After Corona, the savings fox arrives: The pandemic and crises such as the Russian war of aggression have cost Mecklenburg-Western Pomerania staggering amounts of money. Therefore, the ministries are now supposed to find ways to cut the state’s expenses by a total of 150 million euros. One possibility: Reduction of space in authorities.

The Situation: Financial planning in Mecklenburg-Western Pomerania for 2023

The Finance Minister of Mecklenburg-Western Pomerania, Heiko Geue (SPD), speaks plainly: Mecklenburg-Western Pomerania must save. The reasons for this are not only the high expenditures in recent years but also the budget plan for 2022/2023, which foresees costs totaling more than 10 billion euros, partly financed from the Corona special fund MV-Schutzfonds. Geue has outlined additional financial commitments for the state, including:

• Expansion of broadband connections
• Introduction of a fee-free holiday daycare
• Establishment of a statewide system for demand-responsive buses
• Integration support
• Safeguarding against rising energy prices for businesses

Mecklenburg-Western Pomerania plans to start repaying the Corona loans from 2025. This means that with a repayment period of 20 years, the state must repay 142.5 million euros annually to offset the loan amount of 2.85 billion euros from 2020.

The approach: 30 % reduction in space

New debts are not an alternative, emphasizes Geue. Indeed, the state must already rely on reserves. However, the finance minister did not disclose the amount of funds available.

Therefore, savings are essential to gain measurable financial advantages. The spatial potentials of the state government form an initial starting point: By 2026, the premises of authorities are to be reduced by 30 % – with the goal of saving rental costs. Mecklenburg-Western Pomerania is aligning itself with the strategies of Schleswig-Holstein and Hamburg. A smart idea because through compressed spatial concepts, Mecklenburg-Western Pomerania could not only reduce costs but also improve its emissions balance.

The solution: Technical support for smart space allocation

To support states like Mecklenburg-Western Pomerania in their savings plans, tools like the ReCoTech software exist: Using algorithms, smart area planning calculates the optimal office space in a smaller area – even with a constant number of employees. Digital workplace booking complements this data with occupancy analyses, forming the basis for space-changing decisions. With monitoring functions and smart extensions such as sensor technology, ReCoTech is a reliable partner when it comes to new spatial structures in authorities.

In the Energy Transition and Climate Protection Act, Schleswig-Holstein committed to reducing government office space per person by 20% by 2035. But the federal state is pushing the pace: As the cabinet decided in an implementation paper, at least 20% of office space and 10% of total administrative space is now to be reduced by 2030.

Smart area management: Space reduction comes earlier than planned

Germany’s northernmost state government is focusing on innovation: Efficient use of space, modern workplace organization and flexible time models are at the top of the government’s agenda in the coming years. The goal: to save at least 20% of office space and 10% of total space by 2030. In doing so, the government is going beyond the requirements of the Energiewende- und Klimaschutzgesetz (Energy Transition and Climate Protection Act), which had planned implementation by 2035.

The state government commissioned the Ministry of Finance to coordinate the process. The plan is for the departments to work together with the Gesellschaft für Gebäudemanagement und -service Schleswig-Holstein (GMSH, Facility Management and Service Company) to develop ways in which they can use and save space even more efficiently.

Smart savings: Measures for implementation have been defined

As a first step, those responsible are focusing on the so-called Zentrales Grundvermögen für Behördenunterbringung (ZGB, Central Property for Government Accommodation). According to the government, the ZGB’s office space accounts for the largest proportion of the state-owned properties. In addition to the State Chancellery, this also includes the ministries and their subordinate departments.

The measures planned so far to implement the reduction in office space include:

• Development of space-efficient room concepts
• Implementation of contemporary work organizations, working time models and forms
• Adaptation of the manual for the realization of building projects in the state of Schleswig-Holstein
• Promotion of cooperation in the area of public administration
• Coordination of office space utilization, taking into account flexibly usable components of the state properties

Together with Hamburg, Schleswig-Holstein is setting a good example in terms of climate protection – in stark contrast to the federal government, as the Bundesrechnungshof (Federal Court of Audit) stated in a report in April 2023. Oliver Rabe, State Secretary of Finance of the state government in Kiel, also proclaims: “By reducing office space, we are taking an important step towards creating optimized and sustainable office concepts in our properties and also offering the opportunity to work in a more flexible and modern way.”

