the next normal · 2021. 3. 30. · forces shaping the next normal nine forces in workforce,...

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THE NEXT NORMAL

Nine forces that will shape the next normal in corporate real estate and facility management

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PEOPLE MAKE PLACES

AT A GLANCE

Shifts in workforce, workplace and workflows COVID-19 has proven that there will be lasting effects on how people live, work and socialize. As companies re-open spaces, adjust processes and re-engage the workforce, the strategic agenda should include capitalizing on the key forces that will shape the next normal in corporate real estate and facility management (CRE and FM).

Creating value with your corporate real estate and facility management organizations CRE and FM are shifting their primary focus from buildings and the activities inside those spaces to the people who use the buildings and how they can enable talent attraction and retention, engagement and productivity.

Forces shaping the next normalNine forces in workforce, workplace and workflows will shape the CRE and FM industry following COVID-19.

Building a plan for successTo thrive in the post-COVID-19 world, CRE and FM leaders need to recognize that their value creation formula must change. The core outcomes they are expected to deliver will not have changed, but the way employee services are delivered will need to take into account forces related to workforce, workplace and workflows that will shape the next normal.

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contentsIntroductionChanging needs for changing times 4

Nine forces that will shape the next normal 5

The future of work in a COVID-19 world 6

Force 1Remote working, but for how long? 7

Force 2From real estate to people 10

Force 3From great places to work to trusted spaces to work in 12

Force 4From cost-efficient cleaning to visible cleaning, hygiene and wellness 14

Force 5From on-site experiences to blended workplace experience 16

Force 6From preaching sustainability to practicing sustainability 18

Force 7From digital for end-user experience to digital for health and safety 20

Force 8From touch to automated 22

Force 9From data privacy fears to data-enabled health monitoring 24

ConclusionBuilding a plan for success 26

References 27


4PEOPLE MAKE PLACES

INTRODUCTION

Changing needs for changing timesThe challenge for CRE and FM leaders goes beyond responding to the operational consequences of COVID-19. They must anticipate what might be coming and position themselves to win in an uncertain future. We have identified nine forces that we believe will shape the industry and the value creation journey over the course of many years.

Each of these forces is critical to address on its own. Collectively, they demand full attention and a proactive approach that enables CRE and FM leaders to take steps in the right direction using the current crisis to create sustainable competitive advantages. Done correctly, CRE and FM leaders can stay competitive and re-position their role in the organization – and potentially chart a course for a new era as we learn how the future of work might unfold.

CRE and FM leaders must add value to a company’s top line and bottom line. They must improve companies’ ability to attract, engage and retain talent. Including helping their people stay productive regardless where they perform their work. They must help protect brands and reputations by protecting employees, being transparent and communicating with all stakeholders. Then they must do this in a cost-efficient and evidence-based manner; value creation should be based on metrics, not anecdotes. The nine shaping forces address:

These nine industry-shaping forces are paramount for leadership teams to understand and include in their strategic agenda once we enter the next normal. b

The workforce – people who deliver a company’s ability to innovate, manufacture, distribute, market and sell products and services.

The workplace – the facilities where the workforce is creating, producing, learning and socializing.

The workflows – the processes, standards, tools and technologies that enable the workforce to be effective, productive and engaged.

T H E N E X T N O R M A L


Nine forces that will shape the next normalCore outcomes will not change, but we will see differences in the way those outcomes materialize9

Remote working… …but for how long

From cost-efficient cleaning...

From digital for end-user experience...

From real estate…

From on-site workplace experiences…

From touch…

From Great Places to work…

From preaching sustainability…

From data privacy fears…

Workforce

Workplace

Workflows

…to people

…to Trusted Spaces to work in

...to visible cleaning, hygiene and wellness

...to digital for health and safety

…to blended workplace experiences

…to automated

…to practicing sustainability

…to data-enabled health monitoring

Talent attraction and retention

Employee engagement

Employee productivity

Brand protection

Delivery consistency

Cost-efficiency

1

2

3

4

5

6

7

8

9

CORE OUTCOMES

T H E N E X T N O R M A L T H E N E X T N O R M A L


6PEOPLE MAKE PLACES

The future of work in a COVID-19 worldIn the wake of the COVID-19 pandemic, most CRE and FM leaders have been focused on short-term operational challenges including how to distance people in the workplace, how to instill new health and safety practices, how many people they can safely accommodate in their facilities, how they adjust their services – especially food services and cleaning. There will be major long-term consequences that CRE and FM leaders will need to be aware of as well.

New ways of working in organizations must incorporate what we learned from COVID-19 in addition to the challenges we faced before the pandemic. For example:

The talent and engagement agendas remain as relevant as it was before the pandemic. One of the main challenges for CRE and FM leaders after COVID-19 will be enabling the talent agenda while fielding requests for cost savings and cost efficiencies as industries and corporations address top-line challenges in light of consumer uncertainty and changes in consumer behavior.

