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  • Writer's pictureMel Archer

The hub + spoke office model: the answer to cost-effective remote working for your team?

Updated: Jul 5

Now that we're well and truly beyond the wilderness years of the Covid-19 pandemic, businesses are rethinking the way their employees work. With many companies and employees questioning whether remote working is no longer, well... working, there is an emerging need for businesses to reevaluate traditional office set-ups and work-from-home arrangements. Companies that are looking to optimise productivity and reduce costs, as well as improve work-life balance for their employees are considering an innovative hybrid approach called the 'hub and spoke' model.

hub and spoke office coworking

What is the hub and spoke model?

The hub and spoke model offers a flexible working solution for businesses with remote employees or employees that commute a considerable distance to the office every day.

The hub and spoke model centres around establishing a central "hub" office in a major city like Sydney, complemented by smaller "spoke" offices in coworking spaces located closer to where employees live.

This approach allows businesses to maintain a presence in key business districts while offering employees a more convenient, flexible work environment without the isolation and mental health impact that can come with working remotely long term.

What are the benefits of integrating a hub and spoke model within my business?

Cost savings: One of the key (but arguably not the only, or most important) benefits of the hub and spoke model for businesses is cost savings. By downsizing their central office space and leveraging coworking spaces for satellite offices, businesses can significantly reduce their overhead costs including saving on rent, utilities, and maintenance, as well as reaping potential tax benefits associated with remote work arrangements.

Improved work-life balance: From an employee perspective, the hub and spoke model offers a range of advantages. It eliminates the need for long and stressful daily commutes to a head office in the nearest city. Instead, employees can work from a coworking space closer to home, saving time and money on travel. This still offers all the benefits of improved work-life balance but also reduces the stress and mental fatigue that comes with juggling working from home and living at home, leading to higher job satisfaction and lower absenteeism.

Collaboration and innovation: The hub and spoke model promotes a more flexible and collaborative work environment. Employees have the opportunity to work alongside colleagues from different departments or completely different companies in a coworking space, fostering creativity, collaboration and innovation.

It also provides a sense of community and belonging, which is particularly important for remote workers who may feel isolated or disconnected from their colleagues.

Enhanced productivity: The hub and spoke model can enhance employee productivity and engagement. With a more comfortable and convenient work setup outside the home, employees are likely to be more focused and motivated. This, in turn, can lead to increased productivity, higher-quality work, and greater overall job satisfaction.

The hub and spoke model: an innovative win-win solution

The hub and spoke model offers a win-win solution for both businesses and employees. Businesses enjoy cost savings and increased flexibility, and employees benefit from improved work-life balance, reduced stress, and a more collaborative work environment.

As remote work is clearly here to stay since its sharp increase in popularity post-pandemic, the hub and spoke model offers a very appealing alternative to traditional office setups, helping businesses and employees thrive.

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