How Britain Works: Key Trends in a Workplace Environment by Innovations2Solutions

How Britain Works:

Key Trends in a Workplace Environment

Contents Research Introduction............................................................................................................................... 3 Research Methodology............................................................................................................................. 4 Video Foreword......................................................................................................................................... 5 Written Foreword....................................................................................................................................... 6 Executive Summary................................................................................................................................... 7 Social Trends........................................................................................................................................... 11

People Trends.......................................................................................................................................... 51 Space Trends.......................................................................................................................................... 73 Acknowledgements................................................................................................................................. 95 Sources................................................................................................................................................... 96

Research Introduction How Britain Works: Key Trends in a Workplace Environment has been independently commissioned by Sodexo to understand the continuously evolving and adapting workplace environment in Great Britain today. The role, size and location aspects of the traditional office have all exponentially changed over the last decade. There have been awe inspiring and rapid advances in technology which have irrevocably changed (and continue to change at a pace) the way teams and individuals work. The characteristics of those that constitute theâ&#x20AC;&#x2122; office workforceâ&#x20AC;&#x2122; have also evolved- it is now older and more diverse than ever before. As the workforce has changed so has the workplace itself. It has had to work smarter in order to improve the operational efficiency, productivity and profitability demands of competitive businesses. Workspace design has become increasingly crucial for those businesses who want to maximise talent attraction, improve existing employee engagement and increase both employee satisfaction and their retention of great employees. It is evident that the needs of employees at work differ enormously and organisations are having to adapt their workplace environment and policies to meet these needs - one size no longer fits all. How Britain Works: Key Trends in a Workplace Environment highlights the importance of building mutually beneficial partnerships between employees who want the very best in their workplace and their employers who want to deliver this. This report talks through the broad trends in the market place today but as ever itâ&#x20AC;&#x2122;s the detail that really matters. Optimising the workplace environment for the benefit of those that work there (full-time or part-time) is about listening, understanding and delivering success in every area. Working with experienced, knowledgeable and professional partners that do just that can make the critical difference between having a workplace that is sought by employees or rejected by them.

Research Methodology Sodexo used an integrated approach across both qualitative and quantitative methods in order to understand and highlight the trends that are affecting the workplace of the future. The approach included interviews with some of the leading experts in Facilities Management (FM), Human Resources, Real Estate, Hospitality and Sociology in the country as well as site visits to those organisations leading the way in providing great places to work. In addition, Sodexoâ&#x20AC;&#x2122;s research was gathered from industry associations using panel discussions and online threads from i-FM, The British Institute of Facilities Management (BIFM), Facilities Management Association (FMA), Facilities Management Networking Group, The FM Network, Facilities Management Professionals International, Workplace Trends and Future Trends Group. The research for this report was carried out externally by Elliott Marketing & PR on behalf of Sodexo.

Video Foreword

Tim Oldman, Managing Director, Leesman Index Leesman provides the largest contemporary collection of workplace effectiveness benchmark data in Europe. The Leesman survey measures how well office environments support employees in their work and their portfolio stretches across 21 countries for sites up to 7 million square feet. As Managing Director, Tim is seen as one of the leading experts in workplace effectiveness and a strong advocate for research within the workplace environment.

To view a copy of the written foreword, please click here 5

Written Foreword We live in a constantly adapting and evolving world. At one end of the scale, we strive to survive - with no one escaping the global economic crisis. Funding has been cut, economies shrunk and work opportunities are fewer and further between. Yet at the other end, we have a never ending search for a better quality of life. We expect more! More control, choice, better quality and greater value - both at work and at home. The importance of salary will never go away. People fight for higher wages and for greater reward and recognition. However, secondary priorities have changed. We are seeing schemes such as flexible working become more important to employees, so much so that up to a third of Chief Financial Officers state that telecommuting is a key way to attract new talent. Companies are using their employees as a competitive advantage. Attracting and retaining the best employees is crucial to those that want to not only survive, but strive. What is important to employees has changed. Choice is key. Where they work, when they work and how they work will start to become the employeeâ&#x20AC;&#x2122;s choice. So while 85% of employees see the design of their workplace as important, just 53% say it enables them to work productively and worse still, just 45% have any pride in their environment. Fundamentally, work is an activity, not a place. The office has to be an evolving environment; a living organism used as an envelope for employee effectiveness and ultimately, for productivity. This encompasses everything from the building itself, to the employees and the tools they use, and the overarching changes that society is having on the working world. It has to continually evolve and adapt to our demands.

Whether we like it or not, technology is engulfing our lives. We have unrivaled access to information across the world at the touch of a button or the swipe of a finger. It is integrated into almost every aspect of our daily routines. There are generations that donâ&#x20AC;&#x2122;t know of a time without technology. As a result of this, consumers know what they want and increasingly they know how and where to find it....but in addition to this, technology has also meant that family and social life has become so integrated that the lines have blurred. The traditional 9-5 has disappeared. Whilst some people prefer the comfort of what is familiar to them, our global data shows that not everyone wants to work in the same place every day, to sit at the same desk, on the same chair, next to the same employee. Employees are seeking choice, opportunity and possibilities. Evidence shows employers are benefitting where they find ways to provide it.

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Executive summary Social trends The composition of the workforce is changing Technological changes dictate how we work The world wants to be a healthier place

• The workforce is becoming older and more multi-generational. In the decade up to 2011, there was a 22% increase in workers aged 50 and over, compared to a 0.4% increase in those aged 18-24

• The cloud rolls on. Working remotely on the cloud is set to continue. It is forecast to account for one third of annual IT expenditure growth in 2013 compared to 25% in 2012 • Thin companies need less workspace. The evolution of the cloud has enabled organisations to become ‘thin’ by removing the need for larger servers and desktop computers at work • Bring your own devices (BYOD) will proliferate. Consumers now have access to better and faster technology at home than at work – one reason why 43% of managers rely on their workforce to use their own IT and phone at work

• Good food leads to good work. Evidence shows that a wide range of healthy options is important to employees • Workers want to be active. Since 2000, there has been a 117% increase in the use of London’s cycle network as more and more employees use a bike as their main mode of transport for commuting • Bringing the outside in; well-being factors. Evidence shows that FTSE 100 companies that track and report the success of their well-being programmes including these factors outperform those that don’t by 10%

• Gen Y (those born after 1980) has a disproportionate influence in the workplace. Gen Y will push the boundaries in terms of ways of working and seek out new opportunities to learn • More and more women are working. Women now account for just under half the workforce and we are starting to see more women in senior roles

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Executive summary People trends Working anytime, anywhere The rising power of people

Work and life as one

• Flow, not a balance. The influence of technology and a new generation of employees has meant that work and private lives are merging into one

• Flexible working makes business sense. Studies show that people who can work effectively from a remote location can work 15 to 20 additional hours a week • The office can be anywhere. A study of 5,000 UK Directors predicts that within the next decade, 60% of office-based employees will regularly be working from home • Work contracts are changing. More and more employees will request flexi-time and job-sharing will become more widely available. In 2011, 52% of employees worked on a ‘flexi-time’ basis compared to 44% in 2006

• Happiness works. Happy workers are up to 12% more productive than those that aren’t • Self-employment is on the rise. Looking into the future more and more employees will dip in and out of work and different projects to build their own portfolio • Judging employees on output. 54% of employees want to be measured by their outputs. Trust will continue to be key between employers and employees to ensure work outputs are delivered

• Employees will surf at work. Personal browsing and social media use at work has also become so important that up to half of 16 to 24 year olds would not work for an employer who banned its usage whilst at work • Personal calls at work are important. 23% of 22 to 26 year olds would not take a job where they couldn’t make personal phone calls • The right to request flexibility. This continuous flow of work and life has led to the introduction of flexible working schemes by the UK government to help drive a culture shift in the workplace

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Executive summary Space trends To be the best, attract the best Open spaces create open cultures Workplace optimisation for the future

• The best offices attract the best staff. If organisations want to recruit the best then they have to have offices which inspire them to join. Organisations will continue to create office environments which bring their brand to life and help build and nurture employee engagement • Retaining talent is a priority. The cost of replacing an employee can be up to three times that of an employee’s salary. The fact that 70% of organisations have difficulties in replacing staff highlights that retention is key

• The shift to informality. 73% of Gen Y employees favour informal break out spaces to formal meeting rooms. The office is increasingly being used as a social hub, providing space for all different employees to complete all different styles of tasks • Design spaces to encourage ‘bumps’ and discourage ‘interruptions’. Work is an activity that happens around everyone and spaces need to be designed to encourage instant and unplanned communication

• Increase occupancy efficiency. A flexible working policy introduced at PricewaterhouseCooper’s is likely to save them £10m over a ten year period – office space should be designed so employees can work smarter to avoid inefficiencies • Make the most of office space. It is predicted that by 2020, organisations are set to reduce their office space by almost 20% as a result of right sizing • Outsourcing is on the rise. The largest growth will be in the public sector, with the value of government contracts outsourced doubling over four years to £20 billion • Create partnerships for the future. Creating longer term partnerships will be crucial when leveraging efficiencies and productivity. By 2017 it is predicted that that the Total Facilities Management (TFM) market will see an increase of 17%

Social 1 The composition of the workforce is changing 2 Technological changes dictate how we work 3 The world wants to be a healthier place

People 4 5 6 Work and life as one Working any time, anywhere The rising power of people

Space 7 8 9 To be the best, attract the best Open spaces create open cultures Workplace optimisation for the future

Social Trends

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A 21 year old starting work today will experience a much faster and more dynamic workplace environment than their counterparts would have encountered 50 years ago. The world we all live and work in today has changed quite dramatically since then. They might be surprised to find that more people are working in Britain now than at any time since records began in 1971. According to the Office for National Statistics, in 2012 the number of people working in Britain totaled 29.57 million vs 28.83 million in 2009 following the economic downturn of 2008 [1].

The private sector has been responsible for this job creation. There are now 4.8 million private sector businesses in the UK and in 2012 they employed 23.9m people (81% of the working population). Just 3 years earlier in 2009 this figure was 22.5 million (78% of the working population). In 2012 alone the number of people working in the private sector grew by over 250,000; the largest increase on record.

Click here To view a graph showing the annual changes in employment in the UK since 1993

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Annual Changes in Employment in the UK since 1993 (thousands) 800 600 400 200 0

-200 -400 -600 -800 -1000 Mar-May 1993 May-Jul 1997 Full-time Jul-Sep 2001 Part-time Sep-Nov 2005 Total Nov-Jan 2010

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Geographically, the split between London and the rest of the UK is widening with the capitalâ&#x20AC;&#x2122;s economy contributing just under 22% of UK output in 2011 [2]. London is the only region to have seen an increase in the employment rate since before the financial crash, whilst Scotland has seen the highest decrease in employment. The map opposite shows the regional percentage point change in employment rates for persons aged 16-64 from Q4 2007 to Q4 2012. North West -1.1%

Scotland -3.5%

North East -2.0%

Yorkshire & Humberside -1.6%

East Midlands -1.8%

West Midlands -0.6%

East of England -1.2%

Wales -0.8% London +0.9%

South West -2.3% South East -2.2%

[3]

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Social trends – The composition of the workplace is changing The United Nations categorises the population into four specific ‘generations’ each of whom, they believe, has a different view of work – and different expectations too.

Generation Y Generation X

Baby Boomer Traditionalist Born between 1925 and 1945, a period when sense, duty, obligation and loyalty were high. Born between 1946 and 1964, a period of economic prosperity in certain countries (particularly USA) when population boomed.

Born between 1965 and 1980, a generation where flexibility started to become more important.

Born post 1981, they are the latest generation in work. People in this category, particularly those born closer to the nineties, are also referred to as ‘Millennials’.

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Traditionalist Attire Work Environment Formal Office only Self-worth Not necessary Loyalty Personal contact Dictates documents, use of library instead of web Build a legacy

Baby Boomer Business / Casual (high end) Long hours / office only Salary Does not handle negative feedback well Salary Telephone E-mail primarily in the office, documents prepared by the Associates Build a perfect career

Generation X Business / Casual (low end) Office or home / desires flexible situations Security Not necessary to receive feedback Security/salary E-mail Creates own documents, uses mobile and computer Build a transferable career

Generation Y Whatever feels comfortable Office or home / desires flexible situations Maintain personal life Constant feedback needed Personal relationship E-mail/IM/Text Creates own documents and databases, uses web to research, 24/7 connectivity Build several parallel careers [4]

Motivators Mentoring Retention Client Orientation

Technology

Careers Goals

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Traditionalists and Gen Y may have very different perceptions of work and ways of working, but companies are having to ensure everyone’s preferences are satisfied in order to have a productive and balanced working environment.

Pensions

48%

Flexible Working

22%

In addition to considering the differences in how employees like to work, employers also have to take into account a range of benefits which employees would like to receive but don’t currently - with health insurance, working from home and a company car all featuring in the top 3.

Top 3 benefits currently offered to employees Free parking Benefits employees don’t receive, but would like

Health Insurance

29%

30% Company Car

< [5]

20%

Priorities and expectations are changing and there are a number of influences contributing to the evolving demographic and makeup of the workforce.

Working from home

22%

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The workforce is becoming older and more multigenerational Whilst todayâ&#x20AC;&#x2122;s workforce is unlikely to include many Traditionalists, it will include a greater proportion of Baby Boomers than ever before. The graph opposite shows the average annual working population in 2001 compared with 2011. The evidence is clear; the workforce is now much older than a decade ago, with the largest percentage increases seen in those aged 50 and over.

