What’s the point of having an office?

In the past year and a half, huge swathes of the workforce around the globe have swapped office desks for kitchen tables, face-to-face meetings for Zoom calls and work clothes for leisure wear. Now, as we emerge from the pandemic, employers not only have to consider the question of when to return to the office, but also a more fundamental one: what exactly is an office for?

The shift towards hybrid working

Experts suggest that the working world is unlikely to go back to the way it was before the 2020 lockdowns, as the transition towards flexible working was already well underway.

The virus merely accelerated the switch, according to Andrew Grill, an Actionable Futurist and a former Managing Director at IBM.

He says before the pandemic he was telling audiences of business leaders to prepare for the anticipated transition to hybrid working to take place within a decade. Instead, the shift “happened in five to seven weeks,” Grill explains, adding: “The pandemic has been interesting in that it’s fast-forwarded a lot of stuff.”

Flexibility has been referred to as the new currency of talent, and although it might be where the workplace is inevitably headed, that doesn’t entirely rule out businesses' need for a common place to convene. But the workplace might just need a little reinvention.

The office reimagined

Our Future of Work survey reveals that business leaders are already redefining the role of the office in their operations. Rather than a place for individuals to carry out routine or highly focused work (which could just as easily be done remotely), the office is seen as a location for employees to collaborate (39%), access training (38%) and socialise with their colleagues (36%).

This view chimes with what’s happening in the marketplace, as many businesses move towards a hybrid working model. According to Steve Carter, co-founder of digital recruitment agency Futureheads, companies are choosing to maintain a physical office space “for collaboration, meetings, social interaction, knowledge transfer”. “Ultimately we are all human beings who need other people so don’t be surprised if the office makes a comeback,” he says.

And it’s not only employers that see the benefits of having some of their staff in the office, some of the time. Many employees, too, are keen to share a real, rather than a virtual space with their colleagues. According to a survey by HR advisory company, the People Collective, 70% of respondents want to return to working from a common location for social or mental health reasons.¹

Smaller, more hard-working spaces

Flexible working also means that companies can significantly reduce their office space. According to a survey by Fortunecom, 74% of Fortune 500 CEOs expect to cut their real estate footprint. HSBC, a company that is promoting hybrid working whenever possible, will also be cutting back. In an interview with Bloomberg Front Row, HSBC Group CEO Noel Quinn said the company would “get greater use, greater occupancy out of a smaller office footprint”.

Quinn is a firm believer that the office still has a crucial role to play. “I remember one day, sitting at home, I travelled the world in a day talking to clients in different parts of the world. You can’t do that for ever,” he said. “Offices will always have a place. Offices are great environments for learning, for innovation, for collaboration and for team building. I don’t want to lose that DNA and that teamwork.”²

What’s the alternative?

Global co-workspace providers such as Regus and WeWork are now offering flexible terms to encourage people to get back to using shared office space. In August 2021, WeWork confirmed that it would offer pre-bookable rooms and pay-as-you-go desks on its app in 50+ cities around the world.

To get around the problem of unused office space, London-based rivals such as Uncommon have started offering coworking spaces in markets closer to their employees such as in the London suburb of Fulham. New hyperlocal spaces also include offerings from Spacemize and The Arc Club, which is providing suburban spaces in boroughs like Homerton, London.

HSBC Navigator: The Future of Work

The Navigator: Future of Work survey was conducted by FTI Consulting on behalf of HSBC. Research was conducted online from 3rd to 8th August 2021 with 2,130 respondents who are involved in or influence strategic direction for their company in 10 markets: UK, USA, UAE, India, Hong Kong, Singapore, China, Mexico, Australia and Germany.