What is a satellite office? Definition, Types, Benefits and Notes in a Nutshell
In today’s world of increasingly diverse work styles, many people want to “solve the problems of office work and telecommuting. Satellite offices are attracting attention. More and more companies are considering the introduction of satellite offices as a means of solving teleworking issues such as “difficulty in managing attendance” and “reduced work efficiency and productivity.
This article provides a detailed explanation of the types of satellite offices, the benefits of their introduction, and points to note. If you are looking for practical information to consider a new office operation strategy, please read this article to the end.
Contents
- 1 What is a Satellite Office?
- 2 Industries that frequently use satellite offices
- 3 5 Advantages of Using a Satellite Office
- 4 Equipment and corners required for satellite offices
- 5 Points to keep in mind when implementing a satellite office
- 6 Key Points for Successful Implementation of Satellite Offices
- 7 Summary
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What is a Satellite Office?
A satellite office is an office located away from the head office. Unlike branch offices or sales offices where business operations are conducted, they are intended to provide a flexible work environment. Most satellite offices are small spaces for a small number of people and are often used as part of a teleworking program.
Satellite offices are categorized into three types depending on where they are located: urban satellite offices, regional satellite offices, and suburban satellite offices.
Urban Satellite Office
Urban satellite offices are offices located in urban areas. This includes cases where a satellite office is located in the same city as the headquarters, or where a regional company establishes a base of operations in an urban area.
Urban satellite offices can function as a base from which sales representatives can conduct business in between outings, reducing travel time and increasing business efficiency. In addition, having an office in a different location from the head office can also serve as a BCP measure.
Regional Satellite Offices
Regional satellite offices are offices set up in rural areas by companies headquartered in urban areas. In many cases, the purpose of these offices tends to be regional development and job creation.
In many cases, local governments are attracting regional satellite offices because of the expected contribution to the local economy. The appeal of a regional satellite office is that it encourages migration from urban areas to rural areas and allows people to work in an environment surrounded by nature.
Suburban Satellite Office
Suburban satellite offices are offices located in suburban bedroom communities. They are used to reduce the commuting burden on employees and improve their work-life balance.
By reducing commuting time, employees can balance work and childcare/nursing care. Since it is expected to reduce employee turnover and improve retention rates, suburban satellite offices are also attracting attention as part of the reform of work styles.
Industries that frequently use satellite offices
Satellite offices are being utilized in a variety of industries because having a base of operations outside of the city center allows for the reduction of employee commuting burdens and the provision of community-based services. The following is a bulleted list of industries with high utilization rates and their backgrounds.
IT and Web Industry
Because most work is done on a project basis and has a high affinity with telework, it is possible to realize a location-agnostic work style. Another major advantage is the ease of hiring personnel from all over Japan.
Consulting and professional services industry
Meetings with clients and on-site surveys occur frequently, so establishing offices in each region allows for quick response. Providing services that are rooted in the local community contributes to building trust.
Finance/Insurance Industry
There is a need to diversify risk by having regional offices in addition to large cities, and to develop services that are in line with local economies. The ability to flexibly respond to the diverse needs of customers through a multi-location structure is highly valued.
Manufacturing and logistics-related industries
By locating offices close to production and logistics bases, collaboration with the field is strengthened and quick decision-making becomes possible. It also reduces the commuting burden on employees and is expected to improve productivity.
Creative and advertising industries
Require a diverse working environment that stimulates creativity and ideas, and satellite offices, which are not tied to a fixed office, are valued as a place that promotes free thinking and flexible work styles.
These industries are seeking to diversify their working environments and strengthen ties with the local community through satellite offices in order to improve operational efficiency and enhance corporate competitiveness. Demand for satellite offices is expected to continue to grow as companies develop location strategies tailored to their business characteristics and market needs.
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5 Advantages of Using a Satellite Office
The use of satellite offices offers benefits not only to the employee, but also to the company. Since there are advantages that differ from telework and remote work, it is advisable to consider implementing a satellite office after making comparisons.
Here are five advantages of satellite offices.
Increased productivity and motivation
A satellite office reduces travel time to and from sales destinations and offices, giving employees more time to focus on their work. If employees can respond quickly to customers at a satellite office located close to the customer without having to return to the head office, they can expect to improve their work efficiency.
