Many financial institutions throughout the country, have spent the last few months preparing contingency plans to make working from home a standard procedure. Some employers have already discussed with staff that a return date to working from the office will not take place until next year, whilst others have agreed to allow staff to work from home on a more permanent basis. Numerous companies are now of the opinion that not only is remote working as productive as working from the office but it could also be a contributing factor towards saving jobs when offices or branches are closed, with the new focus being “collaboration hubs” for meetings.
Most of the companies polled believed the move to more flexible working will improve employee morale and productivity. With a smaller number of staff in the offices, most expect to make savings on all kinds of overhead expenses associated with centralized offices: rent, utilities, cleaning services, food services and building maintenance and as such are now seriously considering the option of downsizing or relocating whilst reviewing long-term lease options. Further savings can be made by extending remote working beyond the duration of the crisis, with staff required to come to the office no more than one or two days a week.
A balance of office and homeworking is the future, but there is still very much a place for the office, albeit structured differently with many companies now planning to downsize or relocate offices.
We advise on what is now considered the new ‘normal’, on new infrastructures and management systems so please contact one of Radstones experienced consultants for further guidance.
Could downsizing offices or relocating make sense due to your experience in the Covid-19 pandemic?
Has it forced you to re-consider your strategic direction and business model to enable you to maintain profitability and stay ahead of your competitors?
Downsizing, due to the recent changes in working practices and/or the loss of business because of the pandemic is now becoming a common solution. This should not be misconstrued as a business weakness. Rather it should be regarded as a smart business keeping one step ahead of the competition.
Company downsizing and/or relocation have very much become facts of working life in this uncertain new world. Many global organisations are adjusting to the new ‘normal’, not as a necessity or to keep the business running, but as practical and economic progression.
This said, there may be unanticipated problems that can be intensified by a poorly informed downsizing strategy; this is where Radstones Global Relocation’s services are key.
As Management Consultants we counsel businesses globally, providing solutions to concerns that are company and industry specific. We advise on new strategies, locations, infrastructure, management systems, and operational procedures that can improve business implementation and bottom-line profits.
Our 20 years of experience and business competence provide objective advice & expertise, helping organisations achieve measurable sustainable growth and profit. Our specialist skills could be exactly what you need to develop and maintain a serious edge over your competitors.
PREPARING THE INFRASTRUCTURE
It has been predicted that COVID-19 will essentially change the way many organisations operate for the projected future. Large and small companies globally, as well as governments have told individuals with symptoms to self-quarantine and everyone else to practice social distancing - remote working has now become an everyday reality. Many companies are just not ready for a more permanent change in working practices. These are extraordinary times so preparing the infrastructure, premises and management systems along with communication and operational procedures is complicated. Ensuring all employees have access to the tools required to work remotely is essential. Making this necessary change towards working remotely and maintaining employee productivity is a skill set we can provide. For company relocation, downsizing or for simply relocating individuals please call or email for a free consultation.
As part of our Global service we provide full end-to-end relocation management solutions as an integral part of our lifestyle support system for both Corporate Clients and Independent Movers. We also have a proven track record of innovative thinking, effective problem solving and attention to detail and our goal is to meet and exceed the expectations of every customer. We take on all types of assignments from individual/domestic movers to larger company relocation all carried out to the highest standards. Call now for a free consultation
Even as the pandemic remains to have an adverse effect globally there is still a restrained optimism that a recovery may soon be forthcoming.
Consumer confidence however is uncertain and business’s now need, more than ever, to offer better value for money and affordability to compete. Companies will also need to offer a refined service which is competitively priced and of the best possible quality. As employment levels are still declining and unlikely to even begin to recover until next year, consumer spending is doubtful to increase noticeably until 2021.
With international travel restrictions looking set to be enforced until 2021-2022, a lot of consumers will be travelling within their own countries rather than further afield. The upside of this is more will be spent on products and services within the local economy with the key pointers, once again, showing affordability and service being key. The downside in this instance, obviously, is the dramatic negative impact on the foreign travel industries.
Another unexpected outcome of the pandemic is it has clearly demonstrated there is a need for businesses to develop continuity plans to deal with unanticipated events. Ensuring the business is going to cope with the new working methods should involve a deep analysis to identify and prioritise which specific facilities and services remain necessary, in working order and in demand. These include IT and communication systems and office requirements: do you need as much space now and are those areas which are needed compliant and keeping in line with the new guidelines? Is the company going to be resilient enough?
Survival mode is not uncommon for companies during times of ‘crisis’, and if a company is to get through this pandemic reasonably unscathed a continuity plan is essential for the immediate and long-term future. Employee involvement, be it on the premises or remote, communication and supplies need to be considered. To keep demand in place companies need to understand their customers’ current requirements, understand how their company needs to change to stay relevant with the current circumstances…..and then change. Business’s need to ask if customers still need their services and what can they do to adapt and then act on it? Adapting to the new required services is essential for survival.
Companies globally are now taking stock to assess how their business have been affected and should be asking what is now expected of them and are their services or products still relevant or indeed even needed?
In these unusual times, it is vital that businesses adapt to new markets, focus on a clear vision of success which is partly achievable by reviewing every part of the business and asking the right questions.
Businesses also must look at additional areas where their services can be used. Experiment with new markets, target different areas of business and investigate how the modified service could reach new customers. The adage of “try a lot of things to see what works” appears to be truly relevant in these changing times
There has been an extraordinary knock-on effect with people working from home. It is likely and reasonable that a sizeable proportion of employees will either ask to continue working from home in the future, or should even be encouraged to do so?
There is also the potential of huge financial benefits to your business if you can downsize your offices. Not having to provide as much workspace, break areas, meeting rooms, common areas along all this combined now with now having to comply with new social distancing regulations.
Just a 20% reduction in the number of office-based employees for a company with 100 people located in a City shows a saving close to $285,000 per annum in direct costs such as floor space, services and utilities, business rates etc.*
It surely makes absolute sense to start planning now and working alongside Radstones means that you can maintain anonymity during negotiations - a huge benefit when market sensitivity, price and avoiding competitors having knowledge of your future plans are all crucial factors.
As part of our relocation service we have access to commercial lease specialists who deal with ensuring all legal requirements are met. This can include advice on surrender or forfeiture of commercial leases if need be. We also can find more suitable premises to operate from and provide practical solutions for the new working structures.
Please contact us today to arrange an informal discussion so it is you that steals the advance over your competitors and work towards becoming a leaner and more effective business!
*Calculation based on $87.00psf rent allowing each employee 100sf average, business taxes payable of $35.00psf plus utilities, office cleaning, insurance, renewals, service charges etc