HSBC Bank Saving Time and Space
By Bernice Hurst, Managing Director, Fine Food Network
Throughout the 1990s, companies in the U.K., at least, loved to boast "our people are our most important asset." But for many, real estate has become just as important.
Michael Geoghegan, chief executive of HSBC, Britain's biggest bank, announced at a recent conference that he wanted to reduce the 8,000 staff at its landmark Canary Wharf headquarters by 50 percent over the next seven years and sublet the pricey space to someone else.
But there is another important consideration to Mr. Geoghegan's proposal. Many employees in this country prefer flexible working schedules, with many working part time or full time from home. Many companies have established a system of "hot-desking" (i.e., desk sharing when people are in and out of the office) and innovative ways to avoid time-wasting during the daily commute are much in demand.
"I don't think we're a really progressive, perceptive company if 8,000 people have to get up at some unearthly hour to come into the office and go again. Technology should change our thought processes," he explained to the Guardian.
An internal committee has been established to find ways to meet the goal, harnessing technology so that people can work in different ways and different places. The office block referred to was sold in April for more than £1bn, approximately twice what it cost to build. It is currently used as a base for UK and investment banking as well as human resources and executive management.
Having space that can bring in more money as well as staff who could work at least as well off the premises is an interesting challenge. In a world where talk of breaking up large organizations or merging them into even larger ones is pretty much non-stop, the HSBC move could be seen as a form of differentiation. HSBC shares have apparently not been good performers among banks recently and have been snapped up by investors in the Gulf looking for value. Creating efficiencies and, simultaneously, increased revenue could be seen as a way of providing just that.
Discussion Questions: Would corporations suffer if more employees worked from home and office space was reduced? Do you believe the typical person working on their own at home tends to be more or less productive than those working in corporate offices?
[Author's comment] Mr. Geoghegan's suggestion could tick all the boxes, creating a win-win situation for everyone concerned. In many ways it makes perfect sense. Productivity could well be increased by having fewer stressed out employees facing a long trek into the office every day. Hours would be shorter but put to better use. And with technology enabling instant communication as and when needed, there is really no need to have everyone under the same roof.