Won’t the Hybrid Work Model Cost Companies a Lot More?

Your questions answered about life after COVID-19 . . .


Won’t the Hybrid Work Model Cost Companies a Lot More ?


“Okay please tell me” says the owner of a small business, “how can a hybrid working model possibly save my company any money when we will have employees working in three or four or five locations instead of just one? How can that fail to cost us a lot more?”


That business owner is a very smart person, but somehow he has failed to understand that a Hybrid Work model will save his company money - and perhaps a great deal of money.


And depending on his business, here are some of the reasons . . .

  • He’s probably paying for a lot of office space that is being underutilized. But if he stops doing that and allows, say, 25% of his employees to work remotely or from home, he can probably cut his office expenses by that same 25%, or even more if he allows flexible employees who come into the office to work from different locations on the premises instead of at the same desk every day.

  • He’s failing to save money by using overflow space only when he needs it. Let’s say that he is currently renting space that includes a large conference room where his outside salespeople meet twice a year. Instead, he could rent outside space for those meetings only when he needs it, and stop paying for it the rest of the time.

  • He could be saving even more by letting certain employees drop back to flex or part time schedules. If people work only half the time remotely - and they may well want to now - he can cut payroll expenses for them by half, as well as save on benefits and other expenses.

  • He could possibly save even more money by utilizing independent contractors as needed. Of course, he could have done that before the Pandemic struck too. But today, more companies are realizing that certain projects or functions can be handled by contractors who are not on the company payroll - and who also do not need to occupy costly office space.


In Summary . . .


Our goal at KettleSpace is to take what has been a fixed cost which is real estate and make it as variable as possible by meeting demand in real time. If you need space, let's make sure there's ample space for you but in times when you don’t need it, maybe you shouldn’t be paying for it.


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