I have worked with companies looking to expand their engineering centers in Poland – and these are some of my thoughts. While many focus solely on the monthly rent figure, the reality is that establishing a new workspace involves numerous hidden costs that can significantly impact your budget.
The Hidden Human Capital Costs
Perhaps the most overlooked expenses relate to the human element of establishing a new office. When one of our clients expanded into a new market, they initially calculated only the hard costs of the physical space. They didn’t account for:
• Productivity loss during transition periods
• Time spent by leadership in planning the workspace
• Recruitment efforts to staff the new location
• Training for local office management
• Team building to integrate new staff with the existing company culture
While human capital costs often have the largest impact on your bottom line, there are several other expense categories that frequently catch companies by surprise when establishing operations in Poland. Based on our experience with our clients office setups in Kraków, we’ve compiled this checklist of commonly overlooked expenses.
Additional office cost categories to consider – the checklist
1. Setup and Infrastructure
- IT networking equipment and installation
- Security systems
- Office furniture and ergonomic workstations
- Acoustic solutions for developer focus areas
- Branding elements and workspace customization
2. Ongoing Operational Expenses
- Cleaning and maintenance
- Insurance premiums
- Property taxes and fees
- Internet redundancy systems essential for tech operations
3. Compliance and Regulations
- Health and safety adaptations
- Accessibility modifications
- Building permits for tech-specific requirements
- Legal fees related to lease agreements