Workplace Insight https://workplaceinsight.net Wed, 19 Feb 2020 05:02:18 +0000 en-GB hourly 1 https://workplaceinsight.net/wp-content/uploads/2019/11/cropped-Insight_logo_only-3-144x144.jpg Workplace Insight https://workplaceinsight.net 32 32 Look beyond the perks and reviews to get a clear view of an employer https://workplaceinsight.net/look-beyond-the-perks-and-reviews-to-get-a-clear-view-of-an-employer/?utm_source=rss&utm_medium=rss&utm_campaign=look-beyond-the-perks-and-reviews-to-get-a-clear-view-of-an-employer Wed, 19 Feb 2020 05:02:18 +0000 https://workplaceinsight.net/?p=51174 So, your most recent dining experience wasn’t great. The service was slow, the waiter seemed uninterested, and the wine glasses on the table had red lipstick stains on them. Your first instinct is to go online and share that negative experience with the world. Whether your intention is to blow off steam or warn other […]

The post Look beyond the perks and reviews to get a clear view of an employer appeared first on Workplace Insight.

]]>

So, your most recent dining experience wasn’t great. The service was slow, the waiter seemed uninterested, and the wine glasses on the table had red lipstick stains on them. Your first instinct is to go online and share that negative experience with the world. Whether your intention is to blow off steam or warn other patrons that their filet won’t be worth the price, you have a right to share your experience.

If people get worked up over an expensive meal, of course the same standard exists for employers. Online employer review sites like Glassdoor and Indeed are mandatory stops for everyone on a job hunt. Granted, it’s tough to get a holistic understanding from the reviews when a dozen of them are contradictory… and there may be a reason for that.

For those sharing their experience, 10 percent admitted they lied or stretched the truth

In our recent study, Fractl asked 1,096 people who have left online reviews about their former employers about the nature of their statements. Unsurprisingly, most people are only inclined to leave a review if it’s a negative one: over half leave 1 or 2 stars.

This is likely the reason many companies solicit their positive reviews from past employees who parted on good terms. It’s also worth noting that nothing is free and these positive reviews are likely coerced using some promise of repayment. Feel free to question the ethics of this approach in your own time.

For those sharing their experience, 10 percent admitted they lied or “stretched the truth”.Unfortunately, this statistic taints the merit of all online reviews because the respondents who claimed to have lied, said they did so in an attempt to tarnish their ex-employers reputation.

As of late, employers have begun working online review insurance into their employment documents, filing lawsuits against those who breached severance agreements by leaving reviews on Glassdoor and other review platforms.

Obviously, this phenomenon is something to keep in mind when approaching the world of online reviews, but as long as your employment contracts do not prohibit such reviews, it’s important to keep sharing.

 

The power to choose

Many companies attempt to entice their prospective hires with promises of unlimited time off, ping pong tables, and fitness reimbursement

For the 90 percent of people who were honest and fair in their reviews, they are impacting the workforce immensely. Many companies attempt to entice their prospective hires with promises of unlimited time off, ping pong tables, and fitness reimbursement. While these perks often lead to increased employee satisfaction and a healthy office culture, it’s important to keep priorities straight.

Honest online reviews renew power to the workforce. In the past, it was nearly impossible to understand the scope of the position you were accepting until it was too late. Gone are the days when a 20-something year old would get a job and remain stagnant, sitting in the same chair for 40 years. Younger people are often looking for workforce diversity, growth opportunities, and inclusive workplaces. These review platform submissions allow insight into a company’s culture before you’ve signed a contract or moved miles for your “dream job”.

It would be irresponsible to accept or even consider a position without utilizing all your resources. With the internet at our fingertips, there really shouldn’t be any limit to the amount of jobs at your disposal. Any number offers could promise the same benefits and perks, given that employee satisfaction has improved baseline corporate norms and practices. 8 in 10 employers now offer flexible work structures and competitive pay is basically a given in accepting any new position.

