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The future of work
How workspace mobility can help your
business navigate the new normal
IWGPLC.COM
CONTENTS
Contents
We delve into what the new world of work
will look like for firms, from startups to
multinationals, and examine how a flexible,
mobile series of workplace options can
ensure business success
Promoting workspace mobility
We’ve proved that flexible work patterns can be
successful, so creating permanent workspace mobility
is the next frontier
Key learnings
Businesses will need to revisit how the office serves them
Understanding the new world
of work
Workforces that either work remotely all of the time or
part of the time are here to stay
03
04
07
11
12
13
Why workplace mobility better
serves employees
This new way of working is a safer way
of working
Creating an environment where
businesses thrive
How flexible working can grow your business
Taking your business forward
Choose a solution that fits your brand
3
IWGPLC.COM
Promoting workspace mobility
We’ve proved that flexible work patterns can be successful,
so creating permanent workspace mobility is the next frontier
As the world begins to pull itself upright, businesses are
looking for ways to operate and innovate within our new
normal. In some parts of the world, shops and offices are
reopening, and a portion of non-key workers are starting
to commute again. However, further restrictions are being
rolled out in other parts, where the future looks ever
more uncertain.
In the same way that wide-scale remote working was
sparked by a wholesale departure from the workplace,
those who are returning will experience unprecedented
changes. We’ve proved that flexible work patterns can be
successful, so creating permanent workspace mobility is
the next frontier.
Companies’ requirements in the new world of work will be
ever evolving, with changes ranging from enhanced cleaning
to fluctuating space needs. Their basic office requirements,
too, will be subject to frequent transformation as advances
in technology and policy continue apace.
PROMOTING WORKSPACE MOBILITY
Basic office requirements will be
subject to frequent transformation
as technology advances
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IWGPLC.COM
Key learnings
KEY LEARNINGS
When looking at how the world is returning to work, it’s a
good idea to start with an overview of what we’ve learned.
What challenges are staff and companies facing? How are
these being addressed and how are they driving change and
fostering innovative thinking? Finally, what are some of the
long-term changes we are likely to see?
Before staff even get into work, they will be faced with very
different commutes. For years, commuting has been seen as
a significant negative, with the average total commute (both
ways) in the UK and US just under an hour, while in South
Korea (which has the world’s longest commutes) it’s close
to two-and-a-half hours. Many businesses had been making
significant moves towards working partially from home for
those with long commutes.
But the last year has opened many people’s eyes to the
joys of having no commute at all and spending more time
with their families. It has also brought home other factors,
such as how polluting commuting can be. On 19 March
2020, researchers from Columbia University told the BBC
that carbon monoxide, mainly from cars, in New York City
was down more than 50% on the previous year. In a related
vein, bicycle sales have boomed.
However, we have also seen restrictions on public transport
and are now observing high levels of car use as people
either choose not to use public transport or find it harder
to use. For these reasons, remote working or local working
(within walking or cycling distance) will be considerably
In the UK and US, the average total commute
(both ways) is just under an hour, while in
South Korea (which has the world’s longest
commutes) it’s close to two-and-a-half hours
On 19 March 2020, researchers from Columbia
University told the BBC that carbon monoxide,
mainly from cars, in New York City was down
more than 50% on the previous year
Once people are actually at work, companies
will need to ensure they are safe. Some of
the obvious precautions are the widespread
introduction of hygiene facilities and processes
and regular deep cleaning
Businesses will need to revisit
how the office serves them
5
IWGPLC.COM
“Take this moment as an
opportunity to refresh and
revitalise your workspace”
KEY LEARNINGS
more appealing. Moreover, even when restrictions lift,
people may be reluctant to embark on long commutes
once again.
Space and safety
Once people are actually at work, companies will need
to ensure they are safe. Some of the obvious precautions
are the widespread introduction of hygiene facilities and
processes and regular deep cleaning. Clutter that creates
multiple possible touchpoints will need to be kept to
a minimum.
Workplaces may need to be rethought and redesigned with
a greater emphasis on spacing, desk barriers and crowd
control measures. This is likely to be an ongoing process,
with regulations and recommendations changing over time.
Businesses with operations in more than one country will
have multiple sets of regulations to contend with.
