The COVID-19 pandemic forced a massive shift to remote work around the world. What was initially seen as a temporary measure has now become a permanent change for many companies. Surveys show that most employees want the flexibility to work from home at least some of the time. This means home office is here to stay.
According to a recent McKinsey report, office attendance has stabilized at around 30% below pre-pandemic levels, with workers going to the office around 3.5 days per week on average. The shift to hybrid arrangements looks set to persist.
During the pandemic, major cities like London and San Francisco saw significant outmigration from urban cores, with populations declining up to 7% in some cities. While outmigration has slowed, net departures from city centers remain higher than pre-2020.
With less need to commute to offices, retail foot traffic in metro areas is still 10-20% below early 2020 levels. Storefront vacancies have risen, especially in downtowns.
McKinsey estimates that by 2030, demand for office space will be 13% lower and demand for retail space will be 9% lower compared to 2019 across the median city in their study. Converting excess space is costly and challenging.
As organizations embrace the concept of flexible work policies, video communication is transitioning from being an optional tool to becoming an indispensable necessity in the business world. In order to ensure the success of distributed teams, companies must prioritise investing in top-tier video platforms specifically designed for enterprise use.
Companies also need to get creative with how they compensate and revamp their video communication branding, both internally and externally with customers and clients. As video conferences continue to be a major player in communication, it's crucial to maintain brand awareness beyond the simple inclusion of the company website in email addresses. Let's face it, video is here to stay, so let's make sure our brand shines through every pixel and interaction.
