- Employee productivity seen as almost three times as important as reducing cost
- Employee engagement metrics are seen as more important than cost metrics
- The use of non-owned space is on the rise and now part of the strategy
- Over three quarters believe that employees should be treated like guests or customers with services that enable them to be more productive
- Boards split into three groups from early adopters to laggards when it comes to workplace thinking
New research from the Property Directors Forum confirms that the historical focus on cost – and in particular cost reduction – has been replaced by priorities that are all people oriented. The number one priority is now greater employee productivity for 40% of property directors. The number two priority (28%) is attracting and retaining the best talent.
As a result of this new focus on people, ‘soft metrics’ such as employee engagement, satisfaction and retention are now preferred by 61% of property directors for measuring the performance of workplace strategies. Traditional space and furniture or business agility metrics take the last two places in the ranking.
While productivity is a high priority, ‘wellness’ is not
82% of property directors believe an effective workplace strategy needs to cater for the different needs of each generation of employee. However, despite the priority given to attracting the best talent and achieving improved productivity, employee wellness is still not being given much importance in the workplace (5%). This suggest that organisations may need expert help in developing a joined-up approach to creating a people-centred workplace strategy.
Use of non-owned space up dramatically and now part of the strategy
Half of property directors (50%) reported an increase in the use of non-owned space like coffee shops or short-term meeting rooms. In fact, the future for the likes of Starbucks looks rosy as 86% of property directors think that the use of non-owned space should be planned for in advance when drawing up a workplace strategy.
In addition, members expressed the need for workplace strategies to have a more holistic approach that goes beyond the confines of the owned building to include the quality of the local facilities in the public realm. It is thought that the quality of both office (82%) and non-owned (68%) space are very important to the ability to attract and retain the best staff. 69% of members agree that the right mix of open space, enclosed/quiet space, collaboration/concentration space and social space is needed to create a truly successful working environment.
“If companies are looking to be able to attract and retain the best talent out there, they really need to start thinking about employee wellbeing and ways of measuring it from the very first day they start creating their workplace strategy”, says Karl Warmbold, Director of Facilities and Property at DWF and a speaker at the most recent Property Directors Forum event. “Engaging and involving employees in the development of an effective workplace is essential to delivering higher staff adoption, increasing satisfaction and improving the attraction and retention of the best employees”, continues Warmbold.
“Research shows that having 50% of core space and 50% of flexi and just-in-time space brings richer variety of work settings, blurs the boundaries between personal, shared and public spaces to support organisational innovation and employee collaboration”, says Despina Katsikakis, a former Chairman of international consultancy DEGW and a globally renowned expert on the impact of the built environment on business performance. “Nevertheless, organisations need to make sure they find the balance that is right for their business and that the flexible space matches their employees’ individual needs. The one size fits all approach is no longer valid in today’s workplace but appropriate concentration space is as important as collaborative space – this should not be forgotten”, adds Katsikakis.
Early adopters will attract the best people
The research shows that Boards are split into three ‘generations: early adopters who see workplace strategy as vital to success (27%); the ‘majority’ who think it is important but haven’t actioned it yet (45%) and, the ‘laggards’ for whom workplace isn’t on the agenda at all (23%).
“A significant competitive advantage will be delivered to those companies who are already seeing workplace strategy as amongst their top priorities”, says Nick Cook, Principal and Managing Director of Avison Young UK. “Early adopters like DFW, who are there already, understand what it takes to create a workplace that brings out the best in people to deliver business advantage. If the others want to remain competitive they will delay at their peril”, adds Cook.
The research followed a Forum event on June 18th and includes contributions from some of the UK’s most significant occupiers with combined revenues of over £600bn.