ASID Workplace Design Sector Brief by Think Baseline

WORKPLACE

WORKPLACE DESIGN SECTOR BRIEF JUNE 2017

EXECUTIVE SUMMARY As the interior design profession continues to evolve in response to the rapid and complex changes happening around us, designers should be aware of the factors that impact their work. An awareness of influences can help designers maximize the impact they create through design. Charged with empowering interior designers to do their very best, the American Society of Interior Designers (ASID) conducted a Think Tank Challenge to capture the interaction between the interior design profession, the world that surrounds us, and how they impact each other. The results of the Think Tank Challenge appear in the ASID 2016-2017 Outlook and State of the Industry report, and reflect a literature scan, surveys, and a series of discussions among members of the Think Tank. The Workplace Design sector brief builds on the ASID 2016-2017 Outlook and State of the Industry report by exploring the factors affecting design in the workplace sector. How do the factors affecting all design disciplines play out in workplace design? To search for answers, we relied on the information gathered

the economy, generational differences, well-being, community, data and knowledge, and value proposition. For each factor, we try to answer three questions: 1) What are the key points for each factor? 2) How does it affect design, and 3) How can designers be proactive in response? Additionally, we list some key

for the Outlook report, as well as a scan of workplace design literature, and discussions with the workplace design Think Tank (see list in Acknowledgments).

workplace trends to contextualize how workplace design fits into the changing world of work. The Change Maker Challenge section charges interior designers to make their mark in the design process and to showcase their leadership skills, which, together with research and education, will be critical for the future.

While the influences are many, the key factors affecting workplace design explored in this report are

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

INTRODUCTION This brief expands on the 2016-17 Outlook and State of the Industry report by digging deeper into the workplace design sector. Drawing on a wide-ranging “Think Tank” discussion among workplace designers and additional literature and data available, this brief seeks to illustrate the world of workplace design and how key factors impact the workplace design profession. This brief describes what each key factor means in the world of workplace design, how the factors impact workplace designers, and what designers can do moving forward. * Download the 2016-17 Outlook and State of the Industry report from asid.org for the full description of all key factors identified in the interior design profession.

WORKPLACE AT-A-GLANCE

KEY FACTORS THE ECONOMY

GENERATIONAL DIFFERENCES

WELL-BEING 17 COMMUNITY 20 DATA & KNOWLEDGE

VALUE PROPOSITION

CHANGE MAKER CHALLENGE

ACKNOWLEDGMENTS & REFERENCES

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

WORKPLACE DESIGN AT-A-GLANCE Workplace design depends on the type of work or profession the client organization entails. The state of businesses and employment and the overall work trends have a significant impact on the business of workplace design. This section provides an overview of U.S. businesses, including numbers directly related to the workplace design profession, and the outlook for office construction. U.S. BUSINESSES AND EMPLOYMENT

ESTABLISHMENT SIZE BY NUMBER OF EMPLOYEES

NUMBER OF ESTABLISHMENTS

EMPLOYMENT

NEW ESTABLISHMENTS

TERMINATED ESTABLISHMENTS

EXPANSIONS

CONTRACTIONS

1-4

2,894,288

6,688,242

431,850

398,556

18.4%

11.6%

5-9

1,008,187

6,699,281

62,042

57,108

30.4%

33.1%

10-19

634,500

8,209,924

30,786

30,187

36.2%

38.0%

20-99

684,540

20,057,429

28,037

27,573

38.4%

36.3%

100-499

361,706

17,018,663

19,086

13,923

36.8%

27.9%

500+

1,211,794

62,382,843

99,143

79,524

30.4%

29.4%

Total

6,795,015

121,056,382

670,944

606,871

27.0%

23.8%

Source: U.S. Census Bureau, Statistics of U.S. Businesses, 1989-2014 Business Information Tracking Series (released Feb. 2017)

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

NUMBER OF BUSINESSES BY U.S. STATE

NUMBER OF BUSINESSES <50K 50K-100K 100K-150K 150K-200K 200K-300K >300K

Source: U.S. Census Bureau, Statistics of U.S. Businesses

NUMBER OF ESTABLISHMENTS IN THE U.S. (2007-2014) WITH ESTABLISHMENT SIZE COMPOSITION 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0

2007 0- 4

2008

2009 5-9

2010 10-19

2011 20-99

2012

2013 100- 499

2014 500+

Source: U.S. Census Bureau, 2014 County Business Patterns (released Sept. 2016)

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

U.S. BUSINESSES IN NON-RESIDENTIAL BUILDING CONSTRUCTION ESTABLISHMENT SIZE BY NUMBER OF EMPLOYEES

NUMBER OF ESTABLISHMENTS

EMPLOYMENT

NEW ESTABLISHMENTS

TERMINATED ESTABLISHMENTS

EXPANSIONS

CONTRACTIONS

1-4

15,829

43,900

2,776

2,937

26.7%

14.3%

5-9

7,776

55,252

521

504

37.1%

36.0%

10-19

5,824

79,295

224

239

41.5%

42.5%

20-99

5,148

182,762

153

141

43.8%

45.8%

100-499

924

95,912

43.0%

44.8%

500+

1,022

124,229

38.3%

36.7%

Total

36,523

581,350

3,766

3,902

34.4%

29.3%

Source: U.S. Census Bureau, Statistics of U.S. Businesses, 1989-2014 Business Information Tracking Series (released Feb. 2017)