On an almost philosophical note, it will mean revisiting
how a business’s office serves it. Writing in The HR Director,
Jonathon Simpkins, of office designer Bluespace, said:
“[Companies] need to take time to plan their new layouts
to ensure they work for both staff and company goals.”
He added: “Take this moment as an opportunity to refresh
and revitalise your workspace.”
Employee wellbeing
It’s not just about the physical side of things, either.
There is a strong mental aspect to this. Many companies
are reporting a sharp rise in calls to employee helplines.
6
IWGPLC.COM
A recent study by Benenden Health found that 35% of
individuals felt their mental health had suffered due to
COVID-19, with 38% saying support from employers could
help ease the stress they are experiencing day-to-day.
In a recent report, Capita found that 88% of businesses
identified job insecurity as a factor that compromises
employee wellbeing, while 77% cited a lack of social
contact. In the Financial Times, André Spicer, Professor
of Organisational Behaviour at Cass Business School,
spoke about remote workers being paranoid. “When you
are not around your coworkers and your organisation due
to virtual working, it can give space for paranoia to grow,”
he wrote. “We don’t have all the usual informal feedback
to make sense of what is going on.”
KEY LEARNINGS
Business continuity
Companies will also need to think about what happens
if there are further waves, lockdowns or, indeed, other
unrelated crises. Their business continuity will depend on
it. Gartner published a survey in March that showed that
only 12% of businesses were well prepared for COVID-19.
On the positive side, many businesses are now much readier
to cope with external crises, although they may be in the
unenviable position of having to prepare for the next crisis
while coping with this one.
That said, we will be better equipped to deal with it. Firms
will be better prepared to move their workforces to remote
locations and will know where to go for everything from deep
cleaning to emergency IT support to flexible office space.
7
IWGPLC.COM
Understanding the
new world of work
Workforces that either work remotely
all of the time or part of the time are
here to stay
The pandemic massively accelerated a trend that was
already emerging. Over the past 10 years, improvements
in technology, changes in the world of work and cultural
and societal movements have led to far more flexible
patterns of working.
In the UK, Office for National Statistics (ONS) figures
show that 1.54 million people worked remotely in 2018
compared with 884,000 a decade earlier – a 74% rise.
Similarly, a 2018 Deloitte report showed that flexibility (in
terms of working hours and location) was “very important”
for half of Millennials and 44% of Generation Z when
choosing whether or not to work for an organisation. Other
surveys and polls regularly show that up to 90% of people
would like to work from home at least some of the time.
Recent events have supercharged this. Two years later,
ONS research conducted in April 2020 showed that just
under half the UK’s workforce was working from home.
This is roughly 13 million people. What is perhaps most
interesting is how the pandemic has been a crash course
in just how many jobs can actually be carried out remotely.
Occupations that had always been office-based, notably
those in areas such as law and banking, are now seen as
candidates for remote work. In the UK, many such workers
have not returned.
“Remote work is something we’re thinking a lot about right
now,” said Colin Yasukochi, director of research and analysis
at the commercial real estate services giant CBRE, in April.
“People are right now being forced to do it, but I think some
In the UK, Office for National Statistics (ONS)
figures show that 1.54 million people worked
remotely in 2018 compared with 884,000 a
decade earlier – a 74% rise
0
2018
2008
500k 1m 1.5m 2m
UNDERSTANDING THE NEW WORLD OF WORK
8
IWGPLC.COM
will inevitably stick to working remotely. The question of
how many, and for how long, is unknown.”
The survival of the office
Many companies have embraced this change. Google and
Facebook both announced that they will continue their
working-from-home policies until the end of 2020
and Twitter has said that eligible staff will be permitted to
work from home forever. It’s not just forward-thinking tech
titans, though. Jes Staley, the CEO of Barclays, recently said:
“The notion of putting 7,000 people in a building may be a
thing of the past.”
However, it’s unlikely that the office will end altogether.
Professor André Spicer recently told the BBC that, while
he predicts a “radical decrease” in the amount of time
people spend in offices, office working will continue. The
fact is that offices do provide some factors that are very
hard to replicate remotely. These range from face-to-face
meetings to informal networking and intelligence gathering.
Indeed, it has been widely noted that remote working may
be harder on younger people who have not yet built up
significant networks and other forms of work-related
‘social capital’.
