how emerging work strategies are changing the workplace....© 2011. corenet global. all rights...

© 2011. CoreNet Global. All rights reserved.

How Emerging Work Strategies

are Changing the Workplace.

CoreNet Global Research


Why do the survey?

To understand:

• the degree to which real estate portfolios are likely to change, and

what are the key drivers

• how closely linked alternative work strategies are to real estate

compression trends

• the adoption levels for alternative work strategies and what the

challenges are for implementation


Survey Statistics

• Survey was launched March 2011

• Over 100 respondents

– Survey includes end users and service providers

– Wide range of industries

– Mostly from North America and Europe


Who Participated?

How would you describe your

role in the industry?

Over 75% of respondents

are headquartered in North

America

83%

2%

5% 2%

8%

End User

Service Providerworking with a singleclientService Provider /Consultant workingwith multiple clientsDeveloper / Investor

Other

1% 3% 1%

15%

78%

Asia-Pacific Australia/New Zealand

Central and South America Europe, Middle East and Africa

North America


Who Participated?

0%

5%

10%

15%

20%

25%

1% 1% 2% 2% 2% 2% 4% 4% 5% 5% 5% 5% 6% 7% 8%

18%

24%

What best describes your

industry?

0%

10%

20%

30%

40%

50%

60%

1-100 100-1000 1000-10,000 10,000 -100,000

Over100,000

Not sure /Unknown

0% 4%

32%

52%

12%

0%

How many employees?


Key findings

• Most companies implemented an AWS starting in 2005 followed by 2009. It is

estimated that about 16% will implement an AWS in 2011

• Companies have always viewed AWS as a viable way to control costs, the current

economic downturn is influencing a high adoption rate

• Cost reduction and productivity were the two highest reasons for making these

decisions followed by attraction and retention

• Home office, mobile work and hotelling continue to be the methods companies are

using to reduce real estate

• Most companies reduce their real estate portfolio by 6-10%


Results

Q: What percentage of your office workers are knowledge workers?

0

5

10

15

20

25

0-25% 25-50% 50-75% 75-100% Unknown


Results

Q: What percentage of your office workers are transactional

workers?

0

10

20

30

40

50

60

Unknown 0-25% 25-50% 50-75% 75-100%


Results

0%

5%

10%

15%

20%

1% 2%

5% 5%

7%

16% 17%

19%

13%

2%

6%

2%

4%

Q: What is the average

net usable square footage

per employee?

Q: How much do you

intend to reduce this

number this year?


AWS Results

0%

5%

10%

15%

20% 16% 12%

17%

12% 8%

5%

18% 14% Q: What year did you

implement AWS?

Other, please specify

Satellite Office Space (a smaller office used by employees thatlive nearby)

Telework (equipping emloyee's home with needed technology andexpecting them to work from home on a permanent, full time…

Hotelling/Free address work spaces (non-assigned offices thatcan be reserved)

Mobile Work (consistently using multiple spaces/places toaccomplish work)

Home Offices (working from the home on a part-time or full-timebasis)

5%

23%

51%

73%

78%

85%

Q: Which strategies are

you using?


AWS Results

0% 10% 20% 30% 40% 50% 60%

Reconfigured to accommodate alternative settings (café,meeting spaces, etc.)

Subleased/rented

Sold/Moved to a smaller more efficient space

Reconfigured to accommodate team spaces

41%

44%

48%

57%

Q: What are you using the space

saved by AWS implementation for?


AWS Results

Q: Our initial target reduction in our overall Real

Estate by using AWS was…

0%

5%

10%

15%

20%

25%

30%

35%

16%

31%

13% 13%

5%

7%

1% 0% 0%

1%

Q: As we have grown in our understanding of

AWS we believe our initial reduction rate was….

0% 20% 40% 60% 80%

Too High

Too Low

About Right

10%

28%

62%


AWS Results

Q: Is there a formal process to determine

eligibility?

