[Lee Myung-ho's Future Preview] Will Offices Be Needed in the Future?

Will offices like the ones we have now be necessary in the future? To narrow the question down, even if the novel coronavirus infection (COVID-19) ends within 1 to 2 years, will offices still look the same as they do now? Most people reading this, especially office workers, would likely still think offices are necessary. They would want their desks to remain and continue commuting for a long time. However, at this point, many people think differently. In the U.S. and Europe, where the economy has contracted due to the resurgence of COVID-19 and many companies are working remotely, people have different views. Ordinary office workers might naturally want to work from home, but entrepreneurs are thinking differently.

Companies in the COVID Era
"Investing in People Instead of Expensive Offices"

During the lockdown period caused by the COVID-19 crisis, office buildings were empty, yet companies continued to operate, leading entrepreneurs to reconsider their views on offices. It’s not just small companies; leading global corporations are grappling with this issue. "The idea of putting 7,000 people in one building is a thing of the past." "Banks will own far fewer buildings." "We will invest in people instead of expensive offices." There are even claims that "we may not need all the offices currently existing worldwide." A quarter of the top Chief Financial Officers (CFOs) in the U.S. are already considering reducing real estate. Since people are not commuting, the number of people moving from New York to nearby New Jersey has doubled. Housing prices and rents in Silicon Valley have also dropped.

Even if COVID-19 vaccines are developed and treatments become available, opinions might change. However, digital companies like Twitter, Google, and Facebook have announced policies allowing employees who want to continue working remotely even after the pandemic ends. Will there really be a fundamental change in the future of offices? Let’s look at the history of offices to forecast the future.

The Beginning of Modern Offices: The 1729 East India Company Building
Separated from Factory Areas in the Mid-19th Century
Located in City Centers, Forming Large Cities

Office work has a long history but was very rare. In ancient Rome, slaves handled bookkeeping, administration, and office tasks because office work was not considered productive activity at the time. Cultivating land produced agricultural goods, and soldiers seizing wealth from other countries was seen as productive economic activity. Office work was merely a secondary function that managed wealth without increasing it.

The first appearance of offices was in the Middle Ages. Spaces where scribes sat all day copying books by hand (offices) were mainly found in libraries (archives) or monasteries. The start of modern company offices was the 1729 East India Company building in London. The East India Company had to gather information and make decisions about events thousands of miles away, creating a very large and complex bureaucracy. To generate and manage large volumes of documents, they created the office space. However, in the 18th century, most businessmen conducted transactions and office work in two coffee shops in London. Artisans lived upstairs above their shops, and shop assistants, who were apprentices, were treated like household servants.

Myeongho Lee, Planning Committee Member, Yeo Si Jae Foundation

The recognition of office space as we know it today began in the mid-19th century. At that time, such spaces located in factory corners were called accounting rooms. As the number of clerical workers increased, offices separated from factory areas and occupied buildings in city centers, marking the emergence of the offices we see today. During the industrial era, most workers commuted to factories, but now, in most developed countries, more people work in offices. Modern metropolises were formed as companies competitively built skyscrapers as symbols of their corporations.

Offices have become spaces where people spend most of their lives, excluding sleeping time. Workplaces and offices are places where employees learn tasks from seniors and gain social and life experiences, providing purpose and meaning to life. Good ideas often come from casual conversations in offices, and productivity is enhanced through mutual interaction. That is why Steve Jobs called working from home “crazy,” and many entrepreneurs viewed remote work negatively.

COVID-19 Changes Work and Separates It from Offices
Distributed Offices and Mobile Work Expected to Become Established

However, COVID-19 changed these perceptions. Although it was a forced experiment, people realized that working from home has many advantages. Previous changes had already made remote work possible. Office tasks were shifting to being handled via computers and online. Companies implemented digitalization and smart office policies so that employees could work anywhere, not just at their desks in the office. Naturally, work could be done from business trips or home. The environment had already shifted to remote work; companies just hadn’t adopted it officially. Therefore, companies realized they didn’t need to pay large costs to maintain spacious offices. Productivity did not decline with remote work; in fact, it increased. Employees saved commuting time, and socially, transportation costs, congestion, and environmental pollution were reduced.

The best way to forecast future changes is to read historical trends. Work was closely tied to land and space, but as times changed, this bond weakened and separated, which is the trend of change.

Hunting, gathering, and farming could not be separated from land. Even in factory production, machinery and labor could not be separated. With the office, work’s connection to space weakened. Factories are hard to relocate, but offices are easy to move. Now, work is trying to separate from offices. Some companies in Korea have taken measures to have employees commute to offices near their homes (distributed offices). They work with their team members in places other than their department’s office. The era of mobile work is approaching. Working from home is just one form of mobile work. In regions where COVID-19 is still rampant, distributed offices and mobile work will quickly become established. In countries successful in controlling the pandemic, changes will happen more slowly. Although the pace differs, this trend is unstoppable. Offices will no longer be important spaces. They could become obstacles to increasing productivity and attracting talented personnel.