The hub-and-spoke model of offices is gaining momentum. Here are 4 reasons why.

The pandemic accelerated office trends that we expected to take place in 5-10 years time. More and more companies are adopting the hub-and-spoke business model to ensure growth and increase agility. But what hub-and-spoke means and why it matters?

What is hub-and-spoke

In the hub-and-spoke office model, a company has a primary “hub” office that serves as a place for meetings, team collaboration, and events. It is usually located in a major city or in a city center.

“Spokes” are satellite offices in smaller cities or neighborhoods closer to where employees live. However, a “spoke” doesn’t necessarily mean a conventional office. It can be a dedicated desk or multiple “hot desks” in a coworking space, flexible serviced office space, or even a home office. 

The idea of hub-and-spoke is that employees can come together and collaborate on big projects in the “hub” while choosing “spokes” for day-to-day work. 

Hub-and-spoke is actually a common business model. Many companies have been using it for years. Yet right now, with the rise of hybrid work and the “work from anywhere” approach, it becomes popular as businesses adjust their strategies to a new reality. 

1.-“Hub-and-spoke”-office-model

Why is hub-and-spoke important?

Answering employees needs 

The hub-and-spoke model responds to the needs of employees who expect more flexibility from their employers. According to a recent 2021 Work Reimagined Employee Survey conducted among more than 16,000 employees in 16 countries, 40% of employees opt for flexibility in where they work. 

When pandemic restrictions ease, 22% would prefer to work full-time in the office, with 33% of employees surveyed saying they would like a shorter work week overall. 

It means that we need a plausible solution that works well for both a company and an employee in the fast-changing work environment. With many organizations opting for a hybrid working model and wanting their employees to work in the office at least several days a week, hub-and-spoke might be a natural choice.

“With the hub-and-spoke model, businesses can better manage office space while catering to the needs of their employees by providing them with a professional workspace. Such a setting increases productivity and helps maintain work-life balance.”

Robert Chmielewski, CEO & Co-Founder of ShareSpace

Access to a larger talent pool

Another benefit of the hub-and-spoke business model is that it gives employers access to a broader talent pool. Companies are no longer limited to hiring people locally. Still, they can search for candidates in different cities or even countries or states, as Google, JP Morgan, and Metro Bank have done. ShareSpace clients – especially the businesses planning a dynamic growth in the foreseeable future – are also interested in such office solutions. 

“The hub-and-spoke office model can be an excellent solution for growing companies looking to enter new markets,” says Mateusz Piotrowicz, Real Estate Strategy Manager at ShareSpace. “Here at ShareSpace, we helped find an office for Bitpanda, which decided to establish a world-class Innovation Center in Krakow, Poland,” adds Mateusz Piotrowicz.

Additionally, in today’s reality, having additional, multiple workspaces in various locations can be a great asset when attracting new talent. Especially young professionals or parents tired of juggling their work with taking care of their children. The office is no longer just a place to get the work done. It’s a collaborative space where people meet to share and discuss ideas, and grow their creativity. 

hub-and-spoke business model
Possibilities of office models are almost infinite

Pursuing new market opportunities

What complements access to a larger talent pool is the ability to pursue projects outside of the current market. With the ability to rent offices on flexible terms, companies can scale and expand more efficiently. 

Most flexible office providers offer month-to-month contracts or pay-as-you-grow lease agreements that allow companies to customize office space to meet their current needs. And if a new market proves less receptive than expected, the business can quickly downsize with minimal cost.

Solutions are almost infinite. You can lease various types of office space offered by the same space provider in several cities or choose a mixture of a traditional hub office, coworking space, and flex space at the same time. If you need an office for a specific project or a meeting room for a few weeks, it’s all possible, for instance, with ShareSpace solutions. 

hub-and-spoke office model
You can choose a mixture of a traditional hub office, coworking space, and flex space at the same time.

Cost optimization

Hub-and-spoke office model can also prove to be more cost-efficient than having just one headquarters. Flexible space solutions can help optimize your budget as you only pay for the space you use. Month-to-month arrangements allow you to respond quickly to changes in your industry and increase your scaling potential. 

Moreover, satellite offices near employees’ homes also mean less time spent commuting, thus a smaller environmental footprint. 

Conclusion

Although businesses have used a hub-and-spoke office model for years, now it’s the time to consider whether it suits your business. If you want to adjust to the new reality with a flexible, hybrid work model and increase your possibilities to grow, it can be a great solution. 

In considering new office models for your business, it’s worth evaluating your current office space and asking yourself the following questions:

  • How much space do you currently lease?
  • Does your team work partially or fully remotely?
  • How is your current office space being used? 

If the answers don’t get you closer to a decision, we can help you analyze your workspace and find a solution that works best for your business. Together we’ll find an office space that will boost your company’s productivity and help you grow in the new reality. 

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