8%

16%

31%

58%

0% 10% 20% 30% 40% 50% 60% 70%

It's open only to people in ourformal AWS program

It's open to anyone in a veryunstructured way...very fewlimits...we expect people to

manage themselves in this regard

There are only specificdepartments or groups who are

eligible

It's open to anyone pendingagreeement with manager

Q: Our structure is such that we have team

members distributed in different locations such

that they are not regularly together?

87%

13%

Yes

No


What percentage of your employees are covered

under your AWS approach?

0%

5%

10%

15%

20%

25%

30%

0-5% 6-10% 11-15% 16-20% 21-25% 31-35% 46-50% 26-30% 36-40% 41-45%

Response percentage


What attracts these AWS

employees to the office?

0% 10% 20% 30% 40% 50% 60% 70% 80%

Never go into the office

New to the position and need to be mentored

Required to come into the office at least one day a week

Required to come into the office multiple days per week

Only go into office for team meetings (less than 1 per week)

Office provides access to technology and tools that I need (i.e.projectors, large marker boards, project rooms)

Office is best place to interact with colleagues


AWS Results

0%

5%

10%

15%

20%

25%

30%

0-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-100*Percent

Q:What percentage of the time do employees spend working with distributed teams overall?

26% said 21-30% of the time employees work in distributed teams


AWS Results

5%

49%

17% 21%

2% 6%

0%

10%

20%

30%

40%

50%

60%

Less than 1 1 Between 1-2 2-4 More than 4 I don't know

Q: What is your

average sharing ratio of

people to seats?

49% of the organizations still have 1:1 ratio


AWS Results

• Q: Why does your company support working in alternative locations away from

the office such as a coffee shop or library?

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

We do notsupport

employeesworking in

"thirdplaces"

Work-lifebalance

Supportsreal estate

compression

Reducecommute

time

Reducescarbonfootprint

Supportscreative

work

Lack ofeffectivespace in

yourworkplace

32%

49%

31%

35%

29% 29%

3%


AWS Results

25% 25%

38%

12% 12%

62%

0%

10%

20%

30%

40%

50%

60%

70%

Does not supportcompany culture

Confidentiality ofcompany data

Technologylimitations

Workplacecollaboration

Employees needclose supervision

Other, pleasespecify

Q: Why don’t you support it?


AWS Results

Q: What is the most important consideration when making real

estate and workplace decisions?

48%

28%

13% 10% 9%

2% 2% 1%

0%

10%

20%

30%

40%

50%

60%


AWS Results

Q. What is the least important consideration when making strategic real estate

and workplace decisions?

21%

16%

10% 9%

7% 7% 6%

0% 0%

5%

10%

15%

20%

25%


AWS Results

Q: When considering “Geography,” what factor is

most important in your decision making?

47%

30%

15%

9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Lower Cost Location Locating in Metropolitan Centers Proximity to Amenities forEmployees

Reduce Employee Transportationcost or time


Results

Q: How important is a transitional/culture change

initiative when planning a work space change?

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

NotImportant Somewhat

Important ImportantVery

Important

5%

19%

28%

48%

Q: If your company has used a transition/culture

change plan, which resources were used to

prepare and implement the plan?

50%

33%

3%

47%

Outside architectureor design firm

Outside consultingfirm

Outside humanresources firm

Internalorganizationalresources only


Concluding Thoughts

• Organizations recognize that there has not been adequate team

spaces and have implemented AWS to provide more space for

these teams to work together.

• Most organizations stated that the AWS may have started as a

real estate strategy but quickly became an overall business

strategy

• Management in some cases is still resistant to allow employees to

work anywhere based on historical precedence and entitlement

• When implementing an AWS strategy it is very important to have

a change management strategy


Contact Information:

JD Hughes

Research Associate

CoreNet Global

260 Peachtree Street NW, Suite 1500

Atlanta, GA 30303

404.589.3244

[email protected]

Sue Warmels

Steelcase

Market Developer

Brand Communications, Insights

mailto:[email protected]

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