What are corporate headquarters?
A corporate headquarters (HQ) is an organization’s central physical location where executives and other staff make operational decisions. The HQ serves as the company's core, especially in large enterprises with many satellite offices.
Also called a “corporate office” or “head office,” the HQ often houses departments that serve the corporation, like communications, human resources, legal, and accounting. Typically, the company’s executive team also works in this location for simplified communication and collaboration.
Organizations select their HQ location strategically with the intention of finding a site with the best infrastructure, resources, and talent. However, not all companies have a physical HQ; some opt to work virtually.
Companies can use space management software to ensure their executives and supervisors at the head office can manage the workspace with ease.
Benefits of corporate headquarters
Building a new corporate headquarters, or even repurposing an old one, costs more than maintaining a completely virtual existence. However, organizations that opt for a centralized physical location experience advantages, some of which are discussed below.
- More opportunities for connection: Forging social bonds helps employees experience satisfaction at work. An improved sense of belonging may also increase retention rates.
- Improved collaboration: While remote employees can collaborate over video conferencing software, their home environment may draw attention away from work. At a corporate HQ, it’s easier to arrange a quick meeting with key players in a distraction-free zone. In-person collaboration allows the use of physical space during product demonstrations or data sorts.
- A chance to establish company culture: Organizations can bring brand values into the workplace. At a corporate HQ, companies that laud creativity could instill a “passion project” hour for innovation. Those that enjoy a sense of fun could include a rec room with pool tables and board games.
- Ability to keep tabs on the organization's pulse: With the main operations in a central location, executives can evaluate the overall sentiment and morale. It’s easier to gauge if employees are stressed or upset, and to know when to take action.
- Improved employee well-being: In some cases, corporate headquarters help employees achieve better health. They may feature gyms or provide healthy snack options. Also, some workers experience less anxiety with the structure that a physical office space and standard workday provide. They find it easier to keep work life separate from home life.
- Facilitation of training: Onboarding a new employee is easier with experienced employees nearby to answer common questions. Companies also find it simpler to host and coordinate professional development sessions, which often work better with some element of in-person collaboration.
Corporate headquarters best practices
Designing a corporate headquarters involves making many decisions, starting with site selection. Some best practices for planning and operating a corporate HQ include:
- Listening to employees. Before moving to a new corporate office, companies should encourage workers to share their ideas. Employees can fill out surveys to explain what works or doesn’t work for them in their current space. Sometimes, it helps to hold brief individual interviews with some staff to dig deeper into what features might enhance their productivity and satisfaction.
- Thinking outside the box. Traditional office cubicles are a thing of the past at many HQs. Organizations should consider a functional layout that increases efficiency. Many head offices let employees work in hybrid arrangements and offer open multi-purpose workspaces.
- Investing in the community. Companies often spend considerable time choosing the best city or suburb for their corporate hub. Donating to important community initiatives and participating in neighborhood events improves community buy-in and support.
- Include a social center. While corporate HQs used to veer more toward the serious and formal, many companies have realized the benefits of socialization and relaxation. Including a kitchen and lounge area for breaks and lunch helps employees forge bonds and create a corporate community.
- Align decor choices with branding. An organization’s design and decor choices should reflect its brand identity. Organizations can incorporate brand elements, logos, and personality into the building and furniture.
- Think green. Making eco-friendly choices can pay off for the environment and a company’s bottom line. Some eco-friendly measures help cut costs, like the use of solar panels to save money on electricity. Corporate headquarters can encourage the use of recycling bins, incorporate green building materials, or start an initiative to become carbon-neutral.
- Be agile. Even the most thoughtfully designed spaces may not work well in practice. Organizations may want to invest in furniture, lockers, and even walls that they can easily move and rearrange. Experimenting with what works best based on continuous feedback often yields the best results.
Not quite ready to build your dream corporate headquarters yet? A virtual workplace might be the next best thing.
Kelly Fiorini
Kelly Fiorini is a freelance writer for G2. After ten years as a teacher, Kelly now creates content for mostly B2B SaaS clients. In her free time, she’s usually reading, spilling coffee, walking her dogs, and trying to keep her plants alive. Kelly received her Bachelor of Arts in English from the University of Notre Dame and her Master of Arts in Teaching from the University of Louisville.
