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Why Corporate Real Estate Leaders Must Pay Attention to Space Planning

Do you see corporate office space planning as a “necessary evil,” maybe one that takes too much of your time? Do you often get frustrated by mandates to “manage the space well” without the proper resources to deliver? Do you wish that getting groups of people to move from the third to the fourth floor wasn’t so complicated?

You’re not alone.

Many corporate real estate leaders have a love/hate relationship with corporate space planning—or at least, a begrudging like/dislike relationship with it.

But the truth is, paying attention to corporate space planning—in the right way—can make your life a lot easier. Here’s how:

  • Build a business case for change initiatives
    Strong corporate office space planning practices will help you make informed business decisions. Whether your lease is coming up and you’re considering moving to a new space, you want to shrink your footprint in your current location, or you just want to upgrade your current workstations, you’ll be able to make strong arguments for your proposals.
  • Address company changes proactively
    Instead of being caught off guard, you can plan ahead and be prepared for changes in the company structure or business goals.
  • Escape the day-to-day churn of assignments and allocations
    If you’re challenged by corporate office space planning because you’re spending too much time dealing with move requests, it’s an indication you need to step back and look at the bigger picture: Why are people looking to move around so much? Are there patterns in who’s asking to move? Most employees don’t like moving their workstations, so it’s important to understand the reasons behind the requests.

Tips for Sound Corporate Office Space Planning

1. Don’t forget the human element

Many CRE leaders, over time, forget how challenging and emotional the moving process can be for employees, even if they’re just moving to a different space on the same floor, in the same building. When you’re in “corporate office space planning mode” and looking at data points on a spreadsheet and floor plans for hours, it’s easy to forget the labels and color-coded dots represent actual people.

Don’t underestimate the communication and change management required for even the simplest moves and reallocations. It’s always better to over communicate on the timing, expectations, and deliverables and make sure you’re emphasizing the “why” behind the change. Articulate the value for the company and the employees.

Learn how Suncorp uses Serraview’s platform to strategically plan and execute large moves.

2. Make the plan fit the people

One of the great things about activity-based working is its flexibility. There’s no one “right” way to design an office; there’s just the best way to make your workplace meet your employees’ needs. For example, if you want to move to an open floor plan with neighborhoods, but most departments have at least one employee who needs access to file cabinets, those employees need dedicated spaces. The solution? Neighborhoods with “anchors” or dedicated desks surrounded by unassigned workstations.

When it comes to corporate office space planning, don’t get too attached to standard templates or common best practices. Be flexible and accommodate your organization’s and employees’ unique needs and preferences.

3. Look for underused spaces

If you’re not able to shrink your current footprint or move to a new location, look for opportunities to make better use of your office. Watch how employees work and interact with each other—are certain spots used frequently? What makes them “work” and how can you duplicate that in other areas? Are there random nooks and crannies that have potential to be meeting spaces, “phone booth” type areas, or brainstorming stations?

4. Think about boosting revenue, not just cutting costs

If you’re optimizing your current space, saving money is almost a foregone conclusion. In some cases, you may end up spending the same amount of money on real estate, but spending smarter. This means you may not see immediate bottom-line cost savings, but over time you’ll see increased revenue because your employees are more productive.

Most companies look at cost per square foot (or per square meter) or square feet/square meter per employee, but some are changing their perspective and looking at revenue per square feet/meter. Try it—and look for ways you can improve by providing better spaces to work

Of course, saving money is great too. Learn more about how corporate office space planning helps cut costs.

5. Evaluate and re-evaluate

You may have trouble with corporate office space planning if you’re trying to conform to business standards that are years, or even decades, old. Is your square-footage-per-person target based on a time when most employees used desktop computers, but now they mostly use laptops and tablets? Have you realigned business units without updating their space expectations and guidelines?

To ensure that your space planning decisions make sense, first use proper standards. And as business goals and company needs change, re-evaluate those standards regularly.

Learn more about how sound space planning can make your life easier—get in touch today for a free demo of our corporate office space planning software.

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How the Activity Based Workplace is Attracting (and Retaining) Millennial Talent

As the Millennial segment of the workforce has grown, so has the trend of open office plans and activity based work. It’s no coincidence that one of the ways companies have sought to attract Millennial workers is by redesigning their offices and creating swanky new environments. But is that strategy really working, and how?

What Is a Millennial?

According to Pew Research Center, Millennials were born between 1981 and 1996, making them 22 – 37 years old today. By 2020, Millennials will make up 50% of the workforce.

There are a lot of assumptions, generalizations, and myths about Millennials, specifically about Millennials in the workplace. We’re going to address (and debunk) some of them here and discuss how activity based work suits not just Millennials, but the rest of your employees as well.

Generalization 1: Millennials want flexibility

This one is true! According to a Deloitte survey, 88% of Millennial workers want greater flexibility to start and end their work days when they choose, and 75% want to work remotely from home or other locations where they feel most productive.