However, a study from Wrike found that workers tend to choose happiness over pay. In fact, Wrike’s Happiness Index found that over half, or 54 perfect, of UK full-time employees have taken a pay cut to accept a job that made them happier. Really rings true to the cliche, “money can’t buy happiness”. So, if workers are putting workplace satisfaction and happiness above their literal livelihood, these reviews are arguably the most important tool we have at our disposal.

The bottom line for candidates is this: if a company looks good on paper and hits all your marks, be sure to do research on the backend before accepting. Utilize resources provided to you by past employees who lived through the experience firsthand. You don’t have to be married to the first amazing offer that comes your way because, chances are, another company can offer you the same thing or better. The people you work with and the culture within the office will grow to be more important than the perks anyway.

Main image: The Flammarion engraving, public domain

The post Look beyond the perks and reviews to get a clear view of an employer appeared first on Workplace Insight.

]]>
The love of natural born leaders can come at a cost https://workplaceinsight.net/the-love-of-natural-born-leaders-can-come-at-a-cost/?utm_source=rss&utm_medium=rss&utm_campaign=the-love-of-natural-born-leaders-can-come-at-a-cost Wed, 19 Feb 2020 04:35:39 +0000 https://workplaceinsight.net/?p=51168 The inherent preference employers have for candidates with natural leadership ability could have a negative effect on their organisation, according to new research by Rotterdam School of Management, Erasmus University (RSM). The study, On Leading and Managing: Synonyms or Separate (and Unequal)? published in the Academy of Management journal suggests that firms tend to choose […]

The post The love of natural born leaders can come at a cost appeared first on Workplace Insight.

]]>

leaders eh?The inherent preference employers have for candidates with natural leadership ability could have a negative effect on their organisation, according to new research by Rotterdam School of Management, Erasmus University (RSM). The study, On Leading and Managing: Synonyms or Separate (and Unequal)? published in the Academy of Management journal suggests that firms tend to choose leaders over managers regardless of their culture and needs.

The authors note that while there is considerable overlap between the behaviours associated with leadership and management, for the purposes  of this study the two styles have been clearly separated. A natural, “irrational” love for leadership means that employers automatically go for the candidate with leadership skills even though the job requires someone with management skills.

According to Associate Professor Hannes Leroy: “Decision makers are commonly advised to guard against biases against female or minority candidates, but much less attention is given to the risk of over-valuing candidates with leadership skills. There is a tendency among people to prefer and select the prototypical leader, even for a situation that really calls for prototypical managing activities.

 

A romantic view

People have a romantic view of leadership over management

“We found that people have a romantic view of leadership over management and this preference may come at the high cost of failing to appreciate the value of management in many situations. When a company is in crisis or significant change, you need leadership. In other situations, you need a manager, someone who hires, supervises and budgets.”

The study surveyed 703 people and found that leadership activities such as inspiring, encouraging, and motivating people, are typically evaluated more positively than managerial activities such as hiring, supervising, and budgeting.

The researchers warn that decision makers need to be aware that people tend to hold overgeneralised preferences in favour of leaders. According to this research one way to overcome this bias, is to slow the decision process and carefully consider the skills needed for the position. The seemingly unconditional love for leaders is tempered by slowing decision-makers down, overriding a relatively fast and automatic preference for leaders relative to managers.

Main image: From The Charge of the Light Brigade by Caton Woodville, Public Domain

 

The post The love of natural born leaders can come at a cost appeared first on Workplace Insight.

]]>
Employees use only fraction of their knowledge at work https://workplaceinsight.net/employees-use-only-fraction-of-their-knowledge-at-work/?utm_source=rss&utm_medium=rss&utm_campaign=employees-use-only-fraction-of-their-knowledge-at-work Wed, 19 Feb 2020 00:19:42 +0000 https://workplaceinsight.net/?p=51156 Employees use just 38 percent of their knowledge and expertise at work, meaning organisations are failing to unlock even half of the brainpower of their people, research has claimed. According to the survey of more than 1,000 UK and US “knowledge workers” by Starmind, 90 percent of employees want more opportunities to share knowledge and […]

The post Employees use only fraction of their knowledge at work appeared first on Workplace Insight.