At the same time, CRE and FM leaders must address the fact that millennials will comprise a larger part of the workforce than ever before. Millennials currently make up 36% of the U.S. workforce. They are more likely to be disengaged in the workplace and they are less loyal to their employer than other generations. They are also more focused on purpose, corporate responsibility and a healthy workplace, according to several studies. Millennials want to work differently, and COVID-19 has been a test of the flexibility and care they expect from an employer. b

Labor shortages in software development, cybersecurity, engineering and advanced manufacturing will remain.

Only 26% of the U.S. workforce is actively engaged at work.

Up to 80% of workers are either actively seeking a new job or are open to one.

Companies with a highly engaged workforce are 21% more profitable than those with less engaged employees.

Only 8% of employees are measured monthly or more frequently for engagement.

Manpower

DeloitteGallup

Gallup Accenture



FORCE 1

Remote working, but for how long?Workplace consultants, designers, anthropologists and researchers have been highlighting the remote working concept for the past 20 years or more, waiting patiently for the opportunity that COVID-19 has presented. Where 5.2% of the U.S. workforce worked remotely before COVID-19 according to the U.S. Census Bureau, the number increased to a staggering 62% once the pandemic hit (Gallup).

It’s not a simple task, though, to recognize and tap into an opportunity while many are still trying to fully understand, mitigate and manage the challenge. It may have been a pleasant surprise for a brief time – interrupting kids and pets notwithstanding – that we actually made it work. Corporations and employees adjusted quickly to the new reality of working remotely. It shouldn’t necessarily be a surprise, because we

have had the tools available to us for a while with programs such as Zoom, Slack and Dropbox.

Some researchers called COVID-19 the “9/11 of the workplace,” meaning just as the travel experience was changed forever in light of 9/11, our workplaces will never again be the same. Indeed, it’s tempting for corporations to conclude that workplaces are no longer relevant. With billions invested in real estate and maintenance of the workplace, companies would be missing something if they weren’t at least asking questions about its necessity. Remote – meaning employees working remotely, remote learning at educational institutions, telemedicine in health care and others – will constitute a new era in the history of work. The case for remote work seems logical, and we have just proven that it’s possible. Why not institutionalize this way of working?

1T H E N E X T N O R M A L T H E N E X T N O R M A L


8PEOPLE MAKE PLACES

In the dialogues we have had with our customers, most agree that remote work is feasible, but the debate is missing a critical element – corporate culture.

How do you build a corporate culture when most employees work remotely? Workplaces serve the purpose of building, sustaining and changing corporate culture. Even if cultural ambition coincides with innovation, talent, collaboration or something else, gathering in a workplace has always been central to building and maintaining company culture. Most corporations want to bring employees back into offices for this reason.

In addition, employees seemingly also want to return to offices. Gensler’s recent work from home survey indicated only 12% of office workers wanted to work from home full-time, and 70% wanted to work in the office most of the time. This finding is consistent with the feedback we are getting from our customers and their employees.

The longer we work apart from colleagues, the more being together matters. While we can focus at home, we can’t easily socialize. Humans are social creatures. We strive for interaction and a shared experience. We miss the “casual collisions” in the workplaces and the learning, collaboration and mentoring that comes naturally just by sharing a common space.

Many of our customers are market leaders in their respective fields. For them, culture has become a beacon – a clear source of competitive advantage. They are not going to give this away.

What will the return to offices look like? Because we have been involved in detailed planning around when and how to return to offices, we are seeing three likely scenarios.

Customers are taking a relatively conservative approach to bringing people back right now, prioritizing health and safety and the ability to seamlessly screen and temperature check people at the building entrance. The initial focus is still on control and safety, but once this approach is confirmed, they expect to start bringing more people back to re-ignite their vision, increase productivity and drive innovation and collaboration. We need to reach the milestone where data confirms that it’s safe to bring people back and employees perceive that it’s safe to be in back in the workplace.

RETURNING TO OFFICE SCENARIOS

Three capacity based ramp-up scenarios

Jul–20 Aug–20 Sep–20 Oct–20 Nov–20 Dec–20

65%

50%

30%

Base case Optimistic case Pessimistic case



Ramp-up planning will vary based on differences among industries and additional variables that include locations of offices, state-driven regulations and legislation and the type of workforce. Most of our office-based customers expect to be at around 50% capacity at the end of 2020. We expect the trends to continue upward heading into the first quarter of 2021 and we may be nearing 60 to 70% at the end of the first quarter of 2021 – provided we are able to prevent a setback from a second outbreak. A full normalization is unlikely before there is a viable vaccine or effective treatment for COVID-19.

While planning with our customers, we also discuss predictive indicators, that is, factors that may accelerate or decelerate the conservative approach to returning to the office. For companies to accelerate their ramp-up, four key indicators need to show positive outcomes during a scenario-based simulation:

• Stable supply chain for personal protective equipment (PPE): The PPE supply chain must be able to deliver to increased quantities of hand sanitizers, disinfecting wipes and masks.

• Widespread workforce screening and testing: Organizations must ensure that no one with COVID-19 symptoms enters the workplace through screening and on-site testing once testing accuracy and response times have improved

• Availability and adaptability of contact tracing technology: We must identify and contain chains of infection once they are detected.

