GLOBAL real estate firm JLL’s Future of Work Survey reveals that hybrid work is set to become the new norm in years to come as the trend continues following the pandemic.
Working from home became a regular thing when the covid pandemic rolled around and it could be set to stay as bosses attempt to meet the desires and needs of their employees.
The research survey conducted among 1,095 senior corporate real estate decision-makers through online research during April and May 2022 covered 13 global markets, including 55 respondents in Australia.
The needs for sustainability and positive effects on the environment also are set to have an impact on how workforces move forward. Buildings account for over 60% of carbon emissions in cities as pressure comes down on companies to make an impact in reaching net zero. 71% of respondents in the survey said they are likely to pay a premium for green building credentials in the future.
The trend appears to be in favour of hybrid working in the future. The survey shows that 56% of organisations in Asia Pacific have said that they will likely make remote working available to all employees by 2025. Corporate real estate executives are also saying that successfully operating hybrid work will be the most important strategic priority over the next three years.
JLL’s managing director, work dynamic – Australasia Nathan Taylor says that the pandemic has brought on a number of changes that look set to influence how businesses move forward.
“We have already seen dynamic working patterns that have developed in response to the pandemic resulting in real estate strategies that have had to become more agile and nimble. Now the next few years will be a critical time for companies to ensure they succeed in adapting to the rapid changes brought on by the pandemic,” he said.
The research also shows that companies will have to look across their real estate portfolios to measure how they can transform it to prioritise sustainability. It’s outlined that the best methods they can take is to plan for a future where dynamic working is the primary model of a workforce; identify a location that offers the best quality of space; and reassess whether the portfolio is fit for purpose.
Taylor says that quality space is vital for a lot of organisations, after the survey found that 80% of organisations in Asia Pacific agree that it’s a top priority.
“Investing in quality space is a key strategy for aligning workplaces to the post pandemic world. Themes explored in the report show office rejuvenation is needed as real estate needs become more sophisticated and complex. Environmental and social aspirations are key to the transformation of office space, in addition to investment in smart technology,” he said.
Taylor also adds that the hybrid world seems to be the best path for future workplaces to take in terms of recruitment and retention of staff.
“The survey results clearly demonstrate the critical role future workplaces will play in attracting and retaining the best talent, with 77% of respondents agreeing or strongly agreeing that offering remote/hybrid working will be critical to attracting and retaining talent.”
“The report acknowledges that companies recognise that to remain competitive and draw the best talent, they need to plan for a future in which dynamic working is at the heart of the workforce model.”
JLL’s report coincides with recent ABS Census data which shows there were 2.5 million Australians working from home and fewer are working 40 hours or more per week.
Meanwhile as fears of a global recession grows, more than 80% of chief financial officers surveyed expect hybrid working to be a cost saver as evidenced by global enterprise tech company Cisco, which went hybrid five years ago, cutting 50% of its real estate footprint and saving the company around $500 million.
But the hybrid working model is hurting CBD retail. Research found nearly $1.6 billion in CBD spending would be lost each year under optimistic scenarios for workers returning to the office, according to a report from PAR Group, which also suggested discussions about the role of the city office need to revolve around a reduced daily office workforce and the prospect of “ghost buildings” and higher retail vacancies.