Smart support: Technological tools for space optimization

Modern IT solutions facilitate the efficient and needs-based implementation of space reduction in administrative authorities: The ReCoTech software enables intelligent area planning and optimal space utilization. The app also makes flexible workplace booking traceable and transparent – including comprehensive analyses and insights into operational and administrative processes.

A stiff breeze against change – or justified criticism? In July 2021, the city of Hamburg aimed to reduce the office spaces of government agencies. The goal was to cut rents and save money. The reactions from the union and the employee council were strong, and the initiative was heavily criticized. For today’s debates on space reduction, the question arises: What lessons can be drawn from the Hamburg case?

Moving away from the “status symbol of individual offices”

About 32 m² – that was the size of an average individual office in 2021 according to the Hamburg Finance Ministry. To curb financial setbacks due to the COVID-19 pandemic, a cost-cutting program was formulated: The finance senate called for a reduction of individual office spaces to 28 m² to lower rental costs. New work structures like home offices or desk-sharing models were supposed to facilitate this change.

This plan was not new: In 2011, the senate already advocated for a “measurable reduction of office spaces.” A guideline was formulated, taking into account both the space requirements of specific activities and internal hierarchies. The Finance Ministry took the first step at that time by consolidating the workspaces of two buildings. However, the cost-cutting plan was not fully implemented.

In 2021, the city of Hamburg faces hurdles again – especially from the unions and the employee council. The decision to reduce space was made “from the top down,” without involving the workforce. While Ver.di supported the basic idea, it criticized that cost-saving measures took precedence over modernizing workspaces.

The current state of government office spaces

Even today, the rents for government infrastructure are still too high and permeated with outdated work forms – as the German Federal Court of Audit found in an April 2023 report. Many agencies still adhere to guidelines and allocations that partly date back to the 1950s. According to the report, a revision of space requirements and subsequent modernization is essential to save costs. This could also contribute to environmental protection, as reducing space facilitates CO₂ reduction.

Space planning today

The past criticism of Hamburg highlights how a restructuring of office spaces should be carried out. Reducing spaces while simultaneously equipping them with modern work forms such as group offices or desk-sharing concepts always entails a cultural shift. Optimization always represents a change that must be clearly justified.

At this point, tools like ReCoTech can assist: The algorithm-based space planning maps the entire company and automatically calculates the optimized space requirement per workstation. The result: Decision-makers and employees can see at a glance within what framework a reduction in office space makes sense. The software enables transparent communication to successfully implement cost savings through space reduction.

Unnecessary expenditure in the millions: The federal government has so far failed to adapt its office space to flexible working methods. This conclusion was reached by the German Federal Audit Office in a report from April 2023. According to the experts, the long-outdated regulations for office buildings no longer take modern working methods into account and urgently need to be updated. The savings potential is enormous: By giving up 20 % of their office space, civilian federal authorities could save at least 300 million euros a year in cold rent.

Outdated guidelines

When designing office space for new buildings and occupying space in existing buildings, the federal administration has so far mainly relied on tried and tested guidelines. Entitled as “Maximum space for offices of federal authorities”, these guidelines have remained virtually unchanged since the 1950s.

In its regular audits, the Bundesrechnungshof shows that the federal authorities consistently use every last square centimetre of the specified maximum areas in new buildings. Added tot hat: When using existing buildings, they often interpret these guidelines as a minimum requirement for the space needed.

Flexible models are necessary

From the employees’ point of view, the approach also misses the current zeitgeist: Modern concepts, such as the desk-sharing model or working from home, have long been standard on the labor market. According to the finance committee, these could be implemented relatively quickly and, above all, cost-effectively in the existing buildings. Furthermore, a significant reduce of the time employees spend in the office is expected – as well as the space required. Unused existing properties could then be sold and third-party rents reduced.

