What Spotify Got Right About Trust, Creativity, and the Future of Work.
“You can’t spend a lot of time hiring grownups and then treat them like children. - Katarina Berg, Spotify’s HR Chief.
Imagine hosting a dinner party, paying for a lavish venue, only to have half the guests wish they stayed home. That’s the modern office: shiny, expensive, and sometimes... unnecessary.
Love or hate this analogy? Hit reply and let me know!
What’s in store:
- The real cost of the office: It's not just rent.
- How Spotify is redefining workspaces with trust and flexibility.
- A surprising fact about the evolution of workspaces.
Read Time: 4 minutes
WORKPLACE SHIFT
The true cost of the office: It’s more than just rent.
Office spaces used to be the heartbeat of business.
Today?
They’re often empty—and not just because of remote work.
Leaders are questioning if the traditional office is even worth it.
One company leading the charge? Spotify.
In 2021, Spotify introduced its “Work From Anywhere” policy, letting employees choose where and how they work as long as there’s an office in the region for legal compliance.
Spotify’s focus on being digital-first has helped it:
save money,
hire top talent, and
keep employees engaged.
This isn’t just about flexibility—it's about trust.
It’s a commitment to treating employees like the adults they are.
“We can’t hire adults and treat them like kids,” explained Katarina Berg.
This policy shows trust and autonomy—two key pillars of modern leadership.
Here’s what businesses are actually paying for:
The Obvious: Rent and Utilities
Commercial leases don’t come cheap. Average office space costs range from $30 to $100 per square foot annually, depending on location. And don’t forget electricity, internet, and maintenance fees. Spotify saved millions by reimagining its physical footprint.
2. Lost Productivity
Ever heard of "desk warming"? Employees clock in, but distractions, unnecessary meetings, and constant interruptions reduce focus time. A study by Asana found that 60% of an office worker's day is spent on “work about work.”
3. Commute Stress
The average worker spends nearly an hour commuting daily. Long commutes steal hours of productive energy—and add mental strain. Research shows employees who commute over 30 minutes are 33% more likely to experience anxiety and stress. Spotify’s policy eliminates this, letting employees reclaim their time and reduce stress.
As Phil Libin, CEO and founder of video communication platform, Mmhmm, put it:
“I as a CEO will never again in my life give up two to three hours a day, five days a week sitting in traffic doing this high stress, low productivity activity. So why would I ask someone else to do it?
4. Turnover Costs
Rigid policies push talent away.
Gallup reports 54% of employees would switch jobs for more flexibility.
Turnover isn't just emotional.
It costs 1.5-2x the annual salary of a departing employee to replace them.
Spotify’s approach? Trust and freedom to boost retention.
5. Environmental Impact
Empty buildings still leave a hefty carbon footprint.
A switch to hybrid or remote work can significantly reduce emissions from heating, cooling, and commuting.
By embracing remote work, Spotify reduced its carbon footprint from commuting and office energy use.
So, why are we still holding on to the office?
Tradition?
Fear?
Misconceptions about remote work?
The reality is, many leaders equate "being present" with "being productive."
But Spotify and others are proving otherwise.
Here’s what forward-thinking leaders are doing:
- Reimagining Office Use: Flexible spaces for occasional team collaboration.
- Hybrid Models: Giving employees the freedom to choose when (and if) they need the office.
- Investing in Culture, Not Cubicles: Funding wellness programs, better tools, and professional development instead of large real estate portfolios.
Want to calculate your office’s true cost?
Here’s a simple exercise:
1. Add your yearly rent, utilities, and maintenance expenses.
2. Multiply the annual salary of your employees by the % of time spent unproductively (hint: ~40-60% of unproductive time).
3. Factor in turnover costs for every employee leaving due to rigid policies.
Now, ask yourself:
Could this money be better spent elsewhere?
PRODUCTIVITY BOOSTER
The Work-From-Anywhere Starter Kit
Thinking of moving toward remote or hybrid work?
Here are tools to make the transition seamless:
- Slack: For instant communication and collaboration.
- Asana: To keep projects on track.
- Notion: The ultimate all-in-one productivity tool.
- Zoom or Google Meet: Virtual meetings that actually work.
👉 Pro tip: Invest in ergonomic home setups for your team.
A one-time cost can save on long-term burnout.
On This Day
November 21, 1990 - Tim Berners-Lee launched the World Wide Web, revolutionizing global communication and access to information.
Closing Thought
The office isn’t disappearing—it’s evolving.
Leaders who adapt will save money, attract top talent, and build teams that thrive.
What’s your take?
Vote here to share your opinion and see live results in next week’s edition.
Last week’s Poll
How do you feel about hustle culture?
- Totally over it: Ready for balance - 80%
- Mixed: Hustle works but has costs. - 0%
- All in: I thrive under pressure. - 20%
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Meet the Writer
Founder of the Linked And Lift.
A dedicated advocate for healthy workplaces, offering research-backed strategies on modern leadership, personal and professional growth, and burnout prevention to help you thrive in your career and life.