]]>

knowledgeEmployees use just 38 percent of their knowledge and expertise at work, meaning organisations are failing to unlock even half of the brainpower of their people, research has claimed. According to the survey of more than 1,000 UK and US “knowledge workers” by Starmind, 90 percent of employees want more opportunities to share knowledge and expertise and three quarters believe their organisation would benefit from accessing more of their expertise. More than 6 in 10 respondents feel they could contribute more but don’t know how, while nearly two-thirds say they have knowledge their organisation isn’t aware of or doesn’t capitalise on.

The research report also claims that employees who want to share skills and expertise or ask questions lack direction on who to approach and how. More than half told researchers they avoid asking questions entirely because they don’t know who to approach. Seven in 10 said they feel more comfortable using technology to search for information than asking a colleague, although 8 in 10 would trust a co-worker more than AI or an automated response.

Lost productivity is plaguing enterprises

Knowledge workers spend more than a working month each year (26 days) searching for information, knowledge and the right expertise in their organisation.

The quantity of data at employees’ disposal, coupled with an inability to find task-critical information easily, is threatening productivity, the report adds, as enterprises risk losing out to duplication, slowed innovation, mistakes and inhibited problem solving. More than half of respondents said they feel overwhelmed by the volume of information they receive each day and a similar number said they receive too many notifications. Three-fifths can’t find the information they need to do their job effectively, with the report claiming knowledge workers spend more than a working month each year (26 days) searching for information, knowledge and the right expertise in their organisation.

Departing employees take knowledge with them

More than half of workers have left a job because they didn’t have access to the information they need to work effectively, the report says. When an employee leaves their organisation, it is estimated that they hand over only about a third of their knowledge. More than half of respondents said their company either doesn’t have a process for extracting knowledge before people leave or they aren’t aware of one.

“Not being able to quickly and efficiently access organisational intelligence is a huge burden on productivity,” commented Oliver Muhr, CEO of Starmind. “Failing to find, unlock and share knowledge effectively not only leads to a duplication of work and time wasted but makes brain drain a real threat. As the war for talent, expertise and skills heats up, organisations need to do more to make use of their collective brainpower and skills.”

Image by Gerd Altmann

The post Employees use only fraction of their knowledge at work appeared first on Workplace Insight.

]]>
Smart cities investment to rise by a fifth in 2020 https://workplaceinsight.net/smart-cities-investment-to-rise-by-a-fifth-in-2020/?utm_source=rss&utm_medium=rss&utm_campaign=smart-cities-investment-to-rise-by-a-fifth-in-2020 Wed, 19 Feb 2020 00:03:46 +0000 https://workplaceinsight.net/?p=51162 Global spending on smart cities initiatives will total about $124 billion this year, an increase of nearly a fifth on 2019, a new report suggests. The largest share of investments (one third) is currently in more advanced electricity and gas systems. Visual surveillance, advanced public transportation, intelligent traffic management and connected back office systems follow, […]

The post Smart cities investment to rise by a fifth in 2020 appeared first on Workplace Insight.

]]>

smart citiesGlobal spending on smart cities initiatives will total about $124 billion this year, an increase of nearly a fifth on 2019, a new report suggests. The largest share of investments (one third) is currently in more advanced electricity and gas systems. Visual surveillance, advanced public transportation, intelligent traffic management and connected back office systems follow, representing more than half of spending.

According to the International Data Corporation report (subscription required), one of the areas of fastest spending growth over the next five years will be on vehicle-to-everything (V2X) connectivity, in which a vehicle communicates information to any entity that may affect it, with the aim of improving road safety, traffic efficiency and energy efficiency. Other growth technologies are digital twin (digital replicas of physical assets) and wearable technology for officers.

