The hybrid model of working, where both office and remote workings are allowed, continues to be the most preferred workspace strategy. A majority of companies (63 per cent) are currently embracing the hybrid model, according to a survey by Colliers. Consulting, BFSI and engineering companies are at the forefront of adopting the model.
Colliers conducted the survey among small-sized (less than 500 employees), mid-sized (501-5,000 employees) and large-sized (more than 5,000 employees) companies during May-June 2022 across various occupier segments. About 300 responses were received from occupiers.
“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,” Colliers said in a statement.
According to its survey, 63 per cent of the firms are currently embracing a hybrid model with a varying number of days in the office, while 28 per cent work all days from the office. About 38 per cent of the organisations are looking to lease new office spaces in next 6-18 months, while another 35 per cent would like to retain their existing portfolios.
Half of the organizations who are planning portfolio expansion in the next 6-18 months belong to the Technology sector. About 53 per cent of the firms feel that productivity has increased since remote work started, according to the survey.
According to the survey, about 28 per cent of the firms feel that discrepancy in a workplace environment is the biggest challenge in Hybrid working, followed by communication barriers and lack of collaboration.
“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,” Colliers stated.
Ramesh Nair, chief executive officer (India) and managing director (market development-Asia) of Colliers, said, “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.”
He also said this is led by the massive growth these two sectors are seeing over the last two years. 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.
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.
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