Business leaders, workplace experts and even many employees agree that remote working comes with significant disadvantages. For example, 59% of respondents to last year’s FM:Systems Inside the Workplace survey of U.S. business leaders said that work-from-home weakens company culture. But the business benefits of return to office (RTO) policies are hard to quantify. How do you measure the increase in revenue attributable to strengthening corporate culture or enhancing collaboration?
On the other hand, the biggest advantage of having employees work from home is relatively easy to calculate: According to a study by Global Workplace Analytics, allowing employees to split their work time evenly between home and office would save U.S. businesses over $500 billion per year in real estate, electricity and other expenses. That equates to more than $11,000 per employee.
Despite the savings associated with remote and hybrid working, organizations are compelling employees to spend more time in the office. Fortunately, the tug of war between costs and RTO doesn’t have to be a zero-sum game. By gaining visibility of all of the added expenses related to an RTO initiative, companies can develop and implement an attendance policy that maximizes the benefits of having people back in the office while minimizing the costs.
Here’s how organizations can use Johnson Controls OpenBlue to uncover the true cost of RTO.
Managing Utility Costs with OpenBlue Sensors
Higher occupancy will inevitably lead to increased consumption of power, water and gas. But inevitable is not the same as unpredictable.
Organizations using OpenBlue sensors to track occupancy and utilization can leverage that data to estimate how much consumption — and costs — will rise as a result of introducing or expanding RTO rules. Because this data is collected by area, facilities and real estate teams can see where and how consumption rises along with occupancy.
Mapping this subset of fluctuating usage against the number of employees on-property enables cost attribution down to the worker level. Estimating the increased cost of utilities consumption then becomes just a matter of applying that average per-employee cost to the number of people you’re planning to bring back to the office.
Measuring the Environmental Impact
Using OpenBlue to calculate per-employee utilities consumption can also empower organizations to estimate the impact of RTO rules on their carbon footprint.
While this information is helpful for understanding how much a mandate might set back progress toward sustainability goals, it’s essential for companies that are subject to environmental regulations. A sharp increase in occupancy can make it more challenging to comply with these laws, and non-compliance may lead to hefty fines and other added and increased costs, as well as reputational risk.
Companies can also use the powerful analytics capabilities of OpenBlue Insights, combined with the granular data collected by IoT devices, for scenario modeling and to pilot different office layouts. Identifying the configuration that optimizes the workplace for both sustainability and employee experience is another way organizations can get the most out of RTO while keeping a lid on costs.
Minimizing Wear and Tear Costs in the Workplace
Yet another impact of having more people in the office is increased wear and tear on everything from carpets and furniture to toilets and HVAC equipment. OpenBlue can analyze historical repair, replacement and maintenance data to, once again, help you arrive at a per-employee wear-and-tear cost projection to incorporate into your RTO planning.
OpenBlue sensors and analytics tools can paint a picture of historical utilization patterns, revealing which spaces and furnishings are likely to see the most usage. Organizations having to invest in new furnishings and equipment to facilitate their RTO plans can use this information to help determine where it might make sense to invest in sturdier or higher-quality products.
Facility managers can also use these insights to adjust maintenance schedules and predictive maintenance models to account for the increase in usage of electrical, plumbing and HVAC systems.
Strategic RTO Planning: How OpenBlue Optimizes Costs and Benefits
There are lots of advantages to bringing people back to the office, but reduced costs isn’t one of them. Organizations that rush into introducing or expanding RTO rules without first understanding the true cost risk negating the business benefits RTO can deliver.
Johnson Controls OpenBlue empowers businesses to quantify all the expenses associated with RTO mandates, from increased utilities consumption to more wear and tear on equipment. These insights transform RTO planning from a leap of faith into a strategic opportunity.