Generalization 2: You need lots of crazy perks and trendy office design to attract Millennials

Yes and no. Millennials do seem to be driving more companies to offer unique perks and benefits aside from health insurance and 401(k) plans—from ping-pong tables to on-site dry cleaning and yoga. It’s true, studies show employees may accept lower salaries in exchange for a better working environment and a positive company culture. But salary is still a top factor they consider when looking for a job, and “positive company culture” means more than just game nights and happy hours. After salary and benefits, Millennials prioritize things like work/life balance, a sense of purpose or meaning in their work, and opportunities to progress or take on leadership roles.

How does the physical workspace play a role in company culture?

Generalization 3: Millennials don’t show loyalty to their employers

Millennials have been called “job-hoppers” who are eager to jump on board with the next shiny thing…and shine always loses its luster after a year or two, right? But in fact, research from the Bureau of Labor Statistics has found that average employee tenure in 2016 increased from 1983 (3.5 years to 4.6 years), and other studies have found that on average, new hires intend or at least hope to stay with their employer for several years.

If Millennials are job-hopping, it’s more likely because they’re still looking for an employer who provides that sense of purpose and nurtures their career development and leadership skills—not one that offers better breakroom snacks.

Activity Based Workplaces are More Likely to Offer What Millennials are Looking for

One of the promises activity based work makes is flexibility for employees. They are empowered to choose where and when they work according to their preferences, work patterns, and natural rhythms. Surprisingly to some, Millennials want quiet, private spaces to work as much as other generations—not just wide open office plans—and activity based workplaces offer that. Millennials also understand the value of interaction and collaboration, and many are looking to build strong connections with coworkers. Activity based workplaces facilitate that as well.

Get Millennials’ Loyalty

Millennials tend to look for workplaces that offer career advancement opportunities and the chance to develop leadership skills. Activity based workplaces make it easy for employers to offer that in two significant ways.

First, creative spaces or collaboration breakout rooms are ideal spaces to host “lunch and learn” events where employees are given the opportunity to learn new things about your industry or develop skills. The Deloitte study found that loyal employees feel their employer is invested in providing support and training for career advancement.

Second, when senior management and those in leadership positions are working side-by-side with entry-level workers, mentor-mentee relationships are given the chance to develop and flourish.

Avoid Overcommitting

When companies are trying to attract Millennial workers, they may fall into the trap of making promises they can’t keep—especially about the perks and benefits they’re willing or able to offer. Luckily, with activity based work, you can adopt the practices that make the most sense for your company in stages, so in most cases, you can offer something to Millennials, whether it’s the option to work remotely or a dedicated collaboration room. Just be upfront about what you can and can’t offer.

Is your workplace employee-centric?

Activity Based Work Benefits Everyone

Millennials are driving the activity based working trend, but we don’t think it’s “just a trend.” Activity based work has staying power because it’s about enabling everyone, no matter their age, to do their work better. Keep this in mind when implementing activity based work practices and communicating its value to all your employees.

Want to discover more how you can bring activity based work to your company? Download our whitepaper to learn how to make the transition.

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IoT and Space Planning: Which Integrations Provide the Most Value?

Make no mistake—the Internet of Things (IoT) is here to stay. In 2013, The McKinsey Global Institute listed IoT as one of 12 disruptive technologies that have the potential to transform life and business. Whether you’re just beginning to explore the options available to your office or you’re well on your way to a fully-integrated, smart workplace, it can be overwhelming to figure out where to put your attention and money. Do you need smart light bulbs or air quality sensors? Should you tag all your devices and equipment with QR codes to make it easier to file service requests?

For businesses, the Internet of Things makes a lot of promises: more efficient workspaces, better connection and collaboration, more data for companies to examine and use. We find that the real value comes when the data collected by IoT devices is integrated into a single software, creating high-level visibility of how your workplace functions. Let’s take a look at some of the Internet of Things business applications and devices that go above and beyond in the office:

Beacons and Sensors

Benefit: Accurate, real-time data about building usage and activity

These are the simplest and maybe the most ubiquitous Internet of Things technologies for businesses. Different companies use different names, but in most cases, they are small sensors that monitor foot traffic and activity in different rooms or at various workstations. Using these technologies, you’ll be able to learn which desks are used most often or if a conference room meant for 12 people never hosts more than six.

How to use it

The data gathered from beacons and motion sensors can help you make decisions about desk assignments (moving a team to a different floor for better collaboration, or removing assigned workstations completely). You probably already have an idea that certain workstations go unused or a certain room might be better suited as a collaboration space. If the beacon data backs up your assumptions, you can make a stronger case when proposing reassignments or other changes.

Beacons are also used in wayfinding tools and apps to help workers, locate a workstation, or choose a meeting room or collaboration space. According to Newmark Knight Frank, an average employee spends approximately 30 minutes a week trying to locate available meeting rooms. Depending on the size of your company, reducing this time can result in significant cost savings and boosts in productivity.

