There are various forms of telework, such as telecommuting, mobile work, and satellite office work. In particular, satellite office work is attracting attention as a work style that focuses on workspaces according to the company’s business and employee needs.
This article explains satellite office work as a form of telework. In addition to the basic information, advantages and disadvantages of working at a satellite office, we will also provide detailed information on the types of satellite offices, points to introduce when setting up an office, and examples of how satellite offices are used by companies.
What is a satellite office?
A satellite office is a small office set up by a company in addition to its regular office . Working at a satellite officeis positioned as a form of telework alongside telecommuting and mobile work .
Differences between satellite office work and regular work, telecommuting, and mobile work
Telework refers to a work style in which work is done outside the office using a computer or mobile device. Telework can be broadly divided into three types.
- work remotely
- mobile work
- Satellite office work
Let’s sort out the differences between satellite office work and other work styles.
| WORK STYLE | FEATURES |
|---|---|
| Satellite office work | work in a small office set up by the company |
| normal work | Work at the head office or branch office |
| work remotely | Work from home during normal working hours |
| mobile work | We do not set time and place, and work in a highly convenient place as needed. |
Why satellite offices are attracting attention
Recently, the number of opportunities to hear the term “satellite office” has increased rapidly. I would like to explain the background to why satellite offices are now attracting attention.
Spread at once from 2020
The government has been actively promoting the introduction of telework since the 2000s. Among the “work style reforms” that were implemented in 2018, the promotion of telework was one of the major pillars, along with the correction of long working hours and equal pay for equal work. However, the number of companies that actually introduced telework was limited.
Telework has spread all at once with the declaration of a state of emergency announced in April 2020. In response to the declaration of a state of emergency, many companies have decided to introduce telework.
The graph below shows the results of a survey conducted by Xymax Research Institute on the implementation of telework among companies nationwide from June 4 to 16 after the state of emergency was lifted.
Telecommuting was the main alternative to regular work, but satellite offices were mainly implemented at large companies with more than 1,000 employees.
However, when I asked the companies that actually introduced it in more detail, the results like the graph below became clear.
It can be seen that while large companies effectively used the satellite offices that they had set up before, half of the small and medium-sized companies introduced them in the wake of the current corona crisis.
In the past, satellite offices were often established by large companies with many employees and abundant funds, but with the declaration of a state of emergency, they have also spread to small and medium-sized enterprises.
Even if the state of emergency was lifted, about half of the companies that have adopted telecommuting answered that they would continue to do so.
Some companies may have decided to continue because they have not completely converged, but it seems that there were many companies who actually introduced telework and got a positive impression.
From the perspective of BCP as well, the use of satellite offices is expected to increase.
The year 2020 is likely to be a year in which we will be confronted with how we should approach our BCP (Business Continuity Plan).
If you set up a satellite office and secure multiple working spaces, you will be able to continue your business even in the event of a disaster or emergency. In the future, more and more companies will consider using satellite offices in consideration of BCP.
Types of satellite offices
There are two types of satellite offices: “categorized by location” and “categorized by satellite office contract type”. Here, we will look at the roles expected of satellite offices according to each classification.
Classification of satellite offices by location
The required role of satellite offices differs depending on where the head office is located. It is important to have satellite offices in the right locations as needed.
Satellite offices are classified according to their location as follows.
| TYPES OF SATELLITE OFFICES | WHAT YOU CAN DO AT THE SATELLITE OFFICE |
|---|---|
| Urban satellite office | ・By setting up an office in an urban area where customers are concentrated, it is possible to reduce the time it takes to make a round trip between the company and the customer, and to achieve quick customer response and work efficiency. ・By distributing office functions, BCP can correspond to |
| Suburban satellite office | ・By setting up an office near the employee’s home, it is possible to reduce the commuting time and cost of the employee. |
| Regional satellite office | ・By using idle facilities and vacant houses in rural areas as offices, utilization of local human resources and regional revitalization can be expected. ・ Companies based in urban areas will be able to expand their business to rural areas . Diverse working styles become possible for employees who |
Classification of satellite offices by contract type
In addition, satellite offices can be divided into two types depending on the type of contract for office space. There are two types: a dedicated type that is contracted independently by the company, and a shared type that is jointly contracted by multiple companies. Shared type includes “shared office” and “coworking space”.
