Calculate Cost Savings of Switching to Hybrid Work

In business, is it possible to keep up with the latest trends and find cost-saving solutions at the same time? Maybe not in every case, but hybrid work arrangements can be the best of both worlds. It's an attractive arrangement for employees and can be cost-effective for employers.  

Here's a simple breakdown of why switching to hybrid work can lead to money saved in your business. 

Hybrid work cost savings 

For employees, calculating the cost savings of hybrid work comes down to hard costs—such as transportation, office clothing, and eating out—and soft costs—such as time saved from commuting, more time with family, and less stress. But how does switching to hybrid work save employers money? Here are three ways. 

1. Optimized office space  

A study by WeWork shows that over 50% of workers want to work up to three days per week in the office, and spend up to five hours at a time there. If all employees moved to a hybrid work arrangement such as this, it would leave offices partially empty much of the time. 

Hybrid work allows businesses to rethink their space needs and find creative solutions to maximize ROI for their office space. Businesses can find cost savings by switching to a smaller office space or using a virtual office that can more efficiently meet the needs of hybrid work and limit the amount of money spent on empty, unused space. 

2. Specialized technology streamlines productivity 

During the pandemic, many businesses experienced the pain of learning how to conduct business in a remote environment with a short runway and few tech solutions. Now that we're a few years into the new normal, there are many options to set up both remote and hybrid offices in a way that works efficiently and cost-effectively.   

These days, there's a deeper understanding of technology solutions for hybrid work, which means investing in the right hardware and software upfront will save money in the long run. Just because employees are in and out of the office doesn’t mean that collaboration and productivity take a back seat. The right equipment can help businesses run smoothly and keep everyone on track while also maximizing revenue.  

Some popular technologies for hybrid work include:  

Communication tools (e.g. Slack, Zoom, Microsoft Teams) 

Collaboration tools (e.g. Miro, Connecteam) 

Booking software (e.g. booking meeting rooms, desks, etc) 

Visitor management software (e.g. Envoy Visitors, VAMS, Qminder) 

3. Hybrid work leads to employee retention  

Another way that hybrid work can financially benefit businesses is due to its potential for retaining employees. It should come as no surprise that satisfied employees are more likely to stay with their current employer than unhappy employees are.  

Office workers are pushing for hybrid work arrangements and the demand for hybrid or remote work is projected to increase. A report by Owl Labs shows that employees are willing to make sacrifices in order to maintain hybrid and remote work arrangements, and over 60% would rather take a pay cut or quit their job than lose the flexibility of hybrid work. 

Offering hybrid work options to current employees can increase the chances of long-term retention. Therefore, hybrid work saves companies money because there is less time spent on backfilling positions, recruiting, and training due to employee turnover. It also means there is no break in productivity. Additionally, happy employees are shown to be more engaged, productive, and motivated. 

Calculate the cost savings of switching to hybrid work for your business  

There is a simple formula for calculating hybrid work cost savings: ROI = net gain/cost.  

Aside from initial costs, there are other factors to consider when determining if something is a worthwhile investment. A high or low start-up cost doesn't necessarily mean anything—the question is, will it have an equal or greater return on investment? How quickly and easily can it be implemented? How often is it used? Is it user-friendly? Is it convenient? Does it make your employees happy? Whether it is a new space, technology, or policy, asking these questions can help determine if it will provide the desired ROI. 

Hybrid work is here to stay and investing in the right cost-saving solutions with high ROI potential can help your business thrive while keeping your employees satisfied and productive in this new business age.