Facilities Management Services
The Great ‘Return to Office’ & Its Real Impact on Facilities Costs
The bottom line of return-to-office incentives
Workplace experience has historically been considered a function of the Human Resources department—until now.
More and more, Facilities Management (FM) departments are not just getting pulled into workplace experience discussions, but actually owning the function. Leading commercial real estate (CRE) organizations have even converted long-standing FM roles to workplace experience managers and coordinators or similar titles reflecting this directional change, and workplace experience has become the leading CRE data point for building tenants and prospective buyers seeking spaces that will drive occupancy.
Return-to-office (RTO) initiatives have also accelerated this transition as building owners have launched amenities programs including food services, coffee shops, fitness centers, on-site recreation, flex-seating offices, and concierge services (to name a handful), for in-office employees. As 90% of Fortune 100 companies are back in-office—at least hybrid—in 2024, RTO messaging has notably shifted from mandates to motivators, citing these very amenities as uniquely in-office incentives.[1]
RTO’s impact on already resource-strapped FM & Procurement functions
While facilities and procurement professionals are familiar with the “other duties as assigned” in their job description, they are less familiar with the impending unforeseen implications of these new services as a result of the RTO trend, such as:
Beyond cost and service coordination efforts with new providers, proper oversight may be the most challenging implication of new services, as both expertise and dedicated resources are required to be effective.
Considering the daily prioritization puzzle that FM and procurement teams face, there is a predictable outcome with even the best suppliers. With these teams’ workloads already at capacity, the less labor-intensive oversight path tends to be “chosen” by default, limiting governance success and further empowering suppliers to pad their profits. “Engaging in the joust” with these new suppliers is nearly impossible.
It’s clear that the FM function has become increasingly complex over the last several years. We frequently say that “when there is more to know—there are more unknown, unknowns.” And it’s those unknown “unknowns” that keep suppliers at a greater marketplace advantage.
As a client, if you’re not able to maneuver in the marketplace, you’re powerless.
But there are ways to win back your leverage. In a follow up “Insights” article, I will explore a few solutions you can implement as the “Great RTO” gains steam.
[1] https://www.resumebuilder.com/90-of-companies-will-return-to-office-by-the-end-of-2024/
[2] https://www.eia.gov/todayinenergy/detail.php?id=60241 </font size>