HSBC is in the process of implementing a £3.4 billion savings drive, but the attraction of an office in London remains high as they announced today that their headquarters will remain in the capital. Despite the high costs associated with space in the capital, many businesses are reluctant to abandon their prime commercial location.
Business leaders are facing up to tough decisions as they are under pressure to deliver cost-cutting measures whilst retaining their key business operations. As we see in the news from HSBC, despite the costs involved, a London location retains a key value proposition for businesses.
In this climate, it is essential that decision makers have a clear view of the space they need and how their employees are using it. Our research shows that on average, companies only use 39 per cent of their space. This means that many businesses are paying to maintain space which they simply do not use. Since property is the second biggest outlay for almost all companies, an uncritical attitude towards the amount of space they occupy is unsustainable.
Business leaders can take advantage of workplace technology which gives them a clear insight into the way their office is used, and may find that they can deliver cost-efficiencies that secure their long-term future in the capital.
In fact, turning attention to their office spaces in this way can deliver far more wide-reaching effects than a simple one-time cost benefit. By reconsidering the design of their offices, businesses are able to make their workplaces more engaging to staff, responsive to the ways in which employees use the space. Creating an agile office space which encourages collaboration delivers long-lasting business benefits, boosting employee well-being, engagement and ultimately productivity. For companies who are faced with the unpleasant prospect of a savings-drive, reconsidering their workplace is the first step on the road to a more positive set of business outcomes.