Organisations are taking advantage of favourable office lease terms and incentives to redesign their workplaces to increase productivity, strengthen culture and aid talent retention.
Presented by Spaceful
The focus on new workspaces comes with the recognition that the widespread adoption of hybrid working has fundamentally shifted the role of the office – from the default location to carry out work, to a place for collaboration and teamwork.
“The office needs to be a place that helps people thrive and develop, and ensures their in-person time is delivering something meaningful remote work can’t offer,” says James Bleakman, workplace strategy director at design, delivery and workplace strategy firm, Spaceful.
Business leaders are discovering significant benefits from redesigning their workplaces.
Some 88 per cent of business leaders who have made a significant physical change to their workplace in the past two years say it boosted productivity, according to the Spaceful Workplace Insights Report, based on responses from more than 1000 Australian employees and 200 C-suite executives.
The report states that when designed with intention, the workplace becomes an engine of productivity, enabling deep focus, cross-team collaboration and meaningful connection.
Additionally, 65 per cent of business leaders report reduced employee turnover following workplace changes; and 62 per cent say workplace design is essential to attracting talent, making the office a distinct part of the employee value proposition.
“When the workplace reflects brand and values effectively, it builds pride, strengthens engagement and drives measurable business outcomes,” says the report.
The post-pandemic adoption of hybrid work means employees are doing a lot of their deep-focus work at home and coming to the office to meet and collaborate with colleagues. Office design needs to reflect this, says Bleakman.
Discovery phase
A successful redesign starts with what he calls the “discovery phase”, where workplace strategists learn how employees are making use of the workplace and understand their workplace needs. The goal is to align the physical environment to the company's operational, cultural and digital requirements to meet performance goals.
According to Bleakman, Spaceful unearths information that is often dispersed across individuals throughout the business.
“We reach out to all corners of the business, be it through workshops, surveys, meetings, interviews or behavioural studies, to capture data and experience,” explains Bleakman. “The question is shifting from how often the workplace is used to how does it effectively enable outcomes?”
The discovery phase data is analysed and formulated into tailored insights leaders can use to help make informed decisions about the right physical environment for their business.
Following the discovery phase, Bleakman says many businesses will add more intentional team spaces, and will often reduce traditional larger meeting rooms in favour of greater variety. “Most meetings average four to six people, and not all of those attendees are always in the room, so businesses have the opportunity to make better use of meeting spaces.”
More businesses are organising offices around location-based ”neighbourhoods” rather than assigning space strictly by team or department.
“Each area of the office can become a neighbourhood, bringing together multiple teams that work closely with one another,” he says. “These neighbourhoods sit alongside other related zones, creating flexible boundaries that can expand or contract depending on how often those teams are in the office.”
Many organisations are finding that a one-to-one ratio of workstations to people is becoming less relevant, allowing them to make smarter commercial decisions and take a smaller office footprint. Currently, approximately seven workstations per 10 employees is proving adequate, which means some of the extra space can be devoted to a wider variety of focus and collaborative spaces.
Trust and flexibility
Workspaces have also become an effective way for organisations to attract and retain talent, says Bleakman. Employees want hybrid work and they want a workplace where the business values are visible and authentic.
“They want trust and flexibility, and to feel part of an identity they can connect with, which provides meaning and belonging,” he says, adding this is particularly true for the younger generation.
Bleakman describes it as “representing the brand through the workspace”.
People also want an office space as good or better than the space they work from at home. Workplaces are investing a lot more in technology to make this happen. In fact, workplace designs that facilitate the right balance of learning and collaboration can help an organisation develop a strong culture where people can perform at their optimum level and build resilience alongside career development.
Bleakman suggests that with a significant number of corporate leases set to expire over the next two years, business leaders should seize the opportunity to secure favourable lease terms and landlord incentives for fit-outs before the office rental market shifts against them.
He explains that while overall office vacancy rates are relatively high, figures are distorted by older, less desirable buildings, while A-grade office accommodation is lacking.
“Landlords are offering stronger incentives at the moment to include those fit-out contributions, but they will not last long,” he says. “As soon as those spaces start filling up, incentives will get less and less.”
He suggests the optimal time to begin workplace planning is 24 to 36 months before a lease expires. Those facing expiries between 2028 and 2031 sit in a particularly high-risk window, with constrained new supply, weaker incentives and limited availability of premium space.
While boards don’t need to be involved in the day-to-day decisions around an office redesign, Bleakman believes they should engage with the process. They should ensure workplace strategy is integrated with the organisation’s corporate strategy to enhance long-term performance goals.
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