Find out other ways sensors can be used in an office to optimize space.

Sensors, similar to beacons, can track data like temperature and air quality (humidity, carbon dioxide levels, etc.), ambient light, ambient noise, and other factors. Over time, by combining the data you receive from your sensors or beacons, you can build a profile of the “ideal working environment” where your employees will be happy, comfortable, and productive.

Tracking activity and usage can also help you make decisions about your building systems, which brings us to…

Utilities

Benefit: Efficient energy usage and a lower carbon footprint

A smart thermostat that automatically adjusts the schedule of your HVAC system will likely start saving you money in utility costs almost immediately. It’s surprising how many HVAC systems are set to turn on hours before anyone shows up to work—smart thermostats make ongoing adjustments to the time and temperature for these systems to ensure they’re being used efficiently.

In the long-term, you’ll also save on maintenance and replacement costs. Since you’ll likely be using your HVAC system less, the equipment will last longer.

The same can be said for lighting. Smart bulbs can automatically adjust brightness and intensity to create a more comfortable work environment.

How to use it

Proactive maintenance reduces downtime: whether it’s a power outage or a malfunctioning heater that makes an office unbearable to work in, if you’re always reacting to maintenance issues, you’re losing money. Beyond using beacons or sensors and smart thermostats with your building systems, you can also track and monitor scheduled maintenance, inspections, and repairs to avoid glitches and outages.

Asset Management

Benefit: Faster turnaround on service requests

All your employees, along with your IT and janitorial staff, can use a single app to report everything from a damaged tablet to a leaky sink in the bathroom. Service requests can be filed and assessed quickly, and updates and progress reports communicated seamlessly. The collected data can help you make purchasing decisions.

How to use it

Start tagging every device, asset, and piece of equipment with a serial number or QR code. This makes reporting issues easy. It is also helpful when a manufacturer issues a safety recall for a certain chair model—you can quickly locate those chairs throughout your workspaces.

Well-Being

Benefit: Healthier, happier employees who are engaged and productive

Many offices face pushback from employees when trying to implement IoT technology because it feels like an invasion of privacy. One way to respond to that is to show how these devices and apps provide a direct benefit to the employee.

How to use it

Allow your employees to opt into an app that lets them set and track progress towards activity goals. Start a competition—which team can reach their goals first? Who can log the most steps each week or attend the most “walking meetings”?

Learn more about overcoming employee objections: Passing the What’s-in-it-for-Me Test

There are sit/stand desks that connect to an app where each employee sets her preferences for the desk height. The app makes it easy for her to move to different workstations each day and have them automatically adjust to her preferences. In the meantime, you’re able to gather more data to make further improvements to her work environment.

The Internet of Things for Business Will Only Grow from Here

One of the Internet of Things’ great business benefits is its flexibility. There’s not one particular device or technology that defines IoT, so you can choose the technology that makes the most sense for your business and add to your system or adapt it over time. You can also run pilot tests with certain devices in small areas before implementing them throughout your entire portfolio.

One thing is sure, though: the data to be gained from the Internet of Things for business will become more and more invaluable and far reaching. With software that integrates with this technology, you’ll be able to make better, data-driven business decisions about everything from facilities management to allocations.

Learn more about how Serraview’s space planning platform integrates with IoT technology. Request a demo today.

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3 Key Pillars of Space Planning Software

When you’re looking at commercial space planning software, you may be asking, “How easy will it be to upload and convert floor plan files? Is it more user-friendly than AutoCAD?” Important questions, sure, but first you need to take a look at what we call the “three pillars of space planning.” The most useful software will feature all three.

Pillar 1: Gathering Data

An incredible amount of data goes into corporate space planning—way more than just merging HR’s head counts with Real Estate’s desk assignments. At minimum, you need to collect actual usage data for the different rooms and spaces of your buildings. To be more effective, you can collect data from the devices employees are using, network or cloud usage, and from your building systems and utilities (lighting, HVAC, etc.).

With the latest technology, especially Internet of Things (IoT), businesses have access to more data about their offices and workforce than ever before, but it’s meaningless if they’re not able to collect and use it. If your space planning software isn’t able to bring all the data together in one platform, you won’t be able to make the most informed decisions.

Pillar 2: Analyzing Data

Corporate real estate teams used to manually organize and analyze the available data, which could be a simple, but time-consuming process. Now, even for small businesses, there’s simply too much information to consider, especially when you’re trying to keep up with all of the available data inputs and make smart decisions and projections. The best space planning software needs to use data science and machine learning to find links and patterns. It also needs to compare the real-time incoming information with historical data.

The analysis from your space planning software should be automated and ongoing so anyone in the company can access needed information at any time—examples include, a manager who wants an activity report on just her team, or the facilities manager checking on the usage of conference rooms while planning upgrades.  

