Does switching to remote or hybrid work actually save money? Some barebones numbers.
Fortune did a deep dive recently on how much money companies are saving by downsizing their owned and long-term leased real estate footprints and switching to hybrid or remote. Here are some of the numbers that caught our attention:
- 150 square feet of real estate per employee used to be the rule of thumb; now that’s is major flux.
- 83% of executives in a survey by Robin said they expect hybrid work to be a cost saver.
- 60% of executives in that survey said they plan to reduce office space by at least half.
- 74% of Fortune 500 CEOs say they plan to reduce office space.
Companies can expect to save:
- 50% on their real estate costs when they switch to hybrid, according to IWG CEO Mark Dixon — and CFOs are “really focused” on the potential savings.
- $11,000 for every employee who starts working remotely two to three days per week, thanks to reduced rent, increased productivity, lower absenteeism and lower employee turnover, according to new Global Workplace Analytics research.
- $500 million is the savings tech giant Cisco has reported since they cut their real estate footprint in half five years ago.
But, hybrid work adds some costs too. Companies need to consider:
- Increased spends on cloud technology
- Work-from-home stipends
- Upgrades to / reconfigurations of existing space
- Upgraded cybersecurity systems
- Possible new IT and HR staff to support your remote or hybrid infrastructure and keep your company culture thriving
In all of these cases, quality, actionable data on how employees are using workspace is critical. At Upflex, we’re seeing companies cut real estate costs by, in some cases, 40%, build out great remote work infrastructure, and leverage data to make sustainable, long-term strategies that are great for both employee wellness and satisfaction and for the bottom line.