A return to the office will inevitably happen, but there is
unlikely to be a full return to the status quo ante – and
workforces that either work remotely all of the time or part
of the time are here
to stay.
UNDERSTANDING THE NEW WORLD OF WORK
Google and Facebook both announced that they
will continue their working-from-home policies
until the end of 2020 and Twitter has said that
eligible staff will be permitted
to work from home forever
Jes Staley, the CEO of Barclays, recently said:
“The notion of putting 7,000 people in a
building may be a thing of the past”
9
IWGPLC.COM
There is plenty of evidence that this is starting to happen
already. A recent Gartner survey showed that 74% of
companies plan to permanently shift to more staff working
remotely. Similarly, an Asia Pacific Occupier Flash Poll
showed that 84% of businesses plan to increase their
investment in technology in order to support remote
working and business continuity planning.
There are good reasons for these changes. These range
from the costs of city centre rents to being able to recruit
from a bigger pool of talent – and being a more attractive
employer if you do not require people to be at a desk
in an office all day. As Kathryn Mayer recently wrote in
Human Resource Executive: “Advocates say remote working
encourages work-life balance and can result in higher
productivity and increased employee satisfaction, loyalty
and engagement.”
Change is coming
However, while a more distributed workforce may well be
an overall positive for both companies and their staff, the
new world of distributed employees is very much a work in
progress, and considerable challenges remain. There may
be issues we are only just becoming aware of.
Even though not all staff are returning to the office, they
may well need more space. At first this will be due to
physical distancing, but the threat of further outbreaks
will continue to present new and fast-evolving challenges
for both businesses and employees. Implementing and
UNDERSTANDING THE NEW WORLD OF WORK
“Remote working encourages
work-life balance and can
result in higher productivity”
10
IWGPLC.COM
UNDERSTANDING THE NEW WORLD OF WORK
CBRE estimates the price of a desk at
£14,000 a year – or roughly half the cost
of a UK employee’s salary
maintaining appropriate protocols will represent a complex
and expensive burden.
For these reasons, many companies are looking to more
mobile ways of working, offering employees the option to
work from home, at the office, or from satellite coworking
hubs that bridge the two. In countries where lockdown has
ended, flexible workspace demand is beginning to return
to 2019 levels and a number of surveys suggest flexible
workspace providers are feeling more confident about the
future.
In the Financial Times recently, journalist Oliver Ralph
wrote: “When small businesses get back on their feet, they
might be looking for more flexible premises which offer
shorter leases and more options to grow or shrink the space
required. A lot of people have discovered that they can work
from home now, but that does not necessarily mean that
they will want to do so forever.”
A more flexible future
We have already seen that in the short-to-medium term
businesses might need more space. However, in the longer
term, particularly as distancing regulations relax, they
may well want less space. In these instances, coworking
facilities can represent a boon to business leaders,
providing less costly, unused space with the opportunity
to flex up if necessary. CBRE estimates the price of a
desk at £14,000 a year – or roughly half the cost of a UK
employee’s salary. Investing in flexible workspace can
remove real estate from company balance sheets and
ultimately improve a business’s financial position.
Thus, for many companies, the idea of a central HQ where
thousands of people work is fast becoming outmoded.
Rather, the future is likely to be hub and spoke. You have
a central office, which is the hub, and then satellites
connected by spokes. This means smaller offices in
pricey, central locations and a series of smaller satellites
connected by spokes. People can work closer to home,
companies save money and a flexible central office is
still there if needed.
“Businesses that are able to implement remote working
at scale appear to create a more agile working culture
that lets them respond quickly to sudden developments
– pandemics included,” says a recent report by
GlobalWebIndex. “Remote working can bring wider
benefits to a business when properly implemented.”
The idea of a central HQ where
thousands of people work is fast
becoming outmoded
11
IWGPLC.COM
WHY WORKPLACE MOBILITY BETTER SERVES EMPLOYEES
Why workplace mobility
better serves employees
This new way of working is a safer way of working
Workspace mobility is likely to be a big part of how businesses arrange their offices in the future.
Here, we have outlined three scenarios.
A finance company that previously
had a big central office in a place
such as the City of London or Wall
Street might move to a few smaller
hub premises, home working and a
series of spoke offices dotted around
the suburbs where its workers would
normally commute from. The company
would save money and workers would
have less of a commute – or none at
all. Many roles in finance are amenable
to remote or semi-remote work.
