We had some slight pushing into going into the office more, but instead of firing people, it was decided to switch to a smaller office space, so the people who like to work in an office can do so, and less money is wasted on a mostly empty office
Understandable that this is not an option for all companies, but insane that people are happier losing talent than at least trying to work something out
When the CEO personally owns the building and leases the office space to the company, that’s not an option.
Then he should act like any other office building owner and rent some space to other companies.
Bonus points if he gets with the future and works to convert some of the building to living space so people don’t have to travel to get to work. Not everybody will want that, but it will appeal to enough to make it worth doing. Shopping malls across the country are being converted to such hybrid spaces so most everything one needs is within a convenient distance.
Bold of you to assume he already doesn’t. But WFH across many industries drives down urban office space value overall.
Then he should act like any other office building owner and rent some space to other companies.
There are more buildings/office spaces to rent than people wanting office space these days. There are LOTS of empty unrented buildings. He would have difficulty even finding a tenant.
Bonus points if he gets with the future and works to convert some of the building to living space so people don’t have to travel to get to work.
An exceptionally small number (we’re talking single digits in the world) of Class A office buildings are good candidates for this, and these are typically done with grants/subsidies from state or local governments. These are only in the most lucrative geographic locations where housing is at an absolute premium regardless of the cost.
For good value of converting office space look at Class C buildings. These are typically older and smaller office buildings (think built in 1910s-1950s). In these, there are ways to make cost effective residential conversions and these are happening by the dozen now.
Anyone who does not understand the sunk cost fallacy should not be in management.
You’ve spent $x on office space. You can:
A. Use it, and make your employees hate working for you or
B. Let it go unused, and your employees are happier to continue working for you.
The money is spent either way. The only difference is morale, which does in fact directly contribute to your bottom line.
Or c, keep just enough office space to create rolling “layoffs” as people are asked to return to the office.
When you are locked in to a 3/5/10 year lease for the space, that’s not actually an option. Most leases signed pre covid should be up by now but clueless management probably renewed anyways.
And the really big corporations own their buildings. You think the company locked into leases are mad? The companies who own the building are pissed! Some have a multi million dollar building that’s losing value faster than the speed of light.
IMO, it’s worse than that. It’s not like creating a digital product, paying for a Super Bowl ad, etc. Those desks, phones, computers all still exist and can be sold. Not to mention the real estate! The slightest bit of foresight and planning and these companies could easily offset any costs they’re paying, but no; they only focus on the current fiscal quarter…
We don’t even have the office space anymore for full RTO. If at some day too many people would go into the office some wouldn’t have desks to work on…
Worked at Boeing, where you have 1990’s cubicles with 17" 3:4 monitors. I’m glad to he back in the office.
So does that mean you guys are gonna start doing actual work on the new planes, or…?
I think some of them are also doing it for the tax breaks they get if they pump a bunch of employees into the local area’s economy.
And we all know how difficult is is to get companies to voluntarily give up free tax money from the government. It’s like trying to take drugs away from an addict.