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November 26, 2021
by Paul Tingley, CBRE
Nearly two years into the COVID-19 pandemic, office occupiers are still feeling around corners to fully understand what we’ve learned in moving from an office-centric work environment to the current work-from-home flexibility that many companies have adopted and employees desire. But is it here to stay?
"Employers are balancing the real estate cost savings derived from work-from-home strategies with the belief that collaboration, culture and employee engagement work best through direct connection in the workplace."
First, there is no “right” answer. Each company and industry is facing their own unique set of challenges and opportunities. However, there a few primary themes emerging as companies return to in-office experiences:
Video-conferencing technologies and services have enabled businesses to leave in-person office meetings behind while continuing to foster engagement both internally and externally with one’s clients. However, many workers are admitting to Zoom fatigue and looking for deeper social interactions and engagement that correspond with in-person meetings.
Employers are balancing the real estate cost savings derived from work-from-home strategies with the belief that collaboration, culture and employee engagement work best through direct connection in the workplace. Watercooler conversations, mentoring new employees, fostering teamwork and connecting to a company’s mission – rather than just a paycheck – are all part of this conversation.
On the other hand, many workers are searching for the why in their return-to-office scenarios as they enjoy their technological freedom to WFA (Work-From-Anywhere). CBRE’s surveys indicate that most employers want employees to spend at least half of the week in the physical office. To achieve this goal, employers are moving to enhance the at-work environment by being more human-centric with a focus on flexible gathering places with multiple work surfaces and seating choices. That can include stadium seating and lounge-like seating, cafes with everything from healthy snacks to baristas to full meal service and bourbon bars, and outdoor patio areas.
Underpinning flexible work arrangements are factors such as the rapid adoption of new technologies to keep employees connected; productivity gains from saying “goodbye” to that 45 minute commute; and the increased lifestyle balance concerns expressed by Millennial and Gen Z employees.
Offices are here to stay, but absent select industries and job roles that require confidentiality – think attorneys and human resources – the private office and one-to-one seating plans are fading in popularity as companies move more convincingly to desk-sharing office strategies that embrace the hybrid employee model. This movement doesn’t mean wholesale office vacancy – some of the office-specific downsizing will be offset by increased amenity space and more hiring – but CBRE is seeing a trend towards moderate space reduction in companies with static to low-growth workforces.
While we may well be on a two- to four-year trajectory to solve for the current trends, it is an exciting time to witness this evolution in workplace strategy and participate in the unfolding technological, social and cultural innovations and lessons that will define our working relationships for years to come.