A campus-based pharma company
might take a slightly different
approach. Because of the need for
labs and other facilities, it would keep
some of its large premises, which
are likely to be located in a suburb.
However, it would open hub-and-
spoke offices and offer much more
work from home for suitable roles.
It would become a far more flexible
employer. Some of its staff might find
their jobs moving to city centres.
Medium and large tech companies
could move over to one of these two
models. Tech companies are often
very well suited to working from home
both in terms of the work itself and the
expectations of staff, and so would
be likely to have a smaller need for
office space. However, in recent years
many larger businesses have built
campus premises. For them, the
changes would be quite mixed, but
the probable overall result would be
a more flexible, attractive employer.
Growing tech companies are likely to
embrace this model fully – and make
considerable savings.
A central office operates as a hub for
employees, with satellites connected
to it by spokes
People can work closer to home,
companies save money and a flexible
central office is still there if needed
Businesses can easily and rapidly flex
up and down in terms of the space
they use, should circumstances require
1 2 3
12
IWGPLC.COM
CREATING AN ENVIRONMENT WHERE BUSINESSES THRIVE
For businesses looking to make sense of this new normal,
flexible workspace solutions from IWG can play a big part.
A network of thousands of locations worldwide means that
businesses can easily spread their workforces out across
different sites. Moreover, they can also rapidly flex up and
down in terms of the space they use, should circumstances
require. And it allows access to fully serviced offices, with
professional IT infrastructure, and therefore fewer anxieties
during difficult, busy times.
As well as physical infrastructure, IWG offers businesses
more than 30 years of experience operating across different
jurisdictions and markets. Representatives are familiar
with a number of different working practices, cultures
and regulatory regimes. Companies can access expert
advice, make adjustments according to their needs and
feel secure that best practice is being implemented as
circumstances evolve.
Did you know?
Home office support is part of IWG’s mobility
solution for enterprises. A range of products is
designed to support workers from home,
including virtual office services, on-demand
meeting rooms and day offices. This means that,
whether your workforce consists of freelancers
or full-time employees, homeworking can be
more professional for everyone
Creating an environment
where businesses thrive
How flexible working can grow your business
13
IWGPLC.COM
If you’re a business facing this new world of workspace
mobility, it’s important to know that you’re not alone.
IWG is already partnering with companies just like yours
to make this flexible future a reality.
IWG Enterprise Solutions enables companies to simply
show up and start working. Businesses can choose from
a range of support options that are designed to remove
the pain points and provide seamless solutions to a range
of common needs. IWG recognises that there will be
uncertainty and changes going forward – and our solutions
are flexible enough to take this into account.
This means that businesses can take short-term space
on highly flexible terms in IWG locations near their own
premises. If businesses already lease space from IWG,
they will be able to take more space, either in the same
centre or in nearby centres.
In the longer term, we believe that the hub-and-spoke
offering will answer the needs of many businesses.
Regional hubs can be designed with different layouts
to accommodate different functions. Spoke offices can
be set up quickly and as needed. And we recognise that
companies’ needs may fluctuate considerably over the
coming years.
TAKING YOUR BUSINESS FORWARD
IWG recognises that there will
be uncertainty and changes
going forward – and our flexible
solutions take this into account
Taking your business forward
Choose a solution that fits your brand
14
IWGPLC.COM
Companies will want to flex and offer a mixture of remote-
and office-based working – and discovering what works
for them will be a journey with IWG as a guide. There may
also be infrequent events that require normally remote
workers to be in the office – for instance, critical meetings.
For these reasons, having on-demand access to flexible,
local, professional workspaces is crucial. It removes
a logistical headache for companies and means they
can plan ahead knowing that they can also make
last-minute changes. IWG offers an unrivalled network
of locations in both city centres and suburban areas,
meaning there are convenient offices available for all
members of a workforce – resulting in happier and
more productive employees.
It doesn’t matter what size your business is. IWG offers
membership plans that allow pay-as-you-use access,
short-term assistance and longer-term corporate solutions.
IWG envisages many companies using an à la carte
mixture of these to suit their needs.
IWG is not just about office space. It can help make
homeworking more professional for individuals and
companies and recognises that the last thing many
businesses want is additional administrative burdens.