Satellite offices are classified according to contract type as follows.
| TYPES OF SATELLITE OFFICES | WHAT YOU CAN DO AT THE SATELLITE OFFICE |
|---|---|
| Dedicated satellite office | Since it is installed exclusively for your company, you can promote various work styles while maintaining high security. |
| Shared satellite office | You can exchange information with other companies and deepen exchanges through joint events. |
Satellite office system
A satellite office is an office that is connected to the head office by ICT (Information and Communication Technology). ICT has made it easier to “visualize” work even from remote locations, sharing work with the head office and managing the progress of work.
Let’s take a closer look at how satellite offices work to ensure smooth operations. Satellite offices are supported by ICT systems and tools.
- ICT system
- security tools
- Business support tool
- Communication tool
- Labor management tool
ICT system
The satellite office must have the same ICT environment as the head office. There are four types of ICT systems for satellite offices.
| SYSTEM METHOD | FEATURES/ADVANTAGES/DISADVANTAGES | |
|---|---|---|
| Virtual desktop method | Features | ・Method of accessing a virtual desktop on a server from a local terminal |
| merit | ・There is no need to set up a PC in the head office ・Administrators can centrally manage the virtual desktop environment |
|
| Demerit | ・Environment installation cost is high ・Environment construction cost is high and takes time |
|
| remote desktop method | Features | ・Method of accessing one’s own PC at the head office from a hand terminal |
| merit | ・Can be operated in the same environment as the head office ・Data does not remain on the terminal at hand |
|
| Demerit | – The power of the office PC must be turned on at all times. | |
| Cloud application method | Features | ・Method of accessing the cloud from a terminal |
| merit | ・Introduction cost is low and can be used immediately | |
| Demerit | ・Since data can be saved on the terminal at hand, there is some concern in terms of security | |
| VPN method | Features | ・Method of bringing in a terminal used in the company and accessing the company system via VPN |
| merit | ・Low introduction cost | |
| Demerit | ・ Strict security measures are required because data is left on the terminal at hand | |
By using a subscription-type service that pays a monthly usage fee, you can reduce the initial cost. Among them, the cloud application method is low cost and can be used from the day you apply, so it can be said to be an effective method for small businesses.
security tools
When using the cloud application method or a terminal used in the company, security tools can be used to increase safety.
In addition, when using a shared satellite office such as a coworking space, it is necessary to provide a level of support that is higher than that of a dedicated satellite office, such as preventing loss, theft, and prying eyes.
As a dedicated security tool, use a tool called Secure Browser or Secure Container.
By installing the secure browser on the terminal of the satellite office, documents and data can be displayed only from the secure browser. Safety is enhanced because it is automatically erased after the PC operation ends.
Secure Container creates an independent virtual environment called a “container” on mobile devices such as terminals, smartphones, and tablets installed in satellite offices. Even if you use your personal smartphone for work, you can safely use it separately from personal use. Even if it is lost, it can be erased by remote control.
Business support tool
When setting up satellite offices, you must ensure that the same customer value is provided at the satellite office and at the headquarters. It is necessary to create an environment in which data and documents are shared with the head office and work is not dependent on individual skills.
By using CRM tools, you can collectively manage information on leads (promising prospects), customers, and the progress of negotiations. Our free CRM from HubSpothelps companies save money on setting up satellite offices.
Communication tool
Along with e-mail and business chat, the online conference system is an essential communication tool for satellite offices. By using the online conference system for meetings with employees working in the office and outside the company, business can proceed smoothly.
Some shared satellite offices have phone booths for security purposes. When considering a shared office, make sure you choose one that has security measures in place, as most online meeting systems allow you to join meetings with regular mobile devices.
