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Desk shortage holds back the ‘return to office’ push

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December 27, 2024
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Desk shortage holds back the ‘return to office’ push
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British employees are pushing back against calls to work more frequently in the office, amid complaints of insufficient desks and facilities.

A fifth of workers surveyed by Remit Consulting cited a shortage of workspace as one of their top three reasons for staying away. Researchers say this highlights how some firms cut back too far on office space after the pandemic ushered in a wave of home working.

Several major companies have pared back their real estate footprints to reduce overheads, with insurers such as Aviva and banking giant HSBC among the most high-profile. HSBC, for instance, will soon vacate its Canary Wharf tower for a smaller building near St Paul’s Cathedral.

Elijah Lewis, of Remit Consulting, said the findings “clearly merit further investigation”, adding: “If this trend continues, it could suggest that the shift towards prioritising meeting and breakout areas at the expense of individual desks may have been taken too far.” He noted the survey began probing sentiment around desk shortages only in November, following feedback from property managers that it was quickly becoming a pressing issue.

It is a challenge that has also beset major firms in the United States. Retail and technology giant Amazon, for example, was forced to postpone office returns for thousands of employees after realising there would not be enough physical space for them to work on-site five days a week.

For British workers, however, the number one reason for avoiding the office remains the hassle and cost of commuting. Noise and distraction levels in an office environment were also cited as key deterrents.

Despite such concerns, Britain’s office occupancy rates reached their highest monthly average in November since well before the pandemic. Attendance topped 35 per cent for the first time since Remit’s survey began in May 2021, reflecting the gradual relaxation of lockdown rules.

“Increased publicity around mandates for returning to the office may have contributed to the sustained rise in attendance, suggesting that employees are adapting to in-person collaboration,” said Lorna Landells of Remit. “This reduction in resistance to full-time office mandates could signal a shift in workforce sentiment, potentially easing the implementation of stricter attendance policies for some organisations.”

Remit’s research indicates that businesses placing a strong emphasis on meeting, collaboration and networking opportunities are likelier to draw staff back more consistently. The study also suggests fewer workers than before now say they would quit if told to return full-time, a likely reflection of greater acceptance that the flexible working era still includes a significant in-office component — and that job-hunting in the current climate can be more challenging.

Meanwhile, the survey revealed that the volume of external visitors to office buildings has risen in recent months, pointing to greater numbers of face-to-face meetings with clients, customers and partners. Many employees admitted that their decision to come into the office depends on who else will be present on any given day. In some cases, even a free lunch can serve as an incentive.

“Offices increasingly need a purpose,” Ms Landells explained. “They are evolving into hubs for collaboration, networking and client engagement, rather than just rows of desks for routine tasks that can just as easily be done at home.”

Even though office occupancy has climbed, it is still nowhere near pre-2020 levels. Before Covid, offices were generally considered ‘full’ at around 60–80 per cent, accounting for annual leave, external meetings and sick days.

No surveyed worker gave their office space top marks, suggesting there is still much room for improvement. Many employers are now reviewing whether the cost savings of smaller offices justify the challenges of trying to accommodate staff who, after years of hybrid working, still need enough desk space to feel both welcome and productive on-site.

A recent report by Centre for Cities also showed that London workers are coming back more slowly than those in Paris and New York. Where British businesses have introduced back-to-office mandates, the most common requirement is around three days per week, lagging behind Sydney at four and behind other global hubs like Singapore, New York, Toronto and Paris.

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Desk shortage holds back the ‘return to office’ push

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