To make life easier, it offers a programme with a range of
professional services to support home workers, ranging
from local phone numbers and mail redirecting to use of
local workspaces, whenever and wherever they are needed.
IWG offers an unrivalled network of locations
in both city centres and suburban areas,
meaning there are convenient offices
available for all members of a workforce
TAKING YOUR BUSINESS FORWARD
To help your business navigate the new world of work, speak to IWG today iwgplc.com

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IWG plc research report: the future of work

  • 1. The future of work How workspace mobility can help your business navigate the new normal
  • 2. IWGPLC.COM CONTENTS Contents We delve into what the new world of work will look like for firms, from startups to multinationals, and examine how a flexible, mobile series of workplace options can ensure business success Promoting workspace mobility We’ve proved that flexible work patterns can be successful, so creating permanent workspace mobility is the next frontier Key learnings Businesses will need to revisit how the office serves them Understanding the new world of work Workforces that either work remotely all of the time or part of the time are here to stay 03 04 07 11 12 13 Why workplace mobility better serves employees This new way of working is a safer way of working Creating an environment where businesses thrive How flexible working can grow your business Taking your business forward Choose a solution that fits your brand
  • 3. 3 IWGPLC.COM Promoting workspace mobility We’ve proved that flexible work patterns can be successful, so creating permanent workspace mobility is the next frontier As the world begins to pull itself upright, businesses are looking for ways to operate and innovate within our new normal. In some parts of the world, shops and offices are reopening, and a portion of non-key workers are starting to commute again. However, further restrictions are being rolled out in other parts, where the future looks ever more uncertain. In the same way that wide-scale remote working was sparked by a wholesale departure from the workplace, those who are returning will experience unprecedented changes. We’ve proved that flexible work patterns can be successful, so creating permanent workspace mobility is the next frontier. Companies’ requirements in the new world of work will be ever evolving, with changes ranging from enhanced cleaning to fluctuating space needs. Their basic office requirements, too, will be subject to frequent transformation as advances in technology and policy continue apace. PROMOTING WORKSPACE MOBILITY Basic office requirements will be subject to frequent transformation as technology advances
  • 4. 4 IWGPLC.COM Key learnings KEY LEARNINGS When looking at how the world is returning to work, it’s a good idea to start with an overview of what we’ve learned. What challenges are staff and companies facing? How are these being addressed and how are they driving change and fostering innovative thinking? Finally, what are some of the long-term changes we are likely to see? Before staff even get into work, they will be faced with very different commutes. For years, commuting has been seen as a significant negative, with the average total commute (both ways) in the UK and US just under an hour, while in South Korea (which has the world’s longest commutes) it’s close to two-and-a-half hours. Many businesses had been making significant moves towards working partially from home for those with long commutes. But the last year has opened many people’s eyes to the joys of having no commute at all and spending more time with their families. It has also brought home other factors, such as how polluting commuting can be. On 19 March 2020, researchers from Columbia University told the BBC that carbon monoxide, mainly from cars, in New York City was down more than 50% on the previous year. In a related vein, bicycle sales have boomed. However, we have also seen restrictions on public transport and are now observing high levels of car use as people either choose not to use public transport or find it harder to use. For these reasons, remote working or local working (within walking or cycling distance) will be considerably In the UK and US, the average total commute (both ways) is just under an hour, while in South Korea (which has the world’s longest commutes) it’s close to two-and-a-half hours On 19 March 2020, researchers from Columbia University told the BBC that carbon monoxide, mainly from cars, in New York City was down more than 50% on the previous year Once people are actually at work, companies will need to ensure they are safe. Some of the obvious precautions are the widespread introduction of hygiene facilities and processes and regular deep cleaning Businesses will need to revisit how the office serves them
  • 5. 5 IWGPLC.COM “Take this moment as an opportunity to refresh and revitalise your workspace” KEY LEARNINGS more appealing. Moreover, even when restrictions lift, people may be reluctant to embark on long commutes once again. Space and safety Once people are actually at work, companies will need to ensure they are safe. Some of the obvious precautions are the widespread introduction of hygiene facilities and processes and regular deep cleaning. Clutter that creates multiple possible touchpoints will need to be kept to a minimum. Workplaces may need to be rethought and redesigned with a greater emphasis on spacing, desk barriers and crowd control measures. This is likely to be an ongoing process, with regulations and recommendations changing over time. Businesses with operations in more than one country will have multiple sets of regulations to contend with. On an almost philosophical note, it will mean revisiting how a business’s office serves it. Writing in The HR Director, Jonathon Simpkins, of office designer Bluespace, said: “[Companies] need to take time to plan their new layouts to ensure they work for both staff and company goals.” He added: “Take this moment as an opportunity to refresh and revitalise your workspace.” Employee wellbeing It’s not just about the physical side of things, either. There is a strong mental aspect to this. Many companies are reporting a sharp rise in calls to employee helplines.