U.S. BUSINESSES IN OFFICE FURNITURE (INCLUDING FIXTURES) MANUFACTURING ESTABLISHMENT SIZE BY NUMBER OF EMPLOYEES

NUMBER OF ESTABLISHMENTS

EMPLOYMENT

NEW ESTABLISHMENTS

TERMINATED ESTABLISHMENTS

EXPANSIONS

CONTRACTIONS

1-4

912

2,398

194

141

27.7%

13.6%

5-9

677

4,642

160

36.3%

33.5%

10-19

641

9,181

246

44.8%

35.6%

20-99

808

32,884

611

48.5%

39.9%

100-499

233

24,112

1,495

46.8%

37.8%

500+

142

34,359

46.5%

43.7%

Total

3,413

107,576

2,747

264

39.6%

30.8%

Source: U.S. Census Bureau, Statistics of U.S. Businesses, 1989-2014 Business Information Tracking Series (released Feb. 2017)

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

U.S. BUSINESSES IN ARCHITECTURAL, ENGINEERING, AND RELATED SERVICES ESTABLISHMENT SIZE BY NUMBER OF EMPLOYEES

NUMBER OF ESTABLISHMENTS

EMPLOYMENT

NEW ESTABLISHMENTS

TERMINATED ESTABLISHMENTS

EXPANSIONS

CONTRACTIONS

1-4

48,846

106,015

6,861

6,272

17.7%

10.3%

5-9

13,653

93,044

475

448

35.3%

30.8%

10-19

8,784

115,211

195

261

41.8%

34.7%

20-99

9,922

281,133

171

268

43.0%

31.3%

100-499

5,202

229,843

259

169

40.4%

28.4%

500+

10,440

599,836

2,196

723

23.3%

29.3%

Total

96,847

1,425,082

10,157

8,141

26.8%

20.5%

EXPANSIONS

CONTRACTIONS

Source: U.S. Census Bureau, Statistics of U.S. Businesses, 1989-2014 Business Information Tracking Series (released Feb. 2017)

U.S. BUSINESSES IN SPECIALIZED DESIGN SERVICES (INCLUDING INTERIOR DESIGN SERVICES) ESTABLISHMENT SIZE BY NUMBER OF EMPLOYEES

NUMBER OF ESTABLISHMENTS

EMPLOYMENT

NEW ESTABLISHMENTS

TERMINATED ESTABLISHMENTS

1-4

19,749

38,799

3,286

2,965

14.8%

9.2%

5-9

2,968

19,013

169

109

31.0%

34.0%

10-19

1,244

15,778

39.9%

36.5%

20-99

718

20,081

45.4%

35.2%

100-499

125

6,506

37.6%

31.2%

500+

156

14,548

19.9%

28.8%

Total

24,960

114,725

3,549

3,162

19.0%

14.5%

Source: U.S. Census Bureau, Statistics of U.S. Businesses, 1989-2014 Business Information Tracking Series (released Feb. 2017)

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

VALUE OF COMMERCIAL OFFICE SPACE Buildings owned and managed by BOMA members provide workspace for an estimated 46.9 million office jobs, which is approximately one-third of all U.S. workers.

LOCATED WITHIN THE MARKETS SERVED BY BOMA IN THE U.S.:

10.5 BILLION SF $8.49/SF

TOTAL OFFICE SPACE

AVERAGE ANNUAL OPERATING COST

$89.1 BILLION

TOTAL BUILDING OPERATING OUTLAYS (2015)

($7 BILLION MORE THAN IN 2013)

$235 BILLION 1.75 MILLION

CONTRIBUTION TO GDP

JOBS SUPPORTED (DIRECT + INDIRECT):

Source: Building Owners and Managers Association International, 2016

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

376.9 MILLION SF GENERAL SERVICES ADMINISTRATION (GSA) OFFICE SPACE (OWN + LEASE)

$40.3 BILLION

$20.5 BILLION

GSA TOTAL ASSETS (FY2016)

GSA REVENUE (FY2016)

(NET INCREASE OF APPROX. $933 MILLION FROM FY2015)

(INCREASE OF $969 MILLION FROM FY2015)

Source: U.S. General Services Administration, 2016

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

CONSTRUCTION U.S. OFFICES: TOTAL CONSTRUCTION SPENDING

Private Public (Federal & State)

(MILLIONS OF DOLLARS) 70,000

61,114

60,000 50,000 40,000 30,000 20,000 10,000

7,844

0 2008

2009

2010

2011

2012

2013

2014

2015

2016

Source: U.S. Census Bureau, 2017

OFFICE NEW CONSTRUCTION STARTS:

2016: +9% STARTS; 100 MILLION SQUARE FEET

2017: +10% STARTS; 110 MILLION SQUARE FEET Source: Dodge Data & Analytics

OFFICE CONSENSUS SEGMENT GROWTH FORECAST:

