* Where employees work should not be as relevant as how they work and what they do
When financial indicators start suggesting an economic slowdown, employees question the stability of their jobs and employers look to trim fat from the company. So how does a rudimentary economic discussion relate to your branch offices? That depends on how and why your company embraces the concept of a virtual workplace.
When financial indicators start suggesting an economic slowdown, employees question the stability of their jobs and employers look to trim fat from the company.
If you haven’t been keeping up with the business press, several economists and investment managers are predicting a recession (though in all fairness, several are not, and some indicators suggest the recession fears are not well-founded). We can at least agree that U.S. household income and industrial production are slightly down, and the housing market is in a slump.
Those factors alone have caused many companies to tighten their budgets and put a temporary freeze on new projects.
So how does this rudimentary economic discussion relate to your branch offices? That depends on how and why your company embraces the concept of a virtual workplace.
The first few things companies may do in an economic slow-down is close offices and lay off employees, both as ways to cut costs.
My hope is that in this economy – and with the huge advancements in collaborative technologies – companies won’t make rash and unnecessary decisions like this without examining the facts.
First, branch office facilities costs dwarf urban-headquarters costs significantly. Nemertes has found that these costs can decrease by as much as 50% per employee when they move from urban to suburban or rural locations.
Second, if companies are cutting the branch offices to eliminate real-estate/facilities costs, to streamline customer service, or because the location simply isn’t needed (as in a retail store that isn’t making its projections), the people shouldn’t go solely because they’re affiliated with that location. I know it sounds basic, but we see it happen. One of the best solutions is to let them work from a home office. This is particularly true for sales people, contact-center agents, and other knowledge workers.
With the right communications capabilities, services, and applications, moving the appropriate people to a home office is a smart business decision whether the economy is up or down!
Finally, don’t overlook the service impact. For banks, retailers, insurance companies, and investment companies, pulling that physical presence out of a community is likely to cause significant loss of business – unless you can turn people to another nearby location or to a Web-based portal. In either case, people remain the key – and where they work should not be as relevant as how they work and what they do.