Pillar 3: Taking Action

Once you have the data and it has been organized and analyzed, you’re in a position to make informed business decisions. You can now see more clearly how moving the sales team would allow for easier collaboration with the marketing team. Perhaps desks you thought were full are rarely used, and you can consolidate those workstations to create a new meeting space. If your lease is coming up for renewal, through data analysis, you would be able to determine whether or not it’s best to grow or shrink your footprint in the building.

How can you get started with an activity-based working strategy? Find out.

The final step in space planning is to actually plan the space in a way that increases worker well-being, job satisfaction, and ultimately, productivity. You should look for space planning software that allows you to easily experiment with different office layouts and configurations, estimate the costs and ROI of making your workplace more activity-based, and use your space more effectively.

Why Do I Need Special Space Planning Software for This?

There are two main reasons: one, because often, the data is stored with different departments. HR has head counts, IT has device and asset information, and Real Estate keeps tabs on building usage and systems. But all of that data should be considered with space planning and it needs to be integrated within a single platform.

The other reason is that the sheer volume of data large companies can get now makes it infeasible for people to manually collect and do anything with it. Space planning software can use algorithms and machine learning to identify patterns and links between data that most people would miss.

HR, IT, and CRE should all contribute to transforming your workplace: here what each brings to the table.

Adjusting for the Real World

Algorithms aren’t 100% perfect. Your space planning software isn’t going to broadly make decisions for you. You’ll still be using your experience and judgement to do that—but you’ll be making data driven decisions. A proposal with the analysis from your space planning software will carry more weight than one with observations and self-reported data.

But you can still look at that analysis and know what’s possible for your company. You can—and should—take into account individual personalities and preferences when making changes. 

Ultimately, corporate space planning software is a tool that helps improve the ROI of your real estate portfolio and other assets. But if your software doesn’t incorporate all three of the pillars above, you won’t be making the most of your investment.

Learn more about how Serraview allows you to gather, analyze and take action on crucial data your firm needs to make the right decisions—request a free demo of our space planning software.

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Corporate Office Space Planning: The Unsung Way to Save Company Dollars

It’s no secret that real estate is one of the biggest costs for any company. When you look at everything that goes into a commercial portfolio—the lease, utilities, technology, maintenance, security—it should be obvious that closely examining and maximizing that portfolio should be a priority. But many companies refrain from doing this or try to cut costs in other ways and lose out on significant savings. Let’s look at how office space planning can have the biggest impact on your balance sheet.

More Than Just the Real Estate

Of course, real estate costs extend beyond the lease and ownership-related costs. Corporate real estate spending includes utilities, building systems maintenance, administrative services, and security. And although it’s usually in a different budget, the technology to run and manage all those systems is also related. Companies can—and should—look for ways to reduce utilities and maintenance costs by running those systems efficiently, but in almost all cases, the biggest impact comes from reducing your total square footage.   

Case Study: See How Suncorp Significantly Reduced Costs with Space Planning Software

Make the Space Fit the Work

If we accept the industry norm that 40% of the space in traditional offices is underutilized, right-sizing your office will create multiple cost savings beyond simply reducing the number of hours the HVAC is running.

However, office space planning doesn’t simply mean using less space. More importantly, it means using the space more efficiently with an activity-based or flexible working environment. A corporate space assessment should start with determining the types of work activities that are performed, along with their frequency.

A coder might not need a large private office, but she will need space for two or three large monitors. Someone on your legal team who still works with physical documents, however, needs a place to store them securely and enough desk space to spread them out. And your marketing manager, who splits his time between individual focused work, group brainstorming, and meeting with partners needs a variety of spaces to serve those different purposes.

Once you’ve defined the types of work and work-related activities your employees do, you can begin planning the space to facilitate those activities. Most companies would see huge benefits from adding dedicated collaboration spaces that can be used for planned or impromptu meetings between teams. You’ll also want to account for personal preferences—extroverts may love working in an open setting, while introverts will want to know they can retreat to a quiet area where they can work uninterrupted.   

Other Office Space Planning Benefits

Once you complete an office space planning design, you’ll begin to see the payoff quickly in the form of a less expensive lease and lower utility costs. But you’ll see other intangible benefits.

With a well-designed office, people will be able to work better. Over time, you can expect to see a reduction in absenteeism and turnover rates because your employees are equipped to do their jobs with greater ease.

Your workplace is also part of your company brand. It will make an impression on everyone from prospective clients to potential investors and partners—so in addition to cutting costs, your office might be responsible for numbers on the other side of the balance sheet as well.

Want to learn more about the benefits (cost-saving and otherwise) of a well-designed office? Contact us today for a demo of our next-level office space planning platform. 

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8 Workplace Space Planning Solutions Stats [INFOGRAPHIC]

What we think of as the “traditional office” (clusters of cubicles in the center of a space, surrounded by private offices around the perimeter) is going away—about 70% of US offices have some type of “open office” design. Companies are starting to go beyond just workplace space planning by investing in healthy building features and looking for ways to provide more choice and autonomy to their employees, but why? Are these strategies actually working, or are they just following trends? Is it worth it to redesign your office layout and make dramatic changes to how your employees work?

