Satellite offices explained

Now more than ever businesses need to be agile. The 'satellite office' model can help them achieve this aim while cutting costs and increasing productivity.

- Satellite offices are physically distinct from the main office but remain interconnected

- Satellite offices are agile and flexible

- Businesses can reduce overheads by moving away from centralised headquarters to a satellite model

- Businesses with satellite offices benefit from greater productivity and staff wellbeing

Businesses are slowly beginning to find their 'new normal' following the outbreak of COVID-19 in the UK in early 2020. Remote working, often based on a work-from-home model, helped many businesses function in emergency circumstances, but there is now a need to find a more permanent way of working around the new realities.

Even with the UK Government encouraging a return to the office, businesses are finding that employees are reluctant to return to long commutes on public transport to a busy city centre office. Finding an innovative way forwards is essential if businesses are to return to full capacity and profitability.

A satellite office means that companies can decentralise their office requirements, allowing them to adapt to the new circumstances and get as many of their staff as they need back into an office environment.

A satellite is an office which is in a different physical location to the company's main office, while remaining connected to the head office. Satellite offices can be of any size and situated anywhere in the country or world.

Satellite offices function as the radial spokes in a hub and spoke model. Key head office functions are situated in the hub, with other workers placed out in regional satellite offices where they are needed. The model is flexible enough to allow workers to move between the two elements for meetings or on a more permanent basis.

Regional offices are similar to satellite offices but are usually in the same country as the hub. Satellite offices can be situated anywhere across the world as necessary. Regional offices are more likely to include a full range of business service functions and although they can be any size, they are often larger than satellite offices.

Outside of London, company buildings may be grouped together into a campus arrangement. A UK office campus can be a HQ, a hub or a spoke depending on the function of the buildings within that campus.

One of the first mentions of a satellite office was back in 1989 in the Los Angeles Times. The concept has become more widespread and mainstream over the years.

Satellite offices are agile and flexible

Businesses have often looked to reorganise their space requirements into a satellite model to reduce costs and enable them to access markets in new areas from a local base.The overwhelming changes forced on the business world by COVID-19 make satellite offices an obvious solution to overcrowded central headquarters.Satellite offices and the central hub which replaces a centralised headquarters can be far more flexible than fixed headquarter space. Businesses can make full use of serviced offices and co working spaces, allowing them to quickly and easily respond to changing demands for space. With a satellite office you retain the benefits to the business of key functions and staff working together centrally, while allowing the rest of the business to be based in the areas closest to their clients and customers.

A satellite office can act as a springboard for expansion into a new area or market allowing those situated there to make the key local connections which will be necessary for success.

Reduced costs

Extensive city-based head office space is expensive. A satellite model allows you to keep only those who are absolutely vital to the hub in the city, hugely reducing the need for premium office space. The majority of the staff are situated in the satellites where they are needed and at a much lower office space cost.

Increased productivity

Employees are more productive when they have a good work/life balance. Very often a long commute into a city erodes the balance between work and home, taking significant amounts of time and money. A city-based centralised HQ also reduces the pool of talent you are able to draw on unless you are able to persuade staff to relocate to work for you. More and more staff are actively looking to reduce their commute and work closer to home, meaning that if you operate a satellite model you are much more likely to be able to recruit and retain the talented people you need to make your business a success.

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