'3 days a week in office' emerges most popular choice for India Inc
Office portfolio expansion on cards as 63% of businesses back to office on a hybrid basis, reveals Colliers survey
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Hybrid working continues to be the most preferred workspace strategy, with 63 per cent of the firms currently embracing the same, as per a survey of large, mid-sized and small firms conducted by Colliers. Firms from the Consulting, BFSI, and engineering sectors are at the forefront of adopting hybrid working.
Three days a week in the office is the most popular hybrid working style for India Inc, with 26 per cent of the firms preferring the same. The survey indicated that this hybrid pattern allows businesses to pursue business goals without hindrances while offering better work-life balance to employees.
Talking to Bizz Buzz, Peush Jain, Managing Director, Office Services, Colliers India, says: "Three days a week in the office has emerged to be the most popular mode of working and large companies are preferring flex spaces in tier-2 cities as they can place certain teams in a distributed manner. Thirty five per cent of the occupiers have a stronger preference for having smaller offices in non-metro location."
According to Jain, Tier-II cities will be seeing an influx of larger enterprises which are now keen on Tier-II expansion, with 70 per cent positive about expanding in these locations. This means that the Hub & Spoke model of workspace is gaining prominence with occupiers, who are now planning on distributing their teams across tier-2 cities, furthering their business goals and at the same time offering work-life balance to employees."
About 38 per cent of the organizations indicated that they are planning portfolio expansion in the next 6-18 months, by leasing traditional as well as flex spaces. A majority of the businesses implement hybrid working in varying degrees, 35 per cent highlighted that they would like to retain their existing portfolios, while 13 per cent look to consolidate their office spaces.
"The tier II story is back in the market. Large firms, especially, are leading this trend as almost 70 per cent of the large enterprises are open to exploring flex in non-metro cities, while only 27 per cent of the smaller firms are considering the same. About half of the firms who are planning office expansion in the next 6-18 months are from the Technology sector, followed by BFSI. This is led by the massive growth these two sectors are seeing over the last two years. Interestingly, about one-third of the occupiers surveyed revealed that their productivity increased by 5-10 per cent with hybrid working. Offices are now evolving into centers of collaboration and innovation, with the wellbeing of employees at the core. A hybrid work style needs to be supported by apt technological intervention to ensure seamless collaboration and communication", said Ramesh Nair, Chief Executive Officer (India), Colliers.
About 35 per cent of the firms are willing to set up flex office spaces in non-metro cities to cater to changing employee needs. Employee convenience and higher occupancy costs in metro cities are prompting occupiers to consider non-metro cities. Since last year, flex spaces have been seeing a surge in enquiries from firms for office space in non-metro cities.
"Consulting, BFSI and Technology companies are keen on setting up offices in non-metro cities. Overall, the interest levels towards building offices in non-metro cities will help reduce the infrastructure load on metro cities, and at the same time help build a cohesive business ecosystem in the smaller cities, leading to more equitable growth," said Vimal Nadar, Senior Director and Head of Research, Colliers India.
