The Quarantine Quandary

The Hidden Cost of Unused Offices

Covid-19 has had a devastating financial impact on the UK's economy. It has forced entire industries to re-evaluate the way they operate and there is an urgent need to reduce overheads and save money.

Office-based businesses are being forced to re-organise their working practices as workers continue to work from home and appear to be reluctant to race back any time soon.

 Why should they? They are saving money and time all round by not travelling, no expensive lunches or take away cappuccinos, and a better quality of life with less stress.

The issue of home working has thrown up a number of challenges. The service industries that support the once busy business hubs are struggling – many will never return. It is a major dilemma for policy makers and government.

There are a variety of predictions that indicate office blocks will be mothballed or converted for other uses, as companies realise that they do not need to carry such expensive overheads to run their business.

This also has a knock-on effect on the internal services within offices, which is only dawning on business owners and senior managers.

While office space is a fixed overhead, the cost of assets deployed within an office environment which are unused are a costly waste of money as well, but at least this can be remedied.

Apart from the impact of the pandemic, new working methods have also conspired to reduce the need for a large office environment. As organisations reduce headcount and more employees work from home, there is simply no point in retaining existing internal services at they stand. Alternative service provision is often available and significantly more cost effective.

As an example, take printer and copier fleets. These assets will have been unused for several months. With reduced numbers of staff returning to work, they are now going to be used less and less, if at all, but the monthly bills keep rolling in – this is one of the hidden costs of unused offices!

With declining revenues, and increasing overheads, companies need to make a choice about how they manage their business in the future.

Companies will need to reshape themselves, both in terms of the way they do business, and dealing with their costly overheads.

No-one knows your organisation like you, but sometimes you can get too close to it, and be blind to some vital indicators. This is where external expertise and insight comes to the fore.

‘Auditel’ are a business support services company that advises on and implements solutions in the following key areas:

• Cost control / reduction
• Procurement strategies / supplier management
• Supply chain management / transformation

The one thing you can control within your organisation are costs and overheads. Many of these areas are indirect, so are often unseen, and can be very costly if not dealt with sooner or later.

For further information, please contact me and I can provide you with further details.

Alex Scott

[email protected]