Though initially there was euphoria about Work from Home concept and many corporates, including some leading IT companies, had shown interest in the concept due to its positive impact on costs and also fulfilling the social distancing norms, practical difficulties faced while implementing them are slowly emerging and many companies worldwide are thinking of going back to the conventional style, once the COVID threat recedes and normalcy returns. Many corporates are now concerned about employee burnout, organisation culture and team bonding concerns arising out of continued persistence with WFH concept.
It has also been realised by many companies that cost saving through WFH is not substantial, especially in view of the damage it is causing to the employee morale. According to a recent study, net cost savings due to WFH is less than 1% for IT companies for a 50% WFH scenario. Also, many corporates faced data security issues and those related to organisation culture, collaboration and mentoring.
Worldwide latest trend shows that employees have returned to offices wherever COVID-19 has come under control as has happened in countries like China, South Korea, Germany and France which has in turn resulted in pick up in leasing of commercial spaces.
While many corporates were initially enthusiastic about WFH, their recent commentaries and actions belie these hopes. Many companies, including tech giants (in India and abroad), have raised their concerns about the issues being faced in remote working. These firms have started leasing office space again. Various reports suggest that deals spanning 6.6msf have already been concluded, while those for 5.6msf space are in the pipeline in India. This has come as a big relief for the commercial realtors as the fear of commercial realty going bust is waning.