Can hybrid working save firms and workers money?

Firms could save 27pc in workplace costs while staff could safe 40pc in transport costs.

Hybrid working strategies could save Irish businesses and their staff money, claims hybrid workspace firm NoCo, which has just revealed a new platform that enables employers to provide closer-to-home workspaces for employees.

Companies could save 27pc in workspace costs while also saving their employees up to 40pc in transportation costs if they implement a hybrid working strategy, the study claims.

“As the workspace becomes more fluid and flexible, so too can the costs associated with it”

“The workplace of the future is evolving, for most employers this has always been a significant cost and we wanted to explore what the implications of the recent changes in work practices were for a company’s bottom line this by asking the team in OfficePal to carry out this case study,” said Brian Moran, co-founder of NoCo.

“The results show that as the workspace becomes more fluid and flexible, so too can the costs associated with it.”

A similar study carried out by NoCo and Trinity College recently found that drivers could save an average of 2.5 hours of commuting time every day by using a remote working location. Not only that but 70pc of people would consider moving their home location if they could work remotely.

Hybrid working case study

A case study examined how a typical city centre-based company of 139 employees, located in a prime Dublin office location, could create a more cost-efficient workplace model in response to the recent changes to the ways of working created by Covid.

Conducted by Office Pal, a financial outsourcing provider, on behalf of NoCo, the case study shows that by implementing a hybrid working model with a 60/40 split of time between working in the office and remote working in a hub close to the employees’ home, the business secured:

  • 40pc reduction in city centre sq. ft requirement
  • 50pc savings per employee realised when city centre leased office space is replaced by suburban flexible office space
  • 90pc less time commitment required when comparing flexible workspace terms vs traditional leasing terms
  • Flexible workspace 25pc more cost efficient versus supplying employee with a city centre car space
  • 260 hours less time spent commuting to the office for employees

An overall net saving of 27pc in workspace costs can be seen in the case study where a city centre-based company reduces their city centre footprint, implements a hybrid working policy and operates a hub and spoke real estate model.

The hybrid working approach would also see a significant impact on a company’s and their employees’ carbon emissions with a potential 670kg reduction possible should they reduce the time spent commuting into the city by 2.5 hours daily through remote working.

The case study not only highlights the overall potential savings that can be made but also the increased flexibility that a company can secure by reducing their reliance on city centre leased space and supplementing this with a network of suburban based flexible workspaces, with a 90pc reduction in the time commitment required in flexible workspace in comparison to a traditional lease.

“We can see that a combination of remote and hybrid working, along with the implementation of a hub and spoke real estate model shows significant potential for driving cost efficiencies throughout the business,” said John Donnelly, CEO of Office Pal.

“While the study primarily focuses on the upfront costs associated with the workplace, it certainly highlights the potential for more savings to be made in other areas of the business through this model.”

Brian Moran interview:

 

John Kennedy
Award-winning ThinkBusiness.ie editor John Kennedy is one of Ireland's most experienced business and technology journalists.

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