Since the start of the pandemic and the enforced national lockdown in March 2020, the office industry has faced many changes. The adoption of the work-from-home model has accelerated significantly. Since the prime minister has announced a road map, which states England will fully exit the Covid-19 restrictions by June, many find themselves looking towards the future and asking the question, ‘Do I need an office, and if so, how much will I use it, and how much space do I need?’

As more staff surveys show a desire for future flexibility, flexible service companies are seeing increased demand for private offices that staff can use a few times a week. One of the lasting legacies of the pandemic has been the ability for companies to work in different ways and various locations and maintain (and sometimes improve) high levels of productivity from the workforce.

 Hybrid Working Continues To Grow

With many companies looking to review their workspace estates, hybrid working seems to be gaining traction. Lloyds Banking Group is set to reduce its workspace by 20% over the next 24 months, and HSBC has similar plans. Both want to capitalise on the success of remote working and expect it to be a lasting change long after the pandemic has passed. BT is pressing ahead with cutting its UK offices from 300 to just 30, and Centrica, which has 15,000 office-based staff, have said, “We won’t be back five days a week in the office and I certainly won’t. I will keep a mix of flexible working. It’s good for the staff and for the customers.

Critics have raised concerns about the long-term viability of Hybrid working, arguing it could lead to widespread failures among service businesses in City centres, including newsagents, bars, and coffee shops, all of which rely on passing trade from office workers.

Time will tell who the winners and losers are in the post-pandemic, in this ‘new normal world, yet if the recent trend witnessed by serviced office provider IWG continues, it would appear hybrid working is here to stay.

The Hybrid Working Model Explained

Workspace operators have seen a direct pivot away from City centres, with London, Manchester, and Birmingham having the greatest impact on their local economies. Various surveys indicate that businesses report flexible working has, on average, made them 91% more productive without an office, which raises the question: Why should we rush to return to the traditional 9-to-5 working day? Enter the hybrid working model.

There have been notable highlights from the home experiment, both positive and negative. In the following post, we address key points raised by business owners.

Attracting Top Talent & Workforce Retention

One key issue is attracting and retaining key workers. Reports in the UK put the cost to replace an employee earning the average salary of £27,721 at £11,000 each time, equivalent to roughly 6 -9 months’ salary on average. Employers could highlight flexible working policies to improve staff retention and overall satisfaction by reducing time spent commuting, particularly for those with lengthy journeys on congested roads or crowded public transport, thereby promoting a better work-life balance.

Maintaining a Professional Hybrid Working Model

Businesses have highlighted that home working should only be carried out when the following conditions can be met: “Dedicated space or spare room where staff can easily concentrate, preferably separate from other living areas and without a TV. In addition, 45% of workers report businesses are concerned about data security; therefore, space should promote a level of security that, if required by the workplace, is maintained, and that household members understand that you are working and will not disturb you unnecessarily.

A Route Forward For Graduates & Apprentice Schemes

UK-based graduate jobs website Milkround reports that just 18% of graduates are securing jobs this year, compared with the typical 60% in 2019. Post-university life should be filled with excitement and exciting job offers, but the reality is far more uncertain. Many applicants seeking to start graduate schemes have seen them withdrawn or deferred as a direct result of the enforced national lockdown and the coronavirus pandemic. Those who have been lucky enough to keep their placement (64%) have expressed concerns about support and access to mentors whilst training from home or in a hybrid working environment.

Start Your London Journey Now

If you are looking for office space in London, we can show you a variety of flexible workspaces throughout the City of London. To find out more about the areas that officebroker.io covers in London, check out our London Postcode Guide or our Coworking Guide.