5 ways to reduce office costs in 2024

It’s 2024, and as the year kicks into gear, you may be contemplating how to navigate the ever-evolving landscape of business expenses. Remember that in an era where smart decision-making can save you a lot of expenses, finding effective ways to cut costs without compromising efficiency is a key objective for businesses–especially ones with office spaces.

With this in mind, we've gathered insights based on experience to present a list of five strategic approaches to reducing office expenditures as the year unfolds.

From energy audits and tool evaluation to embracing the efficiency of AI and implementing smart office practices, we’ve compiled a few designed to help your organization make thoughtful choices that help you save money on unnecessary costs this year. 

1. Audit your energy usage  

You can't start cutting down on energy costs without figuring out where you're currently losing money. An energy audit aims to identify areas in your business where energy consumption is causing financial losses. A good energy audit presents the data in a way that's easy to understand and suggests steps you can take to reduce your energy usage. According to figures from DENA, an audit can save you as much as 10% of operation costs. Moreover, companies can achieve a 25% reduction in final energy consumption through strategic investments in energy-efficient measures.

A certified energy advisor or auditor, such as SGS or Cornelius Ober in Germany, will conduct the energy audit for your company. These auditors are responsible for assessing the energy efficiency of both commercial and non-commercial facilities. You can easily locate energy auditors through your power company, local utility, or private companies.

Setting’s tip: Be sure to power off and unplug all machinery when it's not in use, just as you would with lighting. It’s a simple practice, but it can significantly reduce your energy expenses. This includes devices like air conditioners, coffee vending machines, hand dryers, microwaves, printers, copiers, and scanners, especially during weekends or holidays.  According to estimates by Check24, devices in standby mode cost German households nearly 450,000 EUR per hour across Germany.  

2. Evaluate your tools 

The same goes for tooling. As 2024 gets into swing, take a closer look at your suite of digital tools to identify redundancies or underutilized platforms. This entails pinpointing underutilized software and streamlining overlapping tools. Assessing their efficiency and contribution to overall productivity allows you to make informed decisions on which tools are essential and which could potentially be streamlined or eliminated from the budget.  

Your goal is to boost the efficiency of our technology stack, aiming for substantial cost savings while guaranteeing that our digital infrastructure seamlessly aligns with our business requirements.

Setting’s tip: A lot of tools, including Slack, Asana, and Jira, have business plans and/or solid entry-level plans. It’s a matter of thinking about what tools you need most for your team and allocating resources accordingly. 

3. Start using AI

It may raise some hairs on the back of your neck, but remember that AI tools are here to help in 2024. You can explore various options that can simplify once time-consuming tasks using AI tools. For instance, AI tools can streamline the hiring process, handling applications, onboarding, and collecting necessary documentation more efficiently. This way, your HR team can focus more on interacting with people rather than getting bogged down by administrative processes.

Setting’s tip: Task and project management become efficient using platforms like Any. do, and BeeDone, while scheduling is made easier with tools such as Reclaim, Clockwise, and Motion. Remember: don’t take too much on. Rather, analyze what would work for your company and test it out first.

3. Manage your office’s temperature

Investing in a programmable thermostat is a wise decision to regulate your office's temperature during unoccupied hours. When heating is in use, simple practices such as keeping doors and windows closed play a crucial role in minimizing energy loss by preventing heated air from escaping and cold air from entering.

Additionally, ensure that your radiators and air conditioners are properly positioned and not obstructed by furniture, as this directly impacts their efficiency. Elevating energy conservation can be achieved significantly by incorporating a high-quality smart thermostat. Smart thermostats, known to reduce energy costs by up to 23%, have the potential to yield annual savings amounting to several hundred euros.

Setting’s tip: Most experts agree that anywhere between 19 to 22 degrees Celsius will make for a comfortable office space.  The old credo is true, too: when it comes to heating, every degree really does matter—especially if you want to keep an eye on costs. Read our article on how to reduce heating to find out more.

4. Get a flexible contract 

Embracing flexible workspace solutions proves instrumental in achieving noteworthy cost savings for office space rentals. Given that lease durations typically span from one year for small businesses to three years for larger enterprises, the growing allure of office space flexibility is undeniable. This adaptability extends to both lease duration and the capacity to swiftly adjust office size, catering to the evolving needs of businesses. Such flexibility is increasingly recognized as a coveted advantage, allowing organizations to efficiently tailor their office arrangements to changing requirements in a dynamic work environment.

Setting’s tip: Our experts are standing by to help you find, move into, or flexibilize your office space. We’re here to help!