The world economy is in a “disequilibrium phase” characterized by unfavorable growth and inflation, and a worsening from here “cannot be ruled out.”, according to Singapore’s central bank.
Lots of Singapore companies are considering reducing operational costs and pulling back business spending in order to face the tightening financial conditions. Hot desking is one of the arrangements that can help to save your daily expenses.
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Flexible work in Singapore
The ministry of manpower in Singapore recently published the “Tripartite Statement on Flexible Work Arrangements(FWA)”, which encourages companies to sustain and promote flexible work arrangements as a permanent feature of the workplace.
One of the reasons for implementing FWA is it can allow employees to work more flexibly. This can not only allow people to achieve work-life balance but also help companies to retain talents and improve productivity.
Another reason why flexible working stays in Singapore is that it can highly reduce operational costs.
Hot desking save your operational cost
Office space is likely one of your businesses’ largest investments. However, office resources are usually wasted due to low utilization and misuse such as no-shows. The data from Inc. shows that as much as 40% of an office’s dedicated desk space is unused on a given day.
A flexible work approach is a much more attractive prospect when it comes to budgeting. The least expensive and most flexible solution for flexible working is hot desking.
Hot desking can reduce their office operating costs by 30% while saving 15% to 25% on the amount of space they require. You just show up and take the first position that opens up, so look for a location that isn’t really busy so that you have no trouble grabbing a seat.
For unlimited access, budget $200 to $500 per month; if you only need it sometimes, choose day tickets. Dedicated desks, where you can keep your excess items and an external display, start at $400 per month.
When fewer people are required to work in physical offices each day, savings from utilities like heat and electricity can be also spread and put toward a strong digital infrastructure.
Mr. Chen Chun-You, a Singaporean tech entrepreneur who founded the e-payment service Sapphiro, said flexible working can help him to rent prime housing at a lower rate in a remote place.
Meanwhile, his company income would not be reduced as the online management platforms support the company to still work in high efficiency.
How much can you save when using hot desking in Singapore?
Based on the article from Officefinder, according to data released by the authority, in the first 3 months of 2021, the median rent for traditional office space in Singapore was between $2.51 and $7.95 per square foot per month with a total of 665 leases concluded.
That means an average office space with 2,000 square feet that can contain around 10 employees in Singapore will cost around $5,020 to $15,900 a month. When compared to the previous quarter in 2020, the number of office leases increased by 10.46% in Q1 2021.
Therefore, if a company that has around 10 employees is willing to implement hot desking, it can save on average $9,036 to $28,620 in office operating costs per year.
In conclusion, a hot desking arrangement with a hybrid working system can be used to reduce office space. Once space is reduced, the cost of rent will go down. Costs associated with lighting, heating, and maintenance will also be decreased.
Learn more about how hybrid working helps you, and implement your own All-in-one smart office system.