According to the global workspace firm IWG IWG, the world of business is close to a significant moment where over half of the workforce employed by professionals around the world use a hybrid model of working.
In its most recent report 2023 Trends Forecast to the Next Generation of Work, IWG says that this shift in the workplace’s mindset is likely to occur within over the course of five years. If this happens it will mean that the percentage of professionals who work from one place will be lower than the average for the first time in history.
“Hybrid working is the preferred option for millions of people in which they split their working time between their company’s headquarters, local flexible workspace, and their homes,” says Mark Dixon IWG’s CEO Mark Dixon. IWG.
This approach of balancing various working environments can boost productivity in the workplace and provides a environmentally sustainable approach to working, according to Dixon. “It is evident that more changes are on their road, as our daily lives are affected by technological advances and innovative concepts in areas like sustainability technology, recruitment, and efficiency.”
One of the major trends forecast from IWG is a major change in the corporate culture as businesses concentrate on results, instead of counting the amount of time employees work during the week. “Productivity is becoming a top priority for companies, particularly in turbulent economy,” IWG says. IWG.
A growing trend is the work week that is four days long frequently discussed, but never applied corporate rule.
According to IWG the coming year will see more businesses adopt the four-day-week model however, they must ensure that they’re confident it won’t result in an overall decrease in productivity. The surveys conducted of IWG also suggest that employees who are seeking improved flexibility at work and a better life balance are more likely to adopt this approach as well.
Gen Z workers are a significant part of the workforce. Gen Z workers will help to accelerate this trend since they comprise 55% of Gen Z workers surveyed by IWG believe that they will see that a four-day week will become the norm over the coming years, according to the report. Gen Z refers to the generation born between the end of the 1990s to the beginning of 2010.
But, businesses shouldn’t consider this as a way to reduce wages by five percent according to IWG. Workplace trials under the four-day model generally follow a 100:80:100 formulathat is, 100% of the salary for the first 80% all the time as well as a pledge to ensure 100% productivity.
Technology will continue to influence the direction of the next workplace trends with advances of the field of virtual reality (VR) as well as the use AI (AI) as per IWG. The potential of a virtual workspace has led companies like Meta as well as Microsoft to launch a variety of work tools that can be used in VR and other businesses are investing in the creation of their own virtual spaces as well as real property.
In the end, the concept to work anywhere in the globe will become an option for more and more workers.
One of the biggest companies that offer flexible workspaces across worldwide, IWG points to its more than 3,500 locations in 120 countries as an opportunity for workers on the move to join in and get work done.
“It is sensible for those who would like to explore greater diversity and working in the same way and with as much ease as they previously worked from home, at the comfort of their home office or in a central headquarters,” says Dixon.
The city of Singapore, IWG has 22 sites. It has rolled out 4 of their flexible workplace brands in Singapore: Regus, Spaces, Signature by Regus and the luxurious No18. The most recent one is a 10,328 square feet Regus center in the Hiap Hoe Building in Balestier’s Zhongshan Park.
The technology is being used to assist employers and landlords better know how their spaces are being used. “Companies are gaining insights from multiple sources like employee productivity as well as environmental data that includes the levels of humidity, heat, noise and power consumption to design the workplace in the near future, and minimizing the environmental impact” Dixon says. Dixon.
The greater awareness of their impact on the environment is due to the fact that companies are putting sustainability at the forefront of their business plans according to IWG. The group says there is a growing trend that property owners are investing in upgrading their properties and facilities to include the most sustainable features. Furthermore an increasing number of corporate tenants are looking to sign “green leases” which permit both the occupier and the owner to collaborate to create buildings that are more eco-friendly and less harmful to the environment.
The typical provisions of”green leases” typically “green lease” include issues like carbon emissions as well as conformity with local regulations for energy efficiency as well as waste reduction strategies. green transport strategies.
This emphasis on sustainability is tied to the emergence in hybrid working. On one hand firms are cutting down on their real estate portfolios and focus on premium eco-friendly workspaces and buildings. However the reduction in employee commuting each day helps to create the environment being cleaner and greener.
In its report IWG draws on research from Deepki, the Real estate ESG data intelligence company, which has found that the majority of green structures are located in Europe have higher asset values for real estate agents in commercial properties. This benefit generally can translate into an increase of 16% up to 28% rise in property value. The reason for this is the increased will of tenants to pay higher rent in order to live in an energy-efficient structure.
Furthermore, research conducted by the global real estate consulting firm Cushman & Wakefield indicates that Leed-certified Class A office space can generate an increase in psf in the range of 25.3% compared to non-certified buildings. Leed (Leadership in Energy and Environmental Design) is the most popular sustainable building ratings system across the world. In Singapore there is it is the Green Mark certification is a similar green building system that is specifically designed for buildings with the tropical climate.
Great Lease Resignation
All of these contribute to a phenomenon known as “Great Lease Resignation” which was that was coined by Dixon. It is a reference to corporate tenants refusing traditional leases for office space to go with more flexible leases.
This trend is expected to increase as leases are due to expire and businesses seek to reap the savings that come with hybrid work. The shift to hybrid work can be beneficial to retention of talent and attract more employees particularly among the upcoming group comprising Gen Z workers.
However this also means that time spent at the office is even more valuable as per IWG. According to the report “connecting and working together in person is an important element of the equation that is hybrid. However, it must be done in a deliberate manner. The simple act of announcing anchor day dates doesn’t suffice. Team days must be planned and serve an explicit purpose. The same is true when it comes to meetings”.
Dixon states: “The most successful companies are now focused on how meetings function. It’s no longer sufficient to set up a meeting then decide to go with the flow. If you want people to take the time to gather in the workplace it’s crucial that to use their time productively.”
It is expected that the future of employment will continue to be guided by a desire to improve the work experience of employees by utilizing new technologies to improve efficiency and increase productivity, according to IWG. A greater understanding of well-being and sustainability is also a major factor in the debates about how to improve the work environment.