How to reduce office costs with modern work

Imagine if your company could reduce its office space by 30% without sacrificing productivity. You could invest the rental savings in innovation, employee development or new projects. Sounds tempting? Then you should take a closer look at hybrid working models. These models offer enormous savings potential, which more and more companies are discovering for themselves.

But what exactly do we mean by hybrid working? It refers to a flexible mix of presence in the office and mobile working, for example in a home office or on the road. The idea behind it is that not every task requires constant on-site presence. Thanks to digital tools, many tasks can now be performed remotely – in a focused, efficient and cost-saving manner.

At the same time, the shared office fulfills important functions: it promotes collaboration, exchange and identification with the company. Therefore, it is not an either/or situation, but rather a matter of finding the optimal combination of both worlds. And that can pay off in hard cash for companies.

Cost driver no. 1: office space

Let's start with the most obvious potential for savings: office space costs. These have risen continuously in many places in recent years and now account for a significant portion of fixed costs. Yet a typical office workplace is only in use for 30-40% of the time on average. The rest of the time it is vacant – wasted space for which companies still pay rent, utilities and cleaning.

This is where hybrid working comes into play: if part of the workforce works on a mobile basis, the need for fixed workstations is reduced. Instead, companies can opt for flexible shared desk concepts in which several employees share a desk. This not only saves space, but also enables a more efficient use of space. Experts estimate that up to 30% of office costs can be saved through clever space management.

A calculation example: Let's assume that a company with 1000 employees pays annual rent costs of 3 million euros. If 40% of the workforce now works remotely two days a week, 20% of the workstations can be eliminated. At an average cost of 5000 euros per workstation per year, this would result in savings of 1 million euros – year after year.

Additional savings potential can be found in the reduction of communal areas such as coffee kitchens, meeting rooms or storage rooms. These are also often used more efficiently in hybrid settings. For example, several teams can share a project room and use it in turn. Or, if all meetings are held in the virtual space, fewer physical meeting rooms are needed.

Of course, the changeover initially requires investments: in IT, furniture, room acoustics or booking systems. However, in most cases these costs pay off within a short period of time. And they are a manageable price to pay for the long-term savings that hybrid working makes possible.

Ancillary costs and facility management: fewer employees, lower consumption

As office space shrinks, so do utility costs. Where there are fewer employees on site, consumption of electricity, water and other resources goes down. This not only reduces operating costs, but also benefits the environment. What's more, cleaning requirements are reduced when less space is used daily.

Hybrid models also simplify facility and building management, making it cheaper. Where workplaces and capacity utilization can be better managed, maintenance intervals can be optimized and repairs can be better planned. In addition, digital tools such as sensors or booking systems provide a better overview and more efficient control of space.

And don't forget: many ancillary costs are either eliminated completely in hybrid settings or shifted to employees. These include costs for office supplies, coffee and snacks, and cleaning work clothes. While these may seem like small items at first glance, they quickly add up to significant savings.

Travel costs and commuting times: less is more

Travel and commuting times are often underestimated as a cost driver. Especially in knowledge-intensive industries with many projects and customer appointments, travel costs are often a significant item. But here, too, hybrid working offers enormous potential for savings.

After all, virtual meetings and video conferencing can replace a lot of travel. This not only saves on ticket, accommodation and expense costs, but also on valuable working hours. Instead of spending hours on a train or plane, employees can use the time gained productively – for projects, further training or balancing work and family life.

The same applies to daily commuting: not having to travel to the office every day saves time and money. This not only relieves the strain on employees' wallets, but also on the environment and infrastructure. Traffic jams, overcrowded trains and clogged city centers could soon be a thing of the past if more people worked remotely.

One effect should not be underestimated: reduced commuting stress leads to happier, more productive and healthier employees. Studies show that long commutes are a significant stress factor and can lead to more absenteeism. Reducing this stress promotes the well-being of your workforce while also saving on sick pay and replacement costs.