Check out our infographic highlighting some statistics that shed some light on how the workspace impacts the employee experience and what that might mean for your company:

8 Workplace Statistics that Will Make You Rethink Space Planning

1. Innovative companies are 5 times more likely to have workplaces that prioritize individual and group workspace

Gensler’s 2016 U.S. Workplace Survey found that workplace design was one of the key drivers of innovation within an organization. They found that the most innovative companies had workplaces designed for the individual worker that also provided resources for collaborative group work. Employees at these companies reported better relationships with management and said they found more meaning in their work. 

2. 69% of businesses that implemented healthy building features reported improvements in employee satisfaction and engagement

A report from the World Green Building Council looked at companies around the world that have upgraded their buildings to offer healthy, “green” features and found positive results like:

  • Lower absenteeism rates
  • Increased productivity
  • More collaboration

Environmental factors like indoor air quality, lighting, acoustics, interior layout, and biophilia (adding plants in and out of the workspace) are all associated with worker performance. Workplace space planning can also mean testing your office’s air quality and ensuring it’s well-ventilated, which can increase cognition scores for your employees. Making sure your workers have access to natural daylight can improve their sleep, which can lead to higher productivity.

3. People are 12% more likely to report being happy with their job when they have freedom and autonomy in their work environment

Much of the backlash against open office layouts comes from concern over noise and privacy. An activity-based workspace, however, offers open spaces where large groups can work together (or at least near each other), but also provides spaces meant for focused, solo work.

Read blog: 8 Tips to Encourage Collaboration in the Agile Workplace

Throughout the day, people shift between four work modes: focus, collaborate, learn, and socialize. When your workplace space planning recognizes this, employees are empowered to choose the best setting for their work each day—either based on their to-do list (start in a breakout room for collaborating in the morning and move to a more private space to write a report in the afternoon) or on personal preferences. Let the chatty extroverts work in groups while the introverts use the focus rooms.

4. 37% of job candidates will accept a job with a lower salary if the company offers appealing culture, workplace facilities and technology

A study by Hassell and Empirica Research looked at how workplace space planning and office design affects how attractive the company is to job-seekers. In a nutshell, they found that it does. Employees today look at salary, yes, but if the offered salary is competitive and fair, they also pay attention to other factors, including workplace facilities and aesthetics, the technology provided, and workplace culture.

This means that even if you can’t offer top salaries, you can still attract top talent if you have an attractive workplace with appealing facilities and a positive culture.

5. 42.5% of the global workforce will be mobile employees by 2022

In 2017, the mobile workforce made up 38.8% of the global workforce. Employers should recognize this trend and prepare to manage an increasingly mobile talent force by providing the right technology and designing mobile-ready spaces to accommodate them (think: making it easy for your West Coast sales director to find a place to work in your Manhattan office when she’s there for meetings, or having conference rooms outfitted with technology to make video calls easy and glitch-free).

6. 85% of respondents in a CBRE survey expect to see increase in mobility in the workplace through activity-based workplaces

Mobility in the workplace doesn’t just mean working remotely. Employees who primarily work in one office also want flexible work policies and the opportunity to move around within that office. And workplace space planning doesn’t just affect employees in the office. Those who are working remotely or traveling need to still feel connected to their colleagues in the office. And in fact…

7. 70% of employees age 16-44 say they want to be more mobile at work

A report from Fuze looked at how work is changing and how technology—also a key part of workplace space planning—can help employees work more effectively, leading to more collaboration and innovation. Look at the technology your employees currently use, both in the office and when working remotely. Is it enabling people to work well, according to their preferences? Or are they forced to use cumbersome equipment and outdated applications?

8. 30% of energy used in a commercial building is wasted

According to Energy Star, it can be relatively easy to find ways to save energy—and money. Workplace space planning for your office allows you to manage building systems more efficiently. For example, you might find that your heater is set to turn on a full hour and a half before anyone comes into the office in the morning. There are huge opportunities to be a better environmental steward and save your company thousands or even millions of dollars on energy costs.

When considering workplace space planning, look at how you can best meet your employees’ needs and preferences now, but also how you can plan for the future. Serraview’s workplace space planning solutions help you do just that. With current data about how your space is used, you’ll be able to make decisions about how to better use the space next week while planning for next month, next quarter, next year. Request a demo today.

 

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5 Creative Ways to Implement an Agile Workplace

So you’ve decided to transition your office into an agile workplace. Super! You’re sketching new layouts with breakout rooms, phone banks, meeting spaces, and lockers for personal items. You’re imagining the innovative ideas that will flood from your employees once all barriers to collaboration have been removed. You’re crunching the numbers to figure out what your company will save on lower absenteeism rates and energy costs.

And you’re developing your change management plan, right?

