BUSINESS
Why Big Companies Want Employees Back in Offices
USATue Dec 17 2024
You're a big company with a whopping office lease that's costing a fortune, even though many desks are empty. Wouldn't you want your employees back in the office? That's exactly what many businesses are thinking, according to a survey by Resume. org. The survey showed that one in three companies are bringing workers back because of those hefty lease agreements. It's like they're saying, "Hey, we've got this massive office space, let's fill it up again! "
Many of these companies signed long-term leases before the pandemic hit. Some leases won't even expire until 2028 or later. Around 21% signed before 2017, and another 22% between 2017 and 2019. The rest signed more recently, hoping that employees would be eager to return.
Kwame Darko, a real estate investor, thinks companies are rethinking their office needs as leases come up for renewal. "Remote work and hybrid models are working great, " he said. "When old leases run out, leaders can adjust their office space to fit what they really need now. "
But what about the workers? Well, almost three in ten business leaders want employees in the office full-time by 2025. Close to two in ten want four days a week, and another three in ten aim for three days a week. The rest are not sure or plan to keep things flexible.
This survey comes as big tech companies, like Amazon, are getting less keen on remote work. Amazon wants all employees in the office five days a week from 2025. When some employees weren't happy, Amazon basically said, "If you don't like it, find another job. "
So, it's clear that while remote work might be great for some, for many companies, it's about more than just productivity. It's also about making the most of those fancy office leases.
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questions
What long-term impacts could the financial burden of leases have on a company’s strategic decisions about remote work?
What steps are companies taking to ensure that the move back to the office improves productivity rather than just saving on lease expenses?
Do companies ever consider just throwing a big office party to use up all that empty space?
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