79.7 67.7

81.7

78.3

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5.2 12.3 24.7 37.9 23.5 1.6 65+ 11.6 22.6 37.2 25.6

8.7 3.0 65+

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57.3

So not only has there been an increase in the total The report also highlighted that the number of people number of people working but there has also been an turning 65 over the next decade is set to reach 6.5m, age shift in the structure of this workforce. Data from an increase from 5.2m over the previous 10 years [7]. the Office for National Statistics shows that between There is no denying that we are an aging nation. 2001 and 2011, there was a 96% increase in the Analysis of the 2011 census indicates that over 81.2 number of workers aged 65 and over. In addition there 78.3 169,000 more people reached their 65th birthday in was nearly a 22% increase in workers aged 50 and 2012 than had done so the year before – an increase of over. During 2001, just over 5% of those over the age of 65.1 compared to nearly 9% in 2011 [6]. 30% in a single year [8]. 65 were employed, With the age of the population increasing and state pensions now starting later, more Baby Boomers are in work compared to previous generations. According to Aviva’s ‘Real Retirement Report’, some 23% of 65 to 74 year olds were still wage earners in December 2012 – up from 18% in February 2010.

2001-2011

% change in total population

18.7

-0.9

5.2

10.8

18.0 65+

18-24 25-34 35-49 50-64 5.2 1.6 65+ 11.6 22.6 37.2 25.6 8.7 3.0 65+ % change in working population

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As more people then continue to work beyond 65, it is becoming increasingly normal for employees to be working in teams which include members from each generation, from Baby Boomers to Gen Y. This in turn is changing the dynamics of the office; how people work and how they communicate. For instance, whilst financial rewards and recognition are seen as important in retaining Baby Boomers in the workplace, Gen Y may place more importance on personal relationships.

Satisfying this wide range of working preferences is challenging but vital for today’s employers and it will be a continuing trend. By 2035, it is predicted that those aged 65 and over will account for 23% of the total population. As the population continues to age, we will see more and more of the older generation in work [9].

“ We must create work environments that are universally inclusive and meet the demands of the wider demographic of workers offering choice to maximise their performance and contribution to the organisation [10].

”

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Gen Y has a disproportionate influence in the workplace The working priorities of Gen Y, are quite different to earlier generations in large driven by their need for social engagement facilitated by technological developments. The ‘CISCO 2012 Connected World Technology Report’ highlighted that 90% of Gen Y check their phone the first thing in the morning, often before they have got out of bed. Their idea of a perfect workplace is built around efficiency, transparency and democracy [11]. Long established routines, regulations and workplace norms are not valued as highly by this generation – they have been replaced with a different way of working. This new generation, who will continue to influence the future, are pushing for change in the present. They live to communicate via a technologically integrated lifestyle. Gen Y already represents 22% of the workforce [12].

Research suggests that Gen Y workers want 5 key things: 1 Meaningful work with responsibility from day

one – making an immediate difference 2 A new approach to management – mentoring,

coaching and direct approaches to be involved 3 A career lattice, not a career ladder – they live

to learn and seek portfolio careers across different industries 4 To challenge the status quo – questioning,

difference, innovation and independent thinking are seen as a positive 5 Brands to live to their name – they value a

workplace culture and environment that is aligned to the brand [13]

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Gen Y are a completely new breed of employee compared to Baby Boomers: • 54% of Gen Y have already had 3 or more jobs • Sabbaticals are important to 50% of Gen Y, compared to 29% of Baby Boomers • Gym membership is important to 28% of Gen Y, but only 9% of Baby Boomers

• 30% of Gen Y think they are likely to get a job in another sector within the next five years, compared to 12% of Baby Boomers • Over one third of Gen Y thought their personal future looked bright [14]

When it comes to longevity, Gen Y are a generation of job hoppers. Research suggests that the average worker today stays at his or her job for 4.4 years, but according to a survey of 1,189 employees and 150 managers, 91% of the new generation of employees expect to stay in a job for less than three years. This means that they would have 15-20 jobs over the course of their working lives [15].

“ 2 in 5 students and young professionals will accept a lower paying job if it also offers greater flexibility. “Flexibility” includes the blurring of distinctions between “leisure” and “work”, with social media time threaded through the working day [16].

Gen Y are here for the foreseeable future. It is predicted that by 2025 75% of the workforce will be made up by Gen Y [17] .

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More and more women are working The Office for National Statistics latest figures show ‘Within the lifetime of a senior manager that in the three months up to April 2012 the UK we have moved from a world where workforce consisted of some 13.60 million men and women were legally and socially treated 7.72 million women in full-time employment, with 2.11 as second-class citizens to one where they million men and 5.85 million women in part-time have equal employment rights and nearly equal employment. In total, women account for just over representation in the labour force of many advanced 46% of the working population in the UK [18]. economies [19].’ The role and rights of working women have changed dramatically in the past 50 years. It was only in 1961 that Barclay’s Bank removed its marriage bar and up until 1975 it was still perfectly legal in the UK to dismiss an employee for becoming pregnant.

“ Women now make up between 40% and 50% of the workforce in most developed countries…They represent the majority of the educated talent pool – around six out of ten graduates coming out of universities in the developed world, and a rising force in many parts of the developing world [20].

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Social trends – The composition of the workplace is changing This change in the number of women at work is reflected at Sodexo worldwide where women now comprise:

The number of women in CEO and MD posts in the UK increased by 25% in 2012 - from a base of under 12% in 2011 to nearly 15% in 2012. There has also been a small rise in the number of women in second level senior roles such as director, chief finance officer and chief marketing officer [21]. This increase is noticeably evident in FTSE 100 companies where, in 2012, women accounted for nearly 17% of all FTSE 100 board posts. This figure was under 13% in 2011. Looking to the future, FTSE 100 companies have been tasked with hitting a voluntary target of raising female board representation to 25% by 2015 with the threat of EU-imposed mandatory quotas in the UK if they do not make sufficient progress [22]. The BBC says that there are now more women in work and more females at board level than ever before with women now accounting for 57% of the professional workforce [23].

of the workforce

54%

“ The proportion of

women who were economically inactive decreased considerably from 44.5 per cent in Q2 1971 to 29.3 per cent in Q1 2011, and the proportion of men who were economically inactive has increased from 4.9 per cent in Q2 1971 to Q2 17.1 per cent in 2011 [24].

of the Global Executive Committee [25]

25%

of managers

40%

of the board

38%

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Women are being encouraged to stay in the workforce post childbirth helped by a number of key government initiatives. The government is particularly enthusiastic for parents to be offered greater employment flexibility in order to help both of them to care for their family whilst being able to pursue and achieve their career goals and aspirations.

Parents will have the right to take time off together, as well as a legal right to flexible hours. At present mothers can take a maximum of 52 weeks, with fathers entitled to 2 weeks of statutory leave.

Interestingly though, despite great The new scheme however, planned for 2015, will see parents entitled to 50 improvements in the number of women employed in the workplace over the last weeks leave, to be split between the 10 years, rates of pay between men and couple as they see fit [26]. women in general are still disparate. On Retention of female talent, post the average, women earn up to nearly 15% birth of a child, has become an less than their male counterparts. It is not important factor for organisations. an area for complacency [28]. Following the introduction of a number Yet, if ever there was real incentive for of family-friendly schemes, including women to mirror similar career choices flexible working, The Co-Operative as men, a recent article suggested that if Group has seen an increase in staff the UK had the same proportion of female retention rates, with 97% of female entrepreneurs as the US, then the boost to managers returning to work following UK GDP would be an extra £42 billion [29]. pregnancy [27]. Having said all of that, in Sheryl Sandberg’s book ‘Lean In: Women, work and the will to lead’, she argues that until the number of women at the top reaches critical mass, the kind of work life balance that makes it equally possible for men and women to get to the top will never be achieved.

Research by Cranfield School of Management predicts that nearly 40% of Directors could be women by 2020, exceeding the 25% target [30]. Some predict that by 2020, women will account for 80% of the workforce growth [31].

“ The fact is, a stronger team is made up of more different types of people and that needs to be recognised in business.

”

Helena Morrissey, CEO, Newton Asset Management

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Get more women on board Progress over the last 2 years has been positive with women accounting for over 17% of FTSE 100 and over 13% of FTSE 250 board Directors as of 1st March 2013 (vs less than 13% and 8% respectively in February 2011). Since the ‘Woman on Boards 2011’ report was commissioned in 2010, the percentage of female held board appointments has increased by nearly 50% [32]. Whilst these statistics show that more and more women are working at board level, there is however evidence that suggests that the growth has now plateaued at around the 17% mark after having first surpassed that number in August 2012. Government, regulators, investors and businesses alike must work together to avoid complacency and ensure that the figure continues to rise, as the evidence suggests that having more women on board is better for business.

A recent study by The Cranfield School of Management showed that for the first half of the 2012 financial year, 44% of board appointments at FTSE 100 firms went to women, but during the second half of the financial year that figure decreased to 26% [33]. As highlighted in the ‘Women on Boards April 2013’ report, as of April 2013 there were only 6 male only boards in the FTSE 100; a marked decrease from 21 in 2010. Male only boards in the FTSE 250 accounted for nearly 27% (67 organisations) of companies - down from just over 52% in February 2011. Globally, a value-weighted portfolio of those companies with more than 33% women on boards of Directors has been found to generate significant positive financial returns. Companies with a greater percentage of women on their boards were found to outperform their rivals with 42% higher return in sales, 66% higher return on invested capital and 53% higher return on equity [34] .

This is further supported in the UK where studies have shown that companies who have a greater proportion of women at board level perform better than those with a smaller number of women on their boards [35]. What is becoming increasingly important and being mentioned more and more, by both males and females alike, is that this must not become a numbers game. Reaching quotas and targets for the sake of reaching quotas is not beneficial to anyone. Appointing female board members should be about the richness of the board as a whole; the combined contribution of a group of people with different skills and perspectives. A more diverse group of individuals can draw on their personal experiences, backgrounds and life styles and are more able to consider issues in a rounded, holistic way. Mixed gender boards can provide the attention to detail not seen on all male boards, which often think the same way and sometimes make poor decisions [36].

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Summary The workforce is continuously evolving and changing The workforce is getting older with more Baby Boomers in work than ever before. In the last 10 years, over 90% of the rise in employment has been accounted for by workers aged over 50.

The workplace must adapt to meet these changes 1 Workplaces must be designed to provide an environment that is easily accessible to all with organisations ensuring anti-discrimination policies and procedures are put in place to provide equal opportunities to employees of all ages.

Despite this, it is the younger generation, born into a technological world that are changing the office environment the most. Gen Y seek information, challenge the norm and demand more from their employers than any previous generation. More and more women are working, with nearly half the UK workforce made up of female employees. More women hold senior roles and sit at board level than previously but evidence suggests this could be starting to slow.

Organisations need to understand how each generation wants to work and to adapt their working practices accordingly â&#x20AC;&#x201C; giving them the freedom to work at their best every day.

Mixed gender boards provide stronger strategic business benefits than single gender boards. Employment strategies must ensure that women are attracted to companies now and throughout the next decade.

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Social trends – Technological changes dictate how we work The fastest growing fashion of the new generation. Today’s children are born into a world where they are surrounded by technology 24/7. Technology is incorporated throughout school (even pre-school) and university curriculums, with tomorrow’s leaders leaving secondary and often primary school, fully technology-literate. For those of us who have a smartphone by our sides all the time this will not come as a surprise. The use of technology is second nature to the latest generation; for them it is simply intuitive – they don’t need to learn. Employees can now be permanently connected to technology and, as a result, are always available publicly and privately- they can no longer remove themselves from work without consciously switching off their devices. A recent study from the University of California, Los Angeles, showed that ‘digital nomads’; those born into a world of technology, spend on average 8.5 hours daily exposed to digital technology. Technology is now completely integrated into the workplace - it improves productivity, increases efficiency and in most cases removes the need for physical space. The use of technology in the workplace is set to continue at a pace.

To reach 50 million users the following media took: Radio Television: The iPod: The Internet: Facebook: Twitter:

38 years 13 years 4 years 3 years 12 months 270 days ...acquiring over 185,000 new users each day

< [1]

“ A young person’s brain, which is still developing, is particularly sensitive…It’s also the kind of brain that is most exposed to new technology [2].

Some experts predict that by 2025, technology will allow us to conjure workspaces out of thin air by using interactive surfaces. Holographic teleconferencing and virtual ‘dry runs’ of projects will consign old office templates to the dustbin. In their place, multiple surfaces in the home, or shared work hub, will be coated with digitally enabled ‘smart’ paint that will project 3D avatars of colleagues at a single touch [3].

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The use of technology in the workplace will not only influence the devices that employees use on a daily basis, but the design, infrastructure and build of working environments. ‘The catalyst for practically every change in the way offices are designed and managed is technology. This has been true since the first offices appeared at the turn of the twentieth century’ [5]. The other huge benefit of integrating technology in the workplace are the environmental and Corporate Social Responsibility benefits.

Technology and Corporate Social Responsibility “In the year ending 2012 conservative estimates suggest that the use of BT conferencing systems avoided a net 43,839 tonnes of greenhouse gas emissions and created financial benefits for BT totalling £188 million” Professor Peter James, Department of Environmental Science, University of Bradford.

main driver for increased use of conferencing, 74% also report that their use of conferencing is driven by a personal desire to reduce the environmental impact of travel. In fact, 38% of conferencing users stated that their last call had definitely replaced a face-to-face meeting, with a mean avoidance of 5.3 hours of travel time’ [6]. Employees are being encouraged to work smarter, not harder, leading to new initiatives integrating technology into the workplace. Similarly, employers are re-thinking conventional ways of working to allow their teams to make the most of technology both personally and professionally.

It is predicted that during the same period, conferencing eliminated 1,040,000 face-to-face meetings [6]. ‘These savings are not just beneficial for the organisation, but are equally important for the employees. The University of Bradford study records that while 79% of respondents believe that the need to cut cost is the

“ By 2020, 62% of people in office space will use touchscreen technology, against 16% now [4].