• Behavioral adherence to new health and safety requirements: We must see signs that employees are following new health and safety mandates in the workplace, enabled by CRE and FM leaders using tools such as signage, marketing techniques and a dedicated workplace team

Working remotely will likely never go away, and the practice has its benefits. The physical workplace, however, is not going away. A place to gather is critical for individuals, teams and organizations. The workplace is a catalyst for corporate culture, even in a social distancing setting, but especially once a vaccine or effective treatment is available. Workplaces shape corporations’ competitive advantages, and COVID-19 is unlikely to change that. Instead, COVID-19 offers CRE and FM leaders an opportunity to re-imagine a new workplace where people come together, reinforce culture and strengthen collaboration and relationships. b

RETURNING TO OFFICE SCENARIOS

Key Predictive indicators

Stable PPE supply chainsUnstable supply chains Stable supply chains

Widespread workforce screening and testingLow-frequency High-frequency

Availability and adaptability of contract tracing technologyHardly adapted Widely adapted

Behavioral adherence to new health and safety regimeLow adherence High adherence

Source: ISS



10PEOPLE MAKE PLACES

FORCE 2

From real estate to peopleEven before COVID-19, we saw organizations start to shift away from focusing their CRE and FM strategies strategies on physical buildings and toward focusing on the people who use the buildings. The role of real estate is already changing and will continue to change.

Going forward, the workplace must be worth the commute — a human-centric experience where employees feel safe, healthy and empowered. It must be a place where design can nudge healthy behaviors. People should feel that their work and personal well-being are valued. Just like well-placed stairwells can encourage people to take the stairs instead of elevators, removing excess seating, installing sanitizing or hand-washing stations and placing six-foot floor markers for social distancing can encourage new behaviors. The new workplace must provide a wide range of settings to empower each person to do their best work. These can include private focus rooms small group conversations or phone calls; semi-private areas for individuals or small teams to meet; whiteboarding or brainstorming areas; and individual settings.

The new workplace must be designed to clearly showcase the organization’s DNA and purpose. It will be more collaborative and engaging. New meeting formats will arrive where technology needs to offer seamless and spontaneous virtual meetings across locations or even the same building. We foresee more virtual cafés where we can “safely” interact with each other. If the workplace does not deliver employee satisfaction, employees will simply choose to work remotely.

The new role of the workplace will be to build community, to reinforce culture, share purpose and mission,

2T H E N E X T N O R M A L


The paradigm shift in our industry

and to strengthen relationships among employees. We might split our work week up with remote work for intense concentration and virtual collaboration meetings, while reserving other days to come together to be with our teams, colleagues and clients in person. Real estate will enable social interaction and communities, but it will also need to be flexible and adaptable.

It’s no longer about justifying real estate because we need a place to put our people; it’s now about justifying the space configuration that will make people feel comfortable being there in person when required. b

Traditional Facility Management

Next-generation Facility Management

About the

people

About the

building

Work as a Place

Work as an Activity

Work as an Experience

Work as a Community

Work Post-COVID-19

FACIL I T Y MANAGEMENT

EXPER IENCE MANAGEMENT

Source: ISS




FORCE 3

From great places to work to trusted spaces to work inIn 1984, Levring and Moskowitz published The 100 Best Companies to Work for in America – the first edition of what has become an important resource for understanding how market leaders create and curate workplaces that attract, engage and retain talent. In the 1980s, it was groundbreaking that traditional soft skills were an important contributor to financial performance; trust in an organization enabled superior financial performance. Not only were great workplaces able to attract, engage and retain talent, they were also for investors, customers, suppliers and the community.

The annual ranking of the 100 Great Places to Work became a trademark. Every year, C-suite leaders proclaimed that they were intending to invest into the workplace to make the list. Making the top 100 became a key metric based on an assumption that people want to work for companies with great workplaces. With the evolution of worker expectations, organizations began transforming their culture to attract the best talent. Companies began investing in workplaces. On-site fitness centers, free food programs and onsite entertainment options became commonplace. Making and remaining in the top 100 became

an important milestone. Being recognized as a great company to work for became a badge of honor.

Now, recreational activities like slides and ping-pong tables will be less prominent because they pose health and safety risks. Trusted spaces will be the new paradigm. Employees will start to question their workplace and the measures that are being taken to protect them and their colleagues. They will start to ask, is the workplace safe? Will being here damage my health? Will going to work negatively impact my well-being? What new cleaning protocols are being put in place? Will our guests or consumers feel safe entering our space?

3

According to ISS research and dialogues with our customers, there are evidence-based and perceptive elements that make up a trusted space.



Corporations that manage to create trusted spaces will enable their people to be productive, engaged and innovative. Anxiety about personal well-being in the workplace is one of the key detracting parameters in realizing one’s full potential, according to a study in the International Journal of Environmental Research and Public Health. We know that anxiety and stress levels have skyrocketed since the outbreak of COVID-19; people are concerned about their financial situation and job security, dealing with the stress of working from home alongside kids and pets, feeling isolated from colleagues and obviously

the possibility of contracting COVID-19. In many cases, employees are ready to return to the workplace, so the least we can do is make sure we offer them a trusted space.

