Will this change last?
Most organizations have changed how they operate because of the pandemic, but some of these changes will likely last longer than others. In 2021, organizations will continue to review their costs — from staff structures to outsourcing — to reduce inefficiencies, preserve to survive and to free up capital to invest in future opportunities.
Even with a vaccine, the widespread practice of remote working will not vanish overnight. Like online shopping and video calls with family and friends, people have become used to working from home. This will pose a challenge for both employers, conscious of their spend on office space, and those banking on a revival of commercial property prices.
At present, almost 14% of the office space in Midtown Manhattan is empty, the highest rate since 2008. Although many yearn for the social atmosphere of the office, it is increasingly unlikely that most employees will return to their desks full time. A hybrid model is likely to emerge, but it will be difficult for employers to achieve a perfect balance for all employees.