New work requires new spaces: repurposing instead of vacancy

One thing is clear: hybrid work is changing the demands on office space. Where traditional workplaces are eliminated, new needs arise – for meeting zones, creative collaboration rooms or places of retreat. Companies are therefore well advised not to simply shut down spaces that become vacant, but to actively redesign them.

The good news is that this also offers potential savings. This is because the costs for converting and refitting the space are usually significantly lower than the long-term savings from reducing the space. In addition, many of the measures can be deducted for tax purposes and help to attract and retain employees.

There are many examples of sensible repurposing: unused individual offices become creative spaces with flexible furniture and writable walls. Orphaned open-plan offices are transformed into collaborative co-working spaces or project rooms. And the empty conference room becomes a place to meet with sofas, a coffee bar and quiet islands.

This is how the office becomes a vibrant, inspiring place where people enjoy coming together. Not because they have to, but because they want to – to exchange ideas, learn together and develop concepts. And that is invaluable for a company's innovative strength and success.

Keeping an eye on the workforce: saving and promoting

Speaking of the workforce: personnel costs are the largest item in most companies. This makes it all the more important to manage this valuable resource in a smart and sustainable way. Here, too, hybrid working can make an important contribution – not to cut jobs, but to promote and retain talent.

After all, attractive, flexible working models are a decisive factor for employer attractiveness today. More and more people want the freedom to work independently and on the move. Companies that make this possible have a better chance of competing for the best minds. This saves on expensive recruitment processes and induction periods.

At the same time, hybrid working promotes productivity and employee satisfaction. People who can organize their working day flexibly are often more motivated, more creative and take sick leave less often. This leads to better performance and less downtime – a clear competitive advantage in times of a shortage of skilled workers.

Last but not least, hybrid working makes it easier to reconcile work and family life. This can be a decisive factor, especially for parents, family caregivers or people with disabilities. By specifically supporting and integrating these groups, companies tap into valuable talent pools and save on the costs of employee turnover and reintegration.

What matters: hurdles and success factors

Hybrid working is not a sure-fire success. To fully exploit its potential, the right conditions and careful preparation are needed. Otherwise, there is a risk of acceptance problems, productivity losses or legal risks. The most important factors at a glance:

• Management and culture: hybrid working requires a change in thinking. Away from a culture of being present at work and towards a results-oriented culture of trust. This must be exemplified and actively shaped by managers.
• Technology and equipment: a reliable digital infrastructure is essential. This includes high-performance end devices, stable networks, secure data lines and user-friendly collaboration tools. But ergonomic office furniture for home and on the road should not be forgotten either.
• Regulations and contracts: Hybrid working requires clear rules and a legal framework. This ranges from company agreements and time tracking to questions of liability and data protection. Close coordination with the works council, human resources department and external experts is required here.
  
• Training and empowerment: Not everyone finds the transition to hybrid working easy. That's why it's important to provide targeted training for employees and managers – in self-management, virtual leadership or digital communication. Social interaction and informal encounters also need to be organized.
  

All of this initially costs time and money. But the investments are worth it if they lead to hybrid models being lived and accepted in the long term. Only then can companies really reap the benefits.

The future is hybrid: a conclusion

Let's draw a short conclusion: hybrid working is more than a short-term trend. It is a strategic response to the challenges of a changing world of work. It offers enormous opportunities for companies – not only in terms of cost structure, but also in terms of productivity, innovative strength and attractiveness as an employer.

The potential savings are manifold: from space reduction and decreasing utility costs to more efficient processes and more motivated employees. At the same time, hybrid working enables a new form of collaboration – more agile, more digital and more people-centered.

It is important that the change is thought through and designed holistically. It is not about optimizing individual aspects, but about a new operating model that harmonizes people, technology and space. This requires courage, stamina and a willingness to question the familiar.

But it's worth it! Companies that consistently follow this path will be tomorrow's winners. They not only save costs, but also tap into new potential – for themselves and for their workforce. And that is becoming increasingly important in a world where change is the only constant.