New Work – What does the future of work cost?
This article is part of the column "wow: New Ways of Working" by Martina Rahmfeld on OfficeRoxx, the blog for the future of work.
"The recession in Germany is deepening, new data shows," reported Business Insider, and it is not alone in that headline. Many companies across almost every industry are currently facing the same challenge: Germany is in a recession. The next crisis.
I was at a networking event recently with several executives from mid-sized companies. Their figures were anything but encouraging, and the pressure to cut costs was palpable. One company stood out: despite the current situation, they decided to launch a New Work project. Or perhaps because of the figures?
Why New Work can't wait
In times of crisis, it seems intuitively right to stop all "non-essential" projects. But what if these so-called "extra projects" are the key to emerging from the crisis stronger than before?
It is easy to overlook the fact that traditional ways of working are not always cost-efficient. For example, open-plan offices can lead to 62 percent more sick leave than more compartmentalised structures, as a 2011 Danish study already showed. Unnecessary meetings waste valuable working time—up to 50 percent of meeting time can be saved if, for instance, asynchronous communication is used for simple information sharing. The physical workspace can significantly influence the way people collaborate and thus help reduce turnover. All these "invisible" costs add up and can hit a company particularly hard during a recession.
Investing to save
New Work projects can help make these hidden costs visible and reduce them. Overhauling meeting culture alone can lead to enormous savings in time and, consequently, money. A solid asynchronous communication structure is essential in hybrid teams for knowledge sharing, error prevention, and clear coordination. When teams work more efficiently and are more satisfied, it will inevitably have a positive impact on business results.
"The actual costs of the old way are easy to overlook. More illness, higher turnover, or an increased error rate are just a few of the invisible cost drivers."
In the business world, two things are constantly breathing down our necks: the clock and the budget. In prosperous times, when order books are overflowing, we have the budget but lack the time for additional projects. In a recession, however? Well, you might think we finally have some breathing room, but now the budget is missing because it's time to cut back.
But that is exactly where the crux of the matter lies: a recession can paradoxically be the ideal time to lay the foundations for future success. It is an opportunity to take the time now to draft a roadmap for the coming months and years, to bring employees on board early, and to show them a clear perspective. At the same time, it allows you to remain as flexible as possible to react to uncertain developments in the best way possible. Think of the concept as a modular system that outlines future measures. Smaller, cost-efficient measures can be implemented immediately. Larger investments, such as office relocations or redesigns, can be strategically planned and prepared, while their execution is deliberately postponed. The important thing?
As soon as the economy recovers and order books fill up, you will have already developed your modular plan, because that is when time will once again be the limiting factor.
Crisis as an opportunity
Statistics show that companies that invest wisely during economically difficult times often emerge as winners. New Work is not just a new approach to working; it is a strategic investment in a company's future. And yet, this is not a call for reckless spending. It is, rather, a plea for smart investing. Because we are often not talking about an all-or-nothing decision here.
And perhaps this blog post can also serve as a guide for those who currently have to defend their projects against budget cuts or justify them to themselves.
👉 Go to the column onOfficeRoxx