How reducing office space saves on recruitment and lowers operational costs

With the Government Budget introducing changes such as National Insurance Contributions rising, the National Living Wage increasing by 6.7% and Capital Gains Tax hikes coming into effect (gov.uk, Oct 2024), UK businesses are facing significant financial pressure. Add to that the growing costs of recruitment, and maintaining a healthy profit has become more challenging than ever.

Gravity Office Interiors believe that organisations can find immediate relief by re-evaluating their office space. Many business owners are paying for oversized, underutilised workplaces with high leasing costs, often without receiving real value in return. If your lease is nearing renewal, or you’re planning for the next 6-18 months, they advise reassessing your needs to maximise your return on investment.

The Financial Benefits of Downsizing

Despite its negative connotations, strategic downsizing can unlock substantial savings and operational efficiencies. When coupled with the right interior fit out experts, it allows you to eliminate wasted space, reinvest resources into driving profits and remain competitive.

The results speak for themselves:

• Reduced Staff Costing - A positive workplace culture and environment leads to higher employee retention, cutting down recruitment spend. This is especially important in the current market as hiring and onboarding new staff comes with substantial costs.
• Increased Productivity - Optimising office space can improve operational efficiencies, reduce distractions and enable teams to perform at their best.
• Lower Operational Costs - Smaller spaces come with lower rent, reduced utility bills and less maintenance. It’s also better for the environment too!
• Improved Cash Flow - Savings from reduced operational expenses can be redirected into growth-focused areas such as innovation or recruitment.
• Streamlined Operations - Reconfiguring your office layout to focus your resources on your business’s core activities, increasing profitability and encouraging a collaborative culture.
• Long-Term Financial Sustainability - Strategic downsizing leads to long-term financial sustainability and aligns spending with your actual needs.
• Reduced Staff Costing - A positive workplace culture and environment leads to higher employee retention, cutting down recruitment spend. This is especially important in the current market as hiring and onboarding new staff comes with substantial costs.

The Hybrid Office: Do You Need to Downsize?

Gravity Office Interiors partnered with Signal, a marketing agency in Cheltenham, to support their transition to a hybrid work model. As one of the first companies in the area to fully commit to flexible working, the Signal office underwent a significant downsize, reducing desks from 80 to 25. Moving from their previous 14,000 sq ft lease at St James House to a 5,000 sq ft lease at Jessop House was a significant yet strategic change.

Their new hybrid working policy meant employees were empowered to decide where they work best, even if that meant from home. This resulted in the underutilisation of their previous office, with Signal realising they required a smaller, purpose-driven workplace, built for collaboration.

Gravity Office Interiors supported this transition with a space planning service, identifying the types and quantities of work areas needed. The new office plans include open plan, flexible team spaces, dedicated meeting rooms, hot desking for 25 people, a reception area and collaboration zones. Every corner was designed to meet the needs of their hybrid workforce.

On their downsizing experience, Signal commented: “The feedback has been overwhelmingly positive”, noting that a potential new candidate shared, “Our office was better than anything she’d seen in Cheltenham.”

Signal’s office is designed for the future. With multifunctional spaces and a strong digital focus, the office is agile to keep pace with evolving requirements, remaining relevant for the next generation of workers. It’s a cost-effective project that reflects the realities of hybrid working and frees up resources that can be invested in future growth and recruitment.

How to Maximise Your Office ROI

The process of downsizing alone will help reduce your rent costs, meaning more cash for reinvestment. This additional investment will improve productivity and save on recruitment costs as you’ll retain staff for longer. Plus it will also have a positive impact on attracting new and exciting talent.

As a simple example, imagine you have a £55,000 budget for re-designing your office. If you have 50 employees, then over a period of 5 years, this will cost you £220 per employee per year - that’s £18.00 per month!

Of course, downsizing isn’t always the answer. Gravity Office Interiors has developed a Space Calculator, designed to ask and answer the right questions from business owners to determine exactly how much space you need in your office.

Get in touch with the team for more advice on 01242 506208 or find out if you need to downsize here.

About Gravity Office Interiors

Gravity Office Interiors is an innovative and creative fit out company in Cheltenham, distinguished by design quality. Using data-driven workplace analysis and a passion for creating engaging workplaces, we deliver detail-oriented, end-to-end fit out solutions.

With their flexible financing options, you can further improve cash flow by spreading the costs of your fit out project into manageable monthly payments - something that the benefits of a well-designed workplace can offset. They additionally provide indicative, upfront costs for your office fit out, which can be instantly calculated using their Fit Out Calculator. This transparent breakdown helps you plan and budget for your office redesign with confidence.

If you’re ready to stop wasting space and start investing in a workplace that delivers real returns, send an enquiry to our Gravity Office Interiors experts today.