Flex office in the company : detail of the return on investment

Like all businesses, you are surely looking to optimize your expenses to remain competitive. Maybe you are trying to cut back on internal services or increase your margins… What if the problem was elsewhere? Did you know that the cost of a workstation is exorbitant? €11,116 excluding VAT per office and per year in 2020…

Fortunately, there is a solution to reduce expenses, while guaranteeing the comfort of employees: flex office in business.

Discover the financial savings expected by switching to a flexible office and the return on investment of this new organizational method.

The Exorbitant Costs of Corporate Offices

Each year, the ARSEG (Association of directors of the working environment) reveals the cost of a workstation in a company. In 2020, each post would cost just over €11,000 excluding tax per year (€11,116 excluding tax). €620 excluding VAT per m² of building, each year. A price, moreover, on the rise.
The study is carried out mainly on tertiary buildings in mainland France, excluding epidemic periods, excluding employee travel costs. The 2020 study is carried out with data from 2019.

Dizzying, right?
But how to explain such a high price?

The study breaks down the expenses as follows:

● 45% for rents and insurance.
● 6% tax.
● 28% means and equipment.
● 13% building operating costs.
● 8% supplies, occupant services and HR.

Rent, insurance and taxes (calculated, among other things, on the surface of the premises) account for more than 50% of the cost of a workstation. These expenses have been on the rise for several years.

Despite certain widespread beliefs, the savings are therefore not to be made on services… But of course on real estate.

Financial savings thanks to the transition to a flexible office

Flexible office operation

How to significantly reduce the cost of rent? The solution is obviously not to move to low-end premises. But rather to reduce the real estate footprint of the company.

This is the challenge of flex office in business. In this new organizational method, the offices are not appointed. Different workspaces are made available to employees, who can move among them according to their needs.
Thus, with flexible offices, it is possible to reduce the number of workstations and the surface area of the premises… So the expenses.

Namely, beyond financial savings, this modern organization of buildings is also eco-responsible.

Example of financial savings in flex office

Take the example of a company with 100 employees.
Until now, this company had 100 workstations. Noting a low office occupancy rate – due to an increase in travel, teleworking and team meetings – the management decided to switch to flex office.

The internal reorganization allows them to go down to 80 workstations. The vacated premises are returned, the remaining spaces are reorganized to give a greater share to collective spaces.

Quite naturally, the company realizes significant financial savings. Reducing their real estate footprint allows them to reduce the costs of rent, insurance, services, operations, etc.

In 2020, the average cost of a workstation was €11,000 per year. Thus, the company goes from an annual cost of €1,100,000 to €880,000 per year.
But that’s not all because, as you can imagine, the transition to flex office has a slight cost.£

The return on investment of flex office

This is precisely the objective of our Workspace offer.
● Sensors allow you to measure office occupancy rates, to reduce the number of workstations without error. When the flexible office organization is in place, these same sensors are used to identify whether or not workspaces are available. These wireless devices are easy to install and use.
● Using an intuitive application, your employees can then reserve their workspace and view available positions. A must for a successful transition.

The Ubigreen solution costs less than 1% of the annual cost of a workstation… But promises great financial savings.
In concrete terms, your investment amounts to €100 per workstation.

Example of return on investment in flex office

Let’s take our example of a company with 100 employees. Its initial real estate costs amount to 1,100 000 € excluding tax per year.
The company is investing in the Ubigreen Workspace solution to switch to flex office and reduce its number of workstations by 20%. Good to know: depending on the changes you want in the buildings, you can add costs for reorganizing spaces or moving.
Upon arrival, each workstation costs €11,000 excluding VAT + €100 excluding VAT (Workspace Solution). Thus, the premises of the company, with 80 offices, cost 888 000 € excluding tax.
Finally, the financial savings amount to 212 000 €!
Added to this are gains in the well-being of employees, an increase in productivity, etc. Returns on investment that are difficult to quantify, but very real.
The implementation of flex office in business
Are you finally convinced of the relevance of flex office? Have you decided to drop the model with one desk per employee, empty half the time?

To avoid the pitfalls of poorly prepared flex office, and ensure a pleasant daily life for your employees, several steps are necessary.

● Measurement of the initial occupancy rate.
● Definition of a strategy adapted to real use.
● Adaptation of workspaces to real needs, while reducing the company’s real estate footprint.
● Implementation of solutions to facilitate daily flex office and ensure user comfort: work policy, but above all a digital solution dedicated to flexible office. Ubigreen Workspace supports you throughout this process.
● Our space occupancy sensors, easy to install and discreet, allow you to understand the use of your premises and know the availability of spaces in real time. These wireless sensors are placed under desks, guaranteeing maximum efficiency, without inconveniencing users. Our equipment uses the Sigfox network.
● Our flex office application My WorkSpace facilitates the daily life of employees: office reservation and company restaurant, visualization of available spaces (information collected by sensors), internal communication, etc.

Due to the increasing costs of corporate offices, the move to flex office for companies promises significant financial returns. To go as smoothly as possible, this transition still requires solid support and appropriate tools. Contact us to learn more about our smart office solutions.