Even though you’re sold on the benefits of an agile workspace design, and even though you’ve gotten the C-suite to buy in, your biggest challenge will probably be getting the rest of the company to fall in love with the new office design and layout – and changes to the way they are used to working. Planning for objections and anticipating obstacles as you plan and implement the new agile workplace layout will be critical to its success.

Fear not—here are five creative strategies you can use during planning, implementation and beyond to get people on board:

1. Set examples

When Dun & Bradstreet transitioned to an open office in the early 2000s, the CEO was one of the first to start working in the middle of the open space. Many employees, especially those who have been with your company for several years and “earned” perks like private offices, will be reluctant to give up what they see as “their” space. If you have an agile workplace layout for all the lower-level employees, but your managers, VPs, and C-suite stay in their offices, it sends mixed messages and breeds resentment.

2. Form an advocacy team

In the early stages of agile workplace planning, identify those who will be your “early adopters” or biggest advocates for the change. Then, identify those who will be the biggest opponents. Facilitate a discussion between these two groups where you seek to understand the fears and concerns of the opponents. Work with the advocates to determine how best to overcome these objections.

As you plan and begin to implement the new office design, your advocates can become your on-the-ground team to answer questions and help employees adjust to the new ways of working. Make sure everyone knows who these people are and that employees will be comfortable sharing concerns with them (meaning, a good number should be lower-level employees, not managers). This team can also report on what’s working or not working throughout the transition.

3. Encourage input and participation in planning

Invite people to share their ideas and give them ways to feel “ownership” over the new office layout, even if they won’t have an individual desk anymore. When one software company moved from a traditional office setup to an agile workplace, they had a naming competition for the new collaborative spaces. Get employees to submit ideas for names and then let everyone vote on their favorites.

If your workplace layout will include “neighborhoods” for different teams or departments, let them design and decorate the space (within reason—you can let them pick paint colors from a pre-selected color palette, for example). If people complain because they want to display family photographs or personal items at their desks, you could have a designated “photo wall” for people to share those snapshots. It may even be a conversation-starter that leads to collaboration as employees from different departments get to know each other.

4. Empower employees to make the best decisions

Extrovert/introvert, early birds/night owls, sprinters/marathoners—everyone has a different “ideal” work environment. This is one of the things an agile workplace addresses. Yes, the point is to let people work in settings designed for different tasks, but they also have the choice to work near the window if that energizes them or in a more enclosed room if the street views are distracting. Introducing flexible time policies can make it easier for those who work best in the morning to come in earlier, and employees who get late surges of energy can adopt a slightly later schedule.

If they haven’t already, this is a great time to encourage employees to take assessments like the Myers-Briggs or CliftonStrengths (formerly StrengthsFinder). Challenge them to consider how they can use their results to work best in the new agile workplace. This will show you’re committed to helping them work best.

5. Recognize and reward the behaviors your agile workplace is designed to foster

Some companies will set clear objectives or goals, like working in a brand-new space at least once a week. You can offer monthly rewards for the teams that accomplish these goals. Encourage employees to share when they successfully collaborate or how the new office design is helping them be more productive.

Make sure you recognize employees who propose ideas and allow those to surface organically. Several companies, like ThinkShout and General Assembly have daily “plank meetings” where employees can choose to drop to the floor and hold a plank position for a set amount of time. These are the kind of community-building activities you want to see in an agile workplace, but at both ThinkShout and General Assembly, they were started by a couple employees or a small group. Offer suggestions, but let your employees come up with their own ideas. Maybe you’ll start seeing groups doing squats or impromptu yoga poses in the new open spaces. When you do, share the idea and recognize those who got it going.

Transitioning to an agile workplace isn’t always easy, but it doesn’t have to be constantly stressful. With some forethought and planning, it can actually be fun—and you’ll probably be surprised by your employees’ creativity and enthusiasm when you get them involved.

Still have questions about implementing an agile workplace? Check out our guide with proven strategies and best practices to transform your workplace.

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5 Metrics that Prove the Employee Experience Matters

Fear not, we know that making a business case to upper management requires some hard facts to get their attention, and in this post, we’ve got them for you.

Most companies today know the value of creating a positive employee experience, but fewer realize how closely this is tied to the workplace and physical environment. Workers today have higher expectations of their workplace and experience at work, but when the “traditional workplace” (think: gray carpets, bland cubicles, stale coffee) remains the baseline, it’s not that hard to exceed expectations.

And when you pay closer attention to employee experience management, you’ll find the initial investment reaps rewards that exceed your expectations. Consider these metrics that show the power of improving your employee experience:

Flexible Workplaces Improve Productivity

A Vodafone survey found that 75% of companies worldwide have introduced flexible working policies, and of those, 83% reported increases in productivity as a result. If you’re reading this, you’re probably not surprised to hear that—but let’s look at why this might be happening.

First, employees feel better—physically, mentally, and emotionally—in an environment that meets basic human needs. We know that sitting at desks is terrible for our health, so a workplace that encourages people to get up and move around frequently, or that offers healthy food and drink options, improves physical health (and reduces absenteeism). Even the most introverted among us enjoy social interaction on occasion, so making it easy to meet and chat with coworkers (and not just those in your department) will create a better employee experience and help strong relationships develop.