It is also possible to reduce fatigue and stress caused by travel. The improved work-life balance and increased motivation to work will lead to increased productivity for the company as a whole.
Reduction in rent, transportation and other costs
Maintaining a large office in an urban area involves high rent and utility costs. However, by setting up a satellite office in a rural area or within living distance of employees, it is possible to keep capital investment and operating costs to a minimum.
In particular, in many cases, the rent for a regional satellite office is lower than in an urban area, and significant cost savings can be expected. Another advantage is that employees no longer need to commute to the head office, reducing the burden of transportation costs. In addition, by taking advantage of the subsidy system for satellite offices, an office environment can be created while reducing the financial burden.
Securing excellent human resources
With a satellite office, we can proactively recruit excellent personnel who live in rural areas where commuting to urban areas is difficult, including “U-turn personnel” who want to return to their hometowns to work and “I-turn personnel” who want to move to rural areas.
This will broaden the scope of human resources by making candidates who “do not wish to be transferred to urban areas” and “are thinking about finding a job in their hometowns,” who were not previously eligible for employment. With the declining birthrate and aging population, it is becoming increasingly difficult to secure human resources, and offering flexible work styles will help companies improve their competitiveness.
Prevention of job turnover due to childcare or nursing care
In many cases, talented employees leave the company due to difficulties in balancing work and family life. If employees can work in an environment close to home through the introduction of satellite offices, they can respond quickly to sudden fevers or other family emergencies, allowing them to continue their careers while balancing childcare and nursing care.
It is a great loss for a company when talented employees leave the company due to family reasons. Establishing a flexible work system will lead to higher worker satisfaction and prevent the loss of valuable human resources.
Part of BCP measures
Satellite offices are also effective from the perspective of business continuity planning (BCP). In the event of a natural disaster or pandemic, even if the headquarters ceases to function, the satellite office can continue operations.
In addition, by creating an environment in which employees can work at multiple locations, risks can be dispersed and corporate losses can be minimized in the event of an emergency. The introduction of satellite offices is an important strategy to enhance business stability.
Equipment and corners required for satellite offices
The facilities and dedicated corners required for satellite offices are directly related to creating an environment in which workers can work comfortably and efficiently. The reasons why each item is needed and the benefits are as follows.
| Equipment |
■High-speed, stable Internet connection In satellite offices, where online meetings and remote work are the norm, communication interruptions can have a major impact on operations. A stable connection allows work to proceed smoothly and without interruption, leading to increased productivity. ■High-performance camera and audio equipment Enables communication with remote locations with near face-to-face quality. Clear video and audio enhance the quality of meetings and strengthen credibility within and outside the team. ■ Ergonomically designed office furniture Reduces the strain on the body during long hours at the desk, creating a comfortable work environment. This has significant health benefits and improves employee concentration and productivity. ■ Adequate lighting and air conditioning Adequate lighting and comfortable temperature control are essential for maintaining employee concentration and reducing stress. A well-lit work environment improves overall work efficiency. ■Space that allows flexible layout changes The layout can be freely changed according to the nature of the work and the organization of the team, providing an optimal work environment at all times. Collaboration and concentrated work can be achieved at the same time. |
| Dedicated corner |
■Open Space This space is used as a place for communication and idea sharing that transcends departmental boundaries. The open environment encourages free thinking in a relaxed atmosphere and serves as a source of innovation. ■Silent Booth Ideal for concentrated work in a quiet environment. By blocking out the noise, you can immerse yourself in your individual work and support the efficient execution of your tasks. ■Cafe-style lounge and kitchen area This is a space where employees can refresh themselves while enjoying snacks and drinks. In addition to the relaxing effect, it creates natural interaction among employees and improves teamwork. |
With the above facilities and dedicated corners in place, satellite offices will provide a comfortable and efficient working environment, promoting flexible work styles and improving the overall competitiveness of the company.
Points to keep in mind when implementing a satellite office
Satellite offices have disadvantages as well as advantages. Introducing them without considering the risks could lead to losses, so it is important to understand the two points of caution introduced below.
Lack of communication is likely to occur
It is important to note that satellite offices can easily lead to a lack of communication since employees work at a distance from each other. If business reports and communications are delayed, work progress and sharing of problems can be delayed, which can lead to a decrease in productivity.