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The Cloud rolls on Cloud computing refers to applications and services offered over the internet from virtual data centres around the world. It provides users with access to their information from any location, provided they can connect to the internet. Users can also share information between multiple systems and other users if they have access to the same cloud [7]. Cloud computing has been a key driver in workplace dispersement. Every piece of work can now be stored remotely in the Cloud, easily accessed by anyone who needs it without compromising security. Cloud based technology brings alive the concept of a virtual working place connecting, as it does, team members around the world. The concept that work is increasingly not desk restricted is dramatically (and rapidly) changing the face of work itself. It is predicted that the money spent on Cloud computing will account for nearly a third of annual IT expenditure growth in 2013. In 2012 in the UK, £42 billion was spent on Cloud computing software, compared to £16 billion in 2008. 70% of people agree that using Cloud-based computer systems has simplified the IT process, whilst 72% think it has improved the end-user experience [9].

“ Cloud technology has changed the cost structure, the efficiency and the ability for businesses to become more agile than ever…. Organizations that fail to provide their workforce with an arsenal of tools to connect, network, and create the future might as well close their doors today.

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Jason Averbook, CEO, Knowledge Infusion [8]

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A recent Overbury report quotes the Unwork.com annual survey of over 1,300 global executives in 2012, in which they say that less than 4% never work outside of the office, while over 61% say that their favourite place to work outside of the office was at home [10].

There is an increasing number of examples of companies using co-working spaces as part of their workplace strategy. Yell, for example, closed all of their regional sales offices in favour of membership at co-working spaces in 2010. The same report claims that, depending on their size and nature of operation, businesses can save between 20% and 30% of their IT costs by moving to the Cloud. The impact of the Cloud in enabling previously desk bound employees to be able to work remotely is significant and a major workplace trend for the foreseeable future.

place to work outside of the office was at home

61.5% say their favourite

The report highlights that one of the fastest trends shaping the future workplace is the use of Cloud enabled co-working spaces like drop-in business clubs and serviced offices available on an hourly or daily basis. There were 1,320 such spaces available in the world as of February 2012, an increase of 88% since the beginning of 2011. Of these, 61 are in the UK and a total of 518 in the EU.

never work outside of the office

3.5%

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Thin companies need less workspace Thin client technology gives employees the opportunity to log onto a computer screen, tablet or mobile device wherever they are in the world, supported by a central computer stored elsewhere. Laptops, and to a further extent desktop PC’s, are replaced by ‘thin’ technology in workplaces generating huge savings in both cost and space. Thin clients depend on the use of the Cloud in order to gain access and download company information. ‘A thin client, sometimes called a lean client, is a low-cost, centrally-managed computer devoid of CD-ROM players, diskette drives, and expansion slots’ [11]. “In terms of in office spaces, we’ve seen a lot of people moving towards thin clients, supported by tablets rather than having a computer on your desk. ” Nigel Oseland, Director, Workplace Unlimited [12]

“ The vision of the thin building is one in which buildings become conduits for people rather than conduits for technology. Fit outs are therefore much cheaper and programmes quicker to complete as only very basic infrastructure is needed for an organisation in the Cloud. This could certainly benefit existing office stock, often shunned in favour of new buildings, purpose-designed to accommodate today’s technology requirements. As the uptake of Cloud, 4G and mobile devices increases and the need for ‘fat’ space reduces, the fit out or refurbishment of existing office space, often with prime city-centre locations, could seem a more viable option for firms looking to establish ‘thin’ offices [13].

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Social trends – Technological changes dictate how we work The benefits of using thin technology are tangible. A study conducted by Bloor Research shows that ‘deploying thin client technology across enterprises can cut costs by up to 70%’ [14].

Lower carbon footprint

Better security

Other ‘thin’ benefits include: • Better security – no data is kept on a physical computer or ‘client’ but is stored remotely • Improved reliability – it is reported that the average meantime between failure for a PC is 25,000 hours, compared to 175,000 hours for a thin client • Easy scalability – remote offices can be set up within minutes • Remote access – data can be downloaded anywhere at any time • Lower carbon footprint – not only by consuming less electricity, but also from the reduced travel time and reduced emissions as a result of teleworking [15]

Cut costs by

70%

< Remote access

Improved reliability

Easy scalability

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The fact is, more and more More and more employees are employees will start to bring their using their own devices at work own device to work. The office and employers are witnessing the environment must support this business benefits that a BYOD policy move. Firstly by making sure a fast can bring - for instance being able and reliable internet connection is to contact employees out of usual available throughout the whole office working hours. 70% of employees space and secondly by providing with smartphones regularly check staff with a variety of spaces where their emails outside of business hours, they can touch down to work. while 91% check theirs every six to 12 minutes during ‘downtime’ [16]. Gen Y, the new generation typically have use of a smartphone and/or a tablet device before they are made accessible by an employer. It is anticipated that by 2016, nearly 10 million UK employees will be using personal devices in the workplace [17].

Bring your own devices (BYOD) will proliferate

Based on current employment levels, this equates to approximately one third of the workforce.

59% of managers would allow employees to work from home

provide employees with tools to do so

15%

[18] of managers rely on their staff’s own equipment

43%

“ The BYOD phenomenon is here to stay. The biggest challenge for IT now is how to best manage all these devices and get their [IT] time back to focus on their core role. It is important to ensure an enterprise mobility strategy includes a BYOD policy, addressing how to effectively manage and secure personal devices while avoiding high network usage charges [19].

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Social trends – Technological changes dictate how we work Security has arisen as a contentious issue when implementing a BYOD scheme, especially when employees have access to financial information, HR records and sensitive customer details on their personal devices. This is off-set by perceived attraction from the employees to a role in which they’ll be able to use a device they trust and can personalise. as computer based devices start to replace the need for physical money. BYOD may make a workplace much more attractive for employees but it can bring risk to the employer. As with other technologies, companies will have to find a way of managing this scenario or risk alienating a large percentage of their workforce. In 2012, only 30% of UK IT departments incorporated smartphone and tablet management initiatives into their strategies. This is set to steadily continue into the future as it becomes a more important aspect of work.

There are numerous challenges when introducing a BYOD strategy into any workplace environment and many IT departments are still trying to determine how to make this vision a reality without compromising on security. Analysts predict that our smartphones and tablets will replace our wallets and purses as they continue to become more integrated within our lifestyles. According to a recent Morris Pentel report, the majority of basic payment transactions will be via mobile by 2016

“ The cascade of devices entering the enterprise, combined with the lack of a coherent enterprise mobility strategy, is throwing many IT departments into turmoil….if implemented correctly, a proactive enterprise mobility strategy that encompasses a BYOD plan can improve compliance, flexibility, device security and contain network costs [19].

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Summary The influence of technology cannot be escaped. It is fundamentally changing every aspect of our daily lives, both at work and at home Employees and consumers are dependent on technology. The use of smartphone and touch screen technology is set to continue with 62% of office technology being touchscreen by 2020.

These changes are affecting the workplace environment and are set to continue. Organisations must ensure they are up to date 1 Organisations will need to implement new technologies into their workplace to leverage efficiency from employees and ensure they are ahead of the curve. Choosing the right technologies to introduce will be the challenge.

Face-to-face meetings will still be conducted but their frequency will reduce as technology is used as an enabler.

Video conferencing facilities will become even more essential in the workplace with employees needing to be trained in using them effectively.

Cloud technology will continue to be implemented throughout organisations as more employees work remotely. Companies will look to be ‘thin’ and reduce the space taken up by bulky and dated technology.

Companies will need to install remote servers in their organisations allowing employees to work freely from wherever they are. Increasingly they will need to provide their employees with laptops and tablets as opposed to desktop computers. Implement a BYOD policy and review or introduce a tablet strategy initiative. Managing how employees use their own devices is critical to information security.

Employees will start to use their own device for work more and more – at the same time organisations will be trying to constantly update their own technological competencies and resource just to keep pace.

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Social trends – The world wants to be a healthier place As a nation we are becoming more aware of the importance of a healthy lifestyle but, ironically following years of sedentary habits, we are becoming increasingly overweight. According to the latest Health Survey for England from 2010, nearly 63% of adults (aged 16 or over) from the UK were overweight or obese[1]. By 2050, obesity alone is predicted to affect up to 60% of adult men, 50% of adult women and 25% of children [2]. For many employees, a major worry is their health and the impact on their lives if illness hits them. 11% of workers have already been off ill for six months or more during the past year and a further one-third of employees fear getting ill and not having their income protected [3]. A 2012 survey by Leatherhead Food Research showed that over 80% of consumers in 2012 claimed to follow a healthy diet, an increase of 10% since 2004. Awareness of what constitutes a ‘healthy diet’ has also significantly increased since 2004.

% of consumers who see it as important 2012 2004 2012 2004 2012 2004 48% [4]

Eating fresh fruit and vegetables

95% 75% 87% 63% 74%

Having a balanced diet

Drinking enough fluid

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Social trends – The world wants to be a healthier place Following the success of the Olympics, physical activity and sports participation have risen, whilst awareness of salt and fat is higher than ever. 15.5 million people in England aged 16 and over took part in sport activity at least once a week over the past 12 months, according to a survey by Sport England. This was an increase in 750,000 people on 2011’s figures [5]. The benefits of a healthy employee are clear as physical activity has been shown to have a direct impact on the workforce. Not only are they considered 20% more productive, they are twice as likely not to be absent through illness [7]. Exercise should be encouraged in all aspects of work – cycling to work, exercising during work hours and after work clubs and societies. ‘There is an increasing trend to offer health and wellbeing perks such as corporate health insurance, cycle to work schemes or discounted gym memberships. These benefits not only offer a way to increase productivity and reduce employee absenteeism but contribute to increase job satisfaction and employee engagement’ [8].

Local councils have also reported an increase in participation at sports clubs, with up to 75% of them seeing an increase in usage since the Olympics. Yet, whilst the sudden increase in participation is positive, there needs to be continued local and national government encouragement and support to ensure that this trend continues and demonstrates the positive legacy of the ‘Games’. It must be remembered, unfortunately, that no Olympic host country in history has demonstrated a sustained rise in sport participation [6].

Businesses have an important role to play in encouraging their employees to take responsibility for their own health - and in providing opportunities for them to succeed. This is about health in its broadest context from fitness to working hours to eating well.

“ Healthy life practices will be in big demand. We are seeing a big influx in people

wanting secure bike cages at work. They want to be able to ride to work and have their showers. They want healthy food options in the café, so fruit is a big thing here that a lot of people want.

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Kylie Nelson, Head of Business Services, Macquarie Group Limited [9]

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Good food leads to good work ‘Eating a nutritious, balanced diet will There have also been studies on the help you improve your overall health’ [10]. link between absenteeism and people who are overweight. A normal weight We typically consume at least one man (in relation to the BMI index) third of our daily calorie intake at work misses on average three days per year which means the workplace can play a due to illness or injury, while overweight significant role in influencing our eating and obese men (with a BMI of 25-35) habits and our health [11]. miss approximately two more days per year, an increase of 56% missed days [12]. Sodexo’s March 2013 workplace survey of 282 employees and key opinion formers showed that ‘a good restaurant with a great selection of food and drink choices’ and ‘a wide range of healthy food options’ were the two most important factors for improving work-life balance.

“ Overweight employees should be a major concern for every employer. If employees are overweight they have a higher risk of developing longterm health problems such as type 2 diabetes, heart disease and numerous other associated conditions. This is bad news for all businesses as companies are footing the bill for lost productivity whilst employees receive treatments, are off sick, feel lethargic and lack energy during their time at work [13].

Evidence shows that ‘a wide range of healthy options’ is important to employees.

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Kylie Nelson, Head of Business Services – EMEA, Macquarie Group Ltd

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A recent study by The Chartered Society of Physiotherapy suggests that as many as one in four people are too busy to take a break for lunch, and one in three people eat lunch at their desk. The average person takes less than 20 minutes each day for lunch away from their desk. Taking a lunch break and nourishing the brain with food, oxygen and water will lead to better work in the afternoon than continuously working at the computer screen [15]. Eating the right food can improve your memory, lift your mood and help you concentrate for longer. Foods that are high in Omega-3 oils are good ‘brain food’ and will have positive effects on productivity [16].

< “ Within the workplace environment, we are seeing those same pressures of the need of convenience and speed, putting pressure on what workplace operators have to do…Consumers are happy to spend that little bit more of their money, if they are getting exactly what they want. They are wanting more of the high street brought into the workplace, they are happy to spend that little bit more on a better quality product. Simon Stenning, Food Service Strategy Director, Allegra [14]

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and models of bikes and accessories up to a value of £1,000. The benefits are numerous including improving The search for healthier lifestyles not only staff well-being and morale, reducing affects our daily routines in the office but car park costs and traffic congestions, even making savings on your national the way in which we travel to work. insurance contributions [19]. According to Transport for London, since Mobility at work has evolved. Yoga and 2000 there has been a 117% increase in people using London’s cycle network. exercise classes as well as on-site gyms have been available in the workplace Initiatives such as a recent scheme at GlaxoSmithKline have seen the number for a number of years. We are starting to see the next wave of mobility initiatives of people cycling to their Brentford at work, from standing desks to walking offices increase from 50 to 450 [17]. meetings. LinkedIn CEO Jeff Weiner Further companies have also has been known to conduct walking implemented cycle schemes, for meetings behind the LinkedIn offices, example the Edenred Cycle to Work whilst Google, Microsoft, Evernote, Hyatt scheme is run in partnership with and Marriot have all installed treadmill Halfords and allows employees to desks [20]. choose from a wide range of makes

Workers want to be active

How 18-25 year olds are travelling to work in the UK: • 34% by car (30% of which would prefer to drive Hybrid) • 30% walking • 16% public transport • 12% cycling • 7% motorcycle/scooter [18]

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Social trends – The world wants to be a healthier place In an effort to improve the health and wellbeing of their staff, Ginsters conducted employee focus groups where staff confirmed that many of them would like to walk to the office, but the fact that the street lamps on the surrounding roads did not work early in the morning meant they felt unsafe. As a result, Ginsters engaged with the local council and got the street lamps fixed so that employees could start walking to work and feel safe in their surroundings [21]. Recent studies have even claimed that sitting is worse than smoking. Researchers suggest that you can lose up to 8 pounds a year if you stand for 3 or more hours per day [24]. As we continue to become more aware of the need for a healthy lifestyle, with all its inherent benefits, the workplace must evolve to support this. The business benefits are clear: a healthy workforce is a more productive workforce.