Even better—how about giving the introvert the option to work separately from the outgoing extrovert, instead of forcing them to sit side-by-side in assigned cubicles all day, every day?

Second, workplaces that allow people to move around based on what they’re working on each day allows collaboration, teamwork, and innovation to flourish. You’ll get employees out of the “silos” that commonly form in traditional workplaces and start to see conversations between departments that lead to new ideas and initiatives.

Watch the Video: How Wayfinding Technology Can Shape the Employee Experience

Happy Employees Are Less Likely to Leave

Did you know that the cost to replace an employee ranges from 20% to over 200% of that employees’ salary, depending on their level of training and experience? Reducing the voluntary turnover rate can result in major cost savings—and while, yes, higher salaries can help, creating a better employee experience can go even further. In an EY survey, employees placed “a work environment that does not encourage teamwork” and “a boss that doesn’t allow you to work flexibly” in the top five reasons they would quit.

When employees feel supported and have the resources needed to do their job, their sense of satisfaction and pride in their work increases. A Gallup poll found that employees who are “engaged and thriving” are 59% less likely to look for another job. “Thriving,” in the study, refers to an employees’ well-being, an often-overlooked component of the employee experience. So looking at how your workplace fosters employees’ overall health and well-being, not just productivity, means higher retention rates and lower turnover costs.

Well-Designed Workplaces Facilitate Communication

Have you ever had an email chain that gets a little out of hand—someone misinterprets someone else’s meant-to-be-sarcastic remark, someone else who got looped in late didn’t realize what decision was being made? Have you ever stalked, eyes blazing, across the building to clear something up because 10 emails weren’t enough?

Wouldn’t it be easier if you were in a space that emphasized talking in person as a cornerstone of your employee experience? If it was easier to chat with someone face-to-face first, instead of trying to get eight people on an email chain to agree on something?

Fierce, Inc. conducted a survey in which 86% of respondents blamed lack of collaboration or ineffective communication for workplace failures—missing deadlines or failing to meet department or company objectives. Is this a surprise to anybody? Probably not, but what may be surprising is how simple adjustments to the physical environment can go a lot further in fostering better communication than sending a memo with reminders about “how to communicate effectively with your team!”

There are many options for the work environment, all of which impact the employee experience. An activity-based workplace as one example can do more than just improve communication on projects and initiatives. The combination of open, shared spaces and those dedicated for brainstorming or creative work encourage both ad-hoc and planned collaboration. By bringing senior management out of offices and interacting with younger employees on a regular basis, you’re also creating the possibility for mentorship relationships to develop.

Download White Paper: Creating an Activity Based Working Strategy

Attractive Workplaces and Culture Can Offset Lower Salaries

A study by HASSELL and Empirica found that 37% of respondents would accept a position with a lower salary if the workplace culture, environment, and technology offered was highly appealing. While salary has the largest single influence on a job’s attractiveness, when combined, workplace culture and workplace facilities had a greater influence. This means that a company that offers appealing workplace culture and facilities could potentially attract quality talent without having to offer top salaries.

If you’re seeking to attract top talent (aren’t we all?), these findings suggest that investing in workplace upgrades could be as beneficial as higher salary offerings. That can look like updating the furnishings and decor with a fresh, modern design, offering on-site facilities like a fitness center, bike parking, and outdoor areas, or implementing technology to improve the employee experience.

A Positive Employee Experience Means More Revenue

Jacob Morgan’s research on companies’ investments in employee experience management found that those investing heavily are listed in Glassdoor’ Best Places to Work list 11.5 times as often. And the Parnassus Endeavor Fund, which invests in companies commonly found on those “Best Places to Work” lists, has outperformed the S&P 500 with annualized returns of 12.2% (as of 2017). The idea is that companies that provide a stellar workplace culture will have employees who are motivated to work harder.

But as the rest of this post shows, it’s probably more than that—a great experience in the workplace is about setting it up to foster and encourage collaboration, creativity, and innovation. It also includes making it easy for employees to do their jobs on a day-to-day basis: ensuring their technology works and is user-friendly and providing spaces that specifically facilitate different kinds of work.

Now that you’re armed with hard numbers and facts, try pitching that workplace upgrade again.

Want to learn more about how you can improve your employee experience? Contact us today.

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Why the Physical Workspace Is the Backbone of Corporate Culture

Mary works in the East Coast headquarters of a national firm. Every day, she commutes to a building the firm has been using since the 80s—and it looks almost the same now as it did in 1986. Rows of cubicles fill each floor. Most of the windows are blocked by enclosed offices used by upper management, so Mary sits under harsh fluorescent lights all day. Each week, the CEO sends out an all-company email with “words of wisdom” and a “motivating thought.” Each week, Mary rolls her eyes as she skims the email. His assistant just pulls these off Pinterest, she thinks. She opens a Word doc, drumming her fingers while waiting for her several-years-old desktop computer to start the program. She’s supposed to put together a layout for the company’s new brochure, which her boss said should be “colorful and edgy.” Hard to be colorful and edgy when you’re surrounded by gray walls all day.

