Facility Manager's Guide to Right-Sizing Office in the Hybrid Era

Over 70% of companies report having excess office space due to hybrid work adoption. Are you one of them? Vacant desks and underutilized rooms aren't just a waste of space—they're a drain on the bottom line.

In the post-pandemic era, right-sizing your office is essential for maximizing space utilization, controlling costs, and creating a workplace that supports both in-office and remote employees.

This guide will help you navigate the complexities of right-sizing and create a well-aligned space that meets the needs of your hybrid workforce.

Understanding the Hybrid Workplace Landscape

The traditional 9-to-5 office model has been irrevocably disrupted. The widespread success of remote working during the pandemic has shifted employee expectations for flexibility and a re-evaluation of what the office is meant to be. Understanding this changed landscape is crucial before delving into right-sizing strategies.

Changing Employee Needs

Employees are now accustomed to a degree of autonomy in when and where they work. The office is no longer the sole location for productivity; it needs to offer value that can't be replicated at home. This might include access to specialized equipment, opportunities for in-person collaboration, and a sense of belonging to the company culture.

Types of Hybrid Models

Hybrid work models come in various flavors, and each has different implications for your office space:

1. Fixed Days in Office: Teams alternate on specific days of the week, reducing peak occupancy needs. Implication: Peak occupancy is reduced, but only on specific days. You may still need to maintain a space that can accommodate your entire workforce during those peak days. Right-sizing Consideration: Focus on shared workspaces, hoteling or hot-desking systems, and reconfigurable areas to maximize utilization on those peak in-office days.
2. Flex Schedules: Employees choose their in-office days, requiring more flexible booking systems. Implication: Occupancy is more unpredictable, as employees choose their own in-office days. This requires a more data-driven approach to understand occupancy patterns. Right-sizing Consideration: A robust desk booking system is essential to avoid underutilization. Focus heavily on collaboration spaces and consider technology to track real-time space usage.
3. Fully Remote Options: Some roles may be permanently remote, minimizing or eliminating their space needs. Implication: Significant potential for space reduction as these employees don't require a permanent office presence. Right-sizing Consideration: Evaluate whether permanent desks for these roles are necessary. Consider transitioning to fully shared workspaces or downsizing entire sections of the office.

Regardless of the model you have, it's crucial to gather data on actual office usage rather than relying on assumptions. Employee surveys, workplace analytics platforms, and occupancy sensors can help you build a clearer picture of how your space is actually being used in the hybrid era.

Right-Sizing: More Than Just Shrinking

It's tempting to think right-sizing is synonymous with downsizing. However, successful right-sizing is driven by a strategic approach that aligns your physical workspace with your company's overall goals and the evolving needs of a hybrid workforce.

Beyond Cost Savings:

While reducing rent or lease costs is often a driver, right-sizing can also:

• Boost employee experience: By creating workspaces that support the diverse needs of hybrid workers—concentration zones for focus work, collaborative spaces for teamwork, and social hubs to foster connection.
• Enhance collaboration: Dedicating more space to meeting rooms, project areas, and informal meeting zones facilitates the kind of in-person interaction that's often difficult to replicate remotely.
• Support Sustainability Targets: Reduced office space often translates into a smaller carbon footprint, better energy efficiency, and responsible resource use.

Reimagining Your Space for Purpose:

Consider these practical shifts in a hybrid context:

• Shrink and Optimize: Transitioning from a high ratio of assigned desks to a combination of shared workstations, hoteling desks, and focus rooms allows for a less space-intensive footprint.
• Collaboration Focus: Repurpose previously underutilized individual offices into spaces for team brainstorms, project zones, or even informal huddle rooms for quick touchpoints.
• Technology as an Enabler: Implement desk booking systems and workplace sensors to gain real-time insights into space utilization. This data is key for further optimization and identifying areas for repurposing.

Right-sizing is an ongoing process. Continuous monitoring of workspace utilization, paired with employee feedback, will help ensure your office space remains a valuable asset that empowers your hybrid workforce.

Key Considerations for Right-Sizing

Data-Driven Decisions: The Heart of Right-Sizing

Gone are the days when you could right-size your office space based on gut feelings or outdated occupancy assumptions. In the post-pandemic, hybrid workplace era, data is your most powerful ally. Here's why:

Understanding Current Reality:

• Space Utilization Data: Sensors, existing access systems, or analytics platforms reveal how different areas of your office are actually used on a daily and weekly basis.
• Employee Surveys: Ask direct questions about workplace preferences, work patterns, and pain points to understand what employees value in an office setting.

Forecasting the Future: Data allows you to:

• Analyze Occupancy Trends: Spot patterns to help predict peak days, desk needs, and collaboration space usage.
• Model Scenarios: Use your data to model how space changes would impact utilization, allowing you to make alterations with confidence.

Key Tools to Consider:

• Workplace Analytics Platforms: Provide dashboards and insights from various data sources.
• Desk Booking Systems: Give a real-time view of space use and help plan for flexibility.
• Occupancy Sensors: Offer granular data on individual room and space usage.

Data isn't just about numbers; it's about telling the story of your workplace, ensuring your right-sizing strategy is based on reality, not assumptions.

