Set Up For Failure

COVID was a Black Swan event, a rare, unpredictable, and impactful event that was the final straw for a long coming shift in how we work. And we are still in the wake of that storm. Yet while we are all in the same storm, we are not all in the same boat.

It’s estimated that approximately 74% of public sector companies have adopted a hybrid model (Smith, 2022). Yet the average office occupancy is just under 50% across 110 key US cities as more companies are calling their teams back to shared space still workers are slow to return. San Francisco, Houston, and New York saw the largest jump in recent months (Kastle, 2023 & VTS, 2023) and there seems to be a southern migration in general.

And while many companies have tried to embrace ‘more pull, less push’, insistence has led to resistance.

Hence a growing number of companies are abandoning the carrot and bringing out the stick. The Globe and Mail recently suggested that:

For corporate leaders still tiptoeing through the issue, take a tip from Mr. Hyde. Put some teeth into back-to-the-office policies and tie compliance to pay and job security.

– Gus Carlson, The Globe and Mail

And many companies are starting to do so – Tesla, Amazon, Meta, Roblox, Zoom. 71% of financial services firms require some form of attendance, while only 56% of tech companies do. (CBRE, 2023) Yet the response is still slower than desired for many companies, especially in the US and Canada.

Companies are turning to their design and real estate teams and asking them to create an enticing workplace that people will want to be in, hence putting the burden of RTO on the CRE industry. We can design amazing spaces but if it doesn’t have the right policies, messaging, culture elements and operational strategy, a space alone can’t solve the problem.

The CRE industry is being set up for failure.

Hybrid is more of an operational model than a workplace solution. But hybrid isn’t a new concept. Many companies, especially in the service industry, have been doing it for years. From our engagements and experience working with these companies we’ve identified what we see as being the key elements for success.

Top 12 things to consider for hybrid work success

1. Determine what model of work – addressing both time and place.
2. Real estate adjustments to optimize space and create enticing places people want to be.
3. Create a sustainable ecosystem of space with options and choice.
4. Develop protocols and guidelines to support distributed work.
5. Retrain managers to manage by performance, not presence and how to provide more equitable and inclusive engagements.
6. Address physical and psychological health, safety, and wellbeing.
7. Reassess meetings and gather profiles to create the right spaces.
8. Focus on innovation and quality, not just productivity.
9. Ensure ample opportunities for teaming, rebuilding social capital, and building community.
10. Rethink communications with your team and be more intentional about it.
11. Examine how you address recruitment, onboarding, professional development to provide equity and advancement for all.
12. Embrace testing and build in periodic check points to ensure things are going in the right direction. Make adjustments when needed.

What’s important to note is only 5 of them (noted in bold) have to do with space, the others are operational.

1. Determine what model of work – addressing both time and place.
2. Real estate adjustments to optimize space and create enticing places people want to be.
3. Create a sustainable ecosystem of space with options and choice.
4. Develop protocols and guidelines to support distributed work.
5. Retrain managers to manage by performance, not presence and how to provide more equitable and inclusive engagements.
6. Address physical and psychological health, safety, and wellbeing.
7. Reassess meetings and gather profiles to create the right spaces.
8. Focus on innovation and quality, not just productivity.
9. Ensure ample opportunities for teaming, rebuilding social capital, and building community.
10. Rethink communications with your team and be more intentional about it.
11. Examine how you address recruitment, onboarding, professional development to provide equity and advancement for all.
12. Embrace testing and build in periodic check points to ensure things are going in the right direction. Make adjustments when needed.

Seven of the 12 are operational issues. Yet according to a recent McKinsey survey, a whopping 68% of companies lack a structured “playbook” to guide their hybrid work model (Kirschner, Kwok, McClatchy, 2023). The challenge we face is making sure hybrid isn’t the worst of both. Our fear is that most companies aren’t putting in the hard work to make it work. Hence, it will be a bumpy few years ahead if we don’t enable a smooth landing and instead have a forced crash.

The office is never going to be a solution to existing problems of productivity, innovation, or creativity. Those are all how to work problems, not where to work problems. The office won’t solve these problems. New ways of working will.

-Annie Dean, VP Team Anywhere at Atlassian

And amenities are not going to solve the problem either. Having nice amenities is a plus, but let’s face it – people attract people and people want access to others and leaders; That’s the #1 amenity.

Many are ignoring the Gray Rhino in the room. (A gray rhino being a highly probable, high impact threat). The commute and the ability to manage one’s own time are the top reasons people like remote working. (Eptura, 2023) 93% of 10,000+ knowledge workers globally want more flexibility in when they work, while 81% want flexibility in where they work. (Future Forum, 2023)

And the workforce also must own some of the situation we are in. Yes, many people can work successfully from home if their job functions allow them to do so. But we can’t just think about ourselves, and it’s not about what “I want”. It’s about what is right for the individuals, AND the collective community, AND the business, so they all thrive. People want you to be able to get things done with a sense of autonomy, but also you feel part of something bigger than yourself.

Failing to acknowledge that not all companies, or their work styles, are the same will backfire on all of us.

Companies need to determine if the policy is a FUNCTION of what their teams do, or a FEATURE or concession.

How and where we work should be determined by:

1. What our job and clients require
2. What we want to help drive VALUE
3. What colleagues need from each other
4. Employee preferences related to their work style, conditions, and circumstances

Failure is not a ’good’ option

We need to engage with leadership teams and HR to ensure we have the right policies, honest messaging, culture elements, operational strategy, and enticing spaces to empower people going forward – whether they work in shared spaces or remotely.

References

Smith, Morgan, (April 2022), Retrieved from “64% of workers would consider quitting if asked to return to the office full-time” https://www.cnbc.com/2022/04/28/64percent-of-workers-would-consider-quitting-if-asked-to-return-to-office-full-time.html

Kastle (November, 2023) Getting America Back to Work

VTS (February, 2023) VTS Office Demand Index

Carlson, Gus, (September, 2023), Retrieved from “Dear entitled white-collar workers: Time to grow up and return to the office” https://www.theglobeandmail.com/business/commentary/article-return-to-office-remote-workers/

CBRE (May, 2023) Spring 2023 U.S.Office Occupier Sentiment Survey

Kirschner, Phil, Kwok, Adrian, McClatchy, Julia (June, 2023) Retrieved from “Is your workplace ready for flexible work? A survey offers clues” https://www.mckinsey.com/industries/real-estate/our-insights/is-your-workplace-ready-for-flexible-work-a-survey-offers-clues?cid=eml-web

Eptura (August, 2023) Workplace Index Q2

Future Forum (February, 2023) Future Forum Pulse Survey Winter 2022-2023