downsizing is a standard money-saver move for businesses that shift to flexible work policies. Yet, the impact of hybrid work goes beyond your walls. Cost optimization is also applicable to your digital landscape. Last but not least, don’t forget to look at less obvious aspects, such as the benefits of a healthy and happy workforce on your finances.
Ready to implement some of these hybrid work models’ best practices? Check out our hybrid office calculator and request a free demo of the deskbird app to optimize and manage your hybrid workspace efficiently!
Sources:
- Hybrid Work Cost Savings, Room Manager;
- How To Maximise Cost Savings From Remote and Hybrid Work, Vena Solutions.
