This blog was co-authored by Jack Weber, IIDA, MCR, LEED AP, Senior Vice President, Gresham Smith; and Valerie Hart, Senior Managing Director, Ankura.
Hybrid working is here to stay. CBRE reports that hybrid programs have increased to 90% of all survey respondents worldwide. Still, there are many issues related to satisfaction with hybrid work; Managers and workers disagree, many policies reflect neither expectations nor reality, and the argument that workplace flexibility affects productivity is often seen as a (false) compromise.
Successful hybrid programs exist, and in my experience they are characterized by a thoughtful approach to aligning and coordinating leaders along three critical axes.
- The requirements for the company's value creation and workforce productivity are defined and adapted to the post-pandemic reality.
- A company's work culture reveals and rationalizes explicit expectations of both managers and employees.
- Physical space is being reconfigured to accommodate the professional and cultural needs of this new hybrid reality.
Without a well-thought-out plan that defines these key factors, low employee engagement and low utilization of real assets will likely continue, impacting workforce attraction, retention, productivity and real return on investment (ROI).
Based on my 20+ years of management consulting experience, here are three sequential steps that can lead companies to a reboot for a successful post-pandemic workforce and a more optimized real estate portfolio.
1. What works for each environment (remote, hybrid or on-premise)?
Recent research shows that 74% of US companies are planning to move to hybrid solutions (or have already done so). Yet as of October 2023, only 28.2% of the U.S. workforce is a hybrid workforce and 57% still work on-site 100% of the time. Do all of these roles need to be performed on-site full-time? Where (onsite, remote or both) and how (group, individual or both) is value created? Do some teams need to collaborate more often? And what about young professionals and workers who are retiring? Does it make sense to optimize the time spent together for the transfer of skills/knowledge? Are there digital applications that can replace some of the perceived benefits of in-person interactions?
These key questions are often not discussed when developing and promulgating hybrid policies. With all the technology that has been developed over the past few decades to support remote customer interactions and expanded since the start of the pandemic, I recommend examining how your organization will create and support value in the future. Leadership alignment in these conversations is important because it can allow you and your leadership team to speak with one voice and be unified in strategy.
2. What does our workplace culture look like and what environment will support it?
This is perhaps the most important consideration as it affects engagement, productivity and retention/churn – three key metrics by which most leaders are measured. In particular, there are gaps between what organizations want and what their policies convey. In my experience, this usually leads to different expectations and behaviors from managers and employees, leading to confusion and resentment throughout the workforce. No amount of parties, free meals, or gourmet coffee will be enough to transform a disjointed culture into a productive and positive one.
The work can be carried out in accordance with the business model and still serve both business goals and employee satisfaction. To find this Goldilocks balance, I recommend a formal assessment of your current culture and staffing needs (Senior or junior, frontline or back office, commuter or remote, etc.) to determine if a realignment of expectations or reemphasis on support is needed.
3. The physical office should support productivity and culture. What does the ideal physical/digital workplace look like?
CBRE's 2023 report found that global average office occupancy (as measured by ID, Wi-Fi/network usage and other data) fell from 64% in the second quarter of 2022 to 35% in the same period in 2023. They also reported that “36% of workstations go unused on a typical workday, and 29% are used for less than three hours per day.” Such usage can ruin the ROI of any real estate portfolio.
These statistics are no surprise when you consider that there are always workplace designs that do not respond to employees' needs or do not encourage desired work behaviors. I have found that office design often does not accommodate the need for concentration and may lack adequate breakout spaces and collaborative technology support.
Workplace designers and strategists have been thinking about this long before the pandemic. Consider consulting and collaborating with these human environment design experts as they can apply their unique processes and solutions to align environmental design with your organization's strategic goals, staffing needs, and budgets.
I've found that the most successful hybrid programs offer employees flexibility based on a comprehensive understanding of the company's mission, business model, and culture. With this basic knowledge, logical and defensible guidelines for returning to the office can be created and supported by an office design that takes into account not only hybrid, but all work styles and needs. Such preparation can also support calibrated investment (subscription required) in tools and training to ensure successful performance of each role (employee or manager) in hybrid situations.
How can you start?
Re-evaluate your value creation model in the post-pandemic world and apply these changes to the roles and processes of your current workforce. Identify desired workforce behaviors and develop space solutions and remote work policies that encourage those behaviors. Survey your team about their needs and preferences and adjust your current room format and staffing offerings.
Lastly, communicate clearly throughout the process so that the investment in redesigned spaces and their potential benefits are understood and all members of your team are aligned on the desired outcome. The aim is to develop a workplace strategy that is clearly defined and carefully tailored to the needs and goals of the company and the workforce.
I assume that all employees and managers want their company to be successful. When you communicate the strategic rationale for space changes and hybrid schedules, you can benefit from improved productivity and true asset ROI.
© Copyright 2024. The views expressed herein are those of the author(s) and do not necessarily represent the views of Ankura Consulting Group, LLC., its management, subsidiaries, affiliates, or other professionals. Ankura is not a law firm and cannot offer legal advice.