Labor management tool
By introducing a remote labor management tool, it becomes possible to manage the labor of employees who work remotely. Labor management can be performed using attendance management tools, presence management (attendance management) tools, and entry/exit records of satellite offices.
Advantages of satellite offices
Let’s take a look at the benefits of setting up a satellite office separately for the company side and the employee side.
Advantages of the company by introducing satellite offices
Establishing a satellite office has five main advantages for a company.
- Productivity improvement
- Retaining and securing human resources
- Cost reduction
- BCP response
- Building a human network
Let’s take a closer look at the benefits of each.
Productivity improvement
By setting up satellite offices in urban areas where many of our customer headquarters are located, we are able to improve sales efficiency.
This is because you can reduce the round-trip time between your company and the customer, and you can devote that time to interviewing customers and preparing materials. Enriching the time and content of interviews will lead to new contracts and customer development.
Retaining and securing human resources
The ability to choose flexible working styles can be expected to reduce the turnover rate. For example, even for employees who are engaged in child care or nursing care and find it difficult to secure long commute times or who find it difficult to work from home, setting up a satellite office in an easily accessible suburb can prevent them from leaving their jobs. Masu.
Also, if you open a satellite office in a rural area, there is also the advantage of being able to secure excellent local human resources.
Cost reduction
It is possible to reduce the cost of moving employees and downsizing of the headquarters office in the city center where the rent unit price is high.
BCP compatible
Even if the head office is affected by a disaster, business continuity can be ensured if there is a satellite office in a remote location. In addition, the satellite office can be used as a base to respond to disasters, such as confirming the safety of all employees.
Building a human network
By using a shared satellite office, you can form a network with users from other companies.
If you set up a satellite office in a rural area, you can also seize new business opportunities by interacting with the local industry in that area.
Benefits for Employees by Introducing Satellite Offices
There are three main benefits that employees can expect from satellite work.
- Improving operational efficiency and improving productivity
- Improving work-life balance
- More job options in rural areas (if a regional satellite office is set up)
Let’s take a closer look at the benefits of each.
Improving operational efficiency and improving productivity
With the introduction of satellite offices, documents and data will be paperless, and workflows will be streamlined, making it easier for employees working at satellite offices to work.
In addition, in satellite offices, which are more independent than the head office, interruptions are less likely to occur, and employees working in satellite offices can concentrate on their own work.
Improving work-life balance
Reducing travel time makes it possible for employees with childcare and nursing care issues to balance work and work. And even employees who don’t have time constraints can use that time to invest in personal development and wellness.
More job options in rural areas
If you set up a regional satellite office, you will have the option of working in the region. People living in rural areas will benefit from finding new jobs, while employees living in urban areas will be able to enjoy working and raising children in a quiet environment.
Disadvantages of satellite offices
There are also disadvantages to working in a satellite office.
Disadvantages of the company due to the introduction of satellite offices
There are two main disadvantages for the company.
- The cost of introducing satellite offices is high.
- Becomes a cost center if not utilized
Let’s take a closer look at each drawback.
The cost of introducing satellite offices is high.
There are three main costs involved in introducing a satellite office:
- office cost
- Security measure cost
- Labor management and business management costs
Before introducing a system, it is necessary to study previous cases and have an estimate of cost-effectiveness in advance.
Becomes a cost center if not utilized
If the management team and employees do not share the purpose of the satellite office, or if there is no awareness or know-how about how to work at the satellite office, it cannot be used well.
In the midst of the declaration of a state of emergency, many companies made mistakes such as being unable to use online tools and security tools due to the fact that they were forced to work from home without much preparation.
In order to introduce a satellite office, a certain amount of cost is required, so it is necessary to make full use of it. For that reason, it is necessary to understand and share the purpose and workflow of setting up satellite offices throughout the company.
Disadvantages for employees due to the introduction of satellite offices
There are also two disadvantages for employees.