In the interim, attracting and retaining talent will be tied to the confidence employees have that their organization will do what is right to protect their health, safety and well-being. Trust and confidence will become competitive parameters for talent. We predict the development of certified spaces or buildings that meet these requirements. b

Perceptive elements

• Changes to office layout to allow for physical distancing and no-touch environments

• Sufficient availability and usage of PPE (masks, wipes, hand sanitizers, etc.)

• Visible cleaning professionals and cleaning schedules

• Stricter safeguards against employees coming into the workplace when they are sick

• Reinforce hygiene practices with signage and communications

Evidence-based elements

• Documented cleanliness of a space through, for example, ATP testing (or similar methods)

• Building entry wellness checks and health reporting

STRESS AND ANXIETY LEVELS POST COVID-19Level of stress since COVID-19 outbreak

Level of anxiety since COVID-19 outbreak

Source: Qualtrics. Study of more than 2,000 employees conducted at the end of March and early April 2020 in Australia, France, Germany, New Zealand, Singapore, the UK and the US

Report higher stress levels

Report somewhat equal stress levels

Report lower stress level

Report more anxiety

Report neither more nor less anxiety

Report less anxiety

66.9%

57.2%

24.8%

+

+

=

=

-

-

36%

8.2%

6.9%




4 FORCE 4

From cost-efficient cleaning to visible cleaning, hygiene and wellnessThe outbreak of COVID-19 made us fundamentally change our focus to wellness and accountability to ourselves, our colleagues and our employees. Every person considering going back to an office faces uncertainty about fellow employees, steps their employer has taken to make the workplace safe and whether they are going to be infected. Health and wellness, hygiene and a desire for a sense of certainty are at the forefront of the discussion. Companies and employees seek solutions to lessen fear and restore trust and confidence in the workplace.

Before COVID-19, cleaning was a largely commoditized service. Most corporations viewed it necessary but considered it a low-skill job. Employers did not consider its value beyond is baseline function. In most cases, Procurement departments have been asked to drive cost out of the service. As costs trended lower, the supplier’s ability to provide effective cleaning was potentially compromised.

To be competitive, cleaning suppliers had to turn to improvements in technology or a reduction in manpower to continue to serve the same space at a lower

cost. When this happens, standards suffer because low wages associated with cleaning yield high turnover. The average employee churn for cleaning professionals hovers around 200%, compared to the national average of 17.8% across all industries, based on data from the U.S. Labor Bureau of Statistics. This revolving door of manpower affects quality, productivity and costs (which are ultimately passed on to the client).

With COVID-19, the race-to-the-bottom mentality and cleaning as a commodity have changed. As companies now race to protect employees and their reputations, a rapid shift toward mitigation has taken place. Cleaning and disinfection services have become the foundational element in the equation. Increased cleaning in office spaces, airports, hospitals and other spaces now rank as a top concern for employees before they can agree they are comfortable returning to the workplace.

Traditional cost-efficient cleaning services must be enhanced to create a visible, reliable method of disinfection so that employees’ apprehension and fears are abated. A comprehensive program of disinfection and daily cleaning combined



CLEANING EXPENDITURECorporation’s expenditure on cleaning services

with efforts to create awareness, establish appropriate procedures for addressing workplace illness and encourage sound hygiene habits will result in a long-term solution of fostering a healthier work environment and alleviating worker concerns.

Companies’ efforts at transparency and helping employees manage anxiety will go a long way in keeping their brand and reputation intact through the crisis. From dialogues with customers, we typically see them expecting to spend 20 to 25% more on workplace cleaning, at least in the short term (until a vaccine or effective treatment is available). Investing more in a cleaning program directly correlates with the ability to attract, engage and retain talent in a post-COVID-19 world.

These changes are likely to outlast the current pandemic response. Before COVID-19, the workplace was already changing its health and wellness focus, driven largely by millennial employees who value health and wellness more than other generations. As the millennial

proportion of the workforce continues to grow, their enthusiasm for companies that align with their values will dominate the corporate world. Currently, millennials represent 36% of the total U.S. labor force, and by 2025 they are projected to represent approximately 40% of the U.S. labor force, based on figures from the Pew Research Center. The millennial mindset around health and wellness will help sustain measures put in place in response to COVID-19 long after the disease is cured and no longer a threat.