Positive impact on climate protection

The experts agree: A reduction in office space would not only have financial benefits. By reducing the emission of climate-damaging gases and minimizing the need for energy-efficient refurbishment and new buildings, the government could also make a quick contribution to protecting the climate. As a reminder: According to the climate protection program, the federal government wants to make its administration climate-neutral by 2030. But those responsible are avoiding the issue.

Although the Federal Ministry of Finance (BMF) supports the approach of the Bundesrechnungshof, it is hesitant to implement it. “The Bundesrechnungshof recommends the immediate introduction of modern requirements for needs-based office space planning,” the experts state. Above all, these should take modern forms of work into account. In addition, a program should help to oblige the authorities to reduce their office space. The experience of the European Commission and the states of Schleswig-Holstein and Hamburg could serve as a guide here.

Support through technical innovations

Modern IT solutions are available to the federal authorities in order to implement space reduction efficiently and in line with requirements: ReCoTech’s software enables algorithm-based area planning in office buildings and thus includes intelligent space utilization – even with the same number of employees. Analyses allow work processes to be optimized and the potential for energy savings to be exploited in a targeted manner.

The ReCoTech app also offers the option of booking workstations. The smart application can thus completely map an authority and also provides valuable insights into operational and administrative processes.

Working in the office or from home – which consumes more CO₂? This is the very question answered by an American study that examined the emissions balance of in-person and remote work. The results continue to raise the question: How can greenhouse gas consumption be reduced in the long term?

Balancing electricity savings and travel

For the sustainability study, a research team from Cornell University collaborated with Microsoft, utilizing data sets from the corporate giant. The analysis revealed that those working exclusively from home save up to 54 % in greenhouse gases compared to their office counterparts. Hybrid work only offered a slight advantage, with a maximum savings rate of 29 % for two to four days of remote work per week.

Where does the high consumption in the office come from? According to the study, it is not the office IT or communication technology that’s responsible, but measures such as heating or cooling the premises with air conditioning. Commuting to the office is also included in the statistics.

However, Cornell and Microsoft highlight that remote work is not necessarily the key to a sustainable future. Because those who work exclusively remotely or from home tend to travel more or are often on airplanes, as the study shows. Additionally, devices like home printers, for example, tend to consume more electricity on average compared to larger office versions.

This emissions balance is also expected in the German-speaking region. While the data for the study comes from the United States, according to the researchers, the results can be applicable to Europe and Japan as well.

Reducing emissions with smart spaces

Cornell and Microsoft show that when it comes to long-term sustainability, the work arrangement is not the sole solution, as private and business-related CO₂ consumption balances out. So, how can companies contribute to reducing greenhouse gas emissions?

The answer lies in the space: Companies and corporations need to assess how much CO₂ they consume and which aspects of their daily operations are responsible for it. In the second step, the company’s or employees’ work arrangement is considered: Who works when in the office, who is in the home office? For office spaces structured around fixed workstations, this means that on home office days, not all rooms are fully occupied, creating free spaces.

At this point, software programs like ReCoTech provide valuable support: Through occupancy analyses, companies determine how spaces are used. With automated calculations, an optimal space structure can then be created, considering individual work processes. Simultaneously, the software uncovers potential savings in terms of space, allowing for downsizing or office space reduction. This not only reduces CO₂ consumption but also lowers operational costs.

[Interested? Book a ReCoTech demo now]

The importance of sustainability in businesses is gaining increasing attention – not only from the general public but also from employees. This is the conclusion of a recent study by HEUTE UND MORGEN: The market researchers urge companies to involve their employees early in initiatives and to give greater consideration to their ideas.

Employees prefer sustainability-oriented employers

The new study, “Sustainability of companies from an employee perspective – status quo, potentials, and perspectives”, reveals that 74 % of German employees welcome their employer’s commitment to sustainability. For 40 % of respondents, sustainability in the workplace holds personal significance.

These figures result from the work of Julia Nachtsheim and her market research team at HEUTE UND MORGEN. For the representative trend study, they surveyed 1,000 employees and executives in companies with a minimum size of five employees.

Further insights include: Employees who believe their company is already acting sustainably exhibit higher loyalty to their employer. This aligns with the statement that more than one in four employees in Germany (28 %) cannot envision working for a company that does not pursue sustainability goals.

