Are you considering a distributed (remote) workforce? Ignoring these 7 reasons why your company may need office space could delay growth and restrict productivity.
As remote connectivity grows and improves, the topic of whether companies actually need office space continues to be heavily debated in the business community. Some business owners believe that office space isn’t necessary at all, while others believe space with all the perks is absolutely necessary for success.
While having office space depends on a number of factors (and distributed, aka remote, workforces can work for many companies), there are many reasons that an actual physical workspace is an important component for business success.
At Verity Commercial, we help business owners decide whether a distributed workforce or physical office space (or a combination of the two) is best suited for them. Some owners make the distributed workforce decision based on cutting expenses alone instead of viewing office space as a strategic business driver.
Here are 7 factors we review with clients to help them make the right decision:
1. Recruitment. We’ve all walked into office spaces that have immediately communicated the brand and stability of the company. Chances are that we’ve thought “I’d love to work here!” A space not only has a strong pull, it signals to interviewees what your company is all about and communicates longevity. After all, most people spend a minimum of 8 hours/day at work, so the design is important.
2. Collaboration. While distributed workforces can definitely collaborate effectively, there’s no question that it takes a little more effort than walking over to someone’s desk or meeting up by the water cooler. A physical office space is also great for social events which foster a feeling of collegiality, as well as fun morale-boosting incentives, like free lunches.
3. Professional Development. It’s just easier to get participation in classes and talks if everyone gathers in one place. While you can do this remotely, we’ve all been on group events online where no one talks or everyone does – at the same time.
4. Brand identity. For many businesses, having a physical space can really help define your brand identity, for customers, employees, and investors. Walking into an office space can give off an immediate sense of a company’s identity. That’s more challenging to communicate when your company is solely online.
5. Clients. Some industries tend to be more traditional or there’s a need to meet clients in your office. It also lends your company legitimacy for many people when they can walk into your office and see a physical presence.
6. Investors. Investors feel more confident investing money if you have a stable presence. It’s also easier to get investors to come on board if you can invite them to your office and show them what you do. For some investors, it’s important for you to have a physical space.
7. Company Culture. It’s easier to get employees to feel like they are all part of one company or the team in office space. After all, employees feel fulfilled and valued in their work when there is a strong company culture. Having employees physically included in activities help promote passion, enthusiasm, and company culture.
There are some valid points in the debate for office space that can’t be ignored. Business owners who solely make the distributed workforce decision based on cutting costs may lose more than saving a few dollars. Ultimately, office space is a strategic decision and the right decision can be a business driver.
Do you need help deciding if office space is the right fit for your company? Do you need to grow or retract your current space or relocate to meet your business goals? Contact one of Verity’s experienced commercial real estate advisors today.