As COVID-19 unfolds, corporations will continue to reconcile their views on cleaning as a commodity as it becomes vital in making the workplace safe for workers. Employees expect cleaning efforts to be highly visible and more frequent, with outcome-based metrics. With higher standards of cleaning, awareness, hygiene and transparency, the workplace can reclaim its position as the focal point of a company’s efforts for business success. b

MILLENIALS AS A CATALYST FOR CHANGE

Millenials as a % of total U.S. labor force

What Millenials value more than other generations

6%

14%

26%

32%

36%

40%

2000

2005

2010

2015

2020

2025

Source: Pew Research Center, Forbes

Health & Wellness

Sustainability

Corporate Social

Responsibility

+20-25%

Pre COVID-19 Post COVID-19Source: ISS




5 FORCE 5

From on-site experiences to blended workplace experienceWorkplace experience is centered on interactions that foster employee engagement and productivity. The curated workplace experience and associated amenities are designed to enhance every employee’s time spent on site while remaining true to its purpose. Examples include fitness centers, yoga, market fairs, on-site barbers, special events, take-home food, one-touch meeting room booking systems and much more. It should be based on company culture, the physical workspace and the technology needed in an employee’s daily work life. An integrated workplace experience creates a work environment that attracts the right talent and keeps them productive, while also catering to their needs and making them less likely to pursue a career somewhere else.

Done the right way, workplace experience allows corporations to deliver on key business outcomes by putting people at the heart of their workplace strategy. CRE and FM leaders can measure the return on investment into curated experiences in terms of increased engagement, productivity or innovation.

In the pre-COVID-19 world, workplace experiences largely occurred in the workplace. If employees were not on site, they missed out. Some of the more forward-looking companies even have workplace experience managers as part of the on-site facility management setup. Experience managers are creative and inspiring individuals tasked with bringing workplaces to life and curating memorable experiences for employees to drive engagement.

As we look toward a post-COVID-19 world, everything starts to blend together. We will flex between being at work and being remote. At the same time, our work and life have blended as we find ourselves able to re-design our traditional 9-to-5 workday. If schools won’t open, we need to consider how to work effectively with kids at home. Why go grocery shopping after work together with everyone else? Why not exercise in the middle of day? Work and life blend



together in a world where we can work from anywhere. So how do CRE and FM leaders continue to curate workplace experiences while a larger percentage of their workforce is working remotely? In addition, how do CRE and FM leaders ensure inclusivity for remote employees?

The answer lies in re-thinking the approach to workplace experience. Workplace experience has thus far largely been focused on on-site experiences for the working population. It’s time to pivot and offer a blended, next-generation workplace experience approach that covers all four quadrants of what employees do and where they work. This approach curates experiences for everybody in an inclusive manner. It’s not only about shifting from on-site to virtual, it’s also about recognizing that one size does not fit all in a post lockdown world where work and life have blended. The 25-year old

employee feeling isolated in a small studio apartment has different post COVID-19 needs than a 35-year old employee with three children all at home. It’s up to CRE and FM leaders to ensure that they remain the employer of choice for both.

We have defined seven pillars of blended experiences and a world where inclusiveness is front and center regardless of where employees work and what they do.

The modern corporation puts people at the heart of the workplace strategy and clearly aligns the workplace experience to business outcomes. COVID-19 has made this more challenging as workplace experiences shift to become blended. As we re-enter workplaces, we must create emotional connections between work, employers and employees. Re-designing the workplace experience approach to be blended will allow organizations to stand out from their peers. b

BLENDED WORKPLACE EXPERIENCES

Seven pillars that make up BlendedWorkplace experience in a post-COVID-19 world

At work Remote

Life

What do I do

Where do I work

Work

Source: ISS

The modern corporation puts

people at the heart of the workplace

strategy and clearly aligns the workplace experience to

business outcomes

• Local government information• Information related to campus• At-home workouts• Recipes to boost immune system• Local grocery vendor delivery• Office supply kit delivery

• Connecting with friends and peers at home (e.g. cooking classes)

• How to bring the outside in (e.g. virtual tours of landmarks)

• Ideas to keep the kids entertained and support home schooling

• Live entertainment together• Virtual happy hours

INFORMATION

WELL-BEING

CONVENIENCE

COLLABORATION

ESCAPISM

CHILDREN

VIRTUAL JOY




PREACHING VS PRACTICING SUSTAINABILITYSustainability Global Executive Study

6 FORCE 6

From preaching sustainability to practicing sustainabilitySustainability has been a key concept ever since it was first coined back in 1987 in the now-famous Brundtland Report. Companies have to balance the needs of the present without compromising the ability of future generations to meet their own needs, so they are taking a more active stance in how they contribute to a sustainable world. Natural resources are running out, pollution knows no borders, there is a palpable and irreversible loss of biodiversity and we have seen the effects of climate change.

Corporations have stepped up to the challenge. According to a BCG survey, 93% of larger companies have a formal sustainability strategy today. It remains a challenge to drive strategy into execution because several corporations still fall short when it comes to making sustainability tangible and action oriented. Sustainability should be an integrated part of the corporate agenda, with a clear business case beyond doing good. It should measure progress on a regular basis (Boston Consulting Group).

As companies rebound from the economic impact of COVID-19, there will be a variety of ways to reduce costs. Going green seems costly at the surface, but corporations can use it to reap real savings. A recent study by Bain & Company found many executives will use COVID-19 as an opportunity to lean on sustainability. The pandemic has highlighted the importance of critical environmental, social and governance (ESG) factors. The meaningful ways companies will continue to impact sustainability day-to-day through their business practices will be through changes that will address environmental and people concerns. The time to shift from preaching to practice is now; CRE and FM leaders have a major role to play. CRE and FM leaders can practice sustainability in several meaningful ways. Source: BCG Analytics

Has a Sustainability

Strategy

Sustainability is a permanent

part of top management’s

agenda

Developed a clear business case for its approach to sustainability

Measures progress on

sustainability efforts

93%

46%

70%

24%

69%

20%

70%

31%

Disciples Preaching



UtilitiesBuilding efficiency is based on building occupancy patterns and influenced by environmental factors such as weather patterns. Building occupancy rates will be more dynamic and building systems will have to adjust accordingly. Intelligent building systems and remote building management will require less direct on-site support. Remote management will enable buildings to consume less energy as well. Utilities are already a significant portion of total operational budget, and these costs are increasing, however companies investing in for example LEED lighting retrofits can save between 25 and 30% in lighting consumption and costs alone (EPA).

FM supply chainPrior to COVID-19, we were focused on making our supply chains as cost-efficient as possible without considering the likelihood of suddenly not being able to move goods freely around the globe. One of the consequences of COVID-19 will be a shift toward more regionalized, resilient supply chains. This will mean raw materials and goods must travel shorter distances to reach their final destination, resulting in less energy consumption and a net gain for a greener standard. In addition, consolidating suppliers and limiting the number of contractors on site can give the FM supply chain a greener footprint. By outsourcing to a single, self-delivering provider, the FM supply chain is effectively diminished, meaning there is less reliance on several independent contractors ( Jensen & Van der Voordt).

Ultimately, the success of sustainability in a post-COVID-19 workplace is contingent on employers aligning their values with that of their employees. By practicing what they already preach, corporations can operate in an environmentally sustainable and socially responsible manner that provides a better outcome in terms of employee engagement and also creates long-term success. b

Waste reduction and managementOne of the key factors for improving health is reducing contamination in key areas of interaction. We have made progress toward reducing waste by encouraging people on site to bring their own reusable products (coffee mugs, water bottles, etc.) however following COVID-19 we are likely to see a short-term increase in the use of disposables to make sure that we reduce risks of transmissions. If single-use items are required long term, companies should either switch to compostable materials or invest in glass or aluminum bottles because these materials are more recyclable than plastic. Either way, we will need to sort our waste properly.

Workplace designFor the workplace, focus should shift toward building physical, economic and social sustainability through the usage of natural materials, using more biophilia in the workplace, reducing waste in food, paper and other resources. Millennials typically have a more activist approach to avoiding climate change; they want to do something good for the climate every day. Their demand will be to replace things instead of buying and wasting. This could include the development of new sustainable product categories like office furniture, biodegradable packaging or carpooling programs.




7 FORCE 7

From digital for end-user experience to digital for health and safetyThe workplace and the end-user experience have undergone significant changes during the last 10 years. Mobile apps, kiosks, iPads, Bluetooth technology and others have enabled CRE and FM leaders to digitize workflows and improve the end-user experience. For example, users no longer have to:

• Call the reception to book a meeting room; you do it through an app

• Look the lunch menu up in a pamphlet; you do it online

• Call in a work order request; you do it through an app

• Send emails to colleagues; you can easily message them through a workplace app

The digitization of work processes was intended to create a better, more efficient end-user experience and at the same time arm CRE and FM leaders with data and insights needed to keep creating value in the CRE and FM function. During the last decade, we have seen an exponential increase in digital solutions and mobile applications to enhance the end-user experience.

Digital workflows are not going away. In fact, digital workflows are likely to accelerate due to COVID-19. But they will now have to shift – at least in the short to medium term – from end-user experience to end-user health and safety.

CRE and FM leaders will be deeply involved in redesigning workflow processes related to bringing employees back into the workplace. Given the nature of how COVID-19 is transmitted, these workflows should be digital from the onset. For example, CRE and FM leaders will need to consider:

Analyzing workforce mobility patterns by means of digital workflows to collect mobility data

Designing new workforce processes around workforce check-in to work and health status attestation

Allowing for smart badging processes in airports, offices and similar spaces

Introducing apps, mobile messaging and artificial intelligence to remind employees to maintain physical distance in the workplace

Installing processes for ordering lunch online and distributing delivery points to maintain social distancing

Introducing smart wearables to capture the number of times workers are touching germ-infested surfaces around the office



Redesigning workflows requires cross-organizational collaboration. CRE and FM leaders should be well equipped to lead the way. CRE and FM leaders understand the demands and expectations from employees. They are already the link between the organization and the service providers who typically assist in the installation and implementation of digital solutions. CRE and FM leaders need to engage with HR, EHS and IT to share the solutions that will cause a pivot in workplace safety.

We predict that more organizations will be willing to put mobile and digital solutions to work in the enterprise with apps, kiosks, platforms and integration of AI technology – they just need to focus on enabling health and safety first and foremost. Companies that will thrive in the next normal will be technology-enabled and digitally transformed – even beyond health and safety. b

Workplace applicationsThe exponential rise of workplace applications

140Average number of workplace applications for a company

Source: ISS, BoxWorks 2019, Hoozin Digital Workplace




8 FORCE 8

From touch to automatedBuilding and workplace design have seen marked shifts during the last decade. The digital revolution entered the building, and the war for talent and labor shortage changed how we design our workplaces. No longer are employees and guests simply working in one-size-fits-all spaces, but rather, workspaces are designed for business needs with the objective of improving performance and productivity. Organizations can attract, engage and retain talent, enhance wellness and well-being, and inspire new creative ideas.

Two of the most prominent trends in workplace design have been the emergence of community spaces and

the digitization of workplaces. These two trends will have to be re-imagined in a post-COVID-19 world.

Community spaces and amenities: To promote a stronger sense of community, belonging and shared values, designers have started to put more emphasis on features and functions typically found in hospitality settings like restaurants, bars or beer fridges, fireplaces and comfortable furniture, game rooms, rock walls, fitness areas and pool tables. These amenities have become collaborative spaces in which companies interweave lifestyle amenities with the traditional work environment.

PRE-COVID-19 WORKPLACE DESIGNCommunity spaces and amenities Digitization of the workplace

Source: ISS

Making Work

Enjoyable

Stronger Sense of

BelongingDigital

Workspace

Self-Serve Through

Touch



Digitization of the workplace: Just as workflows have seen an increase in digitization, workplaces have recently been designed with hardware and data that enhance efficiency and the employee experience. Examples include wayfinding kiosks, check-in kiosks in airports, self-checkout point of sale systems, conference room booking screens, sign-in tablets, or even biometric fingerprint scans.

With the COVID-19 outbreak CRE and FM leaders have been forced to rethink workplace design, at least in the short term. Several studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses can spread from touching contaminated surfaces, particularly in places like offices, airports and hospitals. Research indicates that a virus on a high-contact surface, such as a doorknob or a tabletop, can infect 40 to 60% of the people in a workplace within two to four hours. This means that the workplace starts to look like a health risk, with its amenities and convenience hardware. It is incumbent on CRE and FM leaders to rethink how we introduce interfaces that aren’t just frictionless, but also touchless.

What will no touch workplaces, airports, learning institutions, hospitals and other spaces look like? We expect to see at least six different categories of touchless emerge – all offering health and safety solutions to minimize the risk of transmitting COVID-19 or other infectious diseases. CRE and FM needs to contemplate how each of the six can be introduced to their workplaces.

Many of these health and safety technologies are well established already. The challenge that CRE and FM leaders must overcome is that many of these touchless technologies have been implemented in a non-integrated fashion. We need to re-imagine the physical and digital architecture that is required for a post-COVID-19 workplace where health and safety is at the forefront while we continue to make workplaces productive.

As we all emerge from the pandemic work environment and re-engage with our colleagues and communities, we will be looking for underlying trust in the places and spaces with which we’re interacting. Reimaging those spaces and shifting from touch to automation will become one of the levers to instill safety in the spaces where people will be. b

SIX CATEGORIES OF TOUCHLESS

GestureUsing gesture to e.g. trigger an automatic door or replace the touch interaction of large collaborative screen (kiosks or digital whiteboard)

VoiceUsing voice commands to book meeting rooms, order lunch, switch lights on/off, active lifts and other mundane tasks

Facial recognitionUsing facial recognition and biometric technol-ogy to check-in, when you use a vending machine, accessing meeting rooms and others

Sensors & IOTUsing sensors and IoT to set desk height, adjust light, automated water dispensers, open doors etd.

AI-powered robotsUsing AI-powered robots for desk delivery (food, mail etc.), transport parts from A to B and push buttons

SmartphoneUsing personal smartphone to access printing, order lunch, book meeting rooms, access concierge services etc.

Source: ISS

40-60%Research indicates

that a virus on a high-contact

surface, such as a doorknob or a tabletop, can

infect 40 to 60% of the people in a workplace within two to four hours




9 FORCE 9

From data privacy fears to data-enabled health monitoring One of the emerging pillars of combatting COVID-19 is the ability to quickly identify and isolate individuals with symptoms. In both instances, employers will need to rethink their approach to data management and employees will also have to rethink their attitude toward sharing personal health data with their employer and authorities.

In the United States, employers are generally not allowed to inquire about a worker’s medical condition, but the Equal Employment Opportunity Commission issued new rules in April 2020 that permits employers to test for COVID-19 (provided all employees are subject to testing). An employer can now lawfully screen employees and visitors, require that an employee disclose if their temperature rises above the normal threshold, and require that an employee self-disclose if they plan to travel to a high-risk area or have been in contact with someone infected with COVID-19.

Before COVID-19, people were concerned sharing their personal health data with their employers. In an Accenture survey of more than 2,000 people above the age of 18, less than 40% indicated that they were willing to share personal health device data with their employer. This is in stark contrast with people’s willingness to share health data with their doctor or other health care professional.