Singapore is forecast to remain the top investor in smart cities initiatives. Tokyo will be the second largest spender in 2020, driven by investments for the Summer Olympics, followed by New York City and London. These four cities are each predicted to spend more than $1 billion in 2020 on smart city initiatives.

The US, Western Europe and China will account for more than 70 percent of global smart city spending over the next five years, according to the forecast. Latin America and Japan will experience the fastest growth in spending in 2020.

Out of more than 200 cities analysed, fewer than 80 are investing more than $100 million per year, the report says. Around 70 percent of investment is predicted to be in cities spending $1 million or less per year, with small and medium-sized cities increasingly expected to invest in relatively small projects.

Image by Tumisu

The post Smart cities investment to rise by a fifth in 2020 appeared first on Workplace Insight.

]]>
Curiosity killed the stat: why we should avoid becoming slaves to data https://workplaceinsight.net/curiosity-killed-the-stat-why-we-shouldnt-be-slaves-to-data/?utm_source=rss&utm_medium=rss&utm_campaign=curiosity-killed-the-stat-why-we-shouldnt-be-slaves-to-data Tue, 18 Feb 2020 00:30:13 +0000 https://workplaceinsight.net/?p=37754 Hands up. How many of you spend much/most of your time peddling data, charts and other fact-based information? And how much time do you spend challenging yourself, learning new ideas, indulging your curiosity and feeling a sense of surprise and fulfilment? And finally how much of the inquisitive, itchy child do you feel your job […]

The post Curiosity killed the stat: why we should avoid becoming slaves to data appeared first on Workplace Insight.

]]>

dataHands up. How many of you spend much/most of your time peddling data, charts and other fact-based information? And how much time do you spend challenging yourself, learning new ideas, indulging your curiosity and feeling a sense of surprise and fulfilment? And finally how much of the inquisitive, itchy child do you feel your job appeals to rather than the “only- 30-more-years-of-wage-slavery-if-I’m-lucky” mindset?

I see this as a symptom of what I call the “arithmocracy”, a pernicious system based on numbers-based measurement and control that is in danger of becoming our default monoculture.

We are becoming slaves to the algorithm and to data, hurtling towards a culture where everything from the NHS to our education system is driven by league tables and metrics: from the City to the Police Force to the creation and evaluation of marketing communications, everything is being fed into a runaway system of measurement, prediction and control fuelled by arithmocrats who are part accountant, part engineer and part spreadsheet but largely dismissive of creativity, emotion and instinct.

The body of evidence and data gathered loosely under the heading of Behavioural Economics should once and for all make it unarguable that human behaviour cannot and should not be modelled on physics, mathematics and engineering with its belief in the “homo economicus”, a purely rational and consistent entity whose first thought on waking is “how shall I maximise my utility today?”

But somehow we have allowed psychology and human creativity to be shackled in the chains of the arithmocracy.

Instead we need to embrace – and not fear – emotion, spontaneity and our instinct for curiosity: in the terms popularised by Nobel prize-winning psychologist Daniel Kahneman, we need to accept the power of System 1 (the adaptive unconscious) over System 2 [the post-rationalising interpreter] and and allow our employees (ourselves) to be playful and imaginative on a day-to-day basis.

 

Stimulating curiosity

Part of the problem lies with business’s desire to keep calm and carry on while reducing insight, inspiration and creativity to a wacky, left-field part of the forest [aka Shoreditch] to be visited rarely and only in a beret and sandals.

Yet everywhere I look there are companies desperately seeking salvation through the Next Big Thing- a new product, service, brand or creative idea that will guarantee economic salvation (or at least survival).

But why content ourselves with out-sourcing our curiosity? Unless we integrate a sense of curiosity, creativity and imagination into our employees and colleagues (as well as across the education system) we will do little but pay lip service to the imagination we claim to crave.

Theorists of insight agree that true breakthroughs come from allowing fundamentally curious people to create serendipitous collisions and combinations, largely in the unconscious System 1: these largely happen in what are termed “bed, bath, bus” situations when the conscious System 2 is off-line.

