How top-ranked managers create satisfied employees 2024
According to a recently published study by the IFMA (International Facility Management Association), the majority of its members, specifically 59%, anticipate that companies will undergo a transformative change in their office spaces. This altered perspective on workspaces includes a reduction in the total office area, increased use of flexible spaces with shorter lease terms, and a growing demand for coworking. Interestingly, the same survey indicates that 69% believe organizations will accelerate these strategies, especially in the event of an economic downturn, to consolidate local spaces and reduce costs.
UpdatedJan 31. 2024
For small and medium-sized enterprises, employees are also expected to actively seek opportunities for remote work to mitigate the effects of cost increases during a recession. However, the so-called flexibility trend, which largely revolves around remote work, is not only about cost savings but also about well-being.In a quarterly survey conducted in 2023 (by Novus on behalf of Sodexo) regarding Swedish white-collar workers' attitudes towards today's work life, a shorter work week topped the wish list, followed by more flexible working hours and the ability to work from anywhere. In the survey, 3 out of 4 respondents also believed that hybrid work will be the most common way of working by 2030.At the same time, we are now seeing more and more employers, not least tech giants like Zoom and Amazon, encouraging their employees to return to the office more extensively. Thus, there is a certain contradiction between employees and employers. However, new surveys from Flex Index and Boston Consulting Group (BCG) show that 'Office First' has decreased by 11% to 38% during 2023, indicating a trend that goes against what Zoom and Amazon are advocating.So the big question remains: How do you create satisfied employees and employee joy while wearing the cost-saving hat? Is a hybrid model the best approach? And what role does the office play?
1. Set a clear policy around hybrid work
According to a survey by Fishbowl, about half of the workers experience a lack of clarity regarding their employer's guidelines for hybrid work. Henrik Jarleskog of Sodexo (the world's largest facility management company) and Head of Strategy in Europe, points out on LinkedIn that this lack of transparency affects not only operational efficiency but also the company's long-term value. He argues that well-developed hybrid policies promote collaboration, increase productivity, and strengthen trust.Whether one supports Dropbox's 'Remote Culture' and their '90/10 rule', where 90% of work is done remotely and 10% is spent on incredible and well-planned offsite events for their employees, or if one is a strong advocate for office work, it's important to have a clear policy that aligns with the company's values. According to a recent report from Flex Index, Boston Consulting Group (BCG), and Scoop, their 'Flex Index Survey' with nearly 600 companies shows there is now a correlation between companies with a flexible work model and a 4x increase in revenue compared to companies with more traditional work models.Phil Kirschner from McKinsey & Company has shared results from an updated OHI survey. It also shows that employees who experience flexibility in where and when work is performed are about 1.5x more likely to report a positive work environment and culture. Those who agree with management about why they are asked to be in the office are about 2.5x more likely to report a positive work environment and culture. Employees who say their team has clearly established norms for where, when, and how work is performed are about 3.5x more likely to report a positive work environment and culture
According to a survey by Fishbowl, about half of the workers experience a lack of clarity regarding their employer's guidelines for hybrid work. Henrik Jarleskog of Sodexo (the world's largest facility management company) and Head of Strategy in Europe, points out on LinkedIn that this lack of transparency affects not only operational efficiency but also the company's long-term value. He argues that well-developed hybrid policies promote collaboration, increase productivity, and strengthen trust.Whether one supports Dropbox's 'Remote Culture' and their '90/10 rule', where 90% of work is done remotely and 10% is spent on incredible and well-planned offsite events for their employees, or if one is a strong advocate for office work, it's important to have a clear policy that aligns with the company's values. According to a recent report from Flex Index, Boston Consulting Group (BCG), and Scoop, their 'Flex Index Survey' with nearly 600 companies shows there is now a correlation between companies with a flexible work model and a 4x increase in revenue compared to companies with more traditional work models.Phil Kirschner from McKinsey & Company has shared results from an updated OHI survey. It also shows that employees who experience flexibility in where and when work is performed are about 1.5x more likely to report a positive work environment and culture. Those who agree with management about why they are asked to be in the office are about 2.5x more likely to report a positive work environment and culture. Employees who say their team has clearly established norms for where, when, and how work is performed are about 3.5x more likely to report a positive work environment and culture
2. Analyze the importance of the officeBefore considering a hybrid policy, it is crucial to identify and eliminate redundant office space. Given that many offices were already half-empty before the pandemic, there is often a significant business case from both an economic and sustainable perspective to reduce this space. A thorough review of the office area is therefore often the first step towards change. In short, every square meter should be used efficiently to avoid unnecessary costs. By considering the number of employees present in the office per day, i.e., the occupancy rate during working hours, the size of workstations and their number, and moving to a flexible placement where employees do not have their own workstation but take one that is available for the day — leaders can take concrete steps towards significant cost savings by having the right-sized office. But the real key lies in reevaluating the office's location and adapting the current office's function, purpose, and furnishings. What role will the office play for you in the future? How does your hybrid policy affect your office? How can you create spaces and functions for collaboration? The question is whether the office has gone from being a workplace where you get your work done between 8 to 5 to being a place that you visit 1-2 times a week for creativity, collaboration, and social interaction?'As we navigate this giant shift in the Future of Work, the workplace outgrows its traditional role. It becomes a strategic asset, a tool for talent empowerment, and a reflection of the organization’s hopefully sustainable ethos. The journey forward demands a careful balance – honoring the industry’s legacy while embracing innovation and adaptability. Whilst in most parts of the world 2/3 corporations are now in a hybrid operating model.'— Says Henrik Jarleskog, Head of Strategy in Europe at Sodexo, in a post on LinkedIn.
