The decline in office space demand presents an opportunity for companies to shift their focus from strict return-to-office mandates to investing in hybrid work environments. A McKinsey & Co report anticipates a 13% decline in demand for office space by 2030, risking $800 billion in real estate value. As mandatory office returns contribute to high turnover and decreased productivity, corporate leaders are encouraged to reevaluate their strategies. A case study reveals that strict RTO policies could lead to significant economic losses due to turnover costs, exceeding wasted real estate investments.
As demand for office space declines, companies are being advised to forgo strict return-to-office mandates and instead allocate funds toward creating workplace environments that enhance the employee experience.
For the corporate leaders who believe in-person workers are more productive, a 2023 study by Stanford University's Nicholas Bloom found that workers who have the option to work from home report higher productivity and job satisfaction.
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