  • 6. 6 IWGPLC.COM A recent study by Benenden Health found that 35% of individuals felt their mental health had suffered due to COVID-19, with 38% saying support from employers could help ease the stress they are experiencing day-to-day. In a recent report, Capita found that 88% of businesses identified job insecurity as a factor that compromises employee wellbeing, while 77% cited a lack of social contact. In the Financial Times, André Spicer, Professor of Organisational Behaviour at Cass Business School, spoke about remote workers being paranoid. “When you are not around your coworkers and your organisation due to virtual working, it can give space for paranoia to grow,” he wrote. “We don’t have all the usual informal feedback to make sense of what is going on.” KEY LEARNINGS Business continuity Companies will also need to think about what happens if there are further waves, lockdowns or, indeed, other unrelated crises. Their business continuity will depend on it. Gartner published a survey in March that showed that only 12% of businesses were well prepared for COVID-19. On the positive side, many businesses are now much readier to cope with external crises, although they may be in the unenviable position of having to prepare for the next crisis while coping with this one. That said, we will be better equipped to deal with it. Firms will be better prepared to move their workforces to remote locations and will know where to go for everything from deep cleaning to emergency IT support to flexible office space.
  • 7. 7 IWGPLC.COM Understanding the new world of work Workforces that either work remotely all of the time or part of the time are here to stay The pandemic massively accelerated a trend that was already emerging. Over the past 10 years, improvements in technology, changes in the world of work and cultural and societal movements have led to far more flexible patterns of working. In the UK, Office for National Statistics (ONS) figures show that 1.54 million people worked remotely in 2018 compared with 884,000 a decade earlier – a 74% rise. Similarly, a 2018 Deloitte report showed that flexibility (in terms of working hours and location) was “very important” for half of Millennials and 44% of Generation Z when choosing whether or not to work for an organisation. Other surveys and polls regularly show that up to 90% of people would like to work from home at least some of the time. Recent events have supercharged this. Two years later, ONS research conducted in April 2020 showed that just under half the UK’s workforce was working from home. This is roughly 13 million people. What is perhaps most interesting is how the pandemic has been a crash course in just how many jobs can actually be carried out remotely. Occupations that had always been office-based, notably those in areas such as law and banking, are now seen as candidates for remote work. In the UK, many such workers have not returned. “Remote work is something we’re thinking a lot about right now,” said Colin Yasukochi, director of research and analysis at the commercial real estate services giant CBRE, in April. “People are right now being forced to do it, but I think some In the UK, Office for National Statistics (ONS) figures show that 1.54 million people worked remotely in 2018 compared with 884,000 a decade earlier – a 74% rise 0 2018 2008 500k 1m 1.5m 2m UNDERSTANDING THE NEW WORLD OF WORK
  • 8. 8 IWGPLC.COM will inevitably stick to working remotely. The question of how many, and for how long, is unknown.” The survival of the office Many companies have embraced this change. Google and Facebook both announced that they will continue their working-from-home policies until the end of 2020 and Twitter has said that eligible staff will be permitted to work from home forever. It’s not just forward-thinking tech titans, though. Jes Staley, the CEO of Barclays, recently said: “The notion of putting 7,000 people in a building may be a thing of the past.” However, it’s unlikely that the office will end altogether. Professor André Spicer recently told the BBC that, while he predicts a “radical decrease” in the amount of time people spend in offices, office working will continue. The fact is that offices do provide some factors that are very hard to replicate remotely. These range from face-to-face meetings to informal networking and intelligence gathering. Indeed, it has been widely noted that remote working may be harder on younger people who have not yet built up significant networks and other forms of work-related ‘social capital’. A return to the office will inevitably happen, but there is unlikely to be a full return to the status quo ante – and workforces that either work remotely all of the time or part of the time are here to stay. UNDERSTANDING THE NEW WORLD OF WORK Google and Facebook both announced that they will continue their working-from-home policies until the end of 2020 and Twitter has said that eligible staff will be permitted to work from home forever Jes Staley, the CEO of Barclays, recently said: “The notion of putting 7,000 people in a building may be a thing of the past”