A pandemic does not take data privacy fears into account. In fact, data privacy fears will only fuel the pandemic. Continuous health monitoring is the answer in combating a pandemic. In identification and isolation, we must collectively consider how we as humans can overcome concerns about sharing our personal health data. With less than 40% of us willing to share personal health device data, employers have a trust issues to overcome – especially with the Centers for Disease Control and Prevention strongly recommending health screening and contact tracing as critical aspects of the pandemic recovery and re-opening.



How does an employer effectively contact trace without violating employees’ expectations of privacy? The answer is engaging the employee through communication and transparency. With many corporations already implementing or planning to implement new working practices that require employees to share health or mobility data, it becomes imperative for CRE and FM leaders to take steps to mitigate risk.

CRE and FM leaders have a critical role to play. They can address the issue from a hospitality angle to ensure that workflows for collecting health data are service-oriented instead of being compliance-oriented. Temperature screenings or health questionnaires do not have to be cumbersome or invasive processes. By focusing on service aspects and embedding digital tools, corporations can make new workflows part of the overall employee experience and turn the sharing of health data into a positive. By sharing health data, employees contribute to maintaining trusted spaces and

protecting the brand of their employers. This requires an effective, service-oriented approach, frequent communication and full transparency on the why, what and how of health data collection.

As leaders adjust to new realities, one of their focal points should be creating a transparent and well communicated employee data ethics policy. Informed employees should understand their best interests (especially related to the risk of contracting an illness). They should be empowered to make decisions about their health and their data. Adherence to this principle will help regulatory compliance, limit liability and help restore employee confidence in the new and challenging world around them. Engaged employees will accept new measures to ensure a healthy workplace. Appealing to employees’ own self-interest is helping to make the workplace safe, healthy and productive for everyone. The approach to facility management is an effective means of making positive, adaptive change in the workplace. b

SHARING HEALTH DATA WITH EMPLOYERS Willingness to share wearable health device data with, % of responses

Source: Accenture. Base US. 2016: N= 2,225; 2018: N=2,301. Percentages above are the sum of the top two responses on a seven-point scale, where 7 is “very willing”

Your doctor Your health insurance plan

Online communities

Your employer Government department

/agency

Your nurse or other

healthcare professional

90% 87% 88%72% 76%

63%72%

38%47%

31%38% 41%

Friend or family member

20182016

IDENTIFY AND ISOLATE COVID-19 CASESNew working practices to identify and isolate potentially infected individuals, % of responses

44%

33%

15%

8%

26%

29%

30%

15%

25%

29%

32%

14%

Temperature Checks for Employees

At-home Health Surveys

Implement Contact Tracing

Already Implemented

Planning to Implement

No Plans to Implement

Unsure

Source: McKinsey, N=100




CONCLUSION

Building a plan for successThere is still so much to learn when it comes to the impacts of COVID-19. It’s imperative for CRE and FM leaders to be forward-thinking and recognize the changes that COVID-19 will require in the workforce, workplace and workflow. The nine shaping forces will dramatically change how CRE and FM leaders operate and prioritize to add value for their stakeholders. Above all, the near future will be about retaining a flexible and agile approach combined with proper scenario-based planning and contingency arrangements.

Again, the core outcomes that stakeholders expect from CRE and FM leaders will not change going forward. It is still important to keep employees engaged and productive, protect the brand and reputation, ensure consistency in service delivery all in a cost-efficient manner.

The way we achieve the outcomes will need to change – driven individually and collectively by the nine forces. CRE and FM leaders must take three concrete steps to remain relevant and successful in a post-COVID-19 world.

Times are indeed changing. Everyone has been impacted one way or the other by the COVID-19 pandemic. Now it’s time for CRE and FM to rise to the occasion and show their colleagues and employees how we move safely into the next normal. b

Recognize changes in employee demands and expectations.Employees do not want to go back to the time before COVID-19. CRE and FM leaders must show that they understand this. Employees want to see changes in the workplace – changes to remote work policies, changes to cleaning routines and an evolution toward a no-touch workplace. Allowing employees back into offices without visible changes will create distrust and lack of engagement.

Seek broader collaboration with internal and external stakeholders.The time when we could operate in silos are gone. CRE and FM leaders need strong collaboration with HR, IT, EHS, Finance, Communications and external partners more than ever. This is critical to build trust in a post-COVID-19 world. Stakeholders must trust that the entire organization is focused on doing what is right for employees, guests, partners, investors and the broader society.

Seek expertise and build scenarios and contingencies with service providers.Most service providers are used to managing change and ambiguity – it’s simply the nature of operating in the service industry. Let service partners be part of the decision-making process. Involve them in crafting scenarios and contingency plans. Companies outsource for the simple reason that they want to focus on their core business and leverage expertise from providers that do this for a living. Take advantage of this in these times of uncertainty.

1 2 3



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the next normal · 2021. 3. 30. · forces shaping the next normal nine forces in workforce,...

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