We’ve all been there.

 

Insighting change

There are a number of key principles and practices we can learn and apply to our business cultures to make them porous to what I call “insightment” (a blend of insight, incitement and excitement).

  1. Insight often comes about through naivety. In the book I explore some examples of outsiders who succeed by asking naïve questions which experts are too cognitively invested in to ask.
  2. Condone and even encourage humour, wit and playfulness are far more fertile than our po-faced, reductionist arithmocracy will tolerate but we need to find ways of taming these qualities and breeding them in live corporate cultures.
  3. Discourage groupthink by deliberately recruiting against the norm. The instinct to recruit “in one’s image” is ingrained but can often lead to the perpetuation of conventions and lazy assumptions about our business.
  4. Legitimise, attract and reward curiosity. As someone who lectures at university [and as a parent], I often lament how so much of the marketing/comms industry tends to attract curious, open-minded young people but then we bleed the curiosity out of these still innocently-questioning minds.
  5. Institute “Meandering Time”. Like Google, allow employees the right to wander and sail away from the shores of convention, even if it’s only 20% of the time.

Let’s create a culture of “insightment” in the office: surely then we will all feel happier and more fulfilled, and our innate human curiosity can flourish rather than perishing in a desert of data.

The post Curiosity killed the stat: why we should avoid becoming slaves to data appeared first on Workplace Insight.

]]>
Outer-city coworking cuts carbon and commuting https://workplaceinsight.net/outer-city-coworking-cuts-carbon-and-commuting/?utm_source=rss&utm_medium=rss&utm_campaign=outer-city-coworking-cuts-carbon-and-commuting Tue, 18 Feb 2020 00:25:16 +0000 https://workplaceinsight.net/?p=51119 Each flexible coworking space created in a smaller town or suburban area reduces carbon emissions by an average of 118 tonnes a year thanks to shorter commutes, an international study has claimed. By allowing people to work closer to home, one coworking space saves the employees based there a total of 7,416 commuting hours per […]

The post Outer-city coworking cuts carbon and commuting appeared first on Workplace Insight.

]]>

coworkingEach flexible coworking space created in a smaller town or suburban area reduces carbon emissions by an average of 118 tonnes a year thanks to shorter commutes, an international study has claimed. By allowing people to work closer to home, one coworking space saves the employees based there a total of 7,416 commuting hours per annum on average, the research by independent economists commissioned by Regus says. This not only helps businesses to reduce their carbon footprint but can improve employees’ wellbeing and work-life balance.

The study, which analyses the socio-economic impact of flexible working in 19 countries up to 2029, also claims that an average of 218 jobs are created per flexible workspace. These include temporary jobs to fit out the new space and roles such as receptionists, security staff and cleaners. Each coworking workspace also generates an average of $16.47 million per annum through job creation, workers spending money in the local area and investment by new businesses. An average of $9.62 million of this would be expected to stay in the local economy.

The figures vary across the 19 regions. In the UK, the report estimates that each ‘outer-city’ coworking space saves 152 tonnes of CO2 emissions a year and 9,209 hours of commuting on average. Each space creates 231 jobs overall and 146 in the local community. It also generates $20 million in gross value add.

Big enterprises are adopting flexible working policies; moving away from relying on a single, central HQ and increasingly basing employees outside of the major metropolitan hubs in flex spaces.

In the foreword to the report, Mark Dixon, CEO for Regus’ parent company IWG, writes: ‘Where previously the idea of flexible or coworking was considered something tailored for small businesses and entrepreneurs, it is now the world’s largest companies that are driving this trend. Big enterprises are adopting flexible working policies; moving away from relying on a single, central HQ and increasingly basing employees outside of the major metropolitan hubs in flex spaces. Most are doing so to improve employee wellbeing by allowing their people to work closer to home, save money [and] boost productivity’. At the same time, businesses can ‘reduce their financial exposure to long leases following recent changes to accounting standards’.