- prone to lack of communication
- Requires self-management skills
Let’s take a closer look at each drawback.
prone to lack of communication
Bosses and employees in the same department or related departments, and between employees, can easily exchange business opinions and ask questions if they interact on a daily basis in a regular office. However, in the form of satellite offices, it is necessary to borrow the power of tools to communicate between headquarters and satellite offices. It is necessary to introduce tools suitable for the purpose, such as chat tools and web conferencing tools, and systemize communication.
Requires self-management skills
Compared to office work, satellite office work involves a greater degree of self-discipline and requires appropriate self-management skills. It is necessary to proceed while monitoring the situation while sharing know-how by introducing it first from highly specialized departments.
Key Points for Introducing Satellite Offices
From here, we will consider the issues for introducing satellite offices.
The biggest bottleneck in introducing satellite offices is cost. Until now, satellite offices were mostly established by large companies with 1,000 or more employees. This was because the introduction required a large amount of cost.
Today, the number of cloud tools has increased, and the provision of SaaS-type subscription services has reduced overall costs, excluding office costs.
On the other hand, besides cost, security issues and communication issues between satellite offices and headquarters remain major issues.
Currently, there are three main issues to consider when introducing satellite offices.
- office cost
- Security measures
- Communication measures
These three issues are dealt with differently depending on whether you have a dedicated satellite office, a shared satellite office, or a local satellite office. I will explain each issue and its solution.
office cost
- When setting up a dedicated satellite office
[Problem] Office rent and maintenance costs are required
[Solution] Costs can be controlled by turning your own facilities or offices of affiliated companies into satellite offices - When using a shared satellite office
[Problem] Usage fee for shared office or coworking space is required
[Solution] Usage fee is cheaper than rent, so it is possible to find a place that fits your budget - When using regional satellite offices
[Problem] In addition to office rent and maintenance costs, office survey costs and transportation costs are required
[Solution] If you use the “ trial satellite office ” promoted by the Ministry of Internal Affairs and Communications , you can It is possible to use “trial work” facilities provided by public organizations. It is possible to reduce costs by using the “Furusato Telework Promotion Project” (a project in which the government subsidizes part of the cost of setting up a satellite office).
Security measures
- When setting up a dedicated satellite office
[Problem] Security measures equivalent to those of the head office are required
[Solution] Costs can be reduced by introducing a cloud application method - When using a shared satellite office
[Problem] Higher level security measures are required than dedicated satellite offices
[Solution] Information leakage countermeasures by encryption, password countermeasures when returning to work, terminal theft prevention countermeasures by monitoring alarms, etc. can be dealt with - When using regional satellite offices
[Problem] Needs high-level security measures similar to shared satellite offices
[Solution] Countermeasures against information leaks, passwords, theft, etc.
Communication measures
No matter what type of satellite office, it is necessary to use communication tools such as “meeting tools”, “chat tools”, and “information sharing tools” to systematize communication with a large amount of information and high density. . In addition, we will implement communication measures that match the type of satellite office.
- When establishing a dedicated satellite office
[Problem] In addition to communication with the head office, it is necessary to establish a system for communication between employees working at the satellite office [Solution]
Free address (not a fixed individual desk, A style where you can freely choose your seating location) to activate communication in the satellite office - When using a shared satellite office
[Problem] There is a risk of isolation because the number of employees who use it is often limited to one to several [Solution] Use
chat tools and online meetings to prevent information leakage Can be dealt with. Coworking spaces prevent employees from becoming lonely by utilizing seminars and networking events that provide opportunities for interaction with other companies. - When using a regional satellite office
[Problem] When moving with a family, it is necessary to provide care that includes the family [
Solution] Planning activities to deepen exchanges with the region as a whole company
Points to note when introducing satellite offices
Satellite offices require a certain amount of cost just to set them up, so it is important to keep the following four points in mind when considering the introduction.
- clarify purpose
- Set indicators to measure achievement of objectives
- Determine the period and measure the index
- Build an environment that does not reduce the value that can be provided to customers
clarify purpose
You have to clarify why your company is setting up a satellite office. Think about your company’s challenges and consider whether setting up a satellite office will help solve those challenges.
