Rising Costs: The Benefits of Hybrid Working

The cost-of-living crisis is a cause of concern for people across the country, affecting every aspect of our lives — including work.

With fuel and transport costs rising along with just about everything else, there’s an increased cost associated with commuting to work.

Introducing hybrid working practices can help to reduce the financial strain on employees but, with energy costs soaring, there’s also an increase in the cost of working from home. Here, we’ll look at how employers and employees can work together.

The New Cost-Of-Working Crisis

Most people have felt or witnessed the deepening cost-of-living crisis firsthand, to some extent. But according to new research, the cost-of-living crisis and inflation are now combining to create a cost-of-working crisis that’s affecting where and how we work.

An Adaptavist survey of 1,200 UK workers found that 44% of employees are worried about the increasing costs of working in an office if they return full-time. And with a 10.9% year-on-year increase in the cost of transport to September 2022, the commute is the biggest cause of affordability anxiety. As a result, 29% of workers said they’d like to see a commute reimbursement programme introduced by their employer, with free parking an added bonus to tempt them back into the office on a more full time basis.

Despite the benefits of in-office working, when it comes to their finances, many employees are realising that it doesn’t add up. That leaves employers with the job of finding a new equilibrium that helps to support employers and making working affordable — without compromising on productivity.

Is Hybrid Working The Answer?

If you were to ask staff what help they wanted to ease the cost-of-living crisis, the answer would probably be “an inflation-matching pay rise, please”. However, with lots of businesses feeling the impact of price rises too, that’s not always a viable solution. But there are other options.

Introducing a hybrid working model can provide financial benefits for both employers and employees. Research from Confused.com suggests that companies that adopt hybrid working can save an average of £8,100 on traditional fixed overheads such as rent, heating and support staff.

Against this increasingly uncertain economic backdrop, another benefit for employers is the additional flexibility that hybrid workspaces can provide. More flexible workspaces such as coworking spaces and serviced offices are usually available for much shorter periods than traditional office leases, which typically run for three years and beyond. This is one of the main perks of implementing a hybrid working strategy, as it gives you the freedom to adapt your working practices as the cost-of-living situation changes.

For employees, introducing hybrid working practices and more flexible workspaces can also help to counter the increased cost of working. According to Confused.com’s research, hybrid working can save employees an average of £328 a month on train travel and up to £128 a month if they commute by car.

And it’s not just the financial savings you need to consider. The average worker also saves on their commuting time every time they work from home, which helps boost their work-life balance and provide wellness benefits at a time when many workers are feeling the strain.

How You Can Use Hybrid Working to Support Your Employees

If you already operate hybrid working practices or plan to introduce them as a way of combating the increased cost of working, there are several steps you can take to maximise their effect.

Introduce flexible working hours

Working from home to avoid the cost of the commute is all well and good, but with rising energy prices, some studies suggest that it could be cheaper to drive to work than it is to work from home. You can counteract this by allowing your employees to work during off-peak hours when energy costs are lower to reduce their bills.

Introducing flexible working hours can also help employees who are travelling into the office by train avoid the most expensive peak travel times. Instead, they can skip the stress and strain of the rush hour commute and save money at the same time.

Set up satellite offices

Rather than a large central HQ, many businesses are choosing to set up regional satellite offices that are closer to where their employees live. Satellite offices can range in size from a single desk in a shared workspace for an individual employee to larger, flexible workspaces that house hundreds of workers that live near enough in the same area.

Satellite offices can solve many of the problems employers and employees face, and their usefulness has grown as the cost-of-living crisis has taken hold. Satellite offices give employees a base to travel to so they can avoid the costs associated with working from home while also cutting down on busy and expensive commutes. Satellite offices also reduce the number of workers in the primary office at any one time, which gives employers the option to downsize.

Help to reduce the cost of childcare

The cost of childcare is recognised as a significant barrier for people trying to join the workforce and a significant pain point for employees. Offering hybrid working practices and flexible working hours can help skilled workers better accommodate their childcare and familial needs, without having to take time off or spend more on childcare than necessary.

Other Steps To Take To Support Employees

Aside from changes to your workspace and working practices, communication and flexibility should be central to your response to the cost-of-living crisis. Be sure to treat every team member with kindness and understanding and ask how you can best support each individual.

At Knight Frank, we can help you find affordable and flexible office spaces that help your employees avoid the increased cost of working from home and rising commuting costs. We know London’s office market inside out and our service is entirely free. So whether you need co-working, flexible or private office space, we’re here to help.