‘Work as a set of activities, not a place’: How companies reducing the office footprint are reallocating capital

Daniel Anstandig, cofounder and CEO of Futuri, an AI-powered audience-engagement platform that serves media companies like Nexstar and Cox Media Group, has observed that as many firms shrink their space, they are reinvesting in their tech infrastructure, in particular services that facilitate hybrid work. Other companies are evaluating where their offices are located, and whether less costly markets would enable them to reinvest in developing talent and better facilitate the working preferences and wellbeing of their people. 

“There’s a new reality and awareness that just closing an office is not enough: there has to be more of an investment in the wellbeing of a team and how it’s going to be coordinated around the mindset of a team,” Anstandig said.

When it comes to decisions around reallocating capital that would’ve spent on office space, “companies and business leaders should be oriented around work as a set of activities, not as a place,” said Joel Steinhaus, CEO of Daybase, a network of on-demand work locations created last year by a group of former WeWork executives. “In today’s hybrid work environment, where virtual connection has become more commonplace, leaders should be striving to make every virtual collaborative experience as secure, inclusive and engaging as those that are face-to-face.”

Daybase’s model for the hybrid workplace centers on building out a network of well-equipped work locations, built close to home in neighborhoods across the U.S. When combined with the office and home, the idea is that the Daybase location forms a complete hybrid work ecosystem. “Historically, companies and employees have been limited to the imperfect choice between working from a centralized corporate office or co-working space, and working from home,” said Steinhaus, formerly head of strategic initiatives at WeWork. “But the pandemic has created a demand for a seamless hybrid work experience.”

Beyond real estate, Steinhaus believes companies should invest in digital tools that will make employees more productive and engaged when they are in the office. Innovations like desk booking and digital concierge services serve to enhance the user experience for employees needing to book meeting spaces, workstations, parking spaces and meal delivery, he advised.

As with Angi, team-building exercises with remote employees is now more important than ever, Steinhaus agreed. Firms should reinvest in offsite initiatives and team gatherings. “Even in their remote day-to-day lives, people want to be social and connect with their team members to help facilitate open dialogue, create authentic connections, and build trust,” he explained.

Finally, he believes employers should not stop short of investing in wellness initiatives for their teams, a growing priority at many companies as they emerge from the pandemic and return to the office — and, everyone hopes, some semblance of normalcy. 

“The past 18 months not only took a toll on everyone, but also brought into stark relief the need for workers to prioritize their health and wellness,” Steinhaus added. “A great way for companies to reallocate funds is to consider the overall health of their people.”