In 2020, the pandemic forced businesses to adapt to remote work, showing us that many operations can function without a physical office.
Now that things are returning to normal, the question arises: Is having a physical office still necessary?
According to a survey by Reeracoen, 56% of companies in Singapore still require employees to work full-time in the office, while nearly 40% have adopted hybrid schedules, and 7% operate fully remotely.
Although remote work is becoming more common, the majority of companies are still cautious about fully embracing it.
You must be thinking, “Well if most companies prefer having a physical office, shouldn’t mine do the same?”
The answer may not be that simple. In this article, we will list the pros and cons of both virtual and physical offices.
So, if you’ve been on the fence about this, and that’s likely why you’re here, we’re here to help you find the best fit for your business.
What Is a Virtual Office?
A virtual office is where your company can have a professional address and phone number, without having a physical location. You can receive emails, and book meeting rooms when required.
It’s a flexible, cost-effective solution, perfect for startups or small businesses that have to look professional without the expense of renting actual office space.
Most virtual office providers also offer several other services like call answering, voicemail forwarding, and even virtual receptionists!
With all these elements, your business will appear professional, functional, and operational even though your team is working remotely or spread across various locations.
What Should You Keep in Mind When Choosing Between a Physical or Virtual Office?
Cost Considerations
In what scenarios is renting an office worth the extra expense?
If your company relies heavily on in-person meetings or teamwork that require face-to-face collaboration.
The last thing you need to do is worry about where to meet or whether the internet connection is stable enough for an uninterrupted work session.
However, with that being said, there is no doubt that having a physical office space is the pricier option. From the monthly rent to bills to furniture and cleaning costs, the costs can add up quickly.
If you’re a start-up, a virtual office is the way to go. You and your employees can work from anywhere and still maintain that professional image with a credible business address and phone number.
Not to mention, if you take into consideration the cost and time spent commuting to a physical office, that raises a whole new challenge.
Flexibility VS Stability
With a physical office, employees get a sense of stability and a sense of permanence, which can help create a collaborative environment, encourage spontaneous meetings/coffee breaks, or even keep everyone in the team aligned.
If flexibility is a more important aspect of your business, perhaps go with a virtual office. You (or your employees) can work from home, at your favorite cafes, or even in another country!
In a virtual space, you’re not tied down to one place, and your employees do not have to commute 5 days a week just to come to work, which is a win-win in terms of work-life balance.
Collaboration & Team Dynamics
When you work together in an office, it is a lot easier to go to your colleague’s desk for a quick question, hold last-minute meetings, or even do team lunches/activities, which is great for bonding.
If building strong team connections or creating an office culture is important to you, then physical spaces are definitely the better option.
In a virtual office, we tend to rely on Slack, Zoom, or Google Meet to communicate which works just as great in today’s day and age. However, do keep in mind that the communication hinges on having a solid internet connection.
If you and your team are comfortable using these tools and can be just as productive from anywhere, then going virtual could be a great fit.
Productivity & Work-Life Balance
In terms of productivity, there are pros and cons in both situations. While the physical office can provide a structured environment, helping employees stay focused during work hours, the commutes and office politics may sometimes be a distraction.
Whereas, in a virtual office, employees will have more control over their work environment, which has been proven to help increase productivity.
That said, it is also extremely important for employees to be disciplined. It can be very easy to get distracted if a TV or bed across the room is staring at you.
Which One Is Right For You?
At the end of the day, it really depends on what works best for your business model, what stage you’re in, and even your personal preference.
If you’re a startup or small business, a virtual office is the smarter, more affordable choice. It gives you the flexibility to run your business professionally without the heavy costs of a physical space.
But if your business thrives on in-person collaboration and you can afford a physical office, it might be worth the investment for you.
If you’re somewhere in between, why not try going hybrid? You can handle your day-to-day operations with a virtual office and rent physical spaces when you need to meet clients or host events.
Here at My Office, we have been in the virtual office business for over 5 years now. Our goal is to continuously provide an affordable yet high-quality business experience for you.
If you’re ready to explore virtual office options, reach out to us—we’d love to help you get started. After all, your success is our success!