“Sustainability is evolving in an organizational perspective from a nice-to-have to an indispensable hygiene factor and must-have,” says study leader Julia Nachtsheim. “Companies that understand and embrace this beyond mandatory regulations can secure crucial competitive advantages in the fiercely contested talent market.”

Challenges and potentials of sustainability in the workplace

Despite the increasing importance of sustainability in companies, there is still room for improvement: 28 % of respondents feel that their employer has been insufficiently committed to sustainability. Only 19 % of companies prioritize sustainability, while 41 % indicate that there are more pressing issues.

Interestingly, most employees are less concerned about the specific area of sustainability their company is involved in. What matters more is that the commitment is transparent and proactive. Here, passive measures play a lesser role compared to active efforts.

Becoming sustainable through space optimization

Companies take various steps to become more sustainable. One crucial task is to assess the efficiency of office space: Are the available rooms optimally utilized? Is there still a need for space-intensive individual offices? Which types of spaces support work processes?

Through analysis, it is possible to uncover potential space savings and accommodate optimized structures in a smaller area. This allows companies to relinquish space, resulting in cost savings and an improved carbon footprint.

Tools and software programs like ReCoTech support this initiative by using algorithms to calculate the optimal office structure. At the same time, manual parameters such as individual work processes can be taken into account. The solution promotes communication between executives and the workforce: Employees can communicate which room systems already work in their daily activities, and this feedback then forms the basis for the software calculations. Sustainability thus becomes an active collaboration involving all levels of the company.

Since 1965, Siemens has been inseparably linked to Erlangen: The global company opened a vast research campus in the southern part of the city, driving numerous innovations. Now, the entire area is being transformed into an open meeting place in line with the principles of New Work.

A new district for Erlangen

The individual is at the center: a core concept of modern work. Siemens embraced this principle in 2013 when announcing the redevelopment of the old research campus. The goal was to create a new office and living structure, transforming the area into an attractive, open district in Erlangen. Previously accessible only to “Siemensians”, the old site is now slated to become a campus by 2030, uniting quality of life with productive work.

The architectural competition at that time, forming the basis for the project, was won by the Frankfurt-based architectural firm KSP Jürgen Engel Architekten. The Siemens Campus was divided into eight modules in the planning phase, to be completed sequentially. The groundbreaking took place in December 2016, and employees have already moved into Module 1.

Working amidst gastronomy and green spaces

The campus concept is groundbreaking and sets new standards: The site follows a block structure with extensive greenery and preserved old pine trees as a connecting element. Ground floor levels of the buildings are designated for restaurants, cafes, services, and retail, while office complexes begin from the first floor. This idea has a significant impact: Not only does the campus have the potential to become a popular district for all residents of Erlangen, but Siemens employees also find themselves in a workplace located in an area with high quality of life.

The architectural design also seizes this opportunity and opts for glass: Employees enjoy views either into a green courtyard or a boulevard. The spaces themselves are a prime example of New Work design with versatile zoning (including Think Tanks), a clean desk policy, comfortable lounges, and state-of-the-art acoustics that effectively dampen noise, promoting quiet focused work.

Building sustainably for the jobs of tomorrow

Resource-efficient construction is a top priority for Siemens. Even during the conceptualization, emphasis was placed on acting sustainably and designing buildings that enable carbon-neutral operations. Thus, the Siemens Campus takes a pioneering role when it comes to future-oriented architecture and its implementation.

The ongoing construction process of the Siemens Campus in Erlangen is therefore an intriguing New Work topic, proving that smart ideas in the building sector shape the future of work.

Source: Siemens

Image source: Siemens AG, Munich/Berlin

From home office back to the office? Since the end of the Corona lockdowns, it is clear that remote work has become permanently established in German companies. More and more firms are adapting to this trend: On one hand, they make efforts to bring employees back to the office more frequently – whether through incentives or clear guidelines. On the other hand, they are reducing office spaces by shortening leases, consolidating locations, or forgoing new office properties. This trend is intensifying, as a recent ifo survey indicates.