People expect to have a say as consumers or public service users and unsurprisingly apply the same principles to the workplace [22]. On average, people work for over nine hours a day, compared to 7.7 hours of sleeping, with the majority of this time typically spent sat behind a desk. A recent study in America showed that sitting down for six or more hours per day makes you up to 40% more likely to die within 15 years than someone who sits down for less than three hours per day, regardless of other physical exercise [23].

< ”

“ If the potential that resides in the country’s workforce was more fully unleashed, we could see a step change in workplace performance and in employee well-being, for the considerable benefit of the UK. David MacLeod and Nita Clarke.

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At Macquarie Group offices in London, one of the main features is a steel staircase spanning across all 6 floors of the building. Kylie Nelson, Head of Business Services at Macquarie Group explains that “the stairs are the most visual thing when you come out of the workspaces.” They were specifically designed as the ‘centre-piece’ to encourage people to take the stairs, promoting mobility at work and increasing interaction [25].

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Bringing the outside in; well-being factors Health isn’t just about exercise and diet. It is also about access to natural light, to good air quality, ambient temperature and access to outdoor spaces. The environment around us affects our moods and productivity towards work. You may not think much about it, but the way an office is set up, from individual desks to the entire office’s lighting, has an effect on the productivity of employees. • Studies show that comfortable, wellventilated and well-lit, safe workplaces increase productivity as much as 16%

and job satisfaction as much as 24%, whilst also reducing absenteeism. • In a study conducted by RPI, workers in windowed offices were shown to spend 15% more time staying on task than colleagues in windowless offices [26]. The basics have to be right. When Anyone who has had to work in a employees are asked which features windowless office will know how they consider important for an effective important it is to have the right light workplace, the two most common levels – and how important it is to answers are the ‘Desk’ and ‘Chair’ have at least some natural light. In perhaps not surprisingly. Slightly fact 48% of 18-25 year olds would prefer only natural light in their working further down that list though sit other factors such as ‘Temperature Control’ environment [27]. ‘People who spend (5th) and ‘Natural Light’ (8th) [29]. more time in natural lighting than in artificial lighting have increased productivity and alertness’ [28].

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Office temperature is vital, although according environment, highlighting the efforts made by to The Health and Safety Executive, there isn’t some companies to ensure staff are working a legal requirement for a minimum (or even at a comfortable temperature. maximum) workplace temperature. It does The culture of bringing the outdoors inside will say however that a workplace should be at be implemented in an effort to drive employee least 16 degrees, or 13 degrees if much of the satisfaction and productivity. One study by work is physical. A study in America across Plant Culture Inc. even highlights that plants, 575 office buildings highlighted that 77% of when placed inside the office, can lower indoor environmental complaints were about workplace stress and improve productivity by conditions perceived to be too hot or too 12% [31]. cold [30]. Finding the optimum temperature for an office environment can be a matter of trial As traditional working hours and working and error. methodologies change so does the need for conventional offices. Whilst internal walls gave According to Sodexo’s March 2013 way to open plan some time ago, a number of workplace survey, having a ‘consistent companies have been even more radical and temperature’ is the number one way to creative in the use of their internal and external improve workplace comfort. space – Google, Innocent, Pixar and Red Bull On the trade floor at the Macquarie Group are all examples of companies who don’t just offices in London, chilled water pumps think of offices as places to work. They believe through the desks to maintain the temperature that the office should positively bring out the and generate a comfortable working best in their people.

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Social trends – The world wants to be a healthier place Implementing and measuring health and well-being programmes usually present win-win scenarios for employee and employer alike. The tangible benefits for employees are evident, from weight loss to the reduced possibility of mental health issues. There are tangible benefits for employers as well. ‘Given complete freedom, people want to be on a height looking down. They prefer open, savannah-like terrain with scattered trees and shrubs and they want to be near a body of water, such as a river or lake’ [33].

According to architectural firm HOK, there are 10 workplace design considerations that can positively impact the workplace environment, enhance performance and improve health and wellness: 1 Thermal comfort and temperature 2 3

Access to nature, views and daylight Sensory change and variability – a lack of visual stimulation during the day can dull the senses Colour affects peoples’ moods Noise control Crowding Human factors and ergonomics – workplaces that are comfortable and flexible Indoor air quality Choice for employees Employee engagement

4 5 6 7

< “ FTSE 100 companies that track and report their wellbeing programmes outperform others by 10%. Monica Parker, Head of Workplace Consulting at Morgan Lovell [34]

8 9 10 [32]

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Summary People are trying to live healthier lifestyles and are more aware of the benefits of a balanced diet and regular exercise Over 95% of consumers see eating fresh fruit and vegetables as important with 74% aware of the importance of drinking enough fluid during the day. Sports participation has risen following the Olympics with 75% of councils seeing an increase in participation at sports clubs since Summer 2012.

Organisations need to understand how their office can support their employee’s health requirements 1 Staff restaurants should offer a large variety of nutritional and balanced choices for staff to choose from throughout the day. Healthier lifestyles should be actively encouraged. Employees should be encouraged to partake in sport. Subsidised gym memberships, on-site sports facilities and after-work exercise groups are all seen as benefits in the workplace in terms of supporting the health of their employees. Space to park bikes at the office will become more important as employees continue to cycle to work. Offices should also be equipped with showers and changing facilities for those staff who wish to cycle. Some organisations support staff who cycle by providing financial support to purchase a bike. A thorough well-being programme should be implemented and continuously managed and updated to ensure staff comfort levels are optimum.

More employees are cycling to work. Since 2000, TFL has seen a 117% increase in the use of London’s cycle network.

Well-being programmes are becoming increasingly important to ensure employees are comfortable in their working environment. FTSE companies that track a wellbeing programme outperform others by 10% in the market.

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For these employees, work-life flow stems from the opportunity and flexibility to prioritise The lines between work and life have become between work and personal life. more blurred than ever before, thanks largely Research suggests that 67% of to Gen Y who want (and demand) more employees would stay at a company flexibility than any generation before them. because of the balance it offers them [1]. Whilst the talk is still about ‘work-life balance’, Despite this, less than half of adults aged it has become something of a hackneyed 16 and over in Great Britain report a and over used phrase. Instead, increasingly, relatively low satisfaction with their workthe media (and to some extent businesses) life balance [2] showing they want to see a are talking about work flow. change in the way they work. This isn’t all about allowing people to work from home or remotely, but is about creating a synergy between work duties and personal life. In many professions, remote working is simply not an option. Doctors, teachers, engineers, and factory workers are all required to be ‘present’ at their workplace to carry out their duties.

Work and life as one

67% Stay at company due to the balance it offers

< Have a low satisfaction of their work life balance

47.4%

“ It’s [managing personal lives at work] just making

employees lives an awful lot easier, so that when they are home, they feel like their life is much easier, so they can put the commitment into doing everything they need to do for the company, to go the extra mile, and deliver what the company needs them to deliver. Robin Giles, HR & Corporate Planning, Toyota [3]

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Flow, not a balance

unhappy extremes, the whole corporate economy suffers [5]. This idea of seeing work and life as a flow has been reflected in the findings of a new study from Millennial Branding and Identified.com which shows that Millennials have morphed both home and work life into one and they are always in both frames of mind – working during the weekend, but arranging social activities during the working day. In a survey of 366 business managers including Cass Business School and Henley Business School, 48% of people strongly agree or agreed with the statement ‘My organisation does its best to improve the work-life balance of its people’ [6]. Employers are looking at ways in which they can allow their staff to manage their personal lives from the office environment as it becomes more important to today’s employees. Some of these methods are explored further over the page.

“ When people are at work they are often Doug Shaw,

thinking about what is happening at home, and vice versa [4] .

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Founder of What Goes Around

Work and life have become intertwined. Increasingly people are seeing the connection between work and personal life as a blend and not a balance. Balancing suggests that as one increases in influence, the other decreases, but this is not necessarily the case. In an article in the Financial Times by Andrew Hill (March 11th 2013) he says that the description ‘work-life balance’ lays a trap for those individuals who believe they can spend the first half of their lives on work and the rest on life. He writes that if employees are driven, or drive themselves to unproductive and

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People trends – Work and life as one

Employees will surf at work Thanks to the advent of technology, employees live in a world that is automatically connected at the touch of a button. In that context, using personal time to browse at work would appear both normal and necessary.

This is supported by a survey from eMarketer, which states that 25% of employees use the internet for personal use during office hours for at least ten minutes a day, whilst 13% of workers use the internet for at least two hours per day. The survey also highlighted that 35% of employers think personal web time should be limited to 30 minutes per day [7].

It is estimated that workplace browsing costs the UK economy up to £14bn each year, though blanket bans are not seen as the way forward. With employees connected to the internet on multiple devices, it is virtually impossible to stop them browsing. It is deemed by some as so important, that a recent survey of 16 to 24 year olds showed that half of them would not work for an employer that banned social media at work [8]. Having said that, social media platforms such as Twitter, Facebook and, to a lesser extent LinkedIn, are ‘banned’ at work in approximately 50% of UK and US companies [9]. Companies that do ban the use of social media at work defend their decisions by arguing that it is difficult to monitor amongst concerns over security and data protection. This is not un-true, but it can be managed through a detailed social media policy.

Sodexo’s March 2013 workplace survey shows that 64% of people think social media platforms such as Twitter, Facebook and LinkedIn improve their working life with the most important reason being that they are used to research the market. Despite this, only 51% of respondents claim to have access to Twitter, 57% to Facebook and 69% to LinkedIn at work. Experts suggest that companies will embrace the use of social media and ‘personal browsing’ at work as they start to see the benefits it can bring to the business in terms of improving the work-life flow of employees. It provides businesses with direct access to consumers. Never before has there been such direct access between consumers and businesses. Social media provides those using it with access to real-time information [10].

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Personal calls at work are important Taking personal calls in the workplace is a further area affected by the increasing blur between work and personal life. According to the ‘Ofcom Communications Market Report’ from 2012, 60% of mobile users in the UK own a smartphone. Of those that own a smartphone and are employed, 30% of them say they regularly use their personal device for private calls whilst at work. In addition, 35% of smartphone users regularly use their device (be it a personal smartphone or a work smartphone) for work out of office hours with a quarter of smartphone users using it for work whilst on annual leave [11].

Additionally, an American survey of over 500 22 to 26 year old graduates showed that 23% of respondents would not take a job where they could not make personal phone calls and 20% would reject a job offer if they could not check their personal emails whilst at work [12]. With the emergence of open plan spaces and the removal of dedicated office space, having somewhere to take personal calls has increased in importance. At Innocent headquarters in London, staff are encouraged to take personal phone calls inside a traditional red telephone box for privacy [13]. The need for private space within the workspace will become more important as the lines between work and home life continue to blur.

Wouldn’t take a job where they couldn’t make personal phone calls

23%

< Would reject a job offer if they couldn’t check their personal emails whilst at work

20%

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The right to request flexibility In November 2012, Nick Clegg laid out proposals to make flexible working patterns achievable for everyone. The new employment rights package is designed to make flexible working the ‘norm’ in modern society, to “help drive a culture shift in the workplace” [14] and encourage more women back in to work [15]. At present, all parents and carers are legally permitted to request a change in their hours or location of work. Clegg’s proposal will however see this extended to any relative, grandparent or close family friend who can provide childcare assistance. Initiatives are being introduced by employers and government alike, aimed at supporting employees trying to manage the flow between their work and personal lives. This is set to continue.

< “ The right to ask for flexible working and improved parental leave conditions offers support for parents with young children. However, we will only succeed with these rights if business leaders realise that flexible working is not just for young mothers. Improving the work/life balance can benefit all employees and businesses. For example, Xerox UK estimates that the introduction of new ways of working has saved the business £1m over the past five years through enhanced staff retention. At BT, work/life balance initiatives have saved the company hundreds of thousands of pounds in recruitment, retention and development costs and more than £200m in accommodation costs [16].

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People trends â&#x20AC;&#x201C; Work and life as one

Summary Work and home life have become inter-twined. The latest generation sees them as one The ability to manage home life at work is becoming increasingly important as more people continue to manage their work life at home. 67% of people say they would stay at a company because of the balance it offers them.

The blurring of work and social life is having a major influence on the workplace environment 1 Employees should be made to feel comfortable managing their personal life whilst in the office. This means seriously considering lifting any website ban in place (or not implementing one in the first place) and allowing personal items to be delivered to work.

Whilst organisations may not approve, employees will spend time at work managing their personal life. This could be by surfing the internet, using social media or making personal phone calls.

The office space should provide a private environment in which employees can make personal phone calls and manage their personal life away from the openness of their desk.

Up to half of 16 to 24 year olds would not work for an employer that banned social media at work. Despite this, social media is still banned at approximately half of all UK and US businesses.

Organisations should implement a social media strategy that enables employees to use it whilst at work, but understand the possible security implications that can arise in terms of leaked information or damage to their brand name. Trusting employees to use social media responsibly at work can bring about increased engagement.

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Working any time, anywhere The remote working movement is beginning to become an everyday aspect of many people’s lives. According to the 2011 UK Labour Force Survey, almost 14% of the population works remotely, a rise of 1.4% from 2005. Of these remote workers, two thirds work in multiple locations whilst nearly 30% work from the home [1]. Post the 2012 Olympics, when telecommuting was used as a tactic by many London institutions to combat long commutes, a survey of 2,500 people carried out by Regus highlighted that 2 in every 5 workers work remotely for at least half the week [2].

Nowadays, how and where people work has changed. This is down to a combination of the generational changes to our workforce, the increased availability and developments in technology and the increased importance of work-life flow. Flexibility and telecommuting continue to remain an important factor for employees and employers alike. A study by the consulting firm Deloitte found that while salary is still top, work flexibility – when, where and how you work – is becoming an increasingly prominent consideration [4]. In a compensation survey of 1,400 CFO’s in 2009, 46% stated that telecommuting was second only to salary as the best way to attract top

talent with 33% claiming that telecommuting was top of the list [4]. A further study revealed that around 14% of people claim that it is so important that they would change jobs in order to work with fewer restrictions [5]. While trust and the difficulty of managing staff are often cited as the reasons why flexible working conditions are not offered to staff, there are schemes that have shown flexible working boosts productivity and efficiency.

“ Work is an activity not a place – work is no longer confined to the office environment and we need to support work in different locations and on the move [3].

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Flexible working makes business sense Offering employees the ability to work flexibly makes business sense. A flexible working pilot scheme was introduced at O2 to highlight the changes in productivity that such schemes can have. As part of the pilot, one quarter of O2’s 12,000 strong workforce worked at home for the day. On that one day alone employees saved 2,000 hours of commuting time,

the equivalent to 250 8-hour days. Of these 2,000 saved hours, 52% of it was spent on working, with the rest spent on personal time [6]. O2 showed that as a result of the flexible working pilot scheme there was an increase in productivity of 15 to 20% [7]. A recent study conducted by Cisco highlighted that its employees who work from home through its ‘Virtual Office’ equipment were nearly 50% more productive, with the average

employee gaining 2.75 more productive work hours during the week [9]. Other studies show that people who can work effectively from a remote location can work 15 to 20 additional hours a week [10]. There are clear, tangible benefits to deploying a flexible workforce. As more companies run pilot schemes and start to understand the return on investment such arrangements can offer, they will become more and more a part of everyday life.

Reduction in absenteeism and increased retention Increased productivity

A wider talent pool

Increased staff loyalty

65% 58% 42% 70%

of employers say flexible working practices had a positive effect on recruitment and retention of SME’s have seen an improvement in productivity of employers reported the positive effect in recruitment of employers noted some or significant improvement in employee relations

[8]

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“

Whether employees elect to work away from the office or it is encouraged by employers, the infrastructure now The benefits of working from home are exists to allow the workforce to work not just seen by the employer. Working anywhere in the world. There are no from home for some or all of the week limits to how, where or when people can be productive. has become increasingly popular for employees. According to the May 2012 A study of 5,000 UK Directors and report on flexible working provision business owners reported that 60% and uptake by the Chartered Institute of office-based employees will be of Personnel and Development, 73% of regularly working from home within employees report that flexible working the next decade. The Virgin Media has a positive impact on motivation, Business report also highlighted the whilst only 3% believe it has a negative possible changes we will experience effect [11]. regarding face-time with employees, by stating that 72% of respondents think face-to-face meetings with customers will become outdated [13]. The growth in video and social media across corporate networks is also supporting this migration away from the traditional office confines; the importance to underlying network infrastructure once more comes under the spotlight.

The office can be anywhere

However, not all organisations are following this trend with Yahoo recently requesting all of its employees to work back in the office from June 2013. This request bucks the trend and received mixed response from employees and industry professionals alike. Only time will tell whether it is a positive outcome.

“ So, if you want to get up at five in the

Tony Grace, Chief Operating Officer, Virgin Media [14]

”

morning and work from home until eight, and then go off to the gym for a couple of hours, or an hour or so, then go into the office for half the day, or not go into the office at all, just because you’ve ticked all those requirements that your employer wants from you, why should they really mind, as long as you’re being as productive as you possibly could be, does it matter how you achieve it? David Emanuel, Managing Director, i-FM [12]

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Work contracts are changing “The last decade of the twentieth century brought a rapid growth in the flexibility of employment contracts. Part-time work, staggered hours, condensed working and ‘flexi-time’ spread. But these were mainly just variations of the permanent, full-time job. The following decade saw an expansion of the ‘contingent workforce’. Organisations kept hold of a core of essential talent but contracted out peripheral activities to save costs and increase flexibility” [15]. Companies are now providing employees with a wider variety of working contracts, ranging from the traditional fulltime and part-time, to flexi-time and job sharing. This allows different employees with different skills, requirements and personal arrangements to continue working as and how it suits them.

Flexi-time is a system used by employers to allow staff to work flexible hours, typically at the beginning or end of the working day, provided that an agreed ‘core’ part of the day is spent in the office. Flexi-time in itself is not a wholly new concept, though its implementation has increased thanks to the demand for improved work-life flow and technological advancements. In 2011, flexi-time was offered as a working arrangement by 52% of UK employers, up from 44% in 2006 [16].

“ We are on the cusp of the next big transformation in the model of work. Today technology allows us to work very differently than we did even a decade ago, and the new generation joining the workforce is not the only one demanding a new deal. Demographic and social trends, particularly the changing role of women, all point to the need for a fresh approach to work. We are poised for a revolution in working practices [17].

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Summary Work is more and more being seen as an on-going activity The evidence that demonstrates that some employees can work more effectively and productively from a remote location will ensure that the percentage of employees working remotely continues to increase.

These changes are having a significant impact on the workplace environment 1 As more people work remotely, organisations will look to down size or move to less premium locations.

Telecommuting was offered by 34% of organisations when trying to improve their current working environment according to 2011 survey of 180 Human Resource (HR) Directors.

A telecommuting strategy should be implemented so that all employees who wish to work in that way can do so.

Working contracts are now changing as more people choose to work flexibly-the workplace will continue to see increased use of flexi-time and job sharing.

When recruiting new applicants, employment briefs should be flexible and aimed at attracting the best talent and not just those people who can work in a certain location during certain hours.

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The rising power of people The rising power of personalisation can be seen in all elements of our personal lives. From the high street to the workplace environment, there is an increased demand for more personalised experiences. As a country hit by recession, there is a notion that some employees count themselves as lucky to simply have a job. “Economically, we are in a period where the new generation is less likely to challenge the status quo when they arrive… they’re just lucky to have a job. It’s a luxury commodity; a full-time position.” Moving forward though, “I think it may well be that some of those Gen Y’s will challenge their employers increasingly on doing a good job. They know they can do a better job if the organisation is more fluid with its adoption of technology” for example explains Tim Oldman, Founder, Leesman Index. Some of the most engaged workers are those categorised as ‘vocally-involved’ meaning that they have the opportunity to voice their views and be heard, yet only 34% of employees fit in this category [1]. In a world of free flowing information, we will see employees stand up and challenge the norm. The rise of people power will mean organisations have to start listening.

“ Intuitively, I always believed that

by giving employees what they want—by satisfying their workplace needs—companies could find success. After almost three decades of research, we know: companies that fulfil their employees’ needs reap huge rewards when it comes to a motivated workforce, satisfied customers and, yes, profit.

”

Jack Wiley, Executive Director of Kenexa High Performance Institute [2]

“ The dynamics will be challenged more between senior and junior

employees, as the younger generation dictate, their requirements and what they expect of the office as far as technology and flexibility.

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Kylie Nelson, Head of Business Services, Macquarie Group Limited

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People trends – The rising power of people Recognition – Employees want a pat on the back Whilst researching for his book, ‘RESPECT: Delivering Results by Giving Employees What They Really Want’, Jack Wiley surveyed over 200,000 employees around the world over 30 years, asking them ‘What is the most important thing you want from your employer?’ His research found 7 key elements that were consistent throughout the world and throughout different industries. Harnessing the rising power of people and understanding how they want to work will be key going forward. Appreciating how employees work and how they want to be assessed will be influential as businesses strive to leverage more productivity from their workforce.

Exciting work – Employees want a job that is challenging, interesting and fun

Security – Employees want to feel confident about their future Pay – Employees want to be compensated fairly Education and growth – Employees want to be given opportunities to grow and develop

Conditions – Employees want a well-equipped environment that is comfortable, healthy and safe

Truth – Employees want to be told the truth

“ What’s more, the organisations that provide these

seven things outperform those that don’t. Their employee engagement level is 117% higher; their operational performance is 64% higher; their customer satisfaction level is significantly greater and their ‘return on assets’ is up to ten times higher. [3]

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Happiness works According to David Cameron’s ‘Happiness Index’, the average Briton rates their “life satisfaction” as 7.4 out of 10 [4]. It is poignant, that in a time when the news is dominated by GDP and the economic downturn, that the government is also looking at additional measures to gain a more dimensional picture of how society is performing. ‘Happiness’ and ‘wellbeing’ are no longer just exuberant adjectives; they are factors the government is monitoring to assess the state of the nation above and beyond GDP. It is not just the government measuring satisfaction, but businesses too. Evidence shows that happy employees are more productive and therefore better for the workforce. Following a study at Warwick Business School,

analysts showed that happy workers were up to 12% more productive than normal, while unhappy workers were up to 10% less productive [5]. This notion of ‘happiness works’ is becoming apparent when looking at the physical design of a workplace. Simon Jordan, Founder of Jump Design, explains that from an architectural point of view, they are seeing workplaces introduce “spaces that reward rather than replace hard work” as organisations provide employees with spaces to encourage happiness.

‘Ultimately…the source of productivity is… workers who get things done every day. And the evidence is clear: People perform better when they’re happier’ [6]. Happier employees lead to a more productive workforce. Companies will focus more on making their employees happy as they look to drive productivity and employee engagement. What they must consider though, is what makes one employee happy may be completely different from what satisfies another, and as a result employees will be offered more choice.

“ If it isn’t fun, no one is going to be there for very long.

Team outings, ping pong tournaments – whatever fits your culture – create opportunities to laugh and to see each other outside of just your day-to-day professional titles. Nick Worswick, Corporate Vice President, Seamless.com

“ Don’t fit people into work, but make work fit around people. Doug Shaw, What Goes Around Limited [8]

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Self-employment is on the rise One way that people are satisfying their demand for a greater say in their work-life flow is by becoming self-employed. There has been a steady increase in self-employment since the financial crash of 2008, but the characteristics of those people who are choosing selfemployment now are very different to those who made the switch between 2008 and 2011. • The three years between 2008 and 2011 saw an increase of 147,000 people becoming self-employed. 80% of these were female and they typically worked less than 30 hours a week, with the largest rise seen in people aged 65 and over. • Between 2011 and 2012, there was an increase in 219,000 people becoming self-employed of which 64% were male. 55% of the rise was in people who worked longer than 30 hours per week and those aged 50 to 64 saw the largest increase.

Looking into the future, more employees will dip in and out of work with different employers and different contract terms. People will build their individual portfolios to enhance their skill sets.

2008

Self-Employed Employees Self-Employed Employees Self-Employed Employees Self-Employed Employees Self-Employed Employees

3,810 25,416 3,790 24,817 3,896 24,783 3,957 25,011 4,176 24,983 *figures are in millions

“ Few people will start on a course

2009

2010

and stay there throughout their working lives. People will take detours, take time off to raise families, or to learn new skills. Maynard Webb, LiveOps

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2011

2012

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Judging employees on output As employees start to enjoy flexibility, or working on a contractual based selfemployment role, they will be assessed on their outputs rather than the time or effort exerted to get there. According to a global survey of 8,360 workers carried out by Dell, over half (54%) of British employees want to be measured by their outputs in terms of the quality as opposed to the time spent in the workplace. Two-thirds of employees are already measured on their outputs at work.

Despite this, only half of the employees surveyed in the UK claim that they can complete their workloads within the traditional 8 hour working day [10]. As employees challenge the norm and come to expect more from their employers, there will be an increased expectation on people to deliver work outputs. Flexible working provides employees with the benefit of being able to manage their own work-life flow. A word of warning though – whilst many employees may welcome the opportunity to work from home, it does not suit everyone. Some studies have shown that flexible working can, in fact, increase stress. A survey of 5,000 employees, conducted by the Economic and Social Research Institute, showed that 31% of people who work at home are stressed, compared to 19.5% of those not involved with homeworking [11].

“ We went from managing through Frances Quigg, Senior Manager, Vodafone’s Better Ways of Working

54% of British employees want to be measured by their outputs

attendance to managing through deliverables. Going forward, it’s all about output.

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The key to success in output based assessment is trust. Employers have to trust staff to deliver the work when it is needed. Many experts agree that trust is perhaps the most important element of a successful workplace. Companies whose employees trust them tend to have a more engaged workforce and a high efficiency work environment [12]. There will be a rise in employees who wish to be judged by their outputs and they will be attracted to those organisations that provide a flexible approach to working. As organisations start to implement such schemes, trust will be critical to success. Employees will have to prove they can work via this method, building further trust internally between team members, but also with employers who expect results.

Trust is a pre-requisite to employee engagement. Organisations that understand the importance of employee engagement have been shown to enjoy the following benefits: • 16% greater profit margin • 19% greater operating income • 18% greater productivity • 2.6 times earnings per share growth • 12% greater customer loyalty • 50% fewer sick days • 87% less likely to leave the organisation [13]

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Summary The availability of choice and the ease at which information can be gathered means that employees now have much more awareness of the options available to them The most engaged employees are those that are vocally active and stand up for what they believe. Gen Y are more likely to challenge the status quo than other colleagues as they become more confident in their ability.

In order to motivate, inspire and retain valuable employees, organisations will need to consider 1 Involving employees in their decision making processes with regard to the workplace environment. Giving employees the opportunity to voice their opinions and then using this feedback to implement change can be highly motivating for employees. Asking their employees what will make them happy (on a regular basis) and then acting on these findings.

Providing employees with the workspace they want and need can lead to an operational performance that is 64% higher than normal. Happy employees are productive employees. In the future, employees will dip in and out of different projects and different work to build their own portfolio- employees will seek out a career lattice as opposed to a career ladder. Employees will continue to want to be judged on their outputs as opposed to their inputs with trust being a key issue in ensuring deliverables are met.

Being very flexible in their approach to the appointment of new team members.

Introducing an output based assessment programme to ensure all employees are measured against quantifiable outcomes.

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To be the best, attract the best The office is often referred to as a ‘shell’ that houses the company’s most prized assets – its staff. Attracting and retaining the best staff is a well-known and often used business strategy for improving efficiency and productivity. According to Nic Marks, Founder of Happiness Works, companies listed in The Top 100 places to work typically outperform the market by approximately 2-4% each year. With job satisfaction the number one criteria to drive workplace satisfaction, companies are now attempting to attract and retain the best talent by making their workplace the best it can be [1].

In the future, as employees have more opportunities to choose from, their expectations are likely to rise. As a result of changing employee demands and expectations, they are likely to choose to work for the most accommodating organisations. Talent attraction and employee retention are key. Unsurprisingly remuneration is still the number one reason why the UK’s employees leave their job, with 32% of executives stating it as their main reason. The story in the capital however is different, with 38% of London employees citing a lack of work-life balance as the main reason for leaving employment [2].

According to the UK Workforce Mood Tracker 64% of UK employees would leave their job for a company that clearly recognised their contributions, while 90% said that employee recognition motivates them to do a better job [3]. Continuous feedback and support will be key to keeping the new generation of employees happy. In contrast to previous generations, Gen Y both seeks and appreciates support, feedback and regular appraisals.

“ When an employee completes an exchange with a manager who retains staff, he or she feels empowered, enabled and confident in their ability to get the job done. Susan Heathfield, Human Resources expert [4]

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The best offices attract the best staff David Henderson, Managing Director, Morgan Lovell, explains: “More

of the office and the brand essence are becoming increasingly important.

organisations are beginning to This is reflected by the fact that those understand that the office space is companies who reflect their brand not just a blot on the profit and loss essence in their workplace design are account, but an opportunity to motivate often voted some of the best places and inspire people. And comfortable, to work. One example is Google who motivated employees mean improved was nominated as the number one productivity” [5]. company to work for according to Companies are now looking at various Fortune. ways to attract and retain the best According to the Leesman Index, talent. Over and above motivating staff nearly 90% of employees agree through remuneration, recognition and that ‘The design of the workplace is reward; the physical space, the style

important to me’ yet less than half agree with ‘It’s a place I am proud to bring visitors to.’ Other research from Hyphen, says that two-fifths of Brits are not proud of their jobs. Up to 25% of London’s employees are losing pride in the place of work, up from 15% in the previous quarter, a poll of 1,000 workers showed [6]. Creating a workplace environment that employees are proud of will help retain and attract the best staff.

“ Those who invest heavily in a workplace Tim Oldman, Founder, Leesman Index [7]

would see it [talent management] as a key benefit of a heightened workplace.

”

“ If you want top people you have to have top premises. ” Harry Brouwer, Unilever [8]

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“ The role of the HQ is changing to one of

global corporate community centre. Rather than simply accommodating desks, an HQ is about creating a dynamic, collaborative meeting place that draws people in.

The work environment can play an important role in the attraction and retention of staff which is an increasing struggle for many organisations. The role of design will become more important in office buildings as organisations appeal to a younger generation of workers who are increasingly interested in flexibility, choice and variety in the workplace.

Young workers will judge how a company values its employees by how attractive the workspace is, particularly looking for modern, high-quality furniture and technology. Businesses that go even further and provide facilities such as car parking, bike storage, workout areas, food or dry cleaning will further stand out to young people [10]. Whilst sustainability in office design has improved due to the increase in government legislation, evidence suggests that sustainable office design also ‘helps firms attract top talent’. According to Paul Edwards, Chair of the British Council for Offices Environmental Sustainability Group and head of sustainability at Hammerson, “there is now a new generation of environmentally-

conscious employees that take green matters especially seriously when deciding upon where to work” [11]. The days of corporate colours and logo-fatigue are in decline – the modern office uses wall coverings, break out spaces, manifestations, digital signage and furniture to bring their brands to life and create a sense of place [12]. These workplace additions may just be the latest fashion for the moment, but evidence suggests that workspace design and brand culture, in a more holistic approach is becoming more important to employees. In short, the most innovative companies understand that the only way to stay at the forefront of their industry is by maintaining a strong company culture [13].

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Nicola Gillen, Practice Lead and Regional Director of Aecom’s Strategy & Workplace specialist division [9]

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According to Right Management, the cost of replacing an employee is nearly three times the employee’s salary, when you take into account recruitment, severance, lost productivity and lost opportunities. According to Life Work Solutions: • Over 50% of people recruited in to an organisation will leave within 2 years

Retaining talent is a priority An organisation’s largest cost is its employees, not fixed overheads. As a result of introducing new workplace incentives at Ginsters, including a full health and well-being programme, the company managed to save £30,000 per annum in recruitment costs. This scheme enabled Ginsters to retain the best talent meaning recruitment and advertising costs were reduced as well as seeing a reduction in health insurance costs as a result of a healthier workforce [14]. ‘Given the increasing choice of employment types, we believe that companies keen to attract the best talent will in future have to replicate as many of the benefits of self-employment as possible, while continuing to provide the safety of the employment contract. If they do not they risk seeing that talent go elsewhere, or go solo’ [16]. Attracting the best talent helps drive efficiency and productivity, while keeping the best talent reduces the heavy burden of recruitment costs. In this economic climate, companies are looking to drive efficiency; to make them stand out from the crowd and having the best employees is recognised as a key strategy to achieve this.

• One in four of new hires will leave within 6 months • Nearly 70% of organisations report that staff turnover has a negative financial impact due to the cost of recruiting, hiring, and training a replacement employee and the overtime work of current employees that’s required until the organisation can fill the vacant position • Nearly 70% of organisations report having difficulties in replacing staff • Approximately 50% of organisations experience regular problems with employee retention [15]

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Space trends â&#x20AC;&#x201C; To be the best, attract the best

Summary Employees are now much more savvy and much more aware of alternative job opportunities than they were a decade ago simply because the information they need is more readily and easily available The best employees are attracted to the best organisations. Companies listed in the top 100 places to work typically outperform the market by 2-4% each year. Remuneration is the number one reason why UK employees leave their jobs but organisations are starting to focus on other ways of attracting talent by making employees proud of where they work. Organisations will continue to want to bring their brand to life in their office design and to create an environment which enables them to attract the best talent. 70% of organisations report having difficulty with replacing staff and effective workplace design could see that problem decrease as potential candidates seek out the best places to work.

Creating engaging workplaces should be seen as a fundamental activity when attracting and retaining the best staff

Organisations should first of all understand from their employees what they want and what would make the office space a better place to work. Employers should engage with their employees and understand what makes them proud about their workplace.

More companies will follow the lead of Google, Innocent and Pixar in bringing their brand and company ethics and values to life through their offices.

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Space trends â&#x20AC;&#x201C; Open spaces create open cultures

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Space trends – Open spaces create open cultures

Open spaces create open cultures As commented on by Matt Oakley, Chairman of the British Council for Offices, there has been a “massive decrease” in the number of cellular offices and a corresponding rise in less hierarchical designs [1].

“ At present, 70% of office space is ‘individual’, with 30% ‘collaborative’. By 2020, this will have reversed.

”

and reduce their productivity by 15%’ [2]. Many experts believe that open plan environments also help spread germs and raise stress levels [3].

We have seen a clear departure from personalised office environments into open, engaging spaces that generate collaboration. Companies are looking at how they can engage their employees to make them more productive and efficient. The future workplace environment will revolve around community, with collaborative spaces to encourage efficiency.

Therefore, the key to making office space that encourages productivity and efficiency is in the design. Instead of simply breaking down the walls According to Marie Puybaraud, to create an open plan environment, a staggering 94% of ideas are the offices of the future will provide generated outside of individual or individual space to cater to differing personal office space, meaning we will needs. Employees will require options continue to see the increase in usage for the type of working environment of collaborative spaces. they desire, dependent on their work. Open plan offices have come under scrutiny since their rise, with research suggesting they have a negative impact on employee satisfaction and Future offices will have to be cleverer than just productivity. One survey suggests that promoting hot-desking…Social interaction will ‘an open-plan office layout can reduce still need to happen and providing collaboration a workers happiness levels by 32% space is the key.

Marie Puybaraud, Director Global Workspace Innovation, Johnson Controls

“

”

Ed Bartlett, Director, Kykloud.

“At present, 70% of office space is

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Space trends – Open spaces create open cultures

The shift to informality

As the new generation of employees make more of an impact in the workforce, Microsoft estimates the percentage of work the workplace will shift from formality to output and deliverables that depend on informality. 73% of Gen Y employees favour group input rose from 25% in 2000 to 70% in collaborating in informal break out spaces as 2010. It will therefore be crucial for the future opposed to formal meeting rooms [4]. to design spaces where employees can As more activity based work is deployed, work together, be engaged and collaborate. there will be a heavy emphasis on In their very nature, these spaces will collaborative spaces that invite unscheduled be informal when compared to single or interaction and create a more open, less personal office spaces [6]. formal channel for feedback. These spaces support faster-paced projects and delivery, which can deliver major value to a company where turnaround time is critical [5]. Now, designers are building a wider variety of The office can now be seen as a social hub; rooms tailored to each company’s function and a hive of activity to support engagement and direction. You are seeing more open meeting collaboration across different spaces. As spaces, lounge furniture near circulation spaces… we continue to see technology incorporated It is a shift from a ‘me’ to a ‘we’ workspace. throughout modern offices, the workplace

will be seen as an environment where social interaction between both employees and clients is at the forefront.

“

”

Michael O’Neill, Senior Director, Knoll, Inc.

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Space trends – Open spaces create open cultures of these ‘bumps’ and how they play an Design space that influential role in employees’ working days. encourages ‘bumps’ and discourages ‘interruptions’ ‘Collaboration – whether through

technology, shared workspaces, or Work is no longer confined to office spaces, simply bumping into people on but is all around us, all day, every day. “It is stairwells – is vitally important to the idea of work being an activity and not a encourage individuals and teams to [7] place” explains Alison Maitland . The over- solve problems quickly, make decisions arching implementation and use of technology and seize market opportunities’ [8]. means that people are now continuously Spaces that encourage ‘bumps’ and working be that in the office, at home or even collaboration must be off-set with space to on holiday – it is never ending. avoid interruptions. Research shows that Work is an ongoing activity: organisations following an interruption when focused on a are beginning to understand the importance task, it takes on average 15 minutes for an of collaboration and engagement in the employee to recover their ‘state of flow’ or workplace. Interaction is often unplanned level of concentration [9]. and informal, as opposed to pre-arranged Facebook have recently revealed new plans and structured. for their campus extension which will see one Meetings and collaboration can occur on single room stretch 10 acres, where everyone the stairs, in hallways, in open spaces; while will sit in the open on moveable furniture. It is outside, in the staff restaurant or at home. designed so that the open space will foster It is on the spot and spontaneous. Office greater communication and chance meetings architects understand the importance or bumps [10].

< At Vodafone HQ in Newbury, walkways were installed over manmade lakes to provide easy access to different areas of the campus. These walkways were specifically made narrower to encourage people to ‘bump’ into each other and have informal on-the-go meetings.

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Space trends â&#x20AC;&#x201C; Open spaces create open cultures

Summary Employees are much more open about the way they live. Information and advice is shared openly between peer groups as a result of the integration of technology in their lives Office spaces will continue to become more open plan, with a variety of spaces to fit different people and different circumstances.

The key to creating open environments is in the office design and culture

Space should be provided for all employees for all occasions, this includes personal space, open space, creative space and space supported by the technology needed to carry out certain tasks. Offices should be designed to encourage interaction between employees, both when they are working and when they are away from their desk. The space should be designed so that meetings can happen on the go and un-announced. Spaces should facilitate these meetings with touch down areas located around the whole office environment.

Social interaction and collaboration in office space design is key. Gen Y favour collaboration and open spaces over cellular desks. Offices are much more informal in their design and layout. Meetings are increasingly un-announced and un-planned- they are becoming more spontaneous and taking place anywhere within the workplace environment.

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Space trends â&#x20AC;&#x201C; Workplace optimisation for the future

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Space trends – Workplace optimisation for the future

Workplace optimisation for the future Up to £135 billion each year is being lost as a result of poorly designed offices; from the high cost of real estate, underutilised space and the wrong furniture solutions to poorly integrated technology. It is believed that up to 20% increase in productivity could be gained through more effective management of this area alone [1]. where employees are happy, comfortable and supported.

When asked about the objectives of organisations who seek guidance on how to improve or better understand their workplace, Tim Oldman, Founder of Leesman Index summed it up perfectly. “To provide a better environment that increases the engagement of the The underlying theme of future workplace employee, the pride of the employee and trends, whether it is technology’s the productivity of the employee are the influence on the new generation or key performance drivers for a corporate workplace design, is one of optimisation. organisation. It’s an improvement, People, offices and collaboration tools error elimination, process that those need to work smarter, not necessarily organisations are adopting it for primarily.” harder, to generate operational efficiency. Workplace optimisation is not There are new ways of working and fundamentally about cost saving, but new tools to leverage efficiency. Whilst improving efficiency. Cost saving can technology enables employees to indeed be a positive side effect to work anywhere in the world, the office successful workplace strategies, but environment should provide a motivational it is not always the driving force. and efficient space in which to work

20% Productivity can be increased by 20% in well designed offices

“ 54% of CEOs plan to focus on improving operational effectiveness in 2013. ” Derrick Tate, Assistant Director, PricewaterhouseCooper Real Estate Advisory.

