In a bid to clamp down on costs, save money and cut carbon emissions, many employers are choosing to restrict allotted workspace for their staff. The result is a squeeze on privacy, which experts warn can lead to de-motivation and an unhappy workforce.

Few employees in medium or large organisations get the chance to be heard on factors such as office layout. And when you spend the majority of your day at work, it can have a huge impact on your life if you're unhappy about your environment.

But by adopting a virtual office solution, and particularly if your workplace strategy involves working from home, this provides both you and your staff force with the ability to adapt your working environment in any way you see fit.

A virtual office is a solution that is steadily growing in popularity. By offering the chance to directly reduce company costs, as well as the major political issue of carbon emissions - virtual offices present significant benefits in today's challenging business environment.

The flexibility of a virtual office has the added benefit of motivating staff. Giving your workforce the option to work from home or from a more local, convenient location can greatly boost morale, due to the trust connotations associated. The flexibility of being at home, not to mention the additional space and privacy, can also help to generate productivity.

In a recent article by the Wall Street Journal, global architecture and design company HOK Group claim that new workstations have dropped by an average of 16 sq ft - a trend that appears to be spreading rapidly as companies seek to save money on office space and rates.

Tom Polucci, vice president and director of interior design for HOK Group, said: "The majority of our clients are moving in the direction of reducing the amount of personal, or what we like to call 'me' space."

Other design firms including Stantec Inc. and Mancini Duffy have reported similar findings, claiming that companies are reducing employees' office space by up to 50% - which in turn helps to cut their carbon footprint by as much as 25%.

While this is having a positive impact on the environment, in some cases it is also leading to disruption in the workforce. "Now everybody knows everybody else's business," says David Lewis, president of Operations Inc LLC. "It actually starts to create a level of tension in an office that never existed before. People can't focus on work because they're on top of each other."

But there are other options available for firms that want to combat the issue of high overheads. By implementing a virtual office solution, companies can turn their workforce to telecommuting, enabling staff to work full or part-time from home and communicate via email, instant messenger and even video conferencing.

This type of working practice fits perfectly with a virtual office, and particularly benefits small or start-up companies that are looking to develop their client base and build effective working relationships whilst keeping costs down. It is also proving popular for larger companies, and many are combining this with other practices such as hot-desking.

For firms that are looking to break into a new location, virtual offices provide a cost-effective alternative to renting office space in a major city. Instead, businesses benefit from a prestigious business address, admin support and a call answering service to help build and maintain a professional image.

For more details on virtual offices and to find out how they can help your business, speak to one of our expert consultants for free help and advice.