2017: 10.6% 2018: 4.6% Source: AIA, Consensus Construction Forecast, Jan. 2017

OFFICE NEW CONSTRUCTION STARTS GROWTH/DECLINE (% OF TOTAL DOLLARS PER MONTH, MONTH-OVER-MONTH) Month

+ / - %

Feb. 16

+25%

Mar. 16

-27%

Apr. 16

+8%

May 16

-11%

Jun. 16

+19%

Jul. 16

+21%

Aug. 16

+3%

Sept. 16

+148%

Oct. 16

-46%

Nov. 16

+18%

Dec. 16

+21%

Jan. 17

+26%

Feb. 17

-40%

Source: Dodge Data & Analytics

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

KEY FACTOR: THE ECONOMY

THE ECONOMY Economic recovery has had a positive effect on office construction, which took off in 2015, accelerated in 2016, and is expected to continue strong in 2017 1. Several indicators, including construction starts, construction spending, and employment rates, all point toward a positive outlook for 2017 that may continue into 2018. The office sector is expected to see the strongest surge in starts among all commercial segments as more than a ten percent increase, or 110 million more square feet, is estimated in construction starts when compared to 2016 2.

EMPLOYMENT RATES

LEASING ACTIVITY

With an estimated 850,000 office jobs created in 20163, experts identify employment as one of the primary factors playing a role in the positive outlook for the office sector, especially as office-based employment saw a 1.5 percent increase in 20164. Most of the activity is focused on mixed-use projects in city centers rather than the stand-alone, low-rise, suburban office parks that were seen before the recession5.

Vacancy rates have diminished in most major city centers and many professions that lease space have been reporting job advances (i.e., high employment rates)6. However, leasing velocity has been decelerating, especially with workforce constraints in tech hubs that â&#x20AC;&#x153;mega lease,â&#x20AC;? resulting in a 43 percent dip in large leases in 20167. Despite the high vacancy rates reported in a number of major U.S. markets, office-related construction spending increased nearly 24 percent between August 2015 and August 20168. As these projects are completed and hit the real-estate market in 2017, a rise in vacancy rates and a slowing of rent growth is projected while the market balances out9.

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

KEY FACTOR: THE ECONOMY

SUPPLY AND DEMAND Shifts in economic activity are also bringing change in the supply dynamics, especially as office occupiers search for workplaces and amenities that attract talent10. Workplace trends are playing a huge role by influencing corporate decisions on early-stage location and building-selection11. With the continuing increase in teleworking and remote work, shared space or co-working arrangements are growing rapidly12 and in turn, are influencing leasing activity.

24%

OF WORKERS IN 2015 DO ALL OR SOME WORK AT HOME

35-38% OF THESE

WORKERS ARE IN MANAGEMENT, BUSINESS, FINANCIAL OPERATIONS AND PROFESSIONAL JOBS

68%

OF WORKERS EXPECT TO WORK REMOTELY IN THE FUTURE

Source: U.S. Bureau of Labor Statistics, American Time Use Survey 2015; FlexJobs

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

KEY FACTOR: THE ECONOMY

WORKPLACE TRENDS TALENT ACQUISITION

BLENDED WORKFORCE

Companies are competing to attract the best talent and to retain them. With the average tenure for employees at a mere 4.6 years in the U.S. (most Millennials leave after two years)13, the rise of the “continuous job seeker14,” and more employees perceiving it easier to seek a new job outside the company than inside15, companies are implementing creative strategies to retain their talented employees.

Freelancers have made a prominent presence, especially with the rise of the gig economy. Companies are seeing an increase in freelance workers teaming up with employees to work on projects together for “flexible teaming17.” With many freelancers working at remote locations, connectivity and communication will be critical in the workplace.

CHANGING BENEFITS With technology enabling us to work anytime and anywhere, the two major benefits that are most attractive to employees are healthcare coverage and work flexibility16. New benefits include those that cover education and student loans, in response to record high student loan debt.

WHAT IS THE IMPACT ON WORKPLACE DESIGN? DESIGN TO IMPRESS

BUDGET REALLOCATION

With employers hiring more than ever, the race is on to recruit top talent. The design of the workplace and the impression it gives to the job prospect has become a powerful recruitment tool to attract top creative talent. Workplaces will increasingly rely on design to communicate organizational meaning and purpose in an authentic way, as noted by our Think Tank.

Clients may be spending more than before due to economic recovery, but the allocation of funds are a bit different from the past. Our Think Tank members mention that clients are looking to invest more in furniture solutions that offer choices and provide flexibility and adaptability, rather than the finishes that add to the aesthetics. Clients are also focusing more on sustainable and economic solutions that work for their organization, rather than putting interest in a single grandiose statement.

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

KEY FACTOR: THE ECONOMY

MOVING FORWARD DELIVER CREATIVITY WITHIN CONSTRAINTS Although economic recovery has brought stability to our industry, our Think Tank members agreed that interior designers are now challenged to do more with the same budget. The situation may call for a reality check for clients, but could also be an opportunity for designers to explore their creativity and maneuver through the constraints. Consider examining the design problems as a whole and finding a solution that covers it on a higher level, or making sure a design solution has the capability of resolving multiple issues.