The journey forward demands a careful balance – honoring the industry’s legacy while embracing innovation and adaptability. Whilst in most parts of the world 2/3 corporations are now in a hybrid operating model.— Says Henrik Jarleskog, Head of Strategy in Europe at Sodexo, in a post on LinkedIn.
3. Transform your office and sell unused furnitureBy now, you've likely settled on the type of hybrid model that suits your organization and the role the office should play for you, i.e., your vision for your workplace. Now it's time to take action. Many office spaces are not optimally utilized based on the set policy. By transforming these areas into creative and inspiring spaces, leaders can not only reduce costs but also enhance well-being. The key here is to create an environment reminiscent of a living room or inviting kitchen, providing a creative and stimulating atmosphere. For instance, transform meeting tables into ping-pong tables after working hours, offer hotel-like breakfasts, or provide morning yoga sessions. A critical insight is that many office furniture pieces are rarely used. By selling surplus furniture, leaders can generate revenue and create a more efficient work environment where employees utilize the available furniture, making the office spaces more lively.
'It’s not about the square meters, and it is all about the square meters; it’s about the sense of community fostered by socialization areas and shared efficient experiences. Offices will be repurposed to create unique experiences for employees, with features like on-site cafes, concierge services, and fitness facilities. They will also become smarter, with technologies like IoT sensors, lighting, and air quality monitoring.'
— Says Henrik Jarleskog, Head of Strategy in Europe at Sodexo, in a post on LinkedIn.
4. Flexibility is KeyAn incredible SEK 1.96 billion (!) – this massive sum is what Meta (Facebook) is now paying to terminate a lease on one of its offices in central London due to continued hybrid work. Meta had 18 years left on its lease at the fantastic 1 Triton Square and paid the equivalent of about seven years' rent to break free from the agreement for one of their two buildings at the address, according to analysts at BNP Paribas Exane.This clearly demonstrates that the world will operate differently for them and their employees in the future. Even though Meta could afford to pay it, it surely stings for their CFO. The question is how many CFOs are looking at similar cost savings? Hence, one of the last pieces of advice: We don't actually know how the future will unfold, but with flexible agreements and an open approach, it's easier to adapt to changing needs and conditions. It becomes easier to dare to try new things, experiment, and see what works for your own organization. It will become increasingly important to be agile and listen to employees to create an attractive workplace. In this shift, flexible furniture rental has become a strategic and smart alternative while being sustainable and reducing the company's carbon footprint. Investing in furnishing the office in a flexible way not only enables a sustainable approach and easier reporting according to new EU laws such as CSRD but also gives companies the opportunity to quickly adapt to changing needs without tying themselves up in significant financial investments.
“It’s not about the square meters,and it is all about the square meters; it’s about the sense of community fostered by socialization areas and shared efficient experiences."— Says Henrik Jarleskog, Head of Strategy in Europe at Sodexo, in a post on LinkedIn.
5. Don’t Forget Home OfficesBy implementing hybrid work and offering the option of home offices, leaders provide their employees with flexibility and choice. This can increase comfort and productivity while reducing costs for large office spaces. But a smart leader realizes that hybrid work requires an ergonomic office, regardless of where you work from. According to Dagens Industri, the Supreme Administrative Court in a recent ruling narrows the conditions for a home-work injury to be considered an occupational injury. Among other things, it doesn't matter whether the remote work is voluntary or mandated, so it doesn't matter if you've been working 3 or 5 days in the office. Therefore, it becomes important to now have a scalable and sustainable solution that is compliant with occupational safety laws in different countries.
A good home office is not just about having the right furniture and equipment. It's about creating a space that feels comfortable, inspiring, and where the employee feels most productive. By renting and managing home offices in a digital and flexible solution, you can kill three birds with one stone, i.e., you can easily scale up or down based on the number of employees, the onboarding and offboarding process is simplified, and you know that your organization has an environmentally friendly solution that aligns with new EU laws.Spend 3 days in the office instead of 5, and you save carbon use by 11%Spend 1 day in the office instead of 5, and save carbon use by 29%Spend 0 days in the office instead of 5, and save carbon use by 58%"
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