Nearly half of Oregon’s more than 45,000 employees rarely go to the office, and officials are prepared to take steps such as reducing the size of office space.
In an Oct. 28 letter, Oregon’s top executive, Veri Leslie, director of the Oregon Department of Administrative Services, told agency heads that it was time to recognize the new reality and reduce space in state buildings.
“Our office square footage throughout the state is highly underutilized,” Leslie wrote. “Our research reveals that approximately 45% of state employees are designated as remote or hybrid, and most agencies are using approximately 25% or less of their offices. The Persistence of Hybrid Work Considering that, DAS estimates that office footprint could be reduced or targeted for reduction by 30% by the end of 2027, resulting in approximately $78 million in savings every two years.”
Of course, remote work has spread throughout the public and private sectors during the pandemic, and many workspaces around Oregon remain sparsely occupied. That’s creating a glut of office space in Portland and other Oregon cities, a factor Leslie knows all too well.
“Please use caution in rural and small markets to avoid economic disruption,” she wrote.
Mr Leslie also urged administrators to ensure that if they reserve space, it is in a state-owned building rather than a private one. He urged government agencies to co-locate if possible and, if new space needs to be leased, to ensure that “all new market leases are located in areas that support economic development and revitalization whenever possible.” We encourage you to place
One complication was that Leslie told managers that they needed to require employees who worked from home to come into the office regularly. She would like to “require agencies with hybrid employees to establish approximately 1-4 days of in-office work (with meaningful engagement) each month.”
In response to a question about whether the shift for employees to work from home is creating the quantity and quality of work the state wants, DAS spokesperson Andrea Chiapella pointed to policies Gov. Tina Kotek put in place after the election. .
“At the start of his 2023 term, Governor Kotek has implemented 11 rigorous initiatives to evaluate agency operations and impose consistent rigor on common operations,” Chiapella said. The information submitted by the agency can be found here, as well as the newly added strategic plan under Kotek.
Chiapella said Leslie’s memo was motivated by Kotek’s desire to run the state more efficiently. All options are on the table, including the sale of state-owned assets.
“Governor. Kotek has asked DAS to look for opportunities to improve the agency’s performance to better serve Oregonians and save taxpayers money,” Chiapella said. “Hybrid workplaces have created unique opportunities for recruiting and retaining employees. They are also rethinking traditional office spaces, saving money on building consolidation and making more creative use of physical space. It also provided an opportunity to consider different uses.
