ceo introduction
It’s the question we ask constantly. Of ourselves. Of our clients, our colleagues. There’s lots of research, our own included, which confirms that hybrid working continues to be in demand and people want more flexibility in the future.
But what does ‘more flexibility’ really mean? How do we harness the lessons of the remote experience since 2020, and what are the long-term implications for people, place and technology?
The answer will be different for every organisation, but these will be underpinned by what we consider to be a number of universal truths:
No matter what the future holds, the approach to developing workplace strategy is unchanged. Good strategy is bespoke. It’s grounded by data and insights, accepts there is no ‘one size fits all’, considers the objectives and aspirations of the specific organisation and puts people at the centre
Forward thinking organisations, able to adapt to a rapidly changing landscape, which build resilience and flexibility into working environments (place, people policies, technology) will be well placed for the future
Experimentation will uncover better solutions. Prototype. Assess. Iterate. Be prepared to try, fail, learn, succeed
Flexibility is a continuum | ‘more flexibility’ will mean radically different things to different organisations
People want to have a say about their future. Ask them. Explore the different needs which are met by the office and home environments, and the desired employee experience.
This is an exciting era for the professional workplace: a great time to strategically consider the desired employee experience and design a workplace future which makes sense for your organisation.
Katherine Divett
CEO, Puzzle Partners
the future of the australian office
Any discussion about the future might start with the present: we are now firmly in the post-pandemic era and life has returned to “normal” in most ways. There are no longer restrictions on people’s movements and covid is referred to as a past event, no longer impacting our daily lives.
Shifts to remote work accelerated by necessity during the pandemic have permanently changed office work and employee expectations. Despite mandates for some, office workers are not working from the office every day. People want choice and autonomy, and currently most office workers have some.
The future workplace trends we will discuss in this report have already flourished in Australian workplaces but will continue to grow and cement themselves as the usual ways of work.
Flexible work options
There is a growing demand for flexible work arrangements as employees seek better work-life balance and the ability to tailor their work schedules to personal needs. This demand is particularly strong among younger workers and those with caregiving responsibilities. Employers also benefit from offering flexible work options by attracting diverse talent, increasing productivity, and reducing overhead costs.
“Companies have moved away from strict return-to-office (RTO) demands and toward incentivebased strategies… Most executives are more accepting of hybrid work schedules, acknowledging the positives of hybrid attendance models”
XY Sense Workplace Utilization Q2 2024
Workplace design
The design of the physical workplace is evolving due to changes in how people use workspaces. While some people choose to do most of their focus work at home and come into the office to collaborate and connect with others, some rely on the office to do focus work as their home set up is not ideal. The role of the office differs for every organisation, team, and individual. In this way, workplaces increasingly need to be adaptable and careful exploration of staff needs is required to identify the right balance of spaces and settings. Organisations might also use the physical workplace to convey organisational character: the values and purpose of the company.
Technological advancements
Emerging technologies including artificial intelligence (AI), automation, and virtual reality will continue to play a crucial role in shaping future workplaces. The cloud will become increasingly crucial as geographically distanced individuals and teams work together.
36% …is the median corporate workplace occupancy in Q2 2024
XY Sense Workplace Utilization Q2 2024
flexibility in the workplace
There are many ways to flex at work. Let’s consider the where, when, what, who, how and why of flexible work.
Where | Location and infrastructure
When | Hours and scheduling
What | Job content and sharing
Who | Alternative workforce and automation
How | Scaling and technology
Why | Mission and purpose
“Incorporating flexible working into work redesign can strengthