Finance Transformed:
Unveiling the Next-Gen Workplace
AUGUST 2023
“Financial services firms are experimenting more than ever with new ways of working, each one with a unique impact on business and culture. But when you look beyond the basics of hybrid policy and occupancy strategies, you see a clear and unified aspiration for a workplace that meets us at a human level. This new financial workplace energizes and empowers employees, unlocking talent to drive growth and innovation.”
Lisa Knip
HLW Financial Sector Lead/Principal
Discovery begins with curiosity.
WHO WE ARE
The Ark Research Lab solves workplace pain points for clients across industries, using nuance and data to help you stay more agile, smarter, and ahead of your competitors.
ABOUT THIS DOCUMENT
The Ark Research Lab, in partnership with HLW global design leaders, compiled this report to identify the fundamental shifts taking place within the financial services industry and offer strategic advice to help you move forward with confidence.
We’ve leveraged Ark internal data sources and HLW project experience to offer strategies rooted in measurable outcomes and real world constraints.
• Ark Benchmarking Data
• Ark Market Surveys
• Designer Interviews
Research Lab
• HLW Design Imagery
• Third Party Sources
We believe the physical environment has the power to transform how we work, play, and live. Research is the key to unlocking its potential.
Carlotta Dove
Ark Research Lab Founder Psychology (MSc)
Brian Ledder Ark Research Lab Lead Geodesign (MSc)
Jenifer Duong Ark Research Lab Data Analyst Design Analysis (BSc)
Financial services firms are adjusting to hybrid work patterns
FINANCE WORKPLACE SUMMARY METRICS Office attendance has rebounded but remains less than four days per week. ONE DAY PER WEEK OR LESS FIVE DAYS PER WEEK THREE DAYS PER WEEK Finance employees average about 3.4 days per week in office
metrics have shifted toward an increase in shared space. Firms are exploring a range of seating policy options to maximize utilization and create a vibrant workplace. Typical office attendance varies by company size. TRADITIONAL FINANCE WORKPLACE 0.91 144 89% 8.4 138 SF COLLAB SEATS / PERSON USF / WORKSEAT PCT OF WORKSEATS IN OPEN PLAN CAFE SF / WORKSEATS AVERAGE OFFICE SIZE 0.71 162 85% 6.9 160 SF Smaller offices and slightly fewer offices are typically provided More square footage is allocated to collaboration spaces and office cafes SEATING POLICY MOSTLY ASSIGNED HIGH VARIATION (Assigned, assigned by function or tenure, unassigned) POST-PANDEMIC FINANCE TRENDS Firms are experimenting with a range of seating assignment options 2,500+ 1,000-2,500 50-1,000 2-50 NUMBER OF EMPLOYEES DAYS IN OFFICE PER WEEK 3.0 3.2 3.4 3.6 3.8 4.0 Larger firms offer more flexible work policies, typically as a talent attractor “Empty Spaces, Hybrid Places” McKinsey Global Institute, 2023. “Empty Spaces, Hybrid Places” McKinsey Global Institute, 2023. Ark Benchmark Database, 2023.
Workplace
Financial services firms are shifting their priorities towards human
Vibrant office culture wins the war for top financial talent. Finance employees have ample workspaces that support focused work. Flexible spaces enable firms to adapt to shifting market dynamics. 03 01 An increased focus on ESG commitments is met with greater authenticity in the workplace. Workplace design and aesthetics are a tool for making meaningful connections with clients. 02 04 05
capital, and re-imagining the next-gen financial workplace. IN THE THE NEXT-GEN FINANCIAL WORKPLACE...
01. A vibrant workplace attracts top financial talent
More than ever, prospective employees within the financial industry are taking company culture into consideration before making their decision. A vibrant workplace showcases a firm’s commitment to its employees and its culture.
What are some effective ways to establish vibrancy in the workplace?
FOCUS ON THE CAFE
Identify hubs of activity, often cafes or pantries, and build the workplace experience around those settings. Utilize events and programming to maximize the utilization and value of these spaces.
DESIGN FOR ATTENDANCE
Design and size your workplace based on workplace attendance policy and expected attendance to create space that operates at intended capacity.
MANAGE THE BUZZ
Move past noise concerns and encourage open communication with thoughtful neighborhood sizes and adjacent meeting space.
FINANCE WORKPLACE INVESTMENT
Which spaces had the largest increase in investment in the past two years?
Cafes
AND
VIBRANCY
CULTURE
/ GATHERING AREAS CLIENT AREAS TRAINING SPACES PRIVATE OFFICES
CAFE
INCREASED INVESTMENT DECREASED INVESTMENT
have increased both in terms of size and prominence within the office.
Ark Benchmark Database, 2023
“Our most innovative financial clients are prioritizing amenities, wellness, and employee experience over the corner office. The focus has shifted toward equity of experience.”
Lisa Knip, HLW Financial Sector Lead/Principal, 2023
02. Focus trumps collaboration
Finance employees are dissatisfied with open collaboration spaces in their primary work areas. They seek high performance workplaces that includes a mix of enclosed, confidential spaces that support their need for focus work.
What are the characteristics of a high performance finance workplace ecosystem?
FOCUS WORK IS PRIORITIZED
Neighborhoods designed for deep focus work are smaller, with adjacent meeting and support space. Enclosed collaboration areas further segment open workstations.
WORK HAPPENS ANYWHERE
Quality destination space that functions as an alternate work location allows employees to move around the office. Finding the right type of space for an organization requires a deep understanding of how its unique teams work.
MEETINGS ARE SEAMLESS
New tech and furniture solutions enable quality hybrid in-person/virtual meetings that provide meeting equity and ease of information sharing.
THE TRADING FLOOR IS STREAMLINED
Support services are located nearby, in some cases embedded in trading furniture. Furniture, along with power and data, are configured to maximize sight lines and quick communication.
HIGH PERFORMANCE WORKPLACE
72% of financial services firm employees say the ability to complete required tasks drives their decision to come into the office.
HLW Workplace Satisfaction Survey, 2023
03. Nimble space enables innovative operations
The generative AI revolution, societal shifts, and global recessions are impacting the financial sector, making long-term lease commitments daunting. Including the right kind of spaces and well designed modular components allow clients to test out innovative programs and scale in place as market conditions allow.
How does physical office space drive innovation within an organization?
BY ENABLING A RANGE OF HIGH QUALITY, IN-PERSON EVENTS
To rebuild culture, support ESG goals, and drive attendance, many finance firms are hosting inperson events. Long term, the purpose and format of these events is highly unpredictable. Creating flexibility in these large spaces allows a business to adjust as needed and host high quality tailored events as the situation requires.
255%
increase in the number of in-person events since the end of 2021. Many of these events include a virtual element as well, demanding space with quality tech and AV capabilities to support.
Forbes, 2023
BY
SUPPORTING NEW WAYS OF WORKING
Modular sizes of enclosed rooms provide flexibility to explore progressive office assignment policies or accommodate growth in new ways.
An increasing number of furniture solutions for enclosed or semi-enclosed space allow for faster and easier reconfigurations of existing office space.
76% of financial firms are revising their office assignment policy based on new utilization patterns.
Ark Workplace Benchmarking, 2023
ENABLING INNOVATION
BASED
EARNINGS LEADERSHIP ONLY NO OFFICES METHODS OF OFFICE ASSIGNMENT 8% 15% 38% 18% 12% UNASSIGNED 8% MD AND UP
ASSIGNED TO ALL
ON
04. Authentic commitment to ESG’s is a requirement
“Employees get on board with ESG goals when they feel it lived and breathed through company culture and space. Otherwise, it’s just hot air. ”
Increased accountability toward company ESG goals is taking root among top financial services firms. An authentic commitment to these goals is embedded in company culture and reveals itself in how physical space is allocated.