IMPACT AND CONTINUITY Innovation is consistently sought out as a requirement for competitive work. In order to attract and retain young and qualified talent, clients are looking to balance costs between workplace and amenity enhancement18. In designing creative offices for the future, designers will need to balance between the impactful message that attracts talent and the continuing support that enables productivity.

EMBODIED WORKPLACE The younger generation tends to blend work and life together and strives to find meaning and purpose in what they do. As they search for places that augment their genuine goals, workplace design needs to represent the culture and values of the organization and fully embody their values. Branding will expand from two-dimensional graphics to three-dimensional space, four-dimensional culture (created over time), and perhaps beyond.

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

A SURVEY OF THE CLASS OF 2016 INDICATES

69% PREFERRED TO WORK FOR COMPANIES THAT DO GOOD

92% DESIRED WORKING FOR A COMPANY THAT DEMONSTRATES SOCIAL RESPONSIBILITY

70% CHOSE EMPLOYEE EXPERIENCE OVER INCOME Source: Accenture Strategy Research, 2016

KEY FACTOR: GENERATIONAL DIFFERENCES

GENERATIONAL DIFFERENCES Major societal changes drive the way generations are determined and their distinctive characteristics. The current workforce consists of Baby Boomers, Gen Xers, Millennials, and most recently, Gen Z â&#x20AC;&#x201C; creating a wide distribution and a diverse spread. Each generation has unique traits and different workstyles, and all must be considered in the integrated workplace. Specifically, the workforce has been focusing on Millennials due to their massive numbers and the different perspective they have cultivated having been brought up in a digital world.

More than one-third of U.S. workers are Millennials, and beginning 2015, Millennials have surpassed Gen X in becoming the largest labor force.

U.S. LABOR FORCE BY GENERATION, 1995-2015 (IN MILLIONS) 70 60

53.5 52.7

44.6

40 30 20 10

3.7

0 1995

2000 Silents

Boomers

2005 Gen Xers

2010

2013

2015 Q1

Millennials

Source: Pew Research Center, 2015

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

KEY FACTOR: GENERATIONAL DIFFERENCES

WORKPLACE TRENDS INTERGENERATIONAL LEARNING

EMPLOYEE EXPERIENCE

With the collision of multiple generations in the workplace, organizations see this as an opportunity to optimize the value of employees by celebrating generational characteristics and promoting information sharing and learning from each other19. This exchange may also foster mentorship and further expand networks.

As an extension to attracting and retaining talent, companies are working to improve their candidate and employee experiences20. The walls between human resources, marketing, and customer service departments will come down to brainstorm ideas to enhance these experiences. Investments in training, creating better workspaces, and giving more rewards have already been implemented in the effort to improve these experiences21.

WHAT IS THE IMPACT ON WORKPLACE DESIGN? VARIETY AND CHOICE

FOCUS ON ACOUSTICS

The wide generational spread in the workplace, in conjunction with the need for different spaces for different tasks, has broadened the scope of workspace types and deepened the need for each of them. Providing employees with a variety of workspaces to choose from is a design solution that will continually serve as a means to attract new talent while retaining existing staff.

Change and complexity is driving the pace of work faster and harder, elevating the need for focus more than ever. Workspace choices that consider acoustics at the forefront by enabling heads down focus work and disabling stress factors related to acoustics will be the next iteration of workplace design.

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

KEY FACTOR: GENERATIONAL DIFFERENCES

REINVENTING THE STANDARD The typical standard office for Millennials is a creative office. The culture they expect in their workplace is one expressed through meaningful amenities that support their lifestyle and are well embedded in their communities.

RECEPTION

LOUNGE

SEMINAR/WORKPLACE

OPEN OFFICE

FOCUSED WORK

RECREATION

CAFETERIA/RESTAURANT

WE-PLACES

MEETING/CONFERENCE

TEAMWORK

PRIVATE OFFICE

THINK TANK

INTERACTION

PRIVACY

MOVING FORWARD MAKING ROOM FOR GEN Z – THE NEW WAVE Expect to see another disruption in the workplace as Gen Zers enter the workforce. Gen Z may be overshadowed by the disruption Millennials had created in their vast numbers and the rapid technological advances they brought with them, but with a lot unknown about this new generation, we anticipate some bumps may emerge as they settle in.

EXPERIENCE FLOW We all desire ‘flow,’ the experience we have from the full immersion of energized focus, full involvement, and enjoyment22 in our work. Although we may perceive generational differences to be disruptive in the flow and the workplace, instead consider them a learning opportunity. Generations are

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

representations of the societal changes that have happened, are happening now, and what will drive the future. Once you embrace the nature and origins of each generation, they may serve as the key to understanding the evolution of work and to providing organizations with a competitive edge.

CULTIVATING THE FUTURE Our Think Tank members strongly believe that interior design has the power to change human behavior. Speaking from project examples, they noted that design solutions help organizations make changes and therefore, interior designers have the potential to be in the role of change management. Think of interior design as a competitive tool to activate organizations to prosper by demonstrating the impact of design in the workplace.

