Reducing your Fixed Operating Costs post Covid-19.

One consequence of the Covid-19 pandemic has been the huge increase in remote working. With a lack of childcare provisions and prior planning these have been far from typical remote working conditions. However, for many this has served to highlight the efficacy of remote working. Those who have long been sceptical of employee productivity at home are starting to see that indeed there are many benefits of remote working. 

In a future post we will explore the benefits of results only work environments (ROWEs), the next stepping stone for remote organisations. However, in this post we will look at an immediate and apparent benefit of remote working, a reduction in your fixed operating costs. 

Keeping an office presence may be important to your organisation. There is indeed a huge value in a meeting of minds, bouncing ideas off of one another. Not to mention the importance of social connection and the fact that some workers struggle in isolated environments. But do you need all that space? With flexible working arrangements you can reduce office capacity and save some money in the process. 

Yet another cost reduction can come in the form of salaries. This is especially visible in areas with a high cost of living (I’m looking at you London ??). Operating in London provides immense advantages; proximity to customers and clients; access to a wealth of talent; networking opportunities and links to the global financial markets (among others). That being said, this comes at a price… Increased wages. Either your workers are based locally and have a higher cost of living which is indirectly passed on to you, the employer or more likely, they are travelling in from outside of London. With increased commuting costs and a reduction in spare time comes? You guessed it, increased salaries. 

By allowing your employees to work from home you reduce these issues and can bring down your fixed costs significantly but why stop there? For those employees that never have to come to the office, why not broaden your horizons and look nationally or even internationally for talent. Suddenly you can tap into labour markets at a fraction of the cost of the local market. A word of caution with this, of course there is a balance to be struck and only you can know where that fulcrum between a competitive advantage and cost lays. 

Whether you’re looking to recruit from a pool of local talent or internationally, partnering with a reputable recruitment agency can be vital to accessing the very best talent in the market at a competitive price. To find out more on how we can help you, get in touch with Devanta today.

This article originally appeared on the Devanta blog at: https://devanta.io/reducing-your-fixed-operating-costs-post-covid-19/