Retailers the world over have already had to make some huge strategic calls in their short-term responses to the coronavirus crisis.
But one of the biggest decisions yet, one that could have enduring implications on everything from the culture to the cost base of their businesses, is now being thought through: what does the pandemic mean for the future of their offices and ways of working?
Many will be starting to survey their employees or may have already done so, to garner their views. There is a plethora of factors to consider – rental bills, utility costs, safety and mental health, to name but a few.
It is likely to be a minefield for retailers – different employees will have individual wants and needs – but the old adage of listening to colleagues will be more important now than it has ever been.
There will be no one-size-fits-all solution, but retailers must be careful not to be suckered in by the ‘death of the office’ narrative and carefully consider all of the pros and cons their headquarters offer before mapping out what the future might look like.
Walmart’s boss Doug McMillon put it perfectly in his annual address to shareholders yesterday as he revealed that plans for a vast new 350-acre head office campus in Bentonville, Arkansas, will proceed despite the impact of Covid-19.
“As this crisis has gone on, we’ve noticed things that were missing,” McMillon said. “How do you get to know people? How do you get a sense for what the culture is like? The culture inside a company is such an important aspect.
“In a post-vaccine world, we’re going to need office space and people are going to collaborate. Being present with each other is going to matter over time.”
McMillon is right. Head offices must be seen as a valuable asset, not a cash-draining burden. Just this week, I spoke to a contact who joined a grocery retailer during the UK’s lockdown. He says he was “fortunate” to have had previous experience working in the industry, otherwise, it would have been “impossible” to get up to speed with the company and the trading landscape solely through virtual meetings.
There are certain things that simply cannot be achieved via Teams, Zoom or Hangouts. Some of the most creative ideas in any workplace are cooked up around the water cooler or the coffee machine – the sorts of organic, inventive conversations that are not happening, or are being conducted artificially, during lockdown.
“Working remotely has, for many, blurred the once distinct lines between home and work, creating a ‘never off’ culture”
Such off-the-cuff discussions, which retail office employees are currently missing out on, also build a sense of community and togetherness, a feeling that everyone is pulling in the same direction for the good of the business.
They improve company culture by allowing people to get to know their colleagues better and build stronger working relationships. They drive collaboration across teams – a trait that will have been stifled during lockdown, amid the temptation for staff to limit video calls to their direct teams, inadvertently creating silos. They also offer the opportunity for informal conversations with management, meaning staff feel recognised and heard by those higher up.
Offices often help employees structure their working day – the same alarm time, the same commute, the same deadlines, the same clocking off time. Working remotely has, for many, blurred the once distinct lines between home and work, creating a ‘never off’ culture. The implications on the mental health of employees working under those terms, particularly those living alone, has to be accounted for.
Worth the money
Would a company whose workforce operates entirely from home be as attractive a proposition for top talent in the retail and technology space? It is often the culture and working environment of a business that can tip the balance one way or the other for those looking to take their next step on the ladder. For some, working from home will appeal, but many want to genuinely feel part of something bigger and work in an office that offers the sort of comfort and amenities that remote working cannot always provide.
Creating that environment, however, costs money. Retailers will already be looking at how the numbers stack up and realising how much they could potentially save in rent, utilities and other operating costs such as security by downsizing their office space.
Even more would need investing in the future, not only in reconfiguring offices to make them safer in a socially distanced world but in installing the sorts of facilities that employees may come to expect. Some offices will be without canteens, for instance, but may need them if convenience stores and food-to-go operators shift away from formerly bustling commuter hubs and focus attention on the neighbourhood locations that have thrived during lockdown. Others might not boast outdoor spaces or games areas that allow people to take a proper break during their lunch hours.
Such additions won’t come cheap but will deliver returns on investment if they serve to enhance company culture, improve mental health and drive more innovative and impromptu discussions among the workforce.
Retailers, as McMillon says, are “going to need office space”. Decisions about their future have to be led by culture rather than cost if retailers and their employees are to emerge from this crisis stronger.
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