With the economic shock of COVID-19, many businesses are being affected and are looking for cost-cutting options. Since March, most businesses have had employees work from home in what quickly became the new normal. It leads to the question of whether these employees will ever return to the office. If not, should businesses significantly reduce their office space?
How Businesses Are Being Affected by the Pandemic
It’s no surprise that the coronavirus has put a large financial burden on many businesses and companies around the globe. Even prior to the pandemic, most organizations were looking for ways to operate more efficiently and reduce costs.
Many companies were forced to quickly pivot their operations to work from home environments. In some instances, this required companies having to shell out big bucks for computers, laptops, cell phones, and other necessities for their employees. That’s on top of the rent being paid for an office no one’s working in.
How Can I Downsize My Office Space?
There are many different ways you can reduce your office space. However, they vary depending on whether you rent or own the space and how long you want the changes to be in effect. If you rent space, one solution may be to return space back to the landlord or bring in another company to split the rent with.
However, if you own the building, you may be in a position where you can not only save money but also earn more. Subletting office space or even floors to other companies is a great source of income.
Benefits of Reducing Office Space
In a COVID-19 world, a communal office space is seen as a potential area where infections could spread easily through employees. Companies that still have a small team of employees who come into the office now have to rework space to properly spread them apart. However, do you really need an entire floor of office space for 10 employees?
Saving or earning money is not the only benefit to downsizing office space, though. Large, empty spaces and unused desks negatively impact work morale. With so much dead space in the office, it looks like business is hurting, even if it isn’t with most employees working from home.
What Should I Do With the Extra Money After Downsizing?
Once you’ve downsized space or begun subletting, you’ll surely start to see a slight increase in revenue. The earnings or savings don’t have to go right to your bottom-line. Instead, consider investing in your working-from-home employees. Some options are:
- Updated technology
- Furniture for employees to use at home
- Remote hubs for employees to gather in smaller groups
These are just a few examples of how investing in your at-home employees could increase their morale and productivity. Updating their technology and providing office furniture will allow employees to make their home office feel more like a work environment. However, working from home often isolates employees, so by creating remote hub locations, they still have the option to safely interact with others.
What to Consider Before Downsizing
No matter if you rent or own, it’s important to ask a few key questions before making any decisions:
- Will you need office space in the future?
- Are employees able to work from home long term?
- Could you be limiting business growth by downsizing?
If you rush into downsizing your office without thinking about the short- and long-term implications, it may cost you time and money down the road.
I Downsized My Office and Need Storage Space
If you’re downsizing, consider storing your belongings at Treasure Island Storage. We offer 24/7 security, video monitoring, gated security, and climate-controlled units. TI Storage also allows flexible month-to-month payments, and our units come in a variety of sizes.