Work as Life
Rather than fitting their lives around work, Americans now expect work to fit into their lives. And employers are expected to accommodate.
Although work has dropped in priority, that doesn’t mean it’s become an insignificant part of people’s lives. During the pandemic, the lack of a commute meant many workers just punched extra hours instead, to the tune of an extra 22 million hours spent working each day.
Clearly, just because employees’ priorities have changed, it doesn’t mean corporate priorities have changed alongside them – and employers are running out of time to adjust. With talks of a post-pandemic “Great Resignation,” research thus far points to anywhere from 25% to 40% of employees intending to quit in the near term.
So amidst the return to offices this summer and fall, employers need to look to workplaces more as an extension of their employees’ lives: a place to focus and get work done, but also to be social and engage with the surrounding community. This includes fostering more time spent going out with coworkers and giving flexibility to spend time exploring public spaces around the office.
“The truth is most tenants are very unsure of what they want from offices in the ‘post-Covid’ world, but they are trying to manage people’s expectations, concerns, and fears,” says Robert Ward, president and CEO of Skanska USA Commercial Development.
“We have seen a number of tenants reconfigure their spaces to be more collaborative, welcoming, and in some cases ‘fun.’ Sitting at a desk and wearing noise-canceling headphones to do work is less logical today when it could be done from home. What cannot happen at home or over Zoom is real connection, collaboration, or socialization. Those are necessary ingredients for innovation, productivity, and building office culture — that is why the office exists.”
Startups especially are benefitting from keeping office spaces minimal – or doing away with them entirely, at least for now.
The Office Reset Button
With this hybrid workforce, the office space will inevitably change. Real estate industry trends point to some companies downsizing, while others invest in more communal space. And some Fortune 500 companies like Goldman Sachs and Oracle are following consumer trends by picking up and moving out to the suburbs.
Many executives are already following this real estate outlook to a T: 48% are planning on increased investment in communal spaces, and 81% of realtors report seeing more investment in workspace redesigns to increase sanitation, hygiene, and social distancing.
For those not eschewing office spaces, however, coworking spaces are growing in appeal. “Coworking spaces offer a professional work environment with the amenities associated with a modern office, whilst also being designed to be geographically convenient for employees and cost effective and flexible for employers. I wouldn't be surprised if every company of significant size has some sort of membership into one or more coworking companies,” says Tarek Pertew, cofounder and chief creative officer of the employer branding and talent acquisition company Uncubed.
Employee wellness will also continue to be a major focal point, as the working world feels the effects of what many call the most stressful year they’ve experienced in their working lives. Even demand for simple perks reflects this. While free food and drinks are most appealing (who doesn’t love cold brew on tap?), wellness and personal development offerings are also perks in high demand in the post-pandemic workplace:
- Free snacks (64%)
- Drinks on tap (51%)
- Fitness classes (49%)
- Professional development trainings (49%)
The Spaces in Between
Changes in the working world also have broader impacts on the communities surrounding them, particularly business development districts. Many of these daytime neighborhoods have struggled thanks to the flood of office workers suddenly drying up during COVID. But now that return to work will look distinctly different, some experts are predicting that downtown businesses will see up to 10% less spending.
Though more than half (56%) of employees still want to work in a bustling, downtown area, it remains to be seen how much the hybrid workforce will impact surrounding businesses. Some business improvement districts, like the urbanized neighborhood of Rosslyn in Arlington, VA, continue to be confident in the demand for offices in city centers and the appeal of downtown restaurants and shopping for employees.
“While the macro trends around where people choose to live may continue to swing from urban to suburban and back again, the trend of office development in cities of all sizes will continue,” says Mary-Claire Burick, president of the Rosslyn Business Improvement District. “Cities provide the raw material for business success — access to transportation, talent, and amenities. And the most successful downtown areas provide ideal environments for employees, with easy access to restaurants, shopping, and activities.”
But even if office square footage goes up, that won't necessarily translate to more commuters, given the aforementioned emphasis on upping space for hygiene and team-building rather than jamming workspaces as tightly together as possible. Instead, perhaps we’ll see a quality over quantity approach to how workers interact with business districts: the growing emphasis on socialization and flexible hours may mean that workers will make the most of the time they are in the office, engaging more with nearby restaurants and retail.
“Downtowns will still be where the most cultural events will be, which will continue to draw people there. However, as many young people moved out of downtowns to the suburbs during the pandemic ... they may prefer to work in the suburbs," says Bruce Lane, executive vice president, managing director, and cofounder of D.C.-area real estate firm The Meridian Group. "People have been flocking to restaurants and sporting events, and I believe that downtowns will come alive again after companies fully reopen their offices."
Or, the novelty of in-person work will wear off and more will need to be done to attract consumers into the heart of business districts. It will be something we continue to monitor into the fall, especially since every city will likely face different results depending on the local approach to remote work and availability of restaurants and retail.