Why telework can be a lifesaver for growing SMEs

Business is starting to pick up and there are signs of tentative growth in many areas of the economy, but it would be unwise to assume the worst is over.

Telework and other flexible working methods can help a young company avoid painful and sometimes fatal growing pains. I have seen many a successful micro-enterprise founder as it tries to grow, most often this is either due to the founder being unable to adapt to managing a larger organisation or the cumulative effects of infrastructure changes imposing constraints on company resources.

In the latter case the growth pattern is not governed by sales or staffing, but by infrastructure. The point is that moving offices is time and resource consuming, expensive, and generally intensely irritating for all involved. Although good planning and project management can significantly reduce the disruption of a move, don’t forget that the person responsible will be using their time and resources, probably to the detriment of other activities.

Some of the issues that commonly arise when the business premises are nearing capacity:

• Postpone recruitment until new premises are available.

A lack of office space means that it is difficult to recruit the people you want, when you need them. Trying to pack people into an already crowded environment is not a great incentive, and generally impacts the productivity of all concerned. Postponing essential recruitment until space is available can mean lost opportunities in markets and recruiting talent.

• Recruit too many new staff because space is available

The aftermath of the first issue. Having moved into a larger office, there is a temptation to be too lax in recruitment criteria which can result  in underemployed and unsuitable staff.

• Moving office can result in a 5% reduction in annual productivity.

Just consider the process of moving, even using professional movers. Preparing key papers and documents, securing key electronic data, finding lost items, resolving unforeseen infrastructure problems, and re-establishing a workable comfort zone. If something can go wrong it will, and if disruption lasts for less than 5 days you will have done well.

I have known fast growing companies that have been forced to move 4 times in two years, and the cumulative strain on business has been significant.

• Opening a branch office causes management crises

To exploit new geographic opportunities some organisations feel it necessary to open a branch office. This can often result in duplication not only of infrastructure but administration as well. The challenge of suddenly having to manage a team remotely can be catastrophic due to lack of experience with remote management.

Flexible working methods offer remedies

Cramped conditions are not conducive to productivity, so why not use hot-desking and telework for established employees and free up some real estate to enable the new recruits to spend their induction in less cramped surroundings. At minimum it will provide time to find the best possible accommodation for the future, at best it will enable a seamless path for expansion without the need for new premises.

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