March 9, 2016

Corporate real estate strategy shifts focus from cost to people ⁰

by Sara Bean • Facilities management, Flexible working, News, Property, Workplace, Workplace design

A new survey of corporate executives indicates a major shift in how companies make real estate decisions today, with more than half (50 percent) saying that talent is more important than cost (31 percent) as their foremost consideration. As a result, executives view the workplace as primarily a recruitment and retention tool that offers attributes such as a flexible workplace, high quality amenities and interiors. But while the people and workplace experience dominate the corporate real estate agenda, according to CBRE’s Americas Occupier Survey – escalating costs are a major concern. Of survey respondents, 85 percent cite space efficiency and restructuring as a top strategy for reducing occupancy costs. These two issues are driving real estate conversations; with the result that workplace strategy is increasingly being viewed as both a critical employee attraction and retention strategy (57 percent), and as a means to control costs.

March 8, 2016

Gen X most interested in just doing a good job than other generations ⁰

by Sara Bean • News, Workplace, Workplace design

We reported the other week that the hardest working generation in the UK is Generation X (born 1965-1980). It seems this applies all around the world, as a global survey by Korn Ferry Futurestep shows that this generation cares most about making an impact on the business and are the most engaged demographic. When asked which generation is the most engaged in the workforce, more than half of respondents of any generation (52 percent) said Generation X. Baby Boomers and Millennials were tied at just under 25 percent. The heads down, get-the-job-done attitudes and priorities of Gen X employees means they care more about the job than the environment and culture of the organisation than other age groups. Well over a third (39 percent) of respondents said that the “ability to make a difference in their organization” is most important to Gen Xers in the workplace. That’s nearly double the percentage that cite “job stability” or “development opportunities.”

March 7, 2016

Nearly all managers are now seeking to redesign their organisation ⁰

by Mark Eltringham • News, Workplace, Workplace design

Ninety-two per cent of the UK’s human resources and business leaders see redesigning their organisation as their most important priority, according to Deloitte’s Global Human Capital Trends 2016 survey. As part of this shift in focus, 42 per cent of UK respondents say they are already currently restructuring their organisation and 49 per cent have recently completed the process. Only seven per cent say they have no plans to restructure. The report also claims that lack of employee engagement is an issue currently facing 80 per cent of respondets. Only 36 per cent report that they are prepared to tackle engagement issues. Despite the emergence of ‘easy to use’ tools to frequently evaluate employee sentiment, 76 per cent of UK organisations still measure employee engagement only once a year. Forty-two percent measure this engagement through annual surveys and 20 per cent through interviews and focus groups.

March 7, 2016

Government talks a good game on technology, then fails to deliver ⁰

by Mark Eltringham • Comment, Flexible working, News, Technology

Last week, the UK Cabinet Office Minister Matt Hancock delivered a speech to the Institute of Directors, outlining details of the government’s Cyber First programme which aims to develop the skills needed to address the security threats posed by the digital revoluution. The speech was full of the usual stuff about the ‘interconnected world’. It even suggested at one point that the UK has ‘one of the most digitally advanced governments in the world’. Recent developments would suggest that this is slightly wide of the mark, to put it mildly. According to a February report from the regulator Ofcom, the UK’s broadband infrastructure continues to lag behind other countries, held back by BT’s characteristically inept and self-serving monopoly of cable infrastructure. Now the government has confirmed it scrapped its flagship mobile infrastructure project which set out to reduce the number of ‘not spots’ in the country.

March 4, 2016

Fewer than ten percent of business processes will rely on paper by 2018 ⁰

by Mark Eltringham • News, Technology

A new report from Xerox suggests that the use of paper in business processes continues to fall away. The Digitisation at Work report claims that the move from paper to digital processes is nearly upon us although many of the 600 survey respondents admit they may not be ready for it. The report found concerns remain over paper-based processes, with cost (42 percent) and security (42 percent) cited as primary issues. Survey respondents predicted an average of nine percent of key business operation processes will run on paper in two years time. However, over half (55 percent) of the respondents admit their organisation’s processes are still largely or entirely paper-based and about a third (29 percent) are still communicating with customers via paper.This is despite the fact that 41 percent agree moving to digital workflows will cut organisational costs and 87 percent appear to have the skill sets available to make this happen.

March 4, 2016

World cities are victims of own success as high costs price out businesses ⁰

by Sara Bean • Facilities management, News, Property, Technology, Workplace

The two highest ranking global cities in the world, London and New York (as measured in the A.T. Kearney Global Cities Index), are also the most expensive for businesses and workers to occupy. According to Savills latest Live/Work Index, which measures the combined cost of residential and office rental per person per year across leading world class cities, the cost of accommodating an employee in London (US$112,800) is more than double that of Sydney, ($49,500). The average total cost of accommodation per worker, per year in the 20 cities that were measured is US$56,855, in a list that includes established world cities and some dynamic up and coming rivals, dubbed “upstarts” by Savills. The rise of the digital economy has pushed these smaller cities, such as Berlin (population 4.3 million) and Dublin (1.7 million) into the realm of world class city status; with San Francisco seeing the greatest price rise over 2015, up by 13 percent, compared to a 9 percent fall in Moscow and Rio de Janeiro.

