Search Results for: financial

March 22, 2016

While politicians squabble, here’s what the Budget meant for the workplace ⁰

by Mark Eltringham • Comment, Facilities management, Legal news, Workplace, Workplace design

Strange as it may seem now, there was a Budget last week. We’d planned to produce a report on it once the dust had settled but given that whatever dust had originally been kicked up has now been swept away by a political storm, it’s only now we feel able to offer some perspective a few days out. As ever these days, the budget touched on a number of aspects of the workplace, sometimes hitting the mark and sometimes suggesting politicians don’t yet understand how people work. There was the usual stuff about rates and commercial property but also plenty to digest about the freelance economy, productivity, new technology, flexible working legislation and the current, often faltering attempts to develop wealth and infrastructure as well as the 21st Century creative and digital economy in places other than London. There’s plenty to digest here and plenty of people have already had their say, so a chance to grab a coffee and take all or some of it in.

March 22, 2016

Manchester refurbished office market thrives due to occupier demand ⁰

by Sara Bean • Cities, Facilities management, News, Property, Workplace design

Approximately 625,000 sq ft (58,063 sq m) of office space in Manchester is set to be refurbished over the next two years as the market responds to continuing demand. According to Savills, Grade B has accounted for an average of 62 percent of the city’s annual take up over the last 10 years, and with Grade A supplies running low the proportion could be even higher in 2016. Despite growing demand for Grade A office space in Manchester over the last three years, annual take up has consistently been under pinned by larger Grade B occupiers seeking to balance high quality offices with value for money. Savills also reports that the TMT sector has taken more Grade B space in Manchester than any other sector over the last five years, with deals totalling 710,889 sq ft (66,042 sq m); a significant increase on the 294,631 sq ft (27,371 sq m) of secondary space let to TMT occupiers in the previous five years.

March 17, 2016

Poor line management blamed for lack of career progression at work ⁰

by Sara Bean • News, Workplace

A third (33 percent) of UK employees say their career progression to date has failed to meet their expectations, with four in ten (39 percent) blaming poor line management for stifling their ambitions. According to the latest Employee Outlook Survey: Focus on Skills and Careers from the CIPD, a lack of effective training programmes (34 percent) and negative office politics (34 percent) are also to blame. The survey of over 2,000 employees considered the key factors relating to employees’ upbringing, education and workplace that affect whether or not their career progression had met their expectations. It also found that over a quarter (26 percent) of those whose career has failed to live up to their expectations identified poor-quality career advice and guidance at school as a key factor to blame, with three in ten (29 percent) saying they are in the wrong career so cannot show their strengths or potential.

March 16, 2016

Hong Kong, London and Beijing most expensive cities for office space ⁰

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

Hong Kong is the world’s most expensive office location, followed by London, Beijing and New York.This is according to JLL’s Premium Office Rent Tracker, which compares like-for-like occupation costs across 24 cities around the world. This ranks Established World Cities such as New York and London, Emerging World Cities like Shanghai, Dubai and Mumbai, and New World Cities such as San Francisco, Boston and Toronto. The latest research shows that six of the top ten most expensive cities for office rentals are in Asia; with Hong Kong the world’s costliest office rental market on a net basis as well as including added costs such as service charges and property tax. The tracker found continued demand prime office space, despite a rise in economic uncertainty; while across the global cities, the technology, media and telecommunications sectors are moving into premium office space – previously dominated by the finance and professional services sector.

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 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 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.

February 29, 2016

Full employment drive can help over a million more UK over-50s into work ⁰

by Neil Franklin • News, Wellbeing, Workplace

The UK government should find ways to encourage more than one million more over-50 into work by the end of this parliament, claims the Resolution Foundation think tank. The call comes ahead of a final report this week following a nine-month investigation into the issue full employment. The Chancellor announced a commitment to full employment in last year’s Summer Budget, with the government committing to report annually on progress towards this objective. The Foundation says that support for the over 50s, particularly to keep them from leaving the labour force, should be at the heart of the government’s strategy. Older people have contributed the fastest jobs growth of any age group over the last decade, leaving employment rates for workers aged 50-64 and 65+ are at record highs. The Foundation says that previous progress shows this group can and should be at the centre of plans for realising full employment.

February 24, 2016

Three workplace performance indicators that may make or break you ⁰

by Matias Rodsevich • Comment, Technology, Workplace, Workplace design

Want to find out how your business is performing? Setting and analysing performance indicators for your company is the best way to forecast and get on track with your business goals. Creating Key Performance Indicators will help you measure your company’s success. While choosing the right KPIs relies upon a good understanding of what is important to the organisation and its workplace , the question is what to focus on? Performance measurement is not just related to collecting data associated with a predefined performance objective or standard. It has to be considered as an overall management system involving prevention and detection in order to meet clients expectations of the service or product you’re offering. Many companies have different methods regarding performance measurement, so how you measure performance says a lot about your company’s objectives and will decide whether they make or break you.

There are two common types of performance indicators: financial and customer focused.

Financial indicators are the most commonly used metrics for performance including: revenue growth rate, net profit, return on investment, among others. In terms of employee performance these are often quantified using output related measurements. These can be useful for growing your company’s finances but companies that focus solely on profit related indicators often face an innovation problem.

A focus on financial goals can put pressure on managers to focus on short term profitability over creativity. Financial indicators also don’t provide a full picture of a company’s performance. Rather than taking risks on new ideas, these companies can become known for creating ‘one hit wonders’ that sell and repackaging past successes. Eventually, quality and customer satisfaction can become compromised and employee motivation drops.

