It's office life, but not as we know it

How flexible working options, including office space, give employees access to the social connections they need to be productive.

Recent years filled with global disruption and reorientation of work realities have redefined the role of the office and what the right mix of virtual and in-person work is for many organizations.

Expectations for flexibility and a 'work from anywhere' mentality are driving a more agile and innovative digital working world, while also driving changes in organizational design, culture and how best to use face-to-face touchpoints. It forces a paradigm shift in best practices and develops a stronger and more powerful workforce. Become a more resilient team.

We are already seeing a wide range of reactions to this 'next normal' of flexible working, although some strategies are showing better results than others.

While some organizations may feel the urge to mandate a return to the office, new data suggests that building the right office/real estate environment, combined with the right workforce strategy, can lead to a sustainable return to the office. It reveals the difference between significant value creation and mere sluggish survival.

A tale of two real estate strategies

On the other hand, some organizations are choosing to move away from long-term prime Class A real estate (often the most luxurious, well-appointed, and most impressive spaces) because they don't meet their requirements. . More broadly, a Knight Frank study found that 50% of the largest global organizations surveyed (those with 50,000 or more employees) plan to change their global workspaces over the next three years. It turns out there are plans to reduce it.

Compare this to research showing that 55% of small businesses (those with 10,000 or fewer employees) expect to: increase Their global office space.

At the center of much of the real estate discussion is the shift to a work-from-anywhere model, with employees working remotely and in the office.

Exactly how to define hybrid work is something of a conundrum.

of EY 2023 Rethinking Work Survey For knowledge workers (whose work has traditionally been based primarily on analysis, critical thinking, interpersonal relationships, or leveraging specialized knowledge), employers (47%) and employees (37%) both indicated a preference for 2-3 days of training. Remote work once a week.

However, given the choice, half of all employees surveyed would not want to work in an office more than one day a week, and 34% would prefer to work completely remotely. However, only one in five employers prefer fully remote work for their knowledge workers.

If given a choice, half of all employees surveyed would not want to work in an office more than one day a week.

The study also shows that there are significant differences related to industry, region, age, and gender. For example, employees in financial services, healthcare, and life sciences were significantly more likely to want to work completely remotely (52%) than those in the energy industry (37%).

But what is clear is that hybrid working, in whatever form it takes, is here to stay, and real estate choices can influence the outcome.

Why better real estate is good for business

As the reality of work changes significantly, organizations are evaluating not only their digital capabilities but also their physical infrastructure to ensure their workforce is as agile, adaptable and resilient as possible, regardless of where employees work. It is necessary to contribute to the realization of power.

Organizations can consider taking a pulse survey of their employees to determine how best to align their real estate strategy with desired outcomes.

In fact, organizations should consider challenging the purpose of office space all together. It's no longer just a place to work, it's a hub for social connections, team building and cultural experiences.

of EY Work Reimagined Survey According to the survey, employees cite the ability to maintain social connections with colleagues as the main attraction of an office, rather than the physical features of the office itself.

This is likely given how recent global health, geopolitical, and economic challenges have contributed to many people's feelings of isolation and a desire for more valuable interactions with others. Not surprisingly.

If the office as a social hub is a key attraction for bringing employees back to physical workspaces (as opposed to fully remote), it might be easy to argue that the actual quality of the space itself doesn't matter. I don't know. Considering the cost of prime real estate and with many businesses looking to cut costs, choosing Class B or Class C real estate can make perfect economic sense.

But when you look more closely, the data shows that organizations with higher workplace grades are more likely to report improved productivity, culture, and employees are less likely to want to quit. It has been shown that

In an era where talent retention is as key as organizational culture is in attracting talent, companies should consider such benefits before making real estate decisions and use data to inform their choices. You may want to strengthen it.

Organizations can consider employee pulse surveys and employee culture diagnostics to determine how employees work and how best to align real estate strategies with desired outcomes.

There is no getting away from the fact that we are in the “next normal” of work. This means you need to consider a real estate strategy that reflects your current and future needs.

However, this doesn't mean there's a binary choice between in-person, remote, or even hybrid work. Organizations must make the right operational and strategic choices to identify and maximize where and how their people work, while creating spaces that connect to the 'why' of work.

Liz Fealy is Deputy Leader of Global People Advisory Services Tax at EY.