RW 011 - Building Future-Ready Workplaces: Cultivating Connection, Flexibility, and Value
Welcome to Reimagining Work where we challenge assumptions about what work can, and should, be in our lives.
Did you know the future of work is about more than just technological advancements?
It’s also about creating healthy connections between people and work that lead to fulfillment and meaning.
So, please join me on this mission of eradicating soul-sucking work!
In each edition of Reimagining Work, I’ll share content that’s concise and challenges common assumptions concerning the future of work! The formatting and structure are consistent each week with unforgettable segments like:
Perfect Labor Storm ⚡️
Jaw-dropping data and trends around the future of work
Weekly Connection 💡
The most important learning or unlearning from this week
The Prescription 💊
Tips and recommendations
TL ; DR (Too Long; Didn’t Read) 🔎
Bullet point summary of key takeaways
The Journey Ahead 🔮
What’s coming soon
Let’s begin!
Perfect Labor Storm ⚡️
According to a survey from Quantum Workplace, only 10 percent of survey respondents equated flexibility with location, such as the power to work remotely. There are 6 flexible work arrangements that workers told Quantum they'd prefer — and five of them don't require home offices: flexibility of time, days worked, scheduled shifts, tasks performed, and whom to work with.
Here’s one outcome of this workspace disruption and uncertainty: According to Cushman & Wakefield’s report on commercial real estate, over 1 billion square feet of office space will be vacant by 2030 in the US alone. This is nearly 20% of total office space in the US. And the concerns aren’t limited solely to office space vacancies, it’s also that 25% of office space will be obsolete by 2030.
That same report indicated that around 1.5 trillion dollars in commercial real estate debt is coming due by 2025.
And according to Morgan Stanley, the valuations of office and retail properties could fall by as much as 40%.
Weekly Connection 💡
The biggest challenge in returning to the office is to make the experience not just going back to what was suboptimal before. - Bryan Berthold
With the future of work rapidly approaching, it is crucial for businesses to envision the changing landscape of workspaces and how they can adapt accordingly.
Recently, Apple provided us with a glimpse of their prediction by unveiling their new product, the Apple Vision Pro, which embraces spatial computing and augmented reality. This signals a transformative shift away from traditional office buildings and envisions a world where in-office connections can be replicated at home with this advanced technology.
While successfully navigating this transformative change requires consideration of various factors, one theme emerges as particularly crucial at this time: Connection. In a captivating interview on Geeks Geezers Googlization, Bryan Berthold of Cushman & Wakefield revealed a startling statistic - only 52% of individuals feel genuinely connected to their organization. This highlights the pressing need for businesses to prioritize meaningful workplace connections by designing the right connections between people and the work ecosystem. To address this, I actually introduced a proprietary model for infusing the right connections in the workplace called the 4 Principles Of Connection ® (4PC), which offers a straightforward process for creating a Connected Organization™.
However, according to Cushman & Wakefield's research, many buildings and physical workspaces are ill-prepared for the future of work. Roughly one-third of them have the necessary infrastructure, one-third require upgrades, and one-third are completely obsolete, necessitating a complete redesign.
To tackle this challenge, Cushman & Wakefield developed the Experience Per Square Foot diagnostic tool. This tool measures the quality of a workspace in terms of employee experience, considering factors such as work-life balance, productivity, well-being, collaboration, community, and continuous learning and development. Unlike traditional metrics like cost per square foot or square footage per employee, this tool examines the impact of design, technology, services, amenities, and location on employees' experiences. By leveraging employee sentiment data, companies gain insights into how various aspects of the workplace affect their daily routines, comfort levels, and overall satisfaction with the work environment. This measurement helps companies better understand their workforce's needs, design workspace solutions that prioritize employee experience and engagement, and comprehend the true ROI or value of each workplace.
So, how can businesses best prepare for the future of work? One crucial step is shifting towards a workplace ecosystem that incorporates both updated traditional offices and remote workspaces. Flexibility is key, as is investing in digital technology to enhance employees' overall experiences and foster a sense of belonging to the company culture. When it comes to the physical office space, leaders must create a sense of purpose and agenda that motivates employees to come in and forge valuable connections.
In other words, there must be a compelling reason to return to the office beyond a mandate from the CEO. Dictating where and when employees should work results in a 27% drop in workplace experience and a 25% drop in employee engagement.
Undoubtedly, all of this is easier said than done. However, as the future of work approaches, it is more important than ever for companies to begin contemplating how they can adapt to the changing landscape by prioritizing connection, flexibility, and adaptation. From local tax policies to investments to workspace redesign, fresh thinking will be necessary to thrive in the years ahead. Two excellent examples of the needed innovative approaches are the aforementioned Experience Per Square Foot tool from Cushman & Wakefield and the 4 Principles of Connection® framework for employee experience from Telos…check them out today!
Here’s a little more about Bryan Berthold and why you should follow him before you check out his episode below:
Bryan Berthold is a licensed architect who has worked in various banks and currently works at Cushman. Bryan realized early in his career that in the real estate world, people focus on the desk, the conference room, and the tech, but there is not enough training and understanding about how these solutions impact the people they serve. As an analyst, Bryan wanted to understand the impact of real estate solutions and replace subjectivity with real insight. He created a product called experience per square foot which uses employee sentiment to measure the experience of people in the workplace. Bryan's focus is on understanding human behavior to solve business problems for clients and study what we've learned through the pandemic to provide real data and insight. He has been in his role as a Global Workplace Experience Focus for Cushman since April 2020.
