Companies are now trying to downsize operating costs like office space due to a potential recession next year. Is that going to affect employees’ productivity?

The last three years have been turbulent for everyone, especially employees who have had to deal with constantly changing working conditions as a result of the transition from old to new technology and the rise of a flexible workforce.

As we begin to regain some sense of normalcy in our lives from the pandemic, we are now dealing with an impending economic recession that will affect many companies and businesses not just in Vietnam, but globally. Businesses, big or small, are being forced to restructure their operations, adapt their workforce to a more flexible working style, and become more agile to respond to changes in market conditions.

As companies in many countries had to follow government regulations to have their workers work from home, office space became somewhat obsolete or unnecessary. Because it gives employees more freedom to finish their tasks at work while taking care of their personal needs, workplace flexibility encourages most of us to pursue greater independence and promotes a healthier work-life balance. We will feel more in control of our work as a result, which will boost our job satisfaction.

Is office space today necessary?

Traditionally, office buildings have been helpful to many businesses because it provides them with an available resource that can serve both their employees’ and clients’ needs. According to a report, many companies are scaling back their investments in office spaces, more than any other business area. This is likely a response to the increase and even the maintenance of hybrid and remote work in many companies worldwide, like Singapore and the Philippines.

As a result, investments in office spaces have been declining more than in any other area of business. Given that we have an economic recession looming above us, it gets us thinking: Should companies look at reducing their office space to reduce their total costs and move into partial co-working?

While office space may be necessary for businesses, it is a fact that employers and employees alike may not be able to return to their pre-COVID-19 office routines because the pandemic has changed what used to be the usual.

While business leaders must always keep costs under control and their bottom line in mind, they must also consider the health of their employees. Employee expectations have also changed, and some may no longer wish to return to their normal office routine, which might affect employee productivity.

Furthermore, with the economic recession looming overhead, along with many other factors such as the emergence of new COVID-19 variants, businesses should consider re-evaluating how they can leverage office space and incorporate remote working most effectively and efficiently into their business models.

Flexibility is the future of work

The move to utilising co-working spaces is essential and optimal during this time of uncertainty with the looming recession. Co-working spaces are growing in popularity with today’s dynamic workforce, which makes the experimentation of co-working spaces for businesses worth a shot.

Hello World Saigon is also able to ease the doubts of employers by providing enterprise solutions and assisting in designing and operating a business’ space the way that they want it to be.

There are more pros than cons to the use of co-working spaces, contrary to what employers and employees may believe, and HWS can prove this. It is through us that we may ultimately witness an improvement or a growth of businesses as we tide through the uncertainty that is the global economic recession.