KEY FACTOR: WELLNESS & WELL-BEING

WELL-BEING Health and well-being has been an important and growing trend for the past few years, and continues to be. With clients mainly driving these workplace health and well-being initiatives 23, this has become a widespread movement where every leader in every business is predicted to focus on employee wellness 24. More specifically, human resource managers are identifying health and well-being as a vital component for employee recruitment and retention, and are actively searching for opportunities to implement this in the workplace. This increased awareness and attention to health and well-being, and the role that workplace design has in support of it, is gaining traction and becoming the new norm in the world of work.

WORKPLACE TRENDS WELLNESS BENEFITS

BUILDING WELLNESS INTO THE SPACE

Employees have been health conscious over the past several years and increasingly look to their employers to foster a culture that promotes health through the built environment, amenities, programs, and policies25. Companies are responding to this demand as a means to attract and retain talent, while also reaping the benefits of reduced absenteeism and cost-savings on healthcare.

The physical workplace has become an essential tool for communicating the importance of health and wellness to employees, as well as encouraging healthy behaviors. Building certification systems such as the WELL Building StandardTM and FitwelSM provide third-party validation for healthy buildings and include many physical workplace design elements.

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

KEY FACTOR: WELLNESS & WELL-BEING

WELL BUILDING STANDARD

AIR WATER

The WELL Building StandardTM sets performance requirements in seven concepts relevant to occupant health in the built environment – air, water, nourishment, light, fitness, comfort and mind. WELL Certified™ spaces can help create a built environment that improves the nutrition, fitness, mood, sleep patterns, and performance of its occupants.

NOURISHMENT LIGHT FITNESS COMFORT MIND

FITWEL FitwelSM is a cost-effective, high-impact building certification system that supports the well-being of building occupants and surrounding communities. The FitwelSM certification has considered wellness holistically and identified seven health impact categories: impacts community health, reduces morbidity and absenteeism, social equality for vulnerable populations, increases physical activity, promotes occupant safety, provides healthy food options and instills feelings of well-being.

IMPACTS COMMUNITY REDUCES MORBIDITY + ABSENTEEISM INSTILLS FEELINGS OF WELL-BEING

SUPPORTS SOCIAL EQUALITY FOR VULNERABLE POPULATIONS

PROVIDES HEALTHY FOOD OPTIONS

INCREASES PHYSICAL ACTIVITY PROMOTES OCCUPANT SAFETY

WHAT IS THE IMPACT ON WORKPLACE DESIGN? KNOWLEDGEABLE CLIENTS

PERSONAL STRATEGIES

Clients are exposed to design everywhere and come to the table incredibly informed; however, at times, they reference ideas that are misaligned with their work culture and workstyles. Our Think Tank members see visioning sessions as the opportunity to figure out what the client needs really are, to help them understand how to use the information they have, and to guide them in envisioning the bigger picture rather than literal interpretations.

The health and wellness movement is greatly affecting workplace design by utilizing it to achieve results that impact the bottom line, in other words, occupant productivity. When personal well-being is taken into account from multiple approaches, the impact of workplace design can result in improved employee engagement, productivity, and retention.

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

KEY FACTOR: WELLNESS & WELL-BEING

MOVING FORWARD COLLABORATION WITH HUMAN RESOURCES

WELL-BEING PROGRAMMING

As health and well-being in the workplace become essential benefits for attracting talent26, our Think Tank members are seeing more involvement from human resources during the design process. As time goes by, we will continue to see increased activity from human resources as experts project a new era for the field27 and as they advocate for occupant well-being and converse with designers to find the best solution for employees, and ultimately, the organization.

The success of wellness programs and healthy buildings/designs are in the hands of company culture28. The challenge for designers will be to find innovative well-being strategies that fit with the companyâ&#x20AC;&#x2122;s culture and work for the employees. Push programming to the next level by investigating the company and the employeesâ&#x20AC;&#x2122; attitudes towards health and well-being in order to come up with a workplace strategy that works for them.

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

KEY FACTOR: COMMUNITY

COMMUNITY As boundaries break down and sharing economies expand, the concept of community is changing as well. The office is no longer confined to the space the company uses for its daily operations, but spills over into other atypical spaces – just as we had seen with the emergence of ‘third places.’ People are working in a variety of spaces in dispersed locations, but still collaborating with their work teams and/or with new social networks that emerge through this change in work environment.

WORKPLACE TREND CO-WORKING SPACES

FOCUS ON THE COLLECTIVE

Among workplaces, a prevalence of co-working offices are showing up. The importance of face-toface interaction has resurged the importance of office spaces as the place for engagement and collaboration. The workplace provides a platform for organizations to convene as a community and create a sense of belonging. For start-ups, small companies, or for those working from a remote location, the benefits of joining co-working environments are diverse, including the opportunity to collaborate with others.

Organizations are restructuring to put more focus on team over individual performance29. The success of the organization relies on high performing teams that can consistently deliver effective outcomes as the workplace continues to evolve. The goal is to nurture a resilient relationship with each person in the team to create one that becomes stronger and continues to work well together when the changes get rough30.

