London SMEs could save £75,000 in rent by embracing more remote working after Coronavirus

Small and medium-sized enterprises renting from serviced office providers in London could save a staggering £6,276 per month in rent if half of their staff worked from home – or £75,312 annually.

New research from conference call provider PowWowNow investigated the savings SMEs (businesses with fewer than 250 employees) could make if, following the shift to WFH caused by Coronavirus, they embraced remote working long-term.

Even if London SMEs encouraged just 20% (1 in 5) of their employees to work from home, this could result in savings of £30,120 per year.

House of Commons Business Statistics indicate that there were over 5.9 million SMEs in the UK as of 2019, accounting for 99% of all businesses. PowWowNow combined Business Statistics on UK SMEs with data collated by Office Space on serviced office space across the UK, as well as the meeting provider’s own research into remote working trends. 

The study also looked at the North of England, finding businesses in Newcastle, for example, could stand to save £2240 per month if half of their staff worked from home, totalling £26,880 a year. They could save £869 per month by moving to allow 20% to work remotely.

Meanwhile, in the South-West, SMEs in Bristol could save £1800 a month or £21,600 a year with 50% of their staff working away from the office, while in the Midlands, businesses in Birmingham could stay £2800 per month in pocket, or £ 33,840 annually.

Andrew Johnson, MD of PowWowNow, commented on the findings, ‘The Coronavirus pandemic has shown that many office-based companies can operate successfully with remote workforces. Looking ahead, savvy businesses should ensure that even post-coronavirus, they embrace remote working long-term and reconsider their office space requirements.

“Office rent is one of the biggest overheads for SMEs after salaries, and space is increasingly at a premium. Businesses should reimagine the way they work in order to cut costs and attract talent in a world where younger employees prioritise remote working. Not only that, but remote working during a public health crisis can keep your staff safe, and is also shown to boost productivity.”

Amount SMEs could save by implementing remote working (per year)
Newcastle £26,880

Author: Editorial Team

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