Set indicators to measure achievement of objectives
Whether or not the set objectives have been achieved must be quantitatively measured. The degree of achievement of objectives can be clarified by measuring them from a cost-effectiveness perspective.
For example:
- The purpose of setting up satellite offices is to reduce travel costs
⇒ Comparison of employee travel costs and satellite office running costs - The purpose of setting up satellite offices is to reduce office costs
⇒ Comparison of office costs saved by setting up satellite offices and running costs of satellite offices - The purpose of establishing a satellite office is to prevent employee turnover
. - The purpose of establishing a satellite office is to create a sales base in the city center
⇒ Comparison of increased sales and the running cost of a satellite office due to the establishment of new business bases in the city center and rural areas
Determine the period and measure the index
Since we cannot achieve results in a short period of time, we will provide figures for each quarter and compare them. Also, depending on the purpose, quantitative evaluation alone may not produce results, so it is also important to conduct interviews with employees and customers and conduct qualitative evaluations.
Build an environment that does not reduce the value that can be provided to customers
When introducing satellite offices, it is necessary to introduce an ICT environment and customer management tools that can provide necessary information to customers at the necessary timing.
With the introduction of telework, many employees have realized the waste of conventional work styles. At the top of the list are “useless meetings” and “useless business negotiations.”
Even if you set up a satellite office to reduce travel time and increase the time for business negotiations with customers, if customers feel that business negotiations are useless, satellite offices are meaningless. A new type of business negotiations triggered by the global epidemic of the new coronavirus will not be successful unless customers feel more value than before.
Satellite office introduction example
Let’s take a look at some examples of companies that actually use satellite offices.
Example of Urban Satellite Office ” Hitachi “
Hitachi has been actively promoting the use of satellite offices since 2016.
Currently, we operate a total of 64 locations (as of October 2019), including urban satellite offices and suburban satellite offices, and a total of 50,000 people in the entire Hitachi Group use it monthly.
As a security measure, a virtual desktop system has been introduced as in the office, and thorough security measures have been taken. Attendance management only records the start time and end time of the PC.
Example of suburban satellite office ” Resona Bank “
Resona Bank utilizes 11 closed branches (as of November 2019) as satellite offices.
Banking operations are becoming more online, and many banks are consolidating branches. Resona Bank has turned 11 closed branches into suburban satellite offices for employees who are raising children or caring for family members.
When it was introduced on a trial basis, it was shown that the round-trip commuting time and overtime work could be reduced by two hours each, and it is expected that the number of users will increase in the future.
Example of regional satellite office ” salesforce.com Shirahama office “
Salesforce.com established a satellite office in Shirahama-cho, Wakayama Prefecture in 2015 as part of the “Regional Demonstration Project for Promoting Hometown Telework” promoted by the Ministry of Internal Affairs and Communications.
In the demonstration project, the effectiveness of business utilizing satellite offices was verified. As a result, in the six months from October 2015 to the end of March 2016, we saw a significant increase in productivity, with a 20% increase in the number of business negotiations and a 31% increase in the number of contracts.
In addition to simply setting up an office, exchanges between local residents and employees have progressed, and “programming classes” have also been established at elementary schools. Not only was the satellite office a commercial success, but it was also able to revitalize the region.
Promote diverse work styles through satellite offices
To introduce a new satellite office, it is necessary to start by building an environment that does not reduce the value that can be provided to customers.
Depending on the company, sales representatives may have mobile work know-how. Before going to the office, check the materials at a cafe, etc., and if there is a person in charge who has experience using the coworking space, ask them about the problems and points to consider when setting up a satellite office. .
When introducing satellite office work, it is necessary to provide for satellite office work in the work rules. By establishing work rules, it becomes possible to properly manage labor.
The scope, scale, and usage of satellite office work will vary greatly depending on the nature of the business and the composition of the workforce. Please proceed while conducting trial operation and measuring the effect.
