Smarter ways to reduce your site and facilities overheads

Making decisions regarding the reduction of site services in order to cut costs or avoid redundancies is never going to be the most pleasant part of commercial operations. But, for the purposes of a more buoyant bottom line and more sustainable business model – especially for the cost-conscious and mindful SME – it’s often a necessary survival method and growth measure. Here, we look at some of the ways in which you may be able to change your facilities programme with the minimum amount of disruption and discomfort – as well as what the consequences of such a move might be.

1. Leasing or selling off car parks and office space

One of the most lucrative methods to claw back money on workplace facilities is to sell or rent land used for parking, or leasing office space – whether that’s one room, a floor, or an entire building.

If you’re the decision-maker, consider just how much parking space and land is absolutely necessary for your employees, suppliers, and guests – then weight that up against what you could be gaining back from renting this to adjacent businesses close to your premises. 

And while a wholesale rental arrangement for parking during standard working hours may not work, it’s worth investigating schemes where you can make spaces available at weekends or after hours, especially if you’re in close proximity to a rail station, shopping area, or other popular facilities. 

If you own your business premises, office space letting is another good way to generate extra income. With workforces increasingly working remotely or in a hybrid arrangement, the need for someone to have a permanent desk has shifted. And as many meetings are now online via platforms such as Teams, Zoom, and Slack, the same thinking may be applied to meeting rooms. These spaces could be rented out purely on an ‘as and when’ basis, or you have the capacity to rent another business a whole suite of rooms and conference facilities. 

Consider this: Before signing the contract inviting in another business to share your space, you need to truly understand what it is they’re doing – and whether it may cause may issues than it solves. For a manufacturing company coming into your space, have those renting investigated all of their own risks and hazards? And will they add more to the burden of utility usage? We look at the risks of sharing premises here – with a focus on hospitality.

2. Turning down, turn off the lights, and turn up sustainable heating

While we’re not advocating that employees should be made to work in cold or dark conditions, there are many sustainable and cheaper alternatives to traditional utility supply  methods. Optimising natural light with more and bigger windows and skylights not only means less electricity, but it can be (anecdotally) better for wellbeing – cutting down on eyestrain, dry eyes, and boosting productivity. LED lighting and lights that switch on and off by detecting motion can also make an impact on bills.

On the heating front, the upfront cost of installing energy-efficient HVAC systems and smart thermostats quickly provides an ROI with lower energy consumption, hence a smaller running cost. Proper insulation and waterproofing are also essential for maintaining a consistent temperature and reducing energy waste.

Consider this: Working conditions need to remain comfortable and sustainable, so any new heating systems should be fit for purpose while also bringing down the dial and reducing cost. If employees start to feel that their wellbeing is being compromised for the sake of a cheaper electricity or gas bill, this could be a whole other problem. Many hotels are already finding ways to reduce energy costs. We explore it in this article on smart buildings in the hotel sector.

3. New ways of working

We’ve already mentioned that with more people working in a hybrid arrangement or from home, for many sectors there’s less need to have a physical and daily presence in the office. For the times when employees are on site, review and reconsider all the things that have become habit. Can you take a second look at the printing policy and encourage people to be digitised in their approach, reducing paper waste? And on this subject, could your recycling policy be more robust and offer more returns and incentives? 

It’s also worth looking at your staff catering arrangements. How much of the facilities budget is used for laying on free beverages and running kitchen areas? If there are on-site cafeterias, are these subsidised. This is a tricky area as it can tip into the removal of day-to-day employee benefits, but a regular audit will determine what’s regularly used and what privileges are being abused!

Consider this: Again, it’s vital that being cost-conscious does not spill over into complete cost-avoidance. There’s a big difference between laying on a barista who stirs up special brews free of charge to providing tea and coffee that your team can make themselves. 

4. Do we really need this (or that?)

From fountains in the courtyard to fresh plants in the foyer, there are many items and elements that add to a workplace ambience but may be costing your business money.

Onsite gyms that are heavily subsidised have become popular in recent years as part of a drive to keep a workforce healthy, but is that space being properly utilised and are staff taking full advantage of this perk? While the security of your premises is paramount – especially where insurance is concerned – is this being handled in the most efficient way? For example, if you’re employing round-the-clock security guards, would new CCTV cameras and a hotline to a security company be a better alternative?

Consider this: A dancing fountain complete with lightshow may be generally seen as an indulgence, but there are many parts of the facilities puzzle that are non-negotiable. Ensuring that your workplace premises are adequately ensured and protected against risk must always be a priority. That means putting in preventative measures against fire and flood, taking security seriously, and maintaining good liability cover.

If you want to investigate ways of making your business more cost-effective while making sure your business insurance and risk management is in a good place, talk to our specialist team today on 0330 008 4910, or select here to learn more and ask for a quote.