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Space trends – Workplace optimisation for the future

Increase occupancy efficiency Open and collaborative spaces enable offices to reduce their footprint. ‘In traditional offices with assigned personal desks, average desk occupancy rarely rises above 50%’ [2]. A flexible working policy introduced in PricewaterhouseCooper’s offices in Birmingham, where the staff to desk ratio of 1.8:1 was introduced, saw the cost per person fall 41% from £5,780 to £3,400. Over the course of a ten year period, this is likely to save PwC approximately £30m with the initial investment of £7.5m paid back within three years [3]. Research conducted over two years by office furniture maker Herman Miller using chair sensors found that the average private office is unoccupied 77% of the workday, in use just 1.84 hours [5]. Improving occupancy rates can have a significant effect on productivity and efficiency.

Workplace: 12/1.3/80 These three numbers need to be remembered and understood. They describe where the best workplace leaders are moving to in terms of average occupancy efficiency across their offices:

12 square metres (net internal area) • per workspace •1 .3 supported occupants per workspace

“ Nobody would consider building a manufacturing facility that they intended to use just one-third of the time...And yet that’s what we routinely do with workspace [4]. Mark Golan, Cisco vice president for WPR.

•8 0% utilisation per workspace If your existing numbers are 20/0.8/50, then moving to 12/1.3/80 represents a staggering 63% improvement in efficiency. [6]

”

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Space trends – Workplace optimisation for the future

Make the most of your space As offices take advantage of a flexible workforce and new technology, companies will look to ‘right sizing’ – strategically reducing or adapting space and headcount to improve efficiency. Fundamentally it is about making better use of what is available and avoiding what has been defined as ‘spaceless growth’. A recent research survey from Citrix reported that by 2020 organisations are set to reduce office space by almost a fifth; the workplace will provide just seven desks for every ten office workers, with each person accessing the corporate IT network from an average of six different computing devices [7].

This trend has also been reflected in the BCO (British Council of Offices) in their Specification Guide, which now recommends office design occupancy density levels at 8-13 square metres, compared with the 12-17 square metres in the 2005 Specification Guide [8]. For many organisations, the prospect of physically ‘down-sizing’ may not be an option because they are tied in to rent agreements or repayments on a fixed space. ‘Right sizing’ is therefore about using office space as efficiently as possible; about using one space for more than one reason. This has led to the changing role that certain office facilities play in the workplace, for example the staff restaurant. Whilst the staff restaurant

has changed and developed in the last decade, with the evolution from subsidised canteens to corporate restaurant spaces, some predict it may change even more in the future.

“ We could see a reduction in the

number of staff restaurants at corporate organisations in some industries, as the focus changes to providing more café style offers that can be used throughout the day for both eating and informal meetings. We will start to see the traditional staff restaurant space used as more than just a restaurant, as companies look to optimise usage of their facilities.

”

Stuart Everson, Founder of Everson & Partners

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Outsourcing is on the rise ‘Britain is braced for the biggest wave of outsourcing since the 1980’s’ [9]. As the people power movement continues, combined with the increasing influence of technology, more people will work individually on a contractual basis. Outsourcing will affect and influence both multi-national organisations and individuals alike. Outsourcing is, “a cost effective and time-efficient business function. It can allow a business to gain competitive advantage through the allocation of specific function to a specialist external service provider” explains John Ellis, MD at Nexus.

The question of whether to outsource or not has never been more relevant than in this current economic climate. The anticipated growth in the contractedout sector is directly attributable to the rising trend in companies wanting to focus on their core activities in challenging economic times [10]. The public sector is now the largest outsourcing sector in the UK. The value of government contracts awarded to the private sector doubled over four years to £20 billion. This figure accounted for 63% of public sector outsourcing in the UK in 2012. The number of services contracts awarded by the government to the private sector rose by 7% in the four years preceding 2012, their combined value growing from £9.6bn in 2008 to £20.6bn in 2012 [11].

As witnessed with the changing employee relationships in the workplace, the relationships between clients and FM providers has also changed. “As outsourcing has evolved in a more strategic way, cooperation, collaboration and co-development are required in order to achieve a mutual goal. Therefore, a close and long-term relationship is needed to achieve a sustainable competitive advantage” [12].

“ 60% of contracts are outsourced in the UK, with a total potential value of £125 billion.

”

Derrick Tate, Assistant Director, PricewaterhouseCooper Real Estate Advisory

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Space trends – Workplace optimisation for the future

Create partnerships for the future Over time, with the growth and globalisation of companies, there will be a shift towards Total Facilities Management (TFM) and Global TFM contracts as organisations look to leverage efficiencies from their increased size and budgets. As within the relationship between employees and employers, trust and collaboration is key between FM provider and the client. These characteristics are built over time and it is only after working together will the true efficiencies of longterm relationships become evident.

Sodexo and AstraZeneca: A partnership case study AstraZeneca’s objective is to make the most meaningful difference to patient health through great medicines. Sodexo’s aim is to facilitate all their workplace services so that all AstraZeneca employees can work to their optimum potential. As the FM provider, Sodexo enable AstraZeneca staff to get on with their day job. Since the very beginning of the partnership, Sodexo has been able to demonstrate how (and where) they could improve and add value to the contract – they have spent

time truly understanding the needs and requirements of AstraZeneca staff. This partnership has enabled AstraZeneca to deliver its core business targets. Sodexo is not the only provider to work in partnership with AstraZeneca. They have a range of 16 suppliers within their ecosystem who work together mutually for the benefit of the client.

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Space trends â&#x20AC;&#x201C; Workplace optimisation for the future Delivery Models Single Service Multi Service Total Facilities Management Global TFM

Globalisation

< M&A Waves Wave 1 Single support service acquiring same service businesses Wave 2 Multi-service companies acquiring additional services Wave 3 Total facilities management companies consolidate their markets

Growth

Wave 4 Companies seeking new geographies for growth and multinational coverage, particulary in developing economies

Market Maturity

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Space trends – Workplace optimisation for the future

According to the latest MTW research report on the FM market, there is optimism ahead for the outsourcing market. Some organisations have highlighted ‘an apparent growing preference for single service providers boosted by the perception of a greater ‘leverage’ a client may have over a smaller FM provider’ [14].

This demonstrates (as it does with employees in the workplace environment) that there cannot be a one size fits all approach. Some companies will always seek single service providers and choose to work with a number of different contractors. Other organisations, by contrast, look to leverage the efficiencies from However, on the contrary, research using one TFM provider to cover from MCi predicts that the UK FM all services. There is no right or market will grow by approximately 2% wrong and forging partnerships each year until 2017, “the continued will be important for both trend towards outsourcing is expected routes- with outsourcing on to ensure future growth opportunities the rise there is likely to be for facilities management companies, an increase in both options. with bundled services and integrated solutions, in particular, showing the strongest growth potential” [15].

As with in the office environment, the future of FM is built around ‘Collaboration,’ ‘Engagement’, ‘Partnership’ and ‘Flexibility’. Creating long-term and sustainable partnerships in FM will be key to future success. FM providers may no longer be seen as simple service providers, but solution partners.

< 38%

% of Facilities outsourced

% of Organisations

0-25% 26-50% 51-75% 75-100%

28%

23% 11% [13]

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Space trends – Workplace optimisation for the future

We are fundamentally much more transparent in our approach to life, both personal and work. This transparency is not only seen between employees in the workplace, but between employers and other organisations. The availability of information and the ‘right here, right now’ mentality in which we breed is starting to have an influence on how organisations conduct their business.

Creating partnerships whereby both service provider and client can work together makes business sense.

“ 15% of the value of a contract is lost

due to inefficiencies in managing the relationship and collaboration between the two parties.

”

Andrew Humphries, CEO of SCC Index

“ We will have to work closer with our partners

and actually create real partnerships so that we grow. Clients don’t need just a contractor relationship anymore, they need a partner. They want an expert partner; someone that is going to bring substance and value to their partnership. They want a real working relationship.

By 2017, it’s predicted that we will see a 17% increase in the TFM sector, with annual growth fluctuating between 2% and 4%. “This projected growth is partly a reflection of FM companies adopting a more partnership-based approach and providing more tailored services” [16].

”

As organisations come to expect more from their contractors, as employees are from their employers, relationships will change. Open, honest and longer term partnerships will be formed if clients and contractors are to work in synergy, with both parties aiming to reduce costs and increase productivity, efficiency and collaboration.

Chris Sheppardson, MD of Chess Executive

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Space trends â&#x20AC;&#x201C; Workplace optimisation for the future

Summary Everything and everyone is being encouraged to work smarter (and often harder). All types of organisations are trying to really leverage the best out of their teams, their technology and their office space Up to ÂŁ135 billion is being lost each year as a result of poorly designed offices. Workplace optimisation is about improving efficiency and not simply cutting costs.

When looking at workplace optimisation, the implications are huge

Organisations and external FM providers need to continue to work closely together. As FM touches the lives of everyone in an organisation on a daily, if not hourly basis, it must be seen as a core business function rather than (as it sometimes can be ) a necessary but rather peripheral business activity. Flexible working schemes will mean offices could reduce in size - space allocated for office needs will need to be as efficient and cost effective as possible. The numbers to watch are 12/ 1.3/ 80.

Flexible working schemes can reduce costs. One such scheme from PricewaterhouseCoopers saw the cost per person fall 41% - potentially saving the company ÂŁ30 million over a ten year period. Research shows that by 2020 organisations are set to reduce office space by almost 20%. It is predicted that by 2017 the TFM sector will see growth of 17%. Strategic partnerships for the future are key. 15% of the value of the contract is lost due to inefficiencies in managing the relationship between the parties.

The partnership between FM provider and client should constantly be reviewed and managed. Longer term contracts may become more common place as both partners work together.

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Workplace optimisation for the future >

Acknowledgements Sodexo would like to specifically thank the following people for their time, effort and support on this project: • Tim Oldman, Managing Director, Leesman Index • David Emanuel, Managing Director, i-FM • Nigel Oseland, Director, Workplace Unlimited

• Doug Shaw, Founder, What Goes Around Limited • Frances Quigg, Senior Manager, Vodafone Better Ways of Working • Kylie Nelson, Head of Business Services, Macquarie Group Limited • Nic Marks, Founding Director, Happiness Works • Irena Czerski, Happiness Works • Simon Jordan, Managing Director, Jump Studios • Dan Wardle, Director, Surveyab Limited • Kevin Watters, Services Manager, Allianz • Hazel Hunter, Northern Ireland Police Force

Social trends – The composition of the workplace is changing

Sources 1. http://www.dailymail.co.uk/news/article-2218928/Jobs-surge-puts-record-number-Britons-work-Private-sector-credited-half-million-boost.html 2. http://www.ons.gov.uk/ons/rel/regional-trends/regional-economic-indicators/march-2013/sty---infographic-summary.html 3. http://www.ons.gov.uk/ons/dcp171766_302464.pdf 4. http://www.un.org 5. http://www.guardian.co.uk/worklifeuk/are-employees-being-offered-correct-benefits 6. http://www.ons.gov.uk 7. http://www.ftadviser.com/2013/01/04/pensions/personal-pensions/baby-boomers-are-working-for-longer-aviva-report-U10eP1Gksi5YsUIQHGqkMP/article.html 8. http://www.telegraph.co.uk/finance/personalfinance/pensions/9563647/Record-numbers-reach-retirement-age-as-baby-boomers-turn-65.html 9. http://www.bbc.co.uk/news/magazine-21302065 10. Business Change “The Evolving Workplace” (2008) 11. http://newsroom.cisco.com/release/1114955 12. http://www.efa.org.uk/data/files/publications/504/The-Gap-in-the-Workplace-GenerationY.pdf 13. http://www.efa.org.uk/data/files/publications/504/The-Gap-in-the-Workplace-GenerationY.pdf 14. http://www.efa.org.uk/data/files/publications/504/The-Gap-in-the-Workplace-GenerationY.pdf 15. http://www.forbes.com/sites/jeannemeister/2012/08/14/job-hopping-is-the-new-normal-for-millennials-three-ways-to-prevent-a-human-resource-nightmare/ 16. British Telecom’s report “Connecting the New Workplace” (Jan 2012) 17. http://www.forbes.com/sites/85broads/2012/01/23/gen-y-workforce-and-workplace-are-out-of-sync/ 18. http://www.publications.parliament.uk/pa/cm201213/cmselect/cmbis/writev/womeninworkplace/m25.htm 19. Future Work: How Businesses Can Adapt and Thrive in the New World of Work, Alison Maitland & Peter Thomson 20. A. Wittenberg-Cox and A Maitland, Why Women Mean Business (2009) 21. http://www.accountancylive.com/croner/editorialDetails/category/Development/Careers/editorial/Women-rise-up-as-glass-ceiling-begins-to-crack 22. http://www.accountancylive.com/croner/editorialDetails/category/Development/Careers/editorial/Women-rise-up-as-glass-ceiling-begins-to-crack 23. http://www.bbc.co.uk/news/business-20223264 24. Office for National Statistics – Labour Market Social Trends 41 25. http://www.sodexo.com/en/corporate-responsibility/diversity-inclusion/priorities/women.aspx 26. http://www.bbc.co.uk/news/uk-politics-20295439 27. http://www.ft.com/cms/s/0/354e0ac8-7f06-11e1-a06e-0144feab49a.html#axzz2MgKsO4U5 28. http://www.bbc.co.uk/news/business-20223264 29. http://www.telegraph.co.uk/women/womens-business/9673548/Companies-will-still-refuse-flexible-working-requests-so-who-cares.html 30. http://www.bbc.co.uk/news/uk-18187449 31. http://www.jobshout.co.uk/recruitment_2020_a_changing_workforce.html 32. ‘Women on Board’ April 2013 33. http://www.bbc.co.uk/news/business-22089232 34. “The Bottom Line: Corporate Performance and Women’s Representation on Boards”, L. Joy, N. M Carter, H. M Wagener, S. Narayanan, Catalyst, 2007 35. ‘Women on Board’ April 2011 36. Government Equalities Office, 11 March 2010