  • 9. 9 IWGPLC.COM There is plenty of evidence that this is starting to happen already. A recent Gartner survey showed that 74% of companies plan to permanently shift to more staff working remotely. Similarly, an Asia Pacific Occupier Flash Poll showed that 84% of businesses plan to increase their investment in technology in order to support remote working and business continuity planning. There are good reasons for these changes. These range from the costs of city centre rents to being able to recruit from a bigger pool of talent – and being a more attractive employer if you do not require people to be at a desk in an office all day. As Kathryn Mayer recently wrote in Human Resource Executive: “Advocates say remote working encourages work-life balance and can result in higher productivity and increased employee satisfaction, loyalty and engagement.” Change is coming However, while a more distributed workforce may well be an overall positive for both companies and their staff, the new world of distributed employees is very much a work in progress, and considerable challenges remain. There may be issues we are only just becoming aware of. Even though not all staff are returning to the office, they may well need more space. At first this will be due to physical distancing, but the threat of further outbreaks will continue to present new and fast-evolving challenges for both businesses and employees. Implementing and UNDERSTANDING THE NEW WORLD OF WORK “Remote working encourages work-life balance and can result in higher productivity”
  • 10. 10 IWGPLC.COM UNDERSTANDING THE NEW WORLD OF WORK CBRE estimates the price of a desk at £14,000 a year – or roughly half the cost of a UK employee’s salary maintaining appropriate protocols will represent a complex and expensive burden. For these reasons, many companies are looking to more mobile ways of working, offering employees the option to work from home, at the office, or from satellite coworking hubs that bridge the two. In countries where lockdown has ended, flexible workspace demand is beginning to return to 2019 levels and a number of surveys suggest flexible workspace providers are feeling more confident about the future. In the Financial Times recently, journalist Oliver Ralph wrote: “When small businesses get back on their feet, they might be looking for more flexible premises which offer shorter leases and more options to grow or shrink the space required. A lot of people have discovered that they can work from home now, but that does not necessarily mean that they will want to do so forever.” A more flexible future We have already seen that in the short-to-medium term businesses might need more space. However, in the longer term, particularly as distancing regulations relax, they may well want less space. In these instances, coworking facilities can represent a boon to business leaders, providing less costly, unused space with the opportunity to flex up if necessary. CBRE estimates the price of a desk at £14,000 a year – or roughly half the cost of a UK employee’s salary. Investing in flexible workspace can remove real estate from company balance sheets and ultimately improve a business’s financial position. Thus, for many companies, the idea of a central HQ where thousands of people work is fast becoming outmoded. Rather, the future is likely to be hub and spoke. You have a central office, which is the hub, and then satellites connected by spokes. This means smaller offices in pricey, central locations and a series of smaller satellites connected by spokes. People can work closer to home, companies save money and a flexible central office is still there if needed. “Businesses that are able to implement remote working at scale appear to create a more agile working culture that lets them respond quickly to sudden developments – pandemics included,” says a recent report by GlobalWebIndex. “Remote working can bring wider benefits to a business when properly implemented.” The idea of a central HQ where thousands of people work is fast becoming outmoded
  • 11. 11 IWGPLC.COM WHY WORKPLACE MOBILITY BETTER SERVES EMPLOYEES Why workplace mobility better serves employees This new way of working is a safer way of working Workspace mobility is likely to be a big part of how businesses arrange their offices in the future. Here, we have outlined three scenarios. A finance company that previously had a big central office in a place such as the City of London or Wall Street might move to a few smaller hub premises, home working and a series of spoke offices dotted around the suburbs where its workers would normally commute from. The company would save money and workers would have less of a commute – or none at all. Many roles in finance are amenable to remote or semi-remote work. A campus-based pharma company might take a slightly different approach. Because of the need for labs and other facilities, it would keep some of its large premises, which are likely to be located in a suburb. However, it would open hub-and- spoke offices and offer much more work from home for suitable roles. It would become a far more flexible employer. Some of its staff might find their jobs moving to city centres. Medium and large tech companies could move over to one of these two models. Tech companies are often very well suited to working from home both in terms of the work itself and the expectations of staff, and so would be likely to have a smaller need for office space. However, in recent years many larger businesses have built campus premises. For them, the changes would be quite mixed, but the probable overall result would be a more flexible, attractive employer. Growing tech companies are likely to embrace this model fully – and make considerable savings. A central office operates as a hub for employees, with satellites connected to it by spokes People can work closer to home, companies save money and a flexible central office is still there if needed Businesses can easily and rapidly flex up and down in terms of the space they use, should circumstances require 1 2 3
