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Global firms are cutting down on their real-estate footprint as CEOs across industries are considering a permanent switch to remote work


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Last month, Business Insider spoke to roughly two hundred CEOs about the impact coronavirus will have on their business and the world, and many of them agreed that remote work is here to stay.
A number of CEOs said that remote work will become more common after the pandemic, but they’re still evaluating what plans are best for their business.
Three CEOs told Business Insider that they have concrete plans to downsize their real estate footprint.
“Most of our people spend most of their time with our clients, so it doesn’t make sense to spend $30-40 million on real estate,” Sir Martin Sorrell, CEO of advertising company S4 Capital, told Business Insider.
To read more stories from our conversations with CEOs on how coronavirus will transform business, click here.

Employees definitely want more remote work.

Global real estate company Colliers’ most recent Global Workplace Survey, with more than 3,000 responses from more than 25 countries, showed that four in five employees would like to work remotely at least once week after coronavirus.

And CEOs are coming to a similar realization, opening up their remote work policies.

In April, Business Insider surveyed almost 200 leading CEOs in a range of fields to discover how they thought their companies and the world at large would change as a result of the coronavirus crisis. While Business Insider didn’t ask them specifically about the future of the office, many of them volunteered insights on how the virus has changed the workplace, forever.

The increased adoption of remote work and flexible work was top of mind, unsurprisingly, since many of them sent their responses to us from their own homes. Those who entered lockdown skeptical of remote work say that they’ve been converted.

Remote work has changed the dynamic forever. As Business Insider has previously reported, the office might not be dead but it will certainly never look like the ones many left in March.

The future may land somewhere between remote work and in-office work, with much more flexibility in schedules, something that Todd McKinnon, CEO of access-management company Okta, called “Dynamic Work.”

“Dynamic Work is a framework our team created that will not only enable employees to work from anywhere, but also provide employees with comparable benefits (healthcare, fitness, volunteer opportunities, etc.), flexible schedules, and work environments and experiences, no matter their location,” McKinnon said.

Less real estate?

However, some CEOs are all about reducing their real estate footprint.CEOs, like James Gorman at Morgan Stanley and Jes Staley at Barclays, have questioned the need for their pre-virus office square footage.

Some are already taking concrete steps to lower the amount of space they rent, and they’re already eyeing the massive savings that could follow.

“Most of our people spend most of their time with our clients, so it doesn’t make sense to spend $30-40 million on real estate,” Sir Martin Sorrell, CEO of S4 Capital told Business Insider. “We’re looking into canceling leases and looking to consolidate.”

According to the advertising company’s …read more

Source:: Business Insider

      

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