Microsoft learned this lesson at the expense of its top spot in the tech world. Originally a leader in cutting edge technology, after 2000 it began slipping in the rankings against companies like Google and Apple with its inability to keep up with new trends. As these companies began producing paradigm shifting products like the iPhone and Google Maps, Microsoft continued to survive off of its updated versions of Windows Office. Financial indicators demonstrated the company’s shift in popularity but not the contributing factors.

Internally, Microsoft had taken a cut throat approach to performance management called stack ranking. In this system employees were ranked according to their performance, with the top being put in line for promotions and the bottom 5-10% being shown the door. Rather than boosting productivity, this system merely increased competition and discouraged teamwork. Ultimately, instead of being encouraged to collaborate on new ideas, employees had to focus on gaining favor to survive.

Customer success indicators are increasingly seen as the most important performance metric. Some of the main customer centred KPIs include: conversion rate, customer retention, Net Promoter Score (NPS), etc. Due to differing objectives, companies that focus on customer centred indicators focus more on gaining a loyal customer base by producing great quality products, utilizing different marketing techniques and emphasizing a strong customer support service.

An example of this is Riot Games’ ‘Free To Play’ games which helped them to gain a loyal customer base by allowing gamers to play some of their best games for free online. Zappos’ customer service is famous for providing unsatisfied customers with gifts and free shoes to improve their customer experience. Creating a customer service culture is an essential part of their business strategy and the focus of CEO Tony Hsieh’s book Delivering Happiness.

However, for companies that don’t take off straight away, the money and time put into each product can lead to slower profit generation and financial instability. Furthermore, while customer satisfaction is an extremely important key to success, what customers ultimately want are state-of-the-art products. Though customer focused indicators can help you build a loyal client base, they do not necessarily solve a company’s innovation problems.

Companies should use a combination of both financial and customer focused indicators but there is a third key measurement which is essential to meeting your company’s goals.

Why employee centered indicators are so important

More and more companies are beginning to realize the importance of employee centered metrics. These types of indicators include: employee engagement, satisfaction and turnover.

Studies show that higher employee engagement is linked to higher customer satisfaction. When employees are happy at work and believe in their product/company this comes across to customers. Gallup revealed that companies with high employee engagement levels outperformed companies with lower levels of engagement in customer ratings by 10%.

Engaged employees take less sick days. A study by Workplace Research Foundation found that engaged employees take an average of 2.69 sick days annually compared to disengaged employees who take an average of 6.19 days. Most important, they’re motivated to achieve more. Gallup’s study also showed that engaged companies outperform others in productivity by 21% and profitability by 22%.

In fact, the treatment of employees is also an important factor for consumers. Deloitte’s 2015 study on millennials revealed that this generation considers the treatment of employees as the top characteristic of industry leaders, even over profit generation and impact on overall society. Furthermore, “While they believe the pursuit of profit is important, that pursuit needs to be accompanied by a sense of purpose, by efforts to create innovative products or services and, above all, by consideration of individuals as employees and members of society.”

Companies that have employee centered strategies are also more likely to foster innovative environments that promote autonomy and employee ownership. Atlassian became famous for its ‘Shipit’ days during which it actually encourages employees to drop their work and spend twenty-four hours on a creative project of their choice. Allowing employees the freedom to try out new ideas sounds like a great financial risk but it turned out to have great returns. The projects developed during these sessions have resulted in some of the company’s most profit generating products. Atlassian not only dominates Australia’s tech industry, it has also been named the best company to work for the past two years in a row.

More and more companies have started focusing on an employee first strategy: In an interview with Inc. Virgin Atlantic CEO Richard Branson disclosed that the company puts staff first, customers second and stakeholders third. He explains, “If the person who works at your company is not appreciated, they are not going to do things with a smile.” Southwest Airlines, the company consistently reaching the top 10 in employee and customer satisfaction surveys, follows the same ideology. The company does this by motivating employees through its company values and creating an environment that regularly recognizes employees for going above and beyond.

Southwest Airlines follows the same strategy. Founder Herb Kelleher posited, “A motivated employee treats the customer well. A customer is happy so they’ll keep coming back, which pleases the shareholder. It’s just the way it works… They can buy all the physical things. The things you can’t buy are dedication, devotion, loyalty—the feeling that you are participating in a crusade.”

February 23, 2016

Belief in a corporate wellness narrative is more important than action ⁰

by Mark Eltringham • Legal news, News, Wellbeing, Workplace

The complexities of wellness at work are laid bare in a new report from the US based pressure group Global Wellness Institute. The most eye-catching conclusion from The Future of Wellness at Work study is that it’s not actual wellness programmes that do most to boost worker health and productivity, but whether employees identify that company as ‘caring’. The report claims that ‘unwellness’ now costs the US around $2.2 trillion each year, equivalent to 12 percent of GDP. The report is published alongside a white paper which lays out the findings from a survey of American employees. Unlocking the Power of Company Caring gauges how employees feel about their work culture and wellness programmes. The main finding of the two reports is that to understand what has the most powerful impact on employee wellness ‘you must look well beyond the wellness programme’ itself. Instead, the pivotal factor is whether an employee identifies their company as caring about their health and wellness.

February 17, 2016

Younger workers more engaged at work than middle aged staff ⁰

by Sara Bean • News, Workplace

Companies with stronger financial performances and better customer experience have employees who are considerably more engaged than their peers, a new survey by Temkin Group claims. The research also shows that out of all the industries, the construction sector has the highest percentage of engaged employees. Organisations with 501 to 1,000 employees have the highest percentage of engaged employees and companies with 10,000 or more employees have the lowest level of engagement. Employees who are highly educated, high-income earners, executives, male, and have very good bosses tend to be the most highly engaged. 63 percent of highly engaged employees always try their hardest at work, compared with 42 percent of disengaged employees. And for those who doubt the commitment of millennials – 25- to 34-year-old employees are the most engaged group, while 45- to 54-year-old employees are the least engaged.