Rhonda also works in the East Coast headquarters of a national firm. Just like Mary, she commutes to work every day, but when she gets to the office, instead of trudging to the same cubicle, she checks an app on her phone and finds an open phone bank because she’s starting her day with a conference call. At the phone bank, which is completely separated from the “focus zones” so she doesn’t distract her colleagues, there are comfortable, clean Bluetooth headsets that sync with her phone and there’s a power outlet on top of the desk — with a USB port so she can plug in both her phone and laptop. After her call, Rhonda runs into the VP of her department on her way to a breakout space where she’ll meet with a coworker to put the finishing touches on a presentation. Rhonda feels completely comfortable asking the VP if she’d mind popping in to the breakout space in an hour or so to give feedback on their presentation.

Who is more likely to speak favorably about her employer? Would you expect Mary or Rhonda to be at the same company 5 or 10 years from now?

Watch Video: 5 Tips for Companies Moving to Agile Office Space

Work Environment and Culture Aren’t the Same Thing, But…

A company’s work environment and culture starts with leadership, but it’s best shown through the physical workspace. Think of it as a real-world example of “show, don’t tell.” For instance…

  • You can tell employees you support collaboration, but leave them in assigned cubicles /closed-door offices… or you can create open, shared workspaces that make it easy for an accounting intern to meet and talk to an HR director.
  • You can tell employees you want them to feel supported and comfortable at work… or you can implement technology that allows for individual temperature control so half of your employees aren’t complaining about being too cold.
  • You can tell employees that they should feel empowered to make decisions… or you can let them decide where they want to work each day based on what they’re doing.

The ideal work environment and culture is, of course, a little different for every company—and you should consider whether changing your physical workspace to an agile work environment is even the right move for your company’s goals. 

However, once leaders commit to building a culture that is collaborative, the physical environment needs to support this. You can announce a big new shift at the corporate retreat and get everyone jazzed up, but once they return to their desks and cubicles, they’ll go back to the same old way of doing things if nothing changes in their work environment.

Kicking Off Change with the Physical Environment

Trying to figure out how the work environment and culture affect each other is a bit of a chicken-egg conundrum: Does a collaborative culture change the physical workspace, or does changing the workspace change the company culture?

The answer is…both. 

If leadership is committed to a creating a certain company culture, changing the workplace is one of the best ways to make that abstract idea a reality. You don’t have an “open office culture” so much as a collaborative culture that’s facilitated by an open office design.

When done right, changing the workplace can lead to changing the way your company operates. Imagine if every employee’s day was closer to Rhonda’s experience than Mary’s—what would that mean for your company?

Creating a positive physical environment leads to a more engaged and productive employee. People work better in a space that promotes physical well-being and social interaction. Then, give them the freedom to work in a quiet, distraction-free space when they need to write a report and move to a more stimulating “break out room” when brainstorming product upgrades. They won’t just get their work done more efficiently, they’ll feel better about the work they’re doing.

Conversation Leads to Collaboration Leads to Innovation

From the start, we’ve been about enabling a work environment and culture that fosters face-to-face interactions. Collaboration and teamwork need to become “new standard operating procedure” for companies to stay competitive , but getting people to work like this won’t happen if you just tell them to collaborate.

One of the most effective ways to get people talking and, eventually, innovating, is to remove the physical barriers that keep them separated. It seems silly to think that members of different departments won’t talk to each just because they can’t see each other, but this is what happens in most traditional workplaces. It leads to “information silos” where, for example, sales and marketing may actually be working close to each other, but have no idea what the other is doing.

Download Free White Paper: Best Practices for the Modern Workplace Environment

But once you facilitate communication by updating the work environment, you’ll start to see those teams talking, sharing ideas, and coming up with new, better, more innovative solutions to problems.

Keep Underlying Goals in Mind

If you’re nervous about changing your work environment and culture so radically, talk to each department and find out what their biggest goals and challenges are. Marketing may want to start making better videos for social media campaigns. IT might be tired of keeping track of dozens of different models of computers, laptops and phones because each department uses something different.

What if Marketing had a designated space for recording video—soundproofed, well-lit, with storage for any props or equipment they may use? What if, because everyone had shared workstations instead of assigned offices and cubicles, IT was able to streamline and standardize the equipment issued?

As you make the changes to your work environment, keep these goals in mind and do what’s needed to support each department. This also shows your commitment to supporting your employees and improving their everyday experience at work.

A lot of elements come together to make your work environment and culture “ideal,” but the underlying question should always be: How can you make people feel productive, supported, and empowered?

Have questions about how changing your physical workplace can transform your company culture? Contact us today.