Operational Efficiency: 5 Things You Should Know About the Hub & Spoke Office Model

Photo: Domenico Loia / Unsplash 

The hub and spoke office model has become increasingly popular over the past couple of years as it allows businesses to operate remotely – a major perk for efficiency and bottom lines. That doesn’t mean, however, that hub and spoke is an operating model you can implement without doing your research. 

Start by reading through the information in this article, and if it feels like the hub and spoke model could suit your company, dig deeper from there.

It Can Greatly Reduce Costs

The first thing you need to know about the hub and spoke office model is that it opens up a whole new world of cost-saving opportunities. For example, you can take advantage of cheap office rental, as having a large, premium space isn’t as important when your team members don’t all show up to a single location each morning. 

By opting for a serviced office, for example, you can save on bills such as electricity and internet, instead enjoying one affordable monthly fee. If your team members use their own tech, you’ll reduce your hardware needs as well.

You May Need New Technology 

Although the above point sounds wonderful – and it is – this doesn’t mean you’ll be cutting costs in all areas. For the hub and spoke office model to work effectively, you will need robust and up-to-date software. Most business owners opt for Enterprise Resource Planning (ERP) software to ensure everyone on the team can do their job, no matter where they’re located.

You’ll Want Solid Support to Back That Tech Up

You’re also going to need to invest in good technical support and cyber security programs and protocols. When everything in your business is digital and being shared across multiple locations, you’re at greater risk of breaches or data loss. So you will need robust systems for backup and disaster recovery and additional protections for customer and business data.

Hub & Spoke Allows Far More Flexibility 

Not everything about the hub and spoke model has to do with space and technical matters. When you’re operating in a decentralized manner, you also enjoy added flexibility when it comes to staffing and how you do business. This means that you can bring talent onto your team no matter where they’re based in the world. 

The hub and spoke model facilitates working across time zones with little to no extra effort once everything is established. That means you can expand your demographic significantly without setting up an international office. This arrangement is perfect for those who have neither the desire nor the capacity to establish multiple global hubs. 

You Can Hire Talent From Anywhere

We touched on this point above, but it deserves its own section. With workplace diversity and inclusion being front of mind for many employers, the hub and spoke model can work wonders for your team. 

The hub and spoke model allows your team members to work anywhere, and we really do mean anywhere. We’re not just talking about international team members – hub and spoke also allows you to hire those who may only be able to work from home. That means parents and marginalized groups who may have otherwise missed out on employment opportunities have a chance to find meaningful careers. 

So there you have it – five things you simply must know about the hub and spoke office model. I’d you feel that this type of setup could work well for your business, do a bit more research, and implement it if you feel it’s the right fit.

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