What is the hub and spoke model? We explain everything!

The hub and spoke model refers to a specific type of real estate solution that includes better geographically distributed office networks. Find out more.

Meaning of the hub and spoke model

In the corporate world, the term hub and spoke refers to a type of real estate solution. In contrast to the more traditional headquarters model, in which a company operates from a single large office in the centre of the city, the hub and spoke includes a network of geographically distributed offices in strategic locations, allowing professionals to work from the nucleus of the company or a strategically located “hub” location, often in a more regional area.

The “nucleus” is usually the largest and most central heart of the company, easily accessible by public transport due to its location, and acts as the epicentre for the culture of an organization. The “spokes” are a series of smaller spaces, often quite open in style, that can be used flexibly and intermittently. 

This model allows workers to reduce or eliminate the use of public transportation in the commute to the office. At the same time, it offers an efficient work environment close to home that facilitates collaboration and social interaction, as well as the infrastructure-free office experience of technology companies.

Contrary to what may be believed, the hub and spoke model does not mean being subject to working in a home office. Instead, workers have access to meeting rooms and ergonomic environments that cannot be recreated at home. In the meantime, there are more central locations to deliver training and, more importantly, create and instil company culture and brand values. 

Origin of the term

This model, pioneered in the 1980s, initially comes from the airport industry. At its core, the term refers to air operations from centralized locations using regional airports, such as spokes from which connecting flights are offered. An example of this model is the Charles de Gaulle airport in Paris.

This system led to rapid growth in the air transport industry through increased efficient use of relatively scarce transit resources. There are only a limited number of large airports.

The model was extended to various sectors beyond aviation, such as real estate and project management, product logistics and other industries. When it comes to office work models, the term hub and spoke is applied to a more flexible work style as opposed to the traditional head office way of working.

It is a very practical and balanced work model, which can benefit large organizations and allow them to guarantee the safety of workers, as well as the fulfilment of the company’s objectives. 

Hub and spoke benefits

The hub and spoke model is an approach that has grown significantly in the last decade. This system is designed to obtain the best of both worlds: work from the office or from home. It offers the freedom to complete tasks in spaces designed to optimize professional productivity, without the necessity of being close to the company’s headquarters.

This provides better social and cultural stability. Furthermore, it allows all the staff to be in different places at any time, and seamlessly integrate work into their lifestyle. The hub and spoke model offers the following benefits.

Improvement in mobility

As the perfect fusion of remote work and office work, the hub and spoke model offers excellent mobility benefits for both organizations and staff. For example, companies can save on hiring spaces that are within important business epicentres and, at the same time, allow easy access to equipment.

In addition to having a positive impact on the quality of life of professionals living from the centre, the hub and spoke office model also offers other benefits. For example, it helps companies scale and expand to other areas, allowing them to attract new talent that would otherwise be geographically unreachable. 

Improved balance between life and work

Hybrid hub and spoke models allow professionals to work where they do best and live where they want to live. From reducing travel times to taking advantage of nurseries and family support. The result is often an improved work-life balance for employees, as well as a reduced probability of burnout. This translates to an increase in productivity and can also positively impact talent retention. 

Increased well-being of workers

For many professionals, working from home has negatively affected their psychological well-being. This is due to factors such as not being able to completely disconnect from work, or not having the adequate means to meet objectives. The hub and spoke model offers benefits in this regard, as it provides people with the necessary tools to carry out their work in a more professional, productive and stress-free environment than at home.  

Create your own hub and spoke model at our different locations

Reinventing your office models, especially in a difficult year, can be done with the right proposal. At Cloudworks, we offer our customizable services to provide a more affordable, effective, and comfortable solution for all the members of your company.

The hub and spoke model can be applied at our multiple central locations. If you have staff who live in different parts of the city or lack the ideal infrastructure to guarantee the well-being and safety of your team, we are always available to offer you modern, easily accessible spaces, with all services included.