Main Drivers for Change
Energy efficiency now high on the agenda.
Keeping a lid on energy costs and energy efficiency are certainly higher on the agenda than ever before. It explains the desire to move to high-quality and energy-efficient office space.
We asked businesses what the main drivers for changing their office requirements were. The top five responses were:
1. To reduce energy bills or improve energy efficiency
2. To have greater flexibility in how and where we work
3. To accommodate different working patterns – more people are working from home
4. To reduce rent costs or avoid rent review
5. To better reflect our brand and aspirations
30% of respondents who work in the finance industry said the main driver for changing office space is to reduce energy bills or improve energy efficiency. 20% of those working in the IT & telecoms industry said the same.
What if anything has been / would be the main driver for changing your office space requirement?
Considering employee needs
Just below our top five reasons, 18% of respondents said a main driver for changing office space is response to employee demands, and to attract and retain good staff. The same percentage also said a main driver is to accommodate an increased number of employees.
Location, location, location
17% of respondents said a main driver for changing office space is to be closer to or more convenient for clients and customers.
Our survey showed that, for bigger companies, keeping employees happy is still a big driver.
40% of respondents who work for a company with over 1,000 employees said the main driver for changing office space is to accommodate different working patterns, with more people working from home.
This compares to only 14% of respondents who work for a company with less than ten employees who said the same.
What, if anything, do you think is the biggest threat to your business in the next 12 months? (respondents chose 3 options)
Rising costs, whether materials, wages or bills appears to be the biggest fear for businesses, together with a UK economic downturn and inflation, which is currently at a 40-year high.
This is particularly an issue for smaller businesses. For many, the climbing costs of energy, rent and raw materials could be their breaking point.
Over half (56%) of respondents who work for a company with 10 to 49 employees said the biggest threat to their business in the next 12 months is rising costs. This is compared to 33% of respondents who work for a company with 250 to 500 employees.
Many businesses will be questioning whether they should attempt to pass these costs onto customers. With consumer activity already down by 0.8% last year, according to Barclays, increasing the costs of products risks customers looking elsewhere for less expensive competitors.
The other option is for businesses to try and absorb the costs themselves, which may not be realistic or sustainable – again, particularly for smaller businesses.
Interestingly, 15% of respondents said one of the biggest threats to their business in the next 12 months is a pandemic.
This perhaps reveals concerns about employees being off sick, or the impact on sales and supply shortages. This shows the threat hasn’t yet completely gone away, with many businesses still feeling the effects of the COVID-19 pandemic.
Only 4% of respondents said they had no particular worries in the next 12 months.
Another issue that businesses should be aware of is cyber-crime. In 2022, cyber-crime cost the UK £3.1 billion, and the number of attacks is increasing. Globally, cyber-crimes are expected to cost £9.3 trillion by 2025.
The impact of cyber-attacks on businesses can be devastating. They can cause your company’s website to shut down, losing you sales, and bring your internal systems to a halt, costing you time and money. As well as financial losses, poor cyber security can come with legal penalties and significant reputational damage. If customers, colleagues, and stakeholders aren’t confident that you’re protecting their data, they could lose confidence in you and look for business elsewhere.
You can keep your systems watertight through regular training, auditing, and seeking advice early.
“Ignore cyber security at your peril. Businesses that fail to implement effective security measures and continuously update their defences will inevitably fall victim to devastating cyber-attacks.
“Don't wait for disaster to strike, take immediate action by maintaining good basic cyber hygiene, such as strengthening device security, educating employees on identifying threats, and having a robust incident response plan in place to mitigate the damage of any successful attacks. The future of your business depends on it."
Graham Thomson
Chief Information Security Officer, Irwin Mitchell