The Leader Magazine

JUN 2019

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This development has, however, had some unintended consequences. Smaller occupiers now have access to a quality of built environment – everything from furniture and air quality to facilities service and even location – that they were previously denied, thanks to a real estate market that was unwilling to offer anything under a five-year lease. So strong is its appeal that large enterprises are now moving their teams into co-working spaces, too – though Leesman's employee experience data suggests that they are doing so with mixed results. At any rate, this is pushing commercial developers to offer shorter leases and the kind of flexible, plug-and-play, on-demand spaces that co-working has helped to popularize. t he workplace will be healthier With people taking up 85 percent of OPEX budgets on average, organizations have woken up to the value of human performance and how their workplaces can make the difference. Research suggests that the current absenteeism rate can be reduced by up to 35 percent, which has an undeniable impact on the bottom line. In addition to this, achieving new building standards that focus on sustainability and well- being, such as BREAM and WELL, are proving to lower employee turnover and positively impact employee satisfaction in general. For the C-suite, an acute awareness of employees' mental and physical wellbeing is coming over the hill, and yet many organizations are still struggling to support their employees from that perspective. On average, people spend a third of their lives at work, so there is strong reason to believe that the spaces, services and cultures they find in the office will affect their health. t he workplace will give meaning The growing emphasis on human performance requires a new approach to how we measure the effectiveness of the workplace, too. Real estate interventions such as unassigned seating, flexible working, densification, and relocations from central business districts to periphery territories (or vice versa) have a huge impact on people's ability to work, but too often these actions are driven by cost reduction rather than productivity or effectiveness. Organizations must, therefore, begin to align employee experience metrics with real estate efficiency. As we move further into the gig economy, this will also change how people view their roles at work, replacing an old-fashioned view of personal productivity and attachment – born from the factory lines of the industrial revolution – to a sense of personal contribution to project work or short periods of employment. Leesman's data shows that those same real estate interventions, which are now being adopted to support this societal shift, have an undeniable impact on employees' sense of personal contribution. Given the increasing level of choice in working environments, it is much easier to make the argument that people who choose to go the office want to have an authentic connection with the purpose and values of their organization, to feel part of a community, and to connect with others. Technology is now enabling people to choose their home or a coffee shop to work in, and the workplace they desire in the future will be driven by the convenience and experience they expect. th E l E ad E r JUNE 2019 35 Tim Oldman is founder and C e O of workplace- strategy firm Leesman. d espina Katsikakis is head of Occupier Business Performance at Cushman & Wakefield. Wellness certification is becoming as important as energy certification. 54.5% agree 25.5% neutral There is a value to smart-enabled buildings. 55% strongly agree 40% agree Workplaces positively impact employee productivity. 67.9% strongly agree 28% agree The design of a workplace is important in attracting and retaining talent. 40.4% strongly agree 42.6% agree The number of flexible offices will continue to grow. 22.5% strongly agree 70% agree The 'co-working/office as a service' revolution has had a positive impact on the office market. 28.6% strongly agree 39.3% agree 25% neutral Traditional landlords will have to make their own offices more flexible. 39.5% strongly agree 46.5% agree From an investor perspective, flexible space is worth more than traditional, long-let office space. 50% agree 20.8% disagree 16.7% neutral s entiments correlate on experience, environment Leesman's latest research, which examines strategies behind the highest scoring workplaces on its index for 2018, reveals a growing correlation between employee workplace experience and environmental certification. In fact, 35 percent of these "Leesman+" workplaces boast environmental sustainability certificates, including six LEED, four BREEAM, and one Green Star. While the certified workplaces outscore their non-certified counterparts in general, deeper inquiry into the research bears out a notable difference in some less obvious areas. For example, employee pride in the certified spaces is 14.8 percentage points higher, and 13.4 percentage points higher on the subject of corporate image. "In what is an exciting development, the score for environmental sustainability across all Leesman+ buildings has improved year-on-year since 2015. This is likely to be an indicator that corporate awareness of this vital issue is increasing."

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