Should You Consider Consolidating Your Office Locations During COVID-19?

The pandemic has shaken every sector of the U.S. economy and, in fact, no company is immune to its effects. Most experts believe that COVID-19 will continue to have a big impact for most if not all of 2021, meaning companies must continue to develop strategies to mitigate the risk of transmission and continue smooth day-to-day operations in the event of shutdowns. Many companies that occupy multiple offices are taking steps to shutter one or more of their locations and consolidate their workforce. Here are some signs that doing so might be beneficial for your business:

1. You Already Had Unused Space Before the Pandemic

Because base rent is based on square footage, used office space equals wasted money. If your company already had large swaths of empty offices and desks in one or more locations before the pandemic, consolidating now will help eliminate unnecessary costs.

2. Your Team Isn't Onboard With Returning to Work

A survey conducted in December by Future Forum by Slack found that 30 percent of workers said they would quit if they were asked to resume on-site work by their employers. There's a good chance that some of your employees feel the same. In addition to wanting to avoid the risks of catching the virus, many people have likely found that teleworking gives them a better work-life balance and would like to continue to remain at home. Conduct a survey to find out how many of you employees feel this way. If it's a majority, consolidating offices and having only a few key employees working on site can help you retain your team.

3. Your Offices Are All Located in Downtown Areas

Many large corporations have announced intentions to close their offices completely, leading experts to believe that the downtown areas in many major cities are on pace to become ghost towns. Eliminating offices in these locations can lead to big savings, especially if you consolidate to a suburban location. Such a move might delight your employees, too. A study found that 15 million Americans have moved or are considering moving to the suburbs due to concerns about coronavirus.

4. Improving Efficiency Is Among Your Strategic Goals

Having a single centralized location with teleworkers can simplify a wide range of daily tasks and allow for easier collaboration. For companies that are laser-focused on upping efficiency, consolidation is a smart move.

5. You Made Large Investments in Technology for Teleworking

Not all companies were ready to go virtual at the start of the pandemic. If you're one of the many businesses that had to invest heavily in new technology to allow employees to work from home, it may make sense to continue this arrangement and consolidate your nearly-empty offices. The savings in rent could help to recoup all or some of those costs.

6. Instituting Health and Safety Protocols Is Proving Challenging

If your employees are returning to in-person work, you need to take steps to protect their health and safety. The more locations you have, the more complicated and potentially costly this can be. Consolidating allows you to focus on developing protocols for fewer locations, not only simplifying the process but also allowing for easier monitoring going forward.