As the pandemic continues into the new year, the commercial real estate sector, like the rest of the country, is looking for ways to attempt a return to normality — and to office buildings.
“We’ve been through an experience that’s never been like anything else,” said Chris Congdon, editor-in-chief at Steelcase's 360 magazine, while hosting the office furniture company’s recent “Work Better” webinar.
“Our first response was to study what was really going on. We carried out eight studies in 10 countries,” Congdon said.
Highlights from more than 4,000 participants in the studies include that “hybrid work is a very hot topic,” although such a model will vary among countries.
“After months of working at home, it became very clear that people want options,” Congdon said.
That creates both challenges and opportunities in commercial real estate, as building owners, space managers and clients try to balance employee safety with financial survival.
“France and Germany have the highest proportion of employees who expect to be working in offices again,” said Amber Matthews, WorkSpace Futures (division of Steelcase) manager for Europe, the Middle East and Africa.
“They have the strongest labor laws and regulations, and requirements in decisions such as making sure employees don’t do more work than they should and who pays for supplies to work at home,” Matthews said.
The decision about when and how people can go back to work is “a significant decision that companies are making that will have a significant impact,” said Tracy Brower, applied research + consulting principal, PhD, MM, MCR.
“Leaders appreciate that employees want a hybrid (structure) but also want to get people back to offices and are struggling with that decision,” Brower said.
The top reasons to return to the office are to connect with colleagues, reconnect with the organization/ employer and renew a shared purpose. Commercial properties have to provide safe environments for those goals.
“Assumptions were that China would be more like Germany and France, but rapidly adopted platforms (for remote activity) and found it could work — working from home skyrocketed,” Matthews said.
Congdon reported that when the pandemic began, 63 percent of employers said their people were working from home and that the percentage was increasing.
According to Matthews, success “comes down to tools and connectivity.” If those are in good shape, the work from home approach to the pandemic can turn out well.
“Flexibility is a key theme and lesson from the pandemic,” Congdon noted. “It will be different for every company.” “Clearly, flexibility is an advantage,” Brower agreed. “Clarity about responsibilities has to do with ‘line of sight’ — if people are not in the office to see their colleagues in person, ‘my work is your work is the customer.’”
From her base in Munich, Beatriz Arantes, WorkSpace Futures Manager for Europe, Middle East and Africa, has seen “hot takes on the future of the office” due to the pandemic. “Employers have to consider the diversity of needs instead of assuming that one size fits all,” she said. That means, Congdon added, creating an inclusive environment for the future.
Steelcase learned that many employees — 70% of 600 responses to one study — saw not having to commute to an office as a benefit but a resulting sense of isolation as a challenge
How people react to events such as the pandemic “can reflect differences between life stage and generations,” Brower said. “Another factor that is super-important is the type of work they are doing. Work that is routine is easier to do at home or if someone is alone at home. Work that is more-complex and requires teams is handled better in the office, in person.”
Another aspect of the pandemic is that the change in how commercial space is — or isn’t — being used has revealed inequities, Congdon said. “Men are more likely to have dedicated home offices and better setups,” she noted. Brower added that “it’s easy to see the haves and have-nots,” and building owners and company leaders have to think about such inequities when planning for a hybrid work environment. “The office might be quite equalizing.”
In fact, “an office can be designed to enhance equity,” Congdon said. “What has improved from working at home is the work/life balance and autonomy.”
Part of the debate now, Arantes said, is “an appreciation for being able to separate work from home and the struggle caused by everything blurring together in matchboxes. We have to make sure there isn’t too much bureaucracy and regulation.”
Among the key takeaways from Steelcase research is that, Arantes said, “employees will come back with strong preferences about where they want to work and when. Employers will have to accommodate those preferences.”
For organizations to thrive and see resilience, “the focus must be on purpose and community,” said Matthews.
Brower urged employers and owners or managers of commercial properties to “hold the moment. We have the opportunity to capitalize on (the new era) and focus on the work experience.”
Those who return to the office will expect “to be and feel safe,” Condon predicted — “and to regain the sense of belonging.”
Productivity, comfort and control will be important factors in creating that feeling and sense.
For more information about recent research on the impact of the pandemic on commercial life, go to steelcase.com/global report.