Issue link: https://resources.tangoanalytics.com/i/1523880
Copyright © 2024 Tango. All rights reserved. 4 Guide to Hybrid Work 3. Lower Employee Turnover: Hybrid work models contribute to higher employee engagement, which reduces turnover rates and the associated costs of recruiting and training new staff. Retaining experienced employees enhances organizational stability and productivity. 4. Environmental Benefits: Hybrid work can significantly reduce a company's carbon footprint. With fewer employees commuting daily, there is a substantial decrease in auto emissions. Additionally, downsizing office space reduces energy consumption and waste, helping companies meet their climate goals. Major corporate offices are set to lose $500 billion in value by 2029 due to the shift to remote work and the cost of keeping a vacant office running. To combat these losses, corporations are starting to downsize office space and shifting towards more sustainable business practices with efficiency upgrades in office. Benefits for Employers 1. Reduced Overhead Costs: Companies can reduce their real estate footprint by downsizing office spaces or relocating to smaller cities, which lowers rent and amenities costs. The practice of hot desking and creating intentional working zones for collaboration and quiet work helps optimize the use of smaller spaces. The graph below shows the savings a company could see when implementing a flexible workplace, whether that includes 50% hybrid workers / 50% traditional OR 90% hybrid workers / 10% traditional. 2. Access to a Larger Talent Pool: Offering hybrid or remote work options makes job openings more attractive, potentially increasing the number of applicants. This expanded talent pool allows organizations to find the best candidates, regardless of geographical location. ROI Road from Fixed to Flexible (1,000-person organization comparison) 100% Fixed 50% Fixed / 50% Flexible 10% Fixed / 90% Flexible Flexible In-Office Frequency N/A 50% 2x per week 90% 2x per week Assigned Seats 1,000 500 100 Flexible Seats 0 250 450 Total Seats 1,000 750 550 Ratio Seating 1 : 1 1.33 : 1 2 : 1 Annual Real Estate Cost (based on $10k per seat) $10M $7.5M $5.5M