Following the impact of the COVID–19 pandemic, many companies are wondering what the best course of action to restart growth and re-engage their staff under such uncertain times, and DB Interiors have noticed that one of the big questions is how to mitigate the impact of a restructure on performance for the survivors.
With this in mind, leaders should above all ensure they have a comprehensive plan to invest in looking after their remaining staff. Amongst others, investing in your workspace is a strong driver of staff satisfaction. Investing in upgrading your fit-out and technology may seem like a counter-intuitive decision, but the long-term impact of modernising your workforce will outweigh the initial investment.
Consider the fact that a headcount reduction means that you will not need as much space. Therefore DB Interiors advise you can consider reducing the leased footprint and the overall rent cost to fund the fit-out upgrades. Fitout is typically depreciated over ten years which means it will have a limited impact on your company’s EBIT and no impact on your EBITDA. On the contrary, the reduced footprint will mean lower rent, therefore, higher EBITDA at constant revenue.
Unfortunately, but typically, the first survivors to leave will be your best talent, since they have more opportunities of employment so investing in your work environment will mitigate the risk of losing them. Similarly, in these uncertain times, landlords will work much harder to retain their tenants; therefore if your lease is coming to an end over the next 12 to 24 months you will be able to negotiate with your landlord and get assistance with funding your workspace upgrades.
Finally, in the current economic context, the cost of construction tends to decrease as builders begin to struggle for work and therefore reduce their hourly rate. After years of growth, the construction market is finally resetting, and it presents a great opportunity to get the best possible value for a new fit-out before it starts picking up again, so for more information on project management office fit outs, spatial planning and interior specialists please go to http://dbinteriors.co.nz .
