The impact of the Covid-19 pandemic has generally been negative, but a few good things have emerged from it. We have been pushed to be much more flexible and open-minded than before to cope with the new normal. Businesses have also had to adopt changes to enable them to reap benefits in the short and long term.
One of these changes is the hybrid working model, which has been beneficial to employees and employers. In fact, some small businesses have saved an average of £4,000 monthly thanks to the model. Here’s how.
How is the hybrid working model saving small businesses money?
Rent
As the pandemic took hold and working from home became the norm, small businesses quickly realised they were renting too much space and paying inflated rental rates.
With the working from home (WFH) or hybrid working model, such large amounts of space are no longer needed, meaning reduced rental rates. In fact, research from Hitachi Capital Business Finance reveals that small businesses with fewer than 50 employees are saving around £4,000 a month on rent.
Utility bills
Energy prices are a hot topic right now, particularly following the news that Ofgem is raising the price cap by 54%. With the energy crisis significantly impacting both gas and electricity bills, many small businesses are deeply concerned about rising costs.
The hybrid working model has helped some small businesses to reduce some of their utility bills, leading to some significant savings.
Are there any concerns?
Undoubtedly, businesses are making huge savings, and so are employees. Many workers are happy that they don’t have to spend money commuting from home to office, as the hybrid model means they are needed in the office far less frequently. However, there are some concerns.
What will happen to employees whose jobs rely on workers being in the office, such as cleaners and catering staff? Does the hybrid model mean they lose their jobs? Some are worried that in the long term, the hybrid model may bring about productivity concerns because of lack of motivation, poor socialisation and distractions due to the lack of a good working environment.
And in light of Ofgem’s recent announcement, some employees are concerned about increasing home utility bills, which would be lower if they were in the office.
Take home
Like every business decision owners make, especially during the pandemic, many factors need to be considered first. The hybrid working model may or may not be suitable for your business, but if it is, it’s worth finding out whether you can save some cash.
The good news is that most employers claim that their workers are happy, and productivity hasn’t been affected. In fact, employees don’t miss the long drives to work or getting stuck in traffic on cold and wet mornings. They work better and have plenty of time to bond with their families.
Employers are reporting huge savings from not having to pay inflated rental rates and heating and lighting bills on the business side, suggesting that overall, it’s a win-win situation.
Evaluate your business and consider all positive and negative factors, and remember to include your employees in your decision-making.
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About the author
Victor is a freelance writer who loves to read and write about personal finance and related disciplines with the aim of educating people to make better financial and investment decisions.
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