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CEOs are also going to face significant budget scrutiny and will have to really justify signing a 10 year lease (which won't be cheap) instead of investing in t
by spamizbad 4y ago
CEOs are also going to face significant budget scrutiny and will have to really justify signing a 10 year lease (which won't be cheap) instead of investing in things that are proven to drive growth.
Class A office space outside of super expensive cities runs about $35/sqft on average. Employees need about 175 square feet each. So every employee is $6125 more expensive -- but that's only assuming you're renting someplace turnkey, which you probably aren't, so even if you cheap out at an additional $100/sqft ($17,500 per employee) for a custom build-out (one-time cost, but still).
Where is all this money coming from? If your business is perfectly functional remote, with capital costs being what they are, why would you do this?
- irrational 4y agoI’d really like to know what the numbers are for the company I work for. Even if they rent a building in a business park (because there is not enough room on campus for a group), they will completely revamp the building from top to bottom and make it completely bespoke. The last time I worked in one of these buildings, they brought in artists who spent a week stenciling words and artwork over a concrete wall. How much did that cost?
- deleted 4y ago[deleted]
- fbdab103 4y agoBut, don't you feel engaged to come to a place with such inspirational artwork? Truly, a company that cares. /s
- llampx 4y agoOn the other hand, would you feel inspired and happy about going to a workplace with nothing on the walls or better still, the last company's name on them? If the place feels dingy or like the owners don't care to make it look nice, I doubt it has a positive effect on productivity and employee retention.
- fbdab103 4y agoYes? I am a fairly ascetic person (nothing on my walls at home), so that kind of stuff has never been particularly relevant to me. So long as the place is clean and has bright lights, I do not particularly care about the overall ambiance to the place. Far more relevant is my actual work configuration: privacy, noise, visual distractions, etc.
- ecshafer 4y ago>On the other hand, would you feel inspired and happy about going to a workplace with nothing on the walls or better still, the last company's name on them? I wouldn't really care, I have never felt inspired by something on the walls. But I would legitimately laugh and feel better every day if the old companies name was still on the wall.
- blowski 4y agoYour figures sound about right, based on my experience. In London, the cost per employee I’ve used is £15k pa. That includes office space and maintenance, taxes, plus IT costs, entertainment, HR, etc. The cost for fully remote employees is £9k pa. That is, the cost of the office is £6K per employee. There are additional costs for remote employees, like remote support. But these balance against not having to buy office furniture, pay for cleaning, etc.
- bitcharmer 4y ago> The cost for fully remote employees is £9k pa I'm really surprised by such high figure. How was this clalculated?
- lozenge 4y agoThey did say it includes taxes, maybe they are including a 3% pension contribution or even Employers' NI which can run to 12% of salary.
- blowski 4y agoThe taxes I mentioned are part of the cost of running an office - especially local government taxes ("rates" in UK parlance). The £9K figure _doesn't_ include taxes on individuals, such as NI and pension contributions. That comes from a different budget, and is typically an extra 25% on top of salary.
- benj111 4y ago25%? Employer NI contributions are ~1/2 that. What other taxes do employers inccur?
- blowski 4y agoI lumped a few costs onto that, which aren't taxes, but are tied to salary. Pension contributions, life insurance, health insurance, for example - these all come out of the same budget as national insurance contributions.