March 4, 2016

Technology in the office failing to keep pace with the digital revolution ⁰

by Sara Bean • Facilities management, News, Technology, Workplace

Despite, or possibly because of the development of sophisticated digital handheld devices, a majority (85 percent) of UK office workers believe they would be able to perform their duties more efficiently if their workplace was equipped with better technology. In fact, 16 percent said that the technology they use at home is far superior to that provided by their employer. The research, conducted by webexpenses, found that over a quarter (28 percent) of respondents felt client relationships and sales could also benefit from a boost in technology at their organisation. When asked about what aspects of their job could be improved by better technology, 41 percent said that the management of teams and internal communications could be greatly enhanced. The workers also said that poor temperature controls (21 percent) a lack of space available in the office (20 percent), and their company’s reliance on arduous paper based processes (14 percent) were other sources of frustration.

March 3, 2016

Open plan offices linked to low engagement and workplace satisfaction levels ⁰

by Sara Bean • Comment, Flexible working, News, Wellbeing, Workplace design

As we’ve pointed out before, while open plan working can bring cultural benefits such as improved communication and collaboration; the continuing popularity of the open plan office is largely down to cost. The reason the UK has more than twice as many open plan workers as the global average is primarily due to high real estate costs. Now a new report from Steelcase suggests that space and cost-saving strategies such as open plan offices and hot-desking could be impacting workplace satisfaction and engagement. UK employees are falling below the global average for almost all workplace satisfaction metrics, reporting a lack of control over their work environment (59 percent), difficulties concentrating (43 percent) and an inability to work without being interrupted (50 percent). These three factors were found to be central to fostering an engaged and satisfied workforce. Only 29 percent of UK workers are engaged, compared to 34 percent globally.

March 3, 2016

Global lack of support by management in encouraging innovation at work ⁰

by Sara Bean • News, Technology, Workplace

Too many managers expect their employees to innovate without offering them any practical support. In a global survey by consultants O.C. Tanner published in the Harvard Business Review – a poll of nearly 3,500 people from companies in the U.S., Canada, the UK, Germany, and India found that although a majority of employees say innovation is everybody’s responsibility, not everyone actually gets the resources needed to innovate. There’s an especially large disconnect on this subject between leaders and lower-level employees. While nearly nine in ten non-managers believe they ought to be involved in innovation, far fewer (roughly six in ten) say they actually are. The research claims this applied to small as well as large companies and among all age groups. The problem the review suggests, is that most employees believe that management does not inspire them to do great work — or give them the opportunity to do so.

March 2, 2016

Effect of robots at work on people’s future wellbeing still very uncertain ⁰

by Sara Bean • News, Technology, Wellbeing, Workplace

The effects of robotics on workers’ and managers’ motivation and wellbeing are not widely known, meaning psychosocial factors related to robotics will require more attention in the field of safety and health. This is just one of the conclusions of a new discussion paper – drawn up by EU-OSHA (European Agency for Safety and Health at Work) on the influence of robotics on the future of work. While the use of robots in a complementary role would be the least challenging for society, economic and productivity pressures are likely to result instead in a substitution approach, whereby individuals and groups are replaced in their jobs by robotics and automation. Fewer workers will be needed for jobs that are routine or have clearly definable tasks, as they will be done instead by industrial and service robots. A result of this technical change will be a relative increase in the demand for highly educated workers and a reduced demand for less educated workers traditionally carrying out jobs consisting of routine cognitive and manual tasks.

March 2, 2016

Employers’ attraction and retention rates rise with flexible working offer ⁰

by Sara Bean • Flexible working, Legal news, News, Workplace

Although a quarter of UK workers now regularly work out of the office, there is a still a significant number (39 percent) who don’t know they have the right to request flexible working. Yet according to new research from UC EXPO, conducted amongst 1,000 UK office workers, job roles offering flexible working are more likely to attract a better candidate, with 82 percent of workers saying they would be more likely to take a job that offered flexible working benefits. An additional 71 percent said that the offer of flexible working would help businesses to attract a greater international talent pool. The research finds that the benefits of flexible working are more widely recognised than a year ago, with a fifth (22 percent) of those surveyed having worked at home or remotely more throughout 2015 than in 2014. Productivity concerns around employees working from home is decreasing, with over two-thirds (67 percent) believing that productivity levels either increase or stay the same when they work remotely.

March 1, 2016

Smart Cities emerging rapidly in China due to increasing urbanisation ⁰

by Sara Bean • Cities, Facilities management, News, Technology

“Smart Cities” are emerging as a major force in China. According to a recent CoreNet Global report, China’s urban population surpassed that of the rural population in 2011 and it is estimated that by 2035 there will be more than 70 percent of the population living in urban areas. That urbanisation is creating more pressure for China to leverage digital technology to create smarter cities, which are defined as metro areas that leverage digital technology and intelligent design to facilitate sustainability, along with high-quality living and high-paying jobs. Initially, there were several ‘beachhead’ cities that embraced Smart City initiatives such as Hangzhou (above), Chongqing and Chengdu. Subsequently, the China Central Government issued clear guidelines to roll out smart cities in a systematic and more widespread way. While smart cities are definitely on the long-term agenda for China’s strategic planning, their impact on corporate real estate and site location decisions remains to be determined.