Web conferencing systems and business chat tools are also available, but online communication has the aspect that it is more difficult to convey the other party’s feelings compared to face-to-face conversations. Therefore, it is important for smooth business operations to consciously promote communication by providing a place where people can exchange opinions easily.
Security measures will be required
In the case of a shared satellite office that is not dedicated to the company but shared with another company, the risk of prying eyes on PC screens and eavesdropping on conversations increases because the office space is shared with a third party.
In order to prevent information leaks and data theft, it is essential to take measures such as “affixing privacy filters to PCs” and “conducting conversations that include confidential information in private soundproof rooms. When using public Wi-Fi for work, you can reduce the risk of hacking and data leaks by going through a VPN. Establishing rules for information management and conducting regular training on security measures are also useful.
Evaluation criteria need to be clarified
Since employees at satellite offices perform their work away from the headquarters, there is a risk that daily progress and results may be difficult to see. Therefore, it is essential to clearly define evaluation criteria for each job and share them with all employees.
Specifically, by quantifying and visualizing work targets, performance indicators, and process evaluations, and by providing regular feedback, a fair and transparent evaluation system can be established. Such clarification of evaluation criteria is directly linked to individual growth and organizational improvement, and is an important factor in enabling fair evaluation even in remote environments.
Key Points for Successful Implementation of Satellite Offices
In order to successfully implement satellite offices, it is important to organize the key points of implementation in advance and take specific measures for each element. For example, the office location environment, business design, information sharing mechanisms, and maintenance of corporate culture and employee engagement.
The following sections provide specific measures and reasons for these points.
Selecting the right location and environment
The first step to a successful satellite office is to select the right office location and surrounding environment. Choosing a location with good access to major transportation networks and public transportation will reduce the commuting burden on employees and improve their work-life balance.
In addition, the availability of convenient living facilities such as restaurants, convenience stores, and cafes in the surrounding area directly contributes to the comfort of the working environment. Furthermore, the office building itself must be evaluated for security measures, earthquake resistance, energy efficiency, and other factors to create an environment in which employees can focus on their work with peace of mind.
Thorough location selection also contributes to maintaining employee motivation and building a network with the local community.
Business design based on hybrid work
As hybrid work becomes more prevalent, it is also important to design operations in satellite offices based on both remote and face-to-face work styles.
Specifically, establish a system to assign tasks and adjust schedules according to the characteristics of each job, as well as to strengthen coordination between online and offline tools. For example, the key to flexible operation is to utilize digital tools for meetings and project progress management, while gathering in the office when face-to-face meetings are required.
In this way, by designing operations based on the premise of hybrid work, it is expected that each employee will be able to maximize his or her performance in an environment in which he or she is comfortable working, and this will have the effect of improving the operational efficiency of the entire organization.
Establish a smooth information sharing mechanism
Satellite offices have the risk of information sharing becoming stagnant as employees work in dispersed locations. Therefore, cloud-based collaboration tools, chat, and video conferencing systems should be implemented to facilitate real-time communication.
It is important to visualize the status of work through regular online meetings, progress reports, and even project management tools. Visualizing the status of operations will strengthen collaboration among departments, speed up decision-making, and enable early response to problems, leading to higher productivity throughout the organization.
Maintain corporate culture and increase employee engagement
Even in an increasingly decentralized work environment, it is critical to share company values and culture. Efforts should be made to promote interaction among employees through regular offline meetings, workshops, and online internal events. In addition, proactive communication by leadership and information dissemination through internal social networking sites will help spread the corporate culture and increase engagement.
It is essential to plan strategically for such initiatives, as they can create a sense of togetherness among employees working in remote locations and have a significant effect on maintaining motivation and reducing turnover.
Summary
Satellite offices are an effective way to address the diversification of work styles and improve employee satisfaction and productivity. Urban, regional, and suburban office types are available, so choose the office best suited to your company’s objectives and the needs of your employees. However, communication and security issues must also be considered.
If you are looking to reduce office costs, renting office space is an option. The initial cost is lower than setting up your own office, and security features such as automatic locks are also available. If you are concerned about the disadvantages of satellite offices, why not consider renting an office?
