Rising energy costs prompting many firms to delay return to office

Increase in home energy costs may make more employees want to return

High energy costs have reversed the debate on the return to offices, with firms looking to delay reopening and employees looking to return sooner than they had planned — as both look to save money.

An increasing number of companies are considering delaying the reopening of their offices and keeping their employees working remotely, due to rising energy costs and the potential negative effect on their financial wellbeing.

Many companies, particularly SMEs and micro-enterprises, are bracing themselves for increases of up to 30% in their heating and energy bills as prices rocket.

HR employment and law advisory Peninsula Business Service Ireland has warned that job losses are a risk, especially within energy-intensive businesses that may have to either pause or reduce production if they cannot cut costs elsewhere.

Growing concern

Peninsula said rising energy costs are becoming a growing concern for Irish companies. 

While those which have not yet returned to the office environment may delay that move, companies that are back in the office may be forced to shut down their premises, either temporarily or permanently, and adopt a full remote working environment in a bid to save money, it warned.

It also said that while there is still resistance from employees to return to the physical office, the knock-on increase in home energy costs may change their minds and make them want to return.

“With energy companies going bust and the cost of gas and oil rising, these costs are going to be passed onto the consumer and heating bills are likely to go up,” said Peninsula Ireland managing director Moira Grassick.

“This is going to have an impact on the decision to work from home, and employers may start to see more staff who have been reluctant to return to the office looking to come back in to avoid the cost of heating their homes around the clock.

So, ironically, just as employers finally get employees to return to the office, they may soon be looking to send them home again."

Peninsula's warning comes as many businesses, particularly those in hospitality and other services areas, are waiting to see if the Government sanctions a full removal of remaining Covid restrictions by the end of this week.

Meanwhile, CSO figures show Irish companies have improved their online and e-commerce presence since the onset of the Covid crisis. Currently, 82% of Irish companies have a website or homepage, compared to 79% in 2020 and 2019, said the CSO.