Space Types and Collaboration: Designing for the Hybrid Workforce

Your data tells you how your space is used, but what should you do with that information? The focus on right-sizing shifts towards creating a variety of spaces that cater to the different functions the office now serves in the hybrid model:

• Collaboration Hubs: Since in-person connection is valuable, prioritize well-equipped meeting rooms, project zones, and informal gathering spaces of varying sizes and technology setups.
• Focus Zones: When work-from-home distractions abound, offer quiet, dedicated areas for concentrated work within the office.
• Shared Workspaces: Hoteling desks and flexible booking systems cater to employees who primarily come to the office for collaboration or when they don't have an ideal home setup.
• Technology as the Backbone: Regardless of space type, ensure robust Wi-Fi, video conferencing capabilities, and easy access to power and charging stations for seamless hybrid work.

Right-sizing isn't always about having less space, but rather, having the right kinds of space that support how your employees want and need to work.

Occupancy Planning: Right-Sizing for Now and the Future

Data from space utilization studies and employee feedback informs right-sizing decisions in the present moment. However, successfully navigating the hybrid workplace requires anticipating future needs as well. Here's how to factor occupancy planning into your strategy:

• Scenario-Based Modeling: Use your occupancy data to run "what-if" scenarios. For example: What if we shift to a more flexible schedule? How much would that impact desk need?What if another 10% of the workforce permanently transitions to remote work? How could that space be repurposed?
• Stay Agile:? Avoid overly rigid plans based on just one snapshot of your current usage. Continuously monitor occupancy trends and be prepared for adjustments over time.
• Factor in Growth or Contraction: If your company is anticipating hiring sprees or downsizing, build that potential into your occupancy models. This avoids being caught short or having excess space again in the future.
• Technology as a Forecasting Tool: Some workplace analytics platforms have predictive features, using historic data to help project future occupancy patterns.

Right-sizing is an ongoing process, not a one-time event. Occupancy planning helps align your workspace with your dynamic workforce, both for today's needs and what might come next.

Change Management: Bringing Your People Along

Even the most data-driven, well-designed right-sizing plan can falter without effective change management. Right-sizing a workplace impacts how and where people do their jobs, and it's crucial to address the human side of the shift.

• Transparency and Communication: Be upfront about the reasons behind right-sizing, the expected benefits, and the timeline for changes.? Proactive communication reduces fear and uncertainty.
• Employee Involvement: ?Surveys, focus groups, or pilot programs can help gather employee input and build buy-in. People are more likely to embrace a change they had a hand in shaping.
• Address Concerns: Be prepared for questions about desk assignments, the potential for noise and distraction in a reconfigured space, and technology needs. Have clear answers ready.
• Celebrate Success: As new spaces become functional or utilization targets are met, recognize those wins. This reinforces that the change is positive.

Right-sizing isn't just about the physical space; it's about evolving your workplace culture to support the hybrid working model. Change management smooths the transition.

Right-Sizing In Action: Practical Strategies

While your data and overarching plan provide the roadmap, the following practical strategies help you successfully achieve your right-sizing goals in the real world:

Phasing: Gradual change for adaptability

• Pilot projects: Start by converting one department, floor, or zone to your new right-sized model. This offers a real-world testbed to collect feedback and refine your strategy before a wider rollout.
• Monitor and adjust: Use workplace utilization data and employee surveys to assess the success of your pilot. Did it achieve the space utilization you expected? Are there pain points to address?
• Iterate and improve: Use lessons learned from the pilot phase to refine your plan for other areas of the office.

Lease Considerations:? Navigating contracts

• Early engagement with your landlord: Proactive communication is crucial. Explain your right-sizing rationale and explore potential options such as renegotiation, subleasing unused portions, or a phased reduction in your rented footprint.
• Understanding your lease agreement: Thoroughly review your lease terms for break clauses, penalties for early termination, or any restrictions on downsizing. Knowledge is power in negotiations.
• Future flexibility: If your company anticipates growth or fluctuations in the future, negotiate for shorter lease terms, flexible renewal options, or clauses that allow for expansion if needed.

Furniture and Equipment: Right-sizing your assets

• Reconfiguration potential: Examine your existing furniture. Can desks be rearranged into collaborative pods, can partitions be added for focus areas, or can unused desks be repurposed for storage?
• Evaluate actual need: A smaller office may necessitate fewer printers, copiers, or dedicated storage rooms. Analyze your current equipment usage against your projected needs.
• Invest in hybrid work technology: Ensure robust Wi-Fi throughout your space, upgrade video conferencing equipment in meeting rooms, and strategically place charging stations for laptops and mobile devices.

Right-sizing requires flexibility and adaptability. Be prepared to make data-driven adjustments as you implement your plan, responding to real-world utilization and employee feedback.

In a hybrid world, right-sizing your office isn't just about cost savings. It's about unlocking a more efficient, collaborative, and positive workplace experience for your employees while reducing your company's overall footprint.

Successfully navigating right-sizing requires facility managers to embrace a strategic mindset. Data analysis, workplace design, and effective communication are now essential skills for FMs leading this change.

Is your workplace ready for the future? Start by gathering data, understanding your workforce's needs, and developing a right-sizing strategy that aligns with your company's goals in the hybrid era.

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