  • 12. 12 IWGPLC.COM CREATING AN ENVIRONMENT WHERE BUSINESSES THRIVE For businesses looking to make sense of this new normal, flexible workspace solutions from IWG can play a big part. A network of thousands of locations worldwide means that businesses can easily spread their workforces out across different sites. Moreover, they can also rapidly flex up and down in terms of the space they use, should circumstances require. And it allows access to fully serviced offices, with professional IT infrastructure, and therefore fewer anxieties during difficult, busy times. As well as physical infrastructure, IWG offers businesses more than 30 years of experience operating across different jurisdictions and markets. Representatives are familiar with a number of different working practices, cultures and regulatory regimes. Companies can access expert advice, make adjustments according to their needs and feel secure that best practice is being implemented as circumstances evolve. Did you know? Home office support is part of IWG’s mobility solution for enterprises. A range of products is designed to support workers from home, including virtual office services, on-demand meeting rooms and day offices. This means that, whether your workforce consists of freelancers or full-time employees, homeworking can be more professional for everyone Creating an environment where businesses thrive How flexible working can grow your business
  • 13. 13 IWGPLC.COM If you’re a business facing this new world of workspace mobility, it’s important to know that you’re not alone. IWG is already partnering with companies just like yours to make this flexible future a reality. IWG Enterprise Solutions enables companies to simply show up and start working. Businesses can choose from a range of support options that are designed to remove the pain points and provide seamless solutions to a range of common needs. IWG recognises that there will be uncertainty and changes going forward – and our solutions are flexible enough to take this into account. This means that businesses can take short-term space on highly flexible terms in IWG locations near their own premises. If businesses already lease space from IWG, they will be able to take more space, either in the same centre or in nearby centres. In the longer term, we believe that the hub-and-spoke offering will answer the needs of many businesses. Regional hubs can be designed with different layouts to accommodate different functions. Spoke offices can be set up quickly and as needed. And we recognise that companies’ needs may fluctuate considerably over the coming years. TAKING YOUR BUSINESS FORWARD IWG recognises that there will be uncertainty and changes going forward – and our flexible solutions take this into account Taking your business forward Choose a solution that fits your brand
  • 14. 14 IWGPLC.COM Companies will want to flex and offer a mixture of remote- and office-based working – and discovering what works for them will be a journey with IWG as a guide. There may also be infrequent events that require normally remote workers to be in the office – for instance, critical meetings. For these reasons, having on-demand access to flexible, local, professional workspaces is crucial. It removes a logistical headache for companies and means they can plan ahead knowing that they can also make last-minute changes. IWG offers an unrivalled network of locations in both city centres and suburban areas, meaning there are convenient offices available for all members of a workforce – resulting in happier and more productive employees. It doesn’t matter what size your business is. IWG offers membership plans that allow pay-as-you-use access, short-term assistance and longer-term corporate solutions. IWG envisages many companies using an à la carte mixture of these to suit their needs. IWG is not just about office space. It can help make homeworking more professional for individuals and companies and recognises that the last thing many businesses want is additional administrative burdens. To make life easier, it offers a programme with a range of professional services to support home workers, ranging from local phone numbers and mail redirecting to use of local workspaces, whenever and wherever they are needed. IWG offers an unrivalled network of locations in both city centres and suburban areas, meaning there are convenient offices available for all members of a workforce TAKING YOUR BUSINESS FORWARD To help your business navigate the new world of work, speak to IWG today iwgplc.com