‘With people working locally, local amenities and retail outlets will receive a boost and new jobs will be created to service a national network of workspaces’, he adds. ‘And with travel reduced, carbon emissions will fall and cities will see far less congestion.’

Regus also claims that coworking spaces can be better for the environment than home working because it is likely to be more energy efficient to heat and light a shared space than a home for a single worker.

Image: Regus

The post Outer-city coworking cuts carbon and commuting appeared first on Workplace Insight.

]]>
More women on boards but progress remains slow https://workplaceinsight.net/more-women-on-boards-but-progress-remains-slow/?utm_source=rss&utm_medium=rss&utm_campaign=more-women-on-boards-but-progress-remains-slow Tue, 18 Feb 2020 00:10:59 +0000 https://workplaceinsight.net/?p=51124 Slow progress is being made towards more women on boards across Europe and less gender pay disparity, a study has suggested. According to Korn Ferry’s latest ‘Non-Executive Directors in Europe’ report, the proportion of women on boards increased to 34 percent in 2019, up from 32 percent in 2018 and 30 percent in 2017. The […]

The post More women on boards but progress remains slow appeared first on Workplace Insight.

]]>

women on boardsSlow progress is being made towards more women on boards across Europe and less gender pay disparity, a study has suggested. According to Korn Ferry’s latest ‘Non-Executive Directors in Europe’ report, the proportion of women on boards increased to 34 percent in 2019, up from 32 percent in 2018 and 30 percent in 2017. The number of committees without any female directors fell, with 19 percent of audit committees (down from 24 percent) and 25 percent of remuneration committees (down from 29 percent) being all male.

In the 393 listed companies analysed in 13 European countries, male non-executive directors received 5 percent (median) more in total fees than their female counterparts, which is a 1 percent smaller gap than the previous year. The remaining gap appears to result mainly from an underrepresentation of women on the strategically important board committees, which has translated into women board members being paid less than men.

As in last years’ report, just 8 percent of all non-executive board chairs were women. However, the number of women holding deputy chair or senior independent director positions increased to 20 percent (up from 18 percent). The number of women in remuneration chair roles increased to 31 percent (up from 25 percent) and chair of the audit committee roles increased to 29 percent (up from 24 percent).

Some countries have set internal targets while others, unsatisfied with slow progress, have resorted to strict quotas to prioritise female hiring

‘Different countries have adopted different approaches to boost female presence in the boardroom. Some have set internal targets while others, unsatisfied with slow progress, have resorted to binding obligations using strict quotas to prioritise female hiring’, said Sonamara Jeffreys, Co-President of Korn Ferry EMEA. ‘Both approaches have had success in different countries, suggesting there’s no one way to handle this problem – it’s about identifying the stumbling blocks in each situation and being flexible in how to address them.’

Director remuneration and fee policy varies widely across Europe. Board fees are typically compensated with fixed fees. According to the report, the median basic fee paid to directors across Europe is €70,000, with significant variations across the region, often based on time and responsibility commitment as well as local practice. Directors who are on a board committee, such as an audit committee or remuneration committee also receive an additional fee.

The study also found that pay structures have continued to develop, although not in a uniform way. Some countries, like Germany, continue to see a proportion of companies use variable compensation for non-executive directors, in contrast to practices in countries like the UK.

Fees delivered in shares are popular in some countries, including Switzerland and Finland, but are almost unheard of in other countries such as Italy and the Netherlands. Across the continent, it is rare to see requirements for non-executive directors to build a significant shareholding in the company they oversee.

The research follows a recent UK report which found that more than a third of FTSE 100 boards still lack any ethnic minority representation. The Parker Review found that it would be ‘challenging’ for companies to hit the target set in its initial 2017 report that FTSE 100 companies should have at least one director from an ethnic minority background by 2021.

Image by Free-Photos

 

The post More women on boards but progress remains slow appeared first on Workplace Insight.