📺 Watch the full episode on Youtube below:
🎧 Or listen to the full podcast episode on your favorite audio platforms:
Here are some unforgettable quotes and insights Bryan shared on the future of workplaces:
On regional differences in remote work: "What's missing is it's all about community and connection. So what they do want to come in for is to socialize, to collaborate."
The Importance of Workplace Experience: "And I think what's fascinating is we did an analysis that said there's about 40 categories of things on the stuff side, but usually only eight to ten are driving the experience. So you're spending money on 40 things. I'll tell you the eight or ten that you should spend your money on."
The Risk to Employee Well-Being: "39% of people report having a good sense of well-being. So the extra hours, not being together, not having that face time, not learning, not doing all those things outside of just the routines, it's taking its toll on people."
Only 52% of people feel connected to their organization.
Many buildings are not prepared for the future of work, with roughly one-third having the necessary infrastructure, one-third needing upgrades, and one-third being obsolete and requiring complete redesign.
Valuations of office and retail properties could fall as much as 40%, according to Morgan Stanley.
Investing in digital technology can improve employees' overall experiences and sense of belonging to the company culture.
The design of office space is shifting towards prioritizing meeting spaces, brainstorming rooms, and learning environments rather than dedicated workstations.
Leaders must create a sense of purpose and agenda for the office to motivate employees to come in and create valuable connections.
Dictating where and when employees should work leads to a 27% drop in workplace experience, and employee engagement drops by 25%.
Working remotely without a clear boundary between work and personal life is leading to a work-life integration problem.
Well-being has dropped from 73% in 2019 to 39% in 2021, with the extra hours and lack of face-to-face interactions taking a toll on people.
The commute is the biggest pain point for people wanting to work remotely in the US, while the desire for community and connection is what draws people to the office
Socializing, collaborating, building relationships, and exposure to leaders and mentors are reasons people want to come into the office.
The Prescription 💊
Here are the doctor’s orders to maximize the value of physical workspaces and prepare for the future of work:
Follow Bryan Berthold on Linked In
Check out Cushman & Wakefield’s website
Prioritize creating a meaningful and purposeful culture to connect employees with themselves, others, their role, and the organization, including the physical workspace.
Invest in upgrading and redesigning office spaces to prepare for the future of work, which includes flexible work arrangements.
Use data to make informed decisions around utilizing workspaces and identifying the most important things to invest in to improve employees' work experience.
Consider adopting a new measure of work experience that takes into account factors such as work-life balance, productivity, well-being, collaboration and community, and continuous learning and development.
Adapt to new demands brought about by the COVID-19 pandemic, such as creating a workplace ecosystem that includes both traditional offices and remote workspaces.
Prioritize meeting spaces, brainstorming rooms, and learning environments rather than dedicated workstations in office space design.
Give employees the freedom and autonomy to choose when and where they work, as this increases their engagement and experience.
Address employees' concerns and check in on their well-being to prevent burnout.
Use technology to improve employees' overall experiences and make the return to the office easier.
Foster a sense of community and connection in the office, as this is a major motivator for employees to come in and create valuable connections.
TL;DR (Too Long; Didn’t Read) 🔎
This episode covered a range of topics related to the current and future state of work, with a focus on the role of physical workspaces in fostering connection, productivity, and well-being for employees. Some of the biggest takeaways for listeners include:
1. The importance of connection in the workplace - Only 52% of people feel connected to their organization, and the four principles of Connection are crucial to building purposeful and meaningful cultures: connecting people with themselves, others, their role, and the organization, including physical workspace.
2. The need for companies to adapt to new needs - The COVID-19 pandemic has prompted a transformation in work environments, and businesses must adapt to new needs to maintain employee well-being and productivity.
3. The shift towards a workplace ecosystem - Companies are shifting towards a workplace ecosystem that includes both traditional offices and remote workspaces.
4. The significance of flexibility - Flexibility is a key factor in workplace experience and engagement. Dictating where and when employees should work leads to a 27% drop in workplace experience, and employee engagement drops by 25%.
5. The importance of creating a sense of purpose and agenda for the office - Leaders must create a sense of purpose and agenda for the office to motivate employees to come in and create valuable connections, designing office spaces that prioritize meeting spaces, brainstorming rooms, and learning environments.
6. The role of technology - Investing in digital technology can improve employees' overall experiences and sense of belonging to the company culture.
7. The need for managers to check in on their employees - Managers need to check in on their employees beyond project calls and address their concerns to prevent burnout.
8. Future work preferences vary by region - A survey found that in the US, 53% still want to work remotely, while in Europe, a majority (43%) want to be hybrid. In Asia Pac, 63% want to come in three or more days a week.
The Journey Ahead 🔮
We have a killer lineup of guests joining us LIVE at 1:00 ET on the Geeks Geezers Googlization Show after the July 4th holiday to cover multiple angles on the future of work!
Josh Drean on July 12th
Cofounder of DreanMedia and Work3Institute
Author of forthcoming book: “Employment is Dead”
Steve Hatfield on July 19th
Global Future of Work Leader at Deloitte
International Thought Leader on Future of Work
Steve Pemberton on July 26th
USA Today Best Selling Author
Former CHRO at WorkHuman
But until then, be sure to follow us on LinkedIn, subscribe to our growing YouTube channel, and also subscribe on your favorite podcast platform so you never miss these must-listen episodes!
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Unlock your WHY.os (WHY, HOW, & WHAT) and be who you were always meant to be!