Three times more remote work than before the pandemic

In the modern work environment, Simon Krause is convinced that remote work has become a permanently integral part. “About a quarter of employees work regularly from home,” says the ifo expert. Especially Mondays and Fridays are popular days to work from home or any other location outside the office. The trend towards mobile work is unbroken.

This is also supported by the current figures from his institute: A business survey by the Munich-based research institution ifo revealed that currently, 12.3 % of all office workplaces on an average weekday are not occupied due to remote work. For comparison, in 2019 – pre-pandemic – it was only 4.6 %. “The proportion of unused workplaces in offices has thus tripled,” says Krause.

IT and advertising sectors embrace remote work frequently

But these numbers are not evenly distributed across all sectors: In the service sector, the percentage increased significantly from 6.2 % to 16.8 %. Especially in IT professions, market research and advertising, consulting, and the pharmaceutical industry, there are many jobs that are not physically occupied.

The upward trend is also observed in other sectors such as manufacturing, trade, or the construction industry, though to a much lesser extent.

Altered needs for office spaces

The trend toward remote work has implications for both companies and the real estate market. “Some companies,” says Simon Krause, “are converting vacant offices into coworking spaces to facilitate more personal interaction on the days of physical presence. Other companies are reducing their space requirements to cut costs for unused offices.”

Robert Vesely from the real estate association IVD also sees altered needs for office buildings to make them appealing to companies. The Magdeburg-based entrepreneur emphasizes that, in this context, both digital infrastructure and a redesign of the spaces are crucial. This is to ensure that, for example, multiple teleconferences in one room do not become an acoustic issue. Property owners have already recognized this necessity and are investing accordingly.

Smart solutions for companies

For companies grappling with how to cost-effectively and energy-efficiently utilize their office spaces in light of the remote work trend, smart solutions are available. The Company ReCoTech has developed a space optimization tool to digitally determine the actual need for required office spaces. Whether it’s consolidating spaces or making changes in usage, such as desk-sharing, the tool reveals the full potential of office buildings.

Additionally, for booking shared workspaces, ReCoTech offers a workplace booking app. It accompanies employees throughout the workday, remembers their work preferences, and can automatically handle resource bookings as desired.

The state of Baden-Württemberg has launched an important initiative to support local authorities in saving space. The campaign aims to promote the efficient use of land and strengthen inner-city development.

The Baden-Württemberg initiative: Reducing space together

The state cabinet has approved the proposals of the Minister for State Development and Housing, Nicole Razavi, and has initiated an action plan for saving land. The planned measures include:

• Development of a concept for a new unsealing premium
• Initiation of model projects for efficient land reactivation and renaturation
• Creation of a digital overview of brownfield sites in the country
• Promotion of land managers in the commercial sector

Nicole Razavi emphasized that saving land is a joint task and that everyone involved must make their contribution. An expert opinion is to clarify which instruments are suitable for reducing land – the first results are expected in fall 2023 (source: press release from the state of Baden-Württemberg).

In this context, the optimization of office space also plays an important role. Companies such as ReCoTech, which specializes in precisely this area, can make a valuable contribution here. To this end, ReCoTech offers a globally unique IT-supported solution for space and occupancy planning of office space: This gives companies the opportunity to subject existing premises and their use to an audit and have potential space savings calculated – an approach that fits in well with the general objective of the state initiative.

Creating synergies with shared goals

Both approaches, the state initiative and ReCoTech’s services, pursue the same goal: efficient use of space for a resource-saving future. By combining both perspectives, sustainable and efficient solutions for land use can be developed. This results in food for thought such as the following:

1. What would collaboration between state initiatives and companies such as ReCoTech look like to promote land efficiency?
2. Could the technologies developed by ReCoTech also be applied in other areas, such as industrial estates?
3. How can the findings from ReCoTech’s space and occupancy planning be integrated into the state’s plans for space optimization?

The initiative of the state of Baden-Württemberg and the products of ReCoTech show that efficient land use is a task that affects a wide variety of areas and levels simultaneously. Cooperation would combine the economic and governmental perspectives and promise one thing above all: productive progress.