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Social trends – Technological changes dictate how we work

Sources 1. British Telecom’s Report “Connecting the New Workplace” 2. http://www.today.ucla.edu 3. http://www.bbc.co.uk/news/business-19639048 4. Marie Puybaraud, Director Global Workplace Innovation, Johnson Controls 5. I-FM “Ten Trends for 2013” Published: 8th November 2012 by Paul Statham 6. https://www.btconferencing.co.uk/case-studies/case-study-on-bt-sustainability-value-in-a-virtual-world_en.pdf 7. http://www.techterms.com/definition/cloud_computing 8. http://www.knowledgeinfusion.com 9. http://www.cloudhypermarket.com - http://www.cloudhypermarket.com/whatiscloud/CloudUptake 10. Have we got our heads in the cloud? An exploration into the impact of Cloud technology on real estate 11. www.http://searchnetworking.techtarget.com

12. http://www.workplaceunlimited.com/ 13. Have we got our heads in the cloud? An exploration into the impact of Cloud technology on real estate 14. http://www.mythinpc.ca/content/features-and-benefits 15. http://www.mythinpc.ca/content/features-and-benefits 16. http://www.techrepublic.com/blog/smartphones/infographic-the-power-of-mobile/4266 17. http://www.trainingzone.co.uk/blogs-post/bring-your-own-device-and-next-generation-learning/183905 18. http://www.businesscomputingworld.co.uk/generation-y-are-putting-an-end-to-9-5/ 19. http://www.computerweekly.com/opinion/Bring-Your-Own-Device-in-the-Enterprise

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Social trends â&#x20AC;&#x201C; The world wants to be a healthier place

Sources 1. http://www.dh.gov.uk/health/2012/04/obesityfacts/ 2. http://www.noo.org.uk/NOO_about_obesity/trends 3. http://www.guardian.co.uk/worklifeuk/are-employees-being-offered-correct-benefits 4. http://www.leatherheadfood.com/increasing-number-of-uk-consumers-have-greater-awareness-of-health-and-well-being 5. http://www.telegraph.co.uk/sport/olympics/9726783/London-2012-Olympic-and-Paralympic-Games-success-brings-record-sport-participation-around-England.html 6. http://www.sportscoachuk.org/blog/councils-report-big-rise-sports-participation-post-olympics-press-release 7. http://www.healthyperformance.co.uk/ 8. http://working.ezinemark.com/healthy-schemes-to-increase-your-staff-productivity-7d2eb3979ff4.html 9. http://www.macquarie.co.uk/mgl/uk 10. http://www.webmd.boots.com/healthy-eating/diet-health-benefits-of-a-balanced-diet 11. www.healthatwork.org.uk 12. http://www.cdc.gov/workplacehealthpromotion/businesscase/benefits/productivity.html#Ob2 13. http://uk.prweb.com/releases/2013/1/prweb10338067.htm 14. http://www.allegrastrategies.com/ 15. http://www.mentalhealthy.co.uk/lifestyle/food/the-importance-of-lunch.html 16. http://www.dailymail.co.uk/health/article-1276881/The-brain-diet-Eating-right-foods-improve-memory-lift-mood-help-concentrate-longer.html 17. www.tfl.gov.uk 18. Johnson Controls Global Workplace Innovation: Generation Y and the Workplace Annual Report 2010 19. http://working.ezinemark.com/healthy-schemes-to-increase-your-staff-productivity-7d2eb3979ff4.html 20. http://www.bbc.co.uk/news/magazine-21076461 21. Mark Duddridge, Managing Director, Ginsters 22. Rethinking Voice for Sustainable Business Success 23. http://visual.ly/sitting-killing-you 24. http://www.smartplanet.com/blog/bulletin/experts-sitting-all-day-worse-than-smoking/11032 25. Kylie Nelson, Head of Business Services, Macquarie Group Limited 26. http://blog.desktime.com/post/29825710990/can-an-office-environment-really-affect-productivity 27. www.osti.gov 28. Johnson Controls Global Workplace Innovation: Generation Y and the Workplace Annual Report 2010 29. http://leesmanindex.com/ 30. http://www.goodtherapy.org/blog/natural-lighting-increases-productivity-0104112/ 31. http://www.plantcultureinc.com 32. http://www.hok.com/thought-leadership/workplace-strategies-that-enhance-human-performance-health-and-wellness/ 33. Kellert, Stephen R., Judith H. Heerwagen, Martin L. Mador, Biophilic Design, Edward 0. Wilson, Chapter 2: The Nature of Human Nature, Wiley, 2008 34. Leesman Review: Issue 8

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People trends â&#x20AC;&#x201C; Work and life as one

Sources 1. http://www.businessnewsdaily.com 2. http://www.ons.gov.uk 3. http://www.toyota.co.uk 4. Doug Shaw, Founder, What Goes Around Limited 5. http://www.ft.com/cms/s/0/433c196e-8a35-11e2-bf79-00144feabdc0.html#axzz2OAllvYPF 6. Future Work: How Businesses Can Adapt and Thrive in the New World of Work, Alison Maitland & Peter Thomson 7. http://careerplanning.about.com/cs/bosscoworkers/a/net_at_work.htm 8. www.guardian.co.uk - http://www.guardian.co.uk/media-network/media-network-blog/2013/mar/05/employers-social-media-business 9. http://www.telegraph.co.uk 10. http://www.techpageone.com/business/social-media-in-the-workplace/#.UUbKzRy9mwU 11. Ofcom communications market 2012 report

12. http://online.wsj.com/article/SB10001424052702303630404577392321560456012.html 13. http://www.innocentdrinks.co.uk/blog/2007/may/lifting_a_big_r 14. http://www.telegraph.co.uk/news/uknews/9671173/Nick-Clegg-unveils-plan-for-flexitime-working-patterns.html 15. http://www.telegraph.co.uk/women/womens-business/9673548/Companies-will-still-refuse-flexible-working-requests-so-who-cares.html 16. http://www.computerweekly.com/opinion/UK-businesses-prove-work-life-balance-policies-can-improve-a-firms-bottom-line

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People trends – Working any time, anywhere

Sources 1. http://www.thetimes.co.uk/tto/public/smallbusinessmasterclass/article3400033.ece 2. http://realbusiness.co.uk/article/14691-two-in-five-professionals-now-work-remotely-part-of-the-week 3. Business Change “The Evolving Workplace” (2008) 4. Knoll Workplace Research ‘Five Trends that are Dramatically Changing Work and the Work Place’ 5. http://www.microsoft.com/en-gb/business/news/Flexible-working-important-to-employees-801537204.aspx 6. http://news.o2.co.uk/?press-release=o2-releases-the-results-of-the-uks-biggest-ever-flexible-working-pilot 7. http://bdaily.co.uk/opinion/01-02-2013/will-flexible-working-transform-businesses-working-culture/ 8. Department for Work and Pensions - http://www.dwp.gov.uk/docs/family-friendly-task-force-report.pdf 9. Future Work: How Businesses Can Adapt and Thrive in the New World of Work, Alison Maitland & Peter Thomson 10. http://www.bbc.co.uk/news/business-19594518 11. http://www.cipd.co.uk/binaries/5790%20Flexible%20Working%20SR%20(WEB2).pdf

12. http://www.i-fm.net/ 13. http://thenextweb.com/uk/2012/02/22/home-sweet-home-60-of-uk-employees-could-be-working-remotely-within-a-decade/ 14. http://www.workwiseuk.org/articles/?article=virgin-media-business---top-tips-for-effective-remote-working 15. Future Work: How Business can Adapt and Thrive in in the New World of Work 16. European Working Conditions Observatory - http://www.eurofound.europa.eu/ewco/2011/09/UK1109039I.htm 17. Future Work: How Business can Adapt and Thrive in in the New World of Work

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People trends â&#x20AC;&#x201C; The rising power of people

Sources 1. http://www.cipd.co.uk/NR/rdonlyres/DD66E557-DB90-4F07-8198-87C3876F3371/0/Creating_engaged_workforce.pdf 2. http://khpi.com/respectthebook 3. http://www.management-issues.com/2011/10/20/opinion/give-employees-what-they-really-want.asp 4. http://www.independent.co.uk/news/uk/politics/first-annual-results-of-david-camerons-happiness-index-published-7972861.html 5. http://www.guardian.co.uk/science/2010/jul/11/happy-workers-are-more-productive 6. Teresa Amabile and Steven Kramer, â&#x20AC;&#x153;Employee Happiness Matters More Than You Think http://www.businessweek.com/debateroom/archives/2012/02/employee_happiness_matters_more_than_you_think.html 7. http://www.metro.us/philadelphia/lifestyle/career/2013/03/10/they-wouldnt-call-it-work-if-it-was-supposed-to-be-fun-right/ 8. http://stopdoingdumbthingstocustomers.com/ 9. Office For National Statistics 10. The Evolving Workforce. Report #2: The Workforce Perspective http://i.dell.com/sites/content/shared-content/campaigns/en/Documents/Report2_The_Workforce_Perspective_Global.pdf

11. http://www.belfasttelegraph.co.uk/news/local-national/republic-of-ireland/home-workers-under-more-pressure-28681037.html 12. http://www.mmchr.com/the-importance-of-trust-in-the-workplace/ 13. http://www.greatplacetowork.com/publications-and-events/blogs-and-news/1491-creating-great-workplaces

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Space trends â&#x20AC;&#x201C; To be the best, attract the best

Sources 1. http://www.happinessatworksurvey.com/ 2. www.hrmagazine.co.uk - http://www.hrmagazine.co.uk/hro/news/1020904/uk-employees 3. http://www.globoforce.com/gfblog/2012/64-of-uk-employees-would-leave-jobs-for-better-recognition/ 4. http://humanresources.about.com/od/retention/a/manager_role.htm 5. http://www.employeebenefits.co.uk/resource-centre/analysis/the-workplace-as-a-benefit/367.article 6. http://www.telegraph.co.uk/finance/jobs/9462658/Most-Brits-not-proud-of-their-jobs.html 7. http://leesmanindex.com/ 8. Future Work: How Business can Adapt and Thrive in in the New World of Work 9. http://www.building.co.uk/the-future-office/5048976.article 10. http://lcp.org.uk/index.php/2012/10/what-do-generation-y-value-physical-surroundings/ 11. http://www.morganlovell.co.uk/office-design-news/sustainable-office-design-helps-firms-attract-top-talent$800534725

12. http://info.claremontgi.com/blog/bid/274299/the-changing-nature-of-brand-expression-in-office-interiors-projects?utm_source=linkedin&utm_medium=social&utm_ content=d568e176-3816-4901-afa5-2429650a9519?utm_source=linkedin&utm_medium=social&utm_content=920885b1-d493-4f45-940d-1397f9d2561d 13. http://www.businessinsider.com/how-to-create-a-fearless-office-culture-2013-2 14. Mark Duddridge, Managing Director, Ginsters 15. https://hr.blr.com/whitepapers/Staffing-Training/Employee-Turnover/Strategies-for-Retaining-Employees-and-Minimizing16. Future Work: How Business can Adapt and Thrive in in the New World of Work

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Space trends – Open spaces create open cultures

Sources 1. http://silentedge.co.uk/news/open-plan-offices-reflect-changes-in-corporate-culture/ 2. http://www.movehut.co.uk/news/open-plan-offices-favoured-but-at-what-costs-1212/ 3. http://www.personneltoday.com/articles/22/01/2009/49173/open-plan-offices-spread-germs-and-stress.htm#.UUbsaBy9mwU 4. Generation Y and the Workplace Annual Report 2010, report by Johnson Controls 5. http://www.colliers.com/en-us/experts/activitybasedworkplacedesign 6. http://www.colliers.com/en-us/experts/activitybasedworkplacedesign 7. Future Work: How Business can Adapt and Thrive in in the New World of Work 8. http://www.theanywhereorganisation.com/2011/06/chance-meetings-encouraging-the-bump-factor/ 9. DeMarco and Lister, 1987 from AMA Alexi Marmot Associates, London, UK “Environments for Successful Interaction”) 10. http://www.forbes.com/sites/kevinkruse/2012/08/25/facebook-unveils-new-campus-will-workers-be-sick-stressed-and-dissatisfied/

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Space trends – Workplace optimisation for the future

Sources 1. http://www.maris-interiors.co.uk/optimisation/optimised-workspace/8-step-process/ 2. http://www.flexibility.co.uk/flexwork/offices/space-sharing.htm 3. Flexible Working Benefits, Collated Evidence and Case Studies, September 2012, http://www.workplaceunlimited.com/2012%20WPU-OP-01%20Flexible%20Working%20Benefits.pdf 4. http://www.cisco.com/web/about/ciscoitatwork/collaboration/connected_workplace_web.html 5. http://www.colliers.com/en-us/experts/activitybasedworkplacedesign 6. Facilities Management “New Needs, New Solutions” (2012) 7. I-FM “Ten Trends for 2013” Published: 8th November 2012 by Paul Statham 8. http://agile.org.uk/2012/10/11/spaceless-growth-hidden-opportunity/ 9. www.ft.com - http://www.ft.com/cms/s/0/7d8072aa-aa89-11e1-899d-00144feabdc0.html#axzz2NPxS12hJ 10. http://www.fmlink.com/article.cgi?type=News&archive=true&title=Outsourcing%20versus%20Insourcing%20in%20a%20Cost-Cutting%20Climate&mode=source&catid=1&display=article&id=30988

11. http://www.localgov.co.uk/index.cfm?method=news.detail&id=108672 12. http://www.outsourcemagazine.co.uk/articles/item/4971-look-after-your-outsourcing-relationship-to-make-it-successful 13. “The changing shape of facilities management procurement”, Interserve 14. http://www.i-fm.net/news/optimism-returning-to-fm-market 15. http://www.i-fm.net/news/return-to-growth-for-fm-market 16. http://www.i-fm.net/news/return-to-growth-for-fm-market

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