NUMBER OF COWORKING SPACES WORLDWIDE

NUMBER OF MEMBERS WORLDWIDE

(AS OF OCTOBER 31, EACH YEAR)

13,800

1,180,000

835,000

11,300 8,700

510,000

5,800 295,000

3,600 1,130 530

2011

2,070 940

2012

4,530

2013

2,200

2014

2,900

2015

2,600

2016

Source: 2017 Global Coworking Survey

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

2,500

2017

43,000

81,000

22,000

38,000

2011

2012

151,000 70,000

2013

144,000

2014

325,000

345,000

2016

2017

215,000

2015 Total

Net New

KEY FACTOR: COMMUNITY

WHAT IS THE IMPACT ON WORKPLACE DESIGN? CATALYST FOR COLLABORATION

MIXED-USE AND BLENDING

The ever-increasing reliance on collaborative work is pushing collaboration spaces to the next level. However, the abundance of these spaces is urging designers to think about their functionality. The office needs to prove the advantages of its physical presence by supplying collaborative spaces that work rather than those that exist for the sake of having them.

Companies are broadening their strategies to attract employees by providing social benefits. With increasingly more activity in mixed-use buildings and more blending among the different design sectors, one of our Think Tank members pointed out the need to complete a site analysis of the larger neighborhood. From this, designers will see what amenities the surrounding community offers to companies in order to be creative in what designed spaces should be added, and what existing potential third places can be utilized.

MOVING FORWARD PLACE MATTERS

URBANIZATION OF INTERIORS

A sense of place, or place attachment, is achieved when a person associates meaning to a space. For the office to heighten its significance as part of a company, the physical space must become a place that employees view as a benefit. Our Think Tank members suggest creating spaces that foster connection, culture, and communities to create great work experiences.

Several of our Think Tank members noted some urban concepts that interior designers should be aware of and apply in the design process. In the interior space, urbanization could mean creating a place where people move towards the center and are drawn towards a common goal, which can also undulate to enliven the building and activate the surrounding community. The impact of design is greater than the space it resides in â&#x20AC;&#x201C; this is a critical time to start thinking about the interior designersâ&#x20AC;&#x2122; broader role in the communities and the surrounding projects.

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

KEY FACTOR: DATA & KNOWLEDGE

DATA & KNOWLEDGE The advancement of technology brings data to our fingertips. Key cards, sensors, wearables, beacons, etc. all provide organizations with more accessibility to comprehend how and where people work. Coupled with other research methods and strong analytics, data enables organizations with the ability to develop strategies that improve outcomes such as employee satisfaction, productivity, engagement, health, and well-being. This research not only provides opportunities for growth internally, but can also advise future projects.

WORKPLACE TRENDS DATA-FOCUSED MANAGEMENT Embedded technology in the workplace provides access to workforce data more than ever before. Organizations are relying on the â&#x20AC;&#x153;people dataâ&#x20AC;? analytics to help them make better decisions that solve meaningful problems31. Technology for human capital management will open up more insights that will lead to better employee experiences.

TECHNOLOGY AUTOMATION The exponential advance in technology is changing the way we work and automating a lot of it. As in the past, the economic impact of technology and automation is fearsome, resulting in many uncertainties of the future. Innovation is an area that artificial intelligence has yet to substitute32.

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

KEY FACTOR: DATA & KNOWLEDGE

WHAT IS THE IMPACT ON WORKPLACE DESIGN? TECHNOLOGY-DRIVEN

DATA-DRIVEN SOLUTIONS

Technology in the workplace is a given and is driving planning strategies and shaping how people work together. One Think Tank member commented that human resiliency is dependent on how we can be more adaptable and flexible in the context of technology. Companies investing in technology are investing in workplace agility to accommodate for technological advancement outpacing their lease and therefore,

In this climate full of uncertainties, clients are hungry for concrete data that will inform their decisions. Designers will need to apply evidence-based design solutions and provide clients with research to justify the design.

putting technology in the driver seat for design.

MOVING FORWARD EMPHASIS ON INNOVATION

CONTINUE TO LEARN TECH

More companies will rely on innovation to stay competitive in this changing economy and will seek out innovation centers or other spaces that inspire people to be creative. The workplace has the potential to spark creativity among employees and foster innovation. Understanding what triggers creativity and innovation and embedding these strategies within the workplace will be crucial for providing clients with a competitive edge.

The amount of information out in the world surpasses what we can comprehend. Technology, artificial intelligence, and automation will continue to evolve and have a stake in our lives. Interior designers should continue to learn about technology in order to provide clients with cutting-edge solutions and to do their project work more effectively. Managing data and knowledge is a full-time task, so donâ&#x20AC;&#x2122;t think you have to master everything. Rely on the experts to do the heavy lifting for you, yet be informed to facilitate the conversation. Be sure to include experts from key areas in your network so you can plug into their knowledge for the most relevant and reliable information.

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

KEY FACTOR: VALUE PROPOSITION

VALUE PROPOSITION In the world of workplace design, interior designers are brought into the design process earlier than other practice areas. However, the challenge for workplace design, as identified by our Think Tank members, lies in understanding the many other participants in the design process and what has happened before the interior designer has arrived. For example, more often than not, designers are introduced to a project after a space is leased, which puts them to work with a predetermined square footage that has been calculated by real estate brokers using the circulation factor, not the circulation percentage, which is the appropriate method. Interior designers are then called to a project that is short on space, but with the client adamant that they have enough. When implementing a workplace strategy that involves more collaborative spaces and more generous circulation, space planning tightens and the workplace begins to lose many of its advantages. The true value of workplace design comes when all respected constituents are included at project conception, not when the visible work takes place.

