Hot-desking is a classic economic phenomenon. For all the hype and discussion it comes down to a very simple equation. A company can reduce its rental expense, but to do this it needs to get its employees to take a pay cut. The pay cut is not in money but rather a reduction in the quality of an employee’s working environment. Economists call this an ‘externality’. My research could discover no facts on the benefits of hot-desking other than rental cost savings.
Hot-desking is sold as a way to break down work cultural barriers, increase collaboration while creating the ‘Office of the Future – Today’. It is a cost saving exercise. Because a very senior executive endorsed the idea, employees are labelled as not having the right cultural values if they show even a hint of disapproval. A totalitarian propaganda machine is in full swing by the time the last photo of the family is removed from the old decommissioned ‘cold’ desk. Centre worker, Cori Girondoudas was docked $3,000 from her pay each year for two years because she repeatedly refused to remove a photograph from her work station. The photograph took her tally of personal items on the desk to four — one above the prescribed limit.
Companies have reported a reduction in rental costs of up to 30% from adopting hot-desking. These enticing savings have to sell it to the employees who suffer an increase in stress and insecurity. Few employees enjoy hot-desking and those who do are often the same people you regret having near you in a cinema, sports game, bus, plane, or marrying into the family.
Hot-desking conveniently ignores the human condition. Humans are territorial, we enjoy a sense of belonging and like a routine. We are also hierarchical. We work hard to get more pay but we also want the corner office. If some spotty graduate comes in early after his gym class and gets the corner desk, we older guys feel pissed off. We will have to seek revenge, in a team building way of course.
Some of you are thinking that I am just an old guy and I need to get with the times. It is true that I sleep better in the same bed each night and the same goes for my desk. It is hard to get 30 minutes sleep if you wake up in a different part of the office having no idea where you are.
But in Ross Gittins’s article on hot-desking, he quotes research that demonstrates that the most important contribution to work place productivity is not collaboration, but individual focus work. In fact, those who can focus on their work in a nesting environment are also better at collaborating.
One of the fundamentals of business is to drive down costs. Businesses are psychopaths and if they can transfer a cost (externality) to the staff then they will. Businesses also suffer from Aspergers. They don’t really understand the human condition, nor do they read body language.
I am now implementing hot-desking in my home office to improve collaboration, break old work habits and enhance productivity. My favourite hot desk is the queen sized one on the top floor. I go there for an hour after lunch to do my best thinking.
Some comments from Donald’s blog:
Geoff
Unfortunately no one is measuring the cost of the reduction in productivity that’s achieved via ‘discretionary effort’. Discretionary effort is that extra bang for the buck that an organisation gets from an employee because they feel good about their job and where they work, importantly employers don’t have to pay money for this, they just have to demonstrate they value their staff. I have spoken with friends, colleagues and customers on this subject and the common factor is that employers are great at measuring the cost savings from hot-desking but don’t attempt to measure at all the loss of discretionary productivity that goes along with it. I wonder if there is a higher turnover rate of staff where hot-desking has been deployed?
Jayne
I would like to add that during flu and cold epidemics, the wonderful world of hot-desking is also introducing us to plagues that seem to move inexorably around the office. If we were truly interested in efficiency we would return to single offices which allow focus, concentration and peace and quiet a la “Quiet: the power of introverts in a world that can’t stop talking”. Awesome read if you want to change your thinking on the value of noisy collaboration.
Christine
I’m a working mum who does school drop-offs in the mornings. By the time I get to the office it’s impossible to get a desk; not even a spot along the anti-social benches against the windows. When I do find a spot, often practically in the toilet, I spend good third of my day pacing up and down the corridor locating my team for face-to-face discussions. Cost cutting? For sure. Murderer of productivity? I’ll say.
Donald Hellyer is the former Global Head of Funds and Insurance at National Australia Bank and is Co-Founder of BigFuture.