]]>
London office rents to rise due to “Boris bounce” https://workplaceinsight.net/london-office-rents-to-rise-due-to-boris-bounce/?utm_source=rss&utm_medium=rss&utm_campaign=london-office-rents-to-rise-due-to-boris-bounce Tue, 18 Feb 2020 00:02:14 +0000 https://workplaceinsight.net/?p=51136 Rents for new, Grade A office space are likely to rise in many parts of London this year, a property consultancy has predicted. According to Carter Jonas, rents for prime located, new, mid-rise, Grade A space above 5,000 sq ft will typically increase by £1.50 – £2.50 per sq ft per annum by the last […]

The post London office rents to rise due to “Boris bounce” appeared first on Workplace Insight.

]]>

London office rentsRents for new, Grade A office space are likely to rise in many parts of London this year, a property consultancy has predicted. According to Carter Jonas, rents for prime located, new, mid-rise, Grade A space above 5,000 sq ft will typically increase by £1.50 – £2.50 per sq ft per annum by the last quarter of 2020 across most of the London office sub-markets. The forecast increases are being underpinned by continued low vacancy rates and unexpectedly strong demand as business confidence increases following the general election.

The 2020 rent forecast makes several key predictions for the year ahead:

 

Highest rent increase most likely In Mayfair

Mayfair is likely to see some of the highest rent increases, with a forecast rise of 4.3 percent compared to the final quarter of 2019. It continues to hold the prize for the highest rental costs of any of the London office sub-markets – predicted to rise typically to £120 per sq ft per annum for prime space by the end of 2020.

Canary Wharf, Covent Garden, Wood Wharf and Stratford are also expected to see rent increases, albeit at lower levels than those forecast in core City and West End districts, reflecting less concentrated supply and demand pressures. By contrast, Hammersmith rents are forecast to remain flat for the year ahead.

 

Limited supply and growing demand

The pipeline supply of completed office developments reaching the market continues to be below trend. This is a consequence of the 2016 Brexit vote, which resulted in many developers halting their development proposals in the wake of the ensuing economic and political uncertainty.

Michael Pain, Head of Tenant Representation Team, Carter Jonas said: ‘Low vacancy will underpin rental growth for new Grade A space across many parts of London during 2020 as the completion of new office developments fails to keep pace with stronger-than-anticipated demand. Occupier demand is likely to gather pace throughout the year in the wake of rising business confidence following the 2019 general election.

 

Continued ‘flight to quality’

A key driver of demand for new Grade A space during 2020 will be the continued ‘flight to quality’, as employers increasingly use the quality of the work environment to bolster recruitment, retention and productivity strategies in a tight, competitive, labour market.

In the wake of the December election, and a striking majority for the Conservative Party, we are seeing increased business confidence in the capital.

 

Increasing trend to pre-completion leases

The trend towards tenants entering into leasing contracts on office space that is still under construction is likely to increase during 2020 – especially for space above 30,000 sq ft – as competition intensifies among occupiers to secure the best available space.

Commenting on the forecast, Dan Francis, Head of Research, Carter Jonas, said: ‘In the wake of the December election, and a striking majority for the Conservative Party, we are seeing increased business confidence in the capital. Following three years of economic uncertainty, when developers reined back their exposure to speculative development, London office rent increases are being driven by historically low vacancy with demand outstripping supply for new Grade A space.

‘However, the “Boris bounce” that we are beginning to witness in the market is fragile and much depends on the government managing to set out a clear and coherent position as we attempt to negotiate a trade deal with the EU by the end of the year.’

A separate report by Facilio Inc (registration required) has found that improving tenant experience is a priority for more than three-quarters of corporate real estate owners, who are allocating two-fifths of their operational spend to this issue. Maximising energy efficiency and dealing with rising maintenance costs are other key objectives, the report, which focuses on the US, Middle East and India, suggests.

Image by WikiImages

The post London office rents to rise due to “Boris bounce” appeared first on Workplace Insight.

]]>