How does an office demonstrate authenticity toward ESG goals?
DEMOCRATIZE THE SPACE
Prioritize shared spaces that provide direct benefits to all employees. Rethink office allocation and provide enclosed private areas for employees without an office to use as needed.
25% Increase in the size of the workplace cafe space.
INTEGRATE WELLNESS
13% Decrease in the size of individual offices.
Ark Workplace Benchmarking, 2023
Health and wellness incorporated into the open work area through controlled lighting and biophilia provides a constant benefit that even wellness rooms can’t offer.
REMAIN SUBTLE BUT SERIOUS
ESG initiatives are important to integrate into the physical space, but going overboard on them can dilute a company’s unique brand identity.
COMMUNICATING AUTHENTICITY
Currie Gardner, HLW Associate Principal, 2023
High quality office design has the power to articulate company values in subtle but impactful way. The client visit is a chance for a firm to showcase who they are and make a meaningful connection with their clients.
How does design make a positive impact on
the client experience?
SHOW HOW YOU THINK
The office aesthetic offers clients a glimpse into how a firm thinks and what it values. Being tactful with aesthetics gives a firm a chance to control that unspoken narrative and remain upscale without feeling ostentatious.
ENABLE SIMPLE HOSPITALITY
Showcase hospitality in ways that don’t require extensive effort so that it feels like a natural extension of day-to-day operations.
DESIGN A BRIEF TOUR ROUTE
The path from reception to a meeting room is likely short, but it is a great chance to showcase a firm’s best qualities. Visuals like artwork and awards are one tactic. In some cases, firms are providing sight lines into other areas of the business, maintaining privacy/confidentiality while giving clients a sense of company scale.
CONNECTING WITH CLIENTS
05. Client visits are about meaningful connections
Ark Visioning Session, 2023 - Confidential Private Equity Client
“When our clients come in they want to see that this is where the best thinking happens.”
Strategies that push the boundaries
DESTINATION SPACES TALENT DEVELOPMENT WORKPLACE ITERATION
Unique destination spaces provide a greater spatial hierarchy and drive movement through the office, increasing energy and vibrancy. High quality working environments that employees want to use and the proper tech to support them make these spaces successful.
Junior and senior staff seek out learning and development in the workplace. High quality talent development programs often involve formal training sessions; however, most learning happens at the desk. Configuring neighborhoods to ensure a free flow of communication and access to experts/senior staff will enhance day-today talent development.
Periodic improvements to the workplace signals a commitment to innovation and a willingness to fail. This attitude catches on with employees and results in an increased willingness to experiment, driving innovation.
LOOKING TO THE FUTURE
HLW Project Showcase
Workplace Designs From Industry Leading Clients
Confidential Wealth Management Client
“One Unique Experience” was the driving concept for this wealth management firm’s new workplace. The warm and unexpected aesthetic is consistent throughout the office, creating a unified experience that values employees and clients equally.
Attractor zones at each stair landing create a hierarchy of space and increase the potential for chance encounters among employees.
Focus work is prioritized with a variety of private and semi-private work areas, given prominent locations in the office.
Small neighborhoods separated by supporting services and biophilia creates an efficient work environment with integrated wellness.
HLW PROJECT SHOWCASE
Morgan Stanley
New policies regarding attendance and agile working demanded high performance office space that is intuitive and flexible. Morgan Stanley’s new downtown headquarters employs a range of settings that allow employees to work how they see fit, resulting in innovative uses, creative thinking, and a well connected, yet dispersed workforce.
HLW PROJECT SHOWCASE
Enclosed spaces at multiple scales support a range of work types and user preferences. Full tech enablement ensures the right tools in any setting.
Meeting culture is transparent with glass enclosed rooms and on-the-spot reservations systems. Additional open meeting areas allow for quick conversations away from the desk.
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