WHAT IS THE IMPACT ON WORKPLACE DESIGN? COMMUNICATING THE ROI OF DESIGN

INTERIOR DESIGN RE-IMAGINED

Despite the changes in practice, a Think Tank member commented that it was unfortunate that interior designers have to continually prove their value. Unfortunate as it is, this is still a prominent challenge we must face and need to persevere in order to make change.

From change management to individual user experience, interior design services are diversifying more than ever. Workplace strategy has already put its stake in the ground as part of the services offered by interior design firms, and now change management is slowly making its mark as well.

CHANGE MANAGEMENT

WORKPLACE STRATEGY

PROGRAMMING

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

SCHEMATIC DESIGN

CONSTRUCTION DOCUMENTS

PROJECT SPECIFICATION

KEY FACTOR: VALUE PROPOSITION

MOVING FORWARD ADVOCATE FOR THE INDIVIDUAL

SHARE YOUR SUCCESSES

The thrill and joy of practicing interior design comes from the difference you make in an individualâ&#x20AC;&#x2122;s life. Our Think Tank members attributed the source of their passion and motivation as the ability to create personal connections through design. They repeatedly emphasized design not only making a difference on the organizational bottom line, but also making a tangible difference to the individual using the space. Keep communicating the value of design by practicing its power to transform lives and advocating for the individual.

The workplace design sector is one that already has a strong rapport for the impact of design. As we see more blending among the different design sectors, more sharing among the designers is needed to keep the expertise and success stories flowing. The impact of design stories will gradually make its way to the public and communicate the power of design.

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

CHANGEMAKER CHALLENGE

CHANGEMAKER CHALLENGE STEP FORWARD AND LEAD GET INVOLVED

VOLUNTEER WITH CONFIDENCE

Weâ&#x20AC;&#x2122;re people-people. We care for the individual, most oftentimes on a personal level. The interior environment that we design may be the closest direct point of contact with the individual, but the surrounding community also has an impact on how they experience the project space. In order to better understand the user and enhance their experience within the space, our involvement needs to expand to the community and to the policy level.

When working at a larger scale, like in the community, interior designers are not the natural choice to consult with, oftentimes having our skills underestimated. Rather than waiting to be recognized by other groups and invited to the table, volunteer your facilitator skills and expertise, and do it confidently. Once you showcase your problem-solving abilities and systems thinking, youâ&#x20AC;&#x2122;re communicating the value of interior design and paving the way for other interior designers to take a place at the table.

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

CHANGEMAKER CHALLENGE

EMPOWER THROUGH RESEARCH AND EDUCATION POWER OF RESEARCH

CULTIVATE FUTURE LEADERS

Research on the impact of design helps build the business case for design. Share this research with others in order to broaden the reach and multiply the effect. Encourage clients to invest in post-occupancy evaluations and other research initiatives at their workplaces in order to better understand the impact of design and the return on investment of the physical space. Big data pulled from technology (e.g., beacons placed for space utilization) can support multiple organizational objectives by providing insights on employee engagement and productivity, and can be a powerful tool for human resources management. Make the case for research to your clients and be part of this exciting endeavor.

Exciting changes are happening in the interior design industry as we see silos between market sectors breaking down. Interior design professionals have more opportunities to make an impact when they collaborate with other disciplines and are part of the conversation early on. In order to proactively engage in these activities, the first place for implementation is education programs. Professional practice courses should raise the awareness of the full capabilities of interior design professionals as well as aspects included in the current curricula. Push the boundaries of educational content to cultivate and empower emerging professionals.

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

ACKNOWLEDGMENTS & REFERENCES AUTHORS: Susan Chung, Ph.D., American Society of Interior Designers

Dickens, R. (January 4, 2017). State of the construction industry 2017. For Construction Pros. Retrieved from http://www.forconstructionpros.com/article/12284731/state-of-the-construction-industry-2017 1

Slowey, K. (January 24, 2017). Why 2017 will be the year of office construction. Construction Dive. Retrieved from: http://www.constructiondive.com/news/why-2017-will-be-the-year-of-office-construction/434556/ 2

Caulfield, J. (August 12, 2016). Top 300 giants: Office giants. Building Design + Construction. Retrieved from: https://www.bdcnetwork.com/office-giants-technology-giving-office-workers-chance-play-musical-chairs 3

CONTRIBUTORS: Michael J. Berens, MJBerens Research Laurie Enceneat, American Society of Interior Designers

WORKPLACE THINK TANK:

Carrick, A. (December 1, 2016). U.S. construction outlook heading into 2017. ConstructConnect. Retrieved from: http://www.constructconnect.com/blog/economy/u-s-construction-outlook-heading-2017/ 6

Jones Lang LaSalle. (n.d.) United States office outlook: Q4 2016. Retrieved from: http://www.us.jll.com/unitedstates/en-us/research/office-outlook 7

Basu, A. (November 30, 2016). 2017 construction outlook: Nonresidential spending remains vulnerable to another year of disappointing economic performance. Construction Executive. Retrieved from:www.constructionexec.com/ Articles/tabid/3837/.../2017-construction-outlook.aspx 8

Jones Lang LaSalle. (n.d.) United States office outlook: Q4 2016. Retrieved from: http://www.us.jll.com/unitedstates/en-us/research/office-outlook 9

Grace Eun, Clive Wilkinson Architects, Los Angeles Beth Harmon-Vaughn, Gensler, Phoenix Laura Morris, Perkins+Will, Washington, D.C. Sheila Nall, KSS Architects, Princeton, New Jersey Janet Pogue McLaurin, Gensler, Washington, D.C. Rachelle Schoessler Lynn, MSR, Minneapolis

GRAPHIC DESIGN:

Megan Mullaney, Think Baseline Briana McPherson, Think Baseline Deb M. Hartranft, Think Baseline

CBRE. (2017). 2017 Global Real Estate Market Outlook. Retrieved from: http://www.cbre.com/research-andreports/2017-Global-RE-Market-Outlook CBRE. (2017). 2017 Global Real Estate Market Outlook. Retrieved from: http://www.cbre.com/research-andreports/2017-Global-RE-Market-Outlook 11

CBRE. (2017). 2017 Global Real Estate Market Outlook. Retrieved from: http://www.cbre.com/research-andreports/2017-Global-RE-Market-Outlook 12

Schawbel, D. (November 1, 2016). 10 Workplace trends you’ll see in 2017. Retrieved from: https://www.forbes. com/sites/danschawbel/2016/11/01/workplace-trends-2017/#618c06a656bd 13

Sodexo. (2017). 2017 Global Workplace Trends. Retrieved from: http://sodexoinsights.com/2017-workplace-trends/

Workplace Trends. (April 19, 2016). The active job seeker dilemma study. Retrieved from: https://workplacetrends. com/the-active-job-seeker-dilemma-study/ 15

Schawbel, D. (November 1, 2016). 10 Workplace trends you’ll see in 2017. Retrieved from: https://www.forbes. com/sites/danschawbel/2016/11/01/workplace-trends-2017/#618c06a656bd 16

Schawbel, D. (November 1, 2016). 10 Workplace trends you’ll see in 2017. Retrieved from: https://www.forbes. com/sites/danschawbel/2016/11/01/workplace-trends-2017/#618c06a656bd CBRE. (2017). 2017 Global Real Estate Market Outlook. Retrieved from: http://www.cbre.com/research-andreports/2017-Global-RE-Market-Outlook 18

Sodexo. (2017). 2017 Global Workplace Trends. Retrieved from: http://sodexoinsights.com/2017-workplace-trends/

Schawbel, D. (November 1, 2016). 10 Workplace trends you’ll see in 2017. Retrieved from: https://www.forbes. com/sites/danschawbel/2016/11/01/workplace-trends-2017/#618c06a656bd 20

Workplace Trends. (April 19, 2016). The active job seeker dilemma study. Retrieved from: https://workplacetrends. com/the-active-job-seeker-dilemma-study/ 21

Csikszentmihalyi, M. (1990). Flow: The psychology of optimal experience. New York, NY: Harper & Row.

ASID. (2016). 2016-2017 Outlook and State of the Industry, American Society of Interior Designers. Retrieved from: https://www.asid.org/resources/resources/view/resource-center/123 23

Bersin, J. (2016). Predictions for 2017: Everything is Becoming Digital, Deloitte. Retrieved from: https://www. bersin.com/Practice/Detail.aspx?id=20454 24

Sodexo. (2017). 2017 Global Workplace Trends. Retrieved from: http://sodexoinsights.com/2017-workplace-trends/

Schawbel, D. (November 1, 2016). 10 Workplace trends you’ll see in 2017. Retrieved from: https://www.forbes. com/sites/danschawbel/2016/11/01/workplace-trends-2017/#618c06a656bd 26

Fast Company https://www.fastcompany.com/3066605/the-future-of-work/these-are-the-top-5-workplace-trendswell-see-in-2017 27

Sodexo. (2017). 2017 Global Workplace Trends. Retrieved from: http://sodexoinsights.com/2017-workplace-trends/

Schawbel, D. (November 1, 2016). 10 Workplace trends you’ll see in 2017. Retrieved from: https://www.forbes. com/sites/danschawbel/2016/11/01/workplace-trends-2017/#618c06a656bd 29

Papanek, M., & Alexander, L. (May 6, 2017). Why your own resilience matters less than your team’s. Retrieved from: https://www.fastcompany.com/40418418/why-your-own-resilience-matters-less-than-your-teams 30

The Workforce Institute at Kronos Inc. (January 4, 2017). Top workplace trends for 2017. Retrieved from: https:// www.kronos.com/about-us/newsroom/top-five-workplace-trends-2017-workforce-institute-kronos 31

Dishman, L. (December 15, 2016). These are the top 5 workplace trends we’ll see in 2017. Retrieved from: https://www.fastcompany.com/3066605/these-are-the-top-5-workplace-trends-well-see-in-2017 32

ASID | WORKPLACE DESIGN SECTOR BRIEF / JUNE 2017

Design Transforms Lives. asid.org 1152 15th St. NW, Suite 910 Washington, D.C. 20005