Virtual Offices vs Conventional

Telecommuting is particularly good for startups and small companies due to financial constraints. However, the growing trend of virtual offices does bring with it a host of problems. Most of which are social.

It has been argued that the social aspects of a conventional office are actually an inhibitor to productivity, however some key considerations are:
Social interaction has a massive impact on motivation.
Interactivity is particularly desirable in creative environments.
A closer knit team can be fostered in a conventional office than one that rarely meets face to face.

To many, the people they work with influence their overall job satisfaction and has a key influence on everything from job satisfaction to retention.

Productivity
Employees can work for longer in a home environment, but is this really a good thing? In a virtual office environment, I believe it is important that any employee that telecommutes should have a real vested interested in performing to the best of their ability and that incentive is part of this. However when does it become too much?

Longer Hours
In the UK we already work longer hours than our European counterparts which is not good for our well being. Even if employees can get more done, they are less likely to be able to approach work with a fresh mentality if they cannot disconnect themselves from their work. This will have a detrimental effect on the quality of their work and their creative abilities.

Managing a Virtual Office
Management can be more difficult due to a lack of supervision, but this can work both ways. By setting target based work and deadlines a positive outcome can be reached with the right kind of employee.

How to Maximise Efficiency
The most important thing is to be very careful from the selection process onwards with virtual office workers. Not everyone is suited for it but it can work well and reduce overheads in certain circumstances.

Know When to Change
As your business grows, stepping up from a virtual office becomes more desirable for a number of reasons. Having to book meeting rooms when you are dealing with clients more regularly can prove very expensive and far less convenient. Having an office forms part of your overall company image and can say a lot about your ethos. You could expect to reduce the following costs

• Having to meet health and safety regulations at multiple locations.
• Information security (cheaper and easier from a central location).
• Meeting rooms

It will also increase the scope of the kinds of employee that would be suit your team. Telecommuters who work well can of course continue to telecommute.

Conclusion
While telecommuting is great for startups and certain smaller companies, having a central office can be very advantageous and striking a balance between office working and telecommuting can make your business more dynamic.

For further information or advice, do contact us.

The office letting market continues to evolve all the time. Recently, there has been a growing trend towards opting for sublet office space. It’s appeal stems from the fact that in-going tenants have the opportunity of acquiring an office with a tenant fit out, meaning that they can potentially get partitions, communication rooms, a kitchen and other facilities already in situ.

It was not very long ago that office space was routinely stripped of all partitions and tenants fixtures for marketing purposes.

Why Was This?

The consensus used to be that office floors looked more attractive when empty. They were presented as “carte blanche” and new tenants were to be given the “opportunity” to start afresh. The in-going tenant would be able to design and erect their own partitions in order to meet their specific layout requirements. Another significant benefit of presenting an open plan space is that there are clear views of the windows, meaning that the all important natural light is maximised.

How Have Things Changed?

In current economic circumstances, knowledgeable tenants are searching for the opposite. They are targeting London office space that other tenants are seeking to offload, with the key consideration being that in today’s climate, they aim to secure it without the removal of partitions; before the space is returned to open plan.

Most tenants require an amount of open plan office space, but also need meeting rooms, directors offices, a board room, a small kitchen, a store and a communications room. To have these already in place can result in an immense saving.

At FindaLondonOffice, we recognise the value of this strategy and frequently help our clients to find space with the benefit of a good tenant fit out already in place, if ideal. Talk to us to find out more.

Making the decision between conventional London office space and serviced office space largely comes down to leasing requirements and the timeframe that you have in mind. Freehold office space gives you total control, however it is a substantial investment to make. Leasehold is a lesser financial commitment, however it does mean that you cannot stay for as long as you like and are open to rent increases.

Here are some of the pros and cons of each option:

Serviced Offices Versus Conventional Offices

Serviced offices provide flexible short term leases:

• They are immediately ready to do business in
• Plenty of support services
• It is a bit like staying in a hotel really! However, they are more expensive

Conventional offices are ideal for the longer term:

• Take a lease for 3, 5 or 10 years
• Fit it out how you want it.
• The acquisition process is not instant
• You pay the rent, rates and service charge
• It generally costs a lot less

Rent or Buy

Freehold

• Owning a freehold gives you total physical control
• Owning a freehold largely gives you total financial control
• If you spend money on it, it’s your asset

Leasehold

• This gives you the opportunity to take space on 1 floor
• The financial commitment is much less
• You can leave at the end of the lease
• You usually have to return it to its initial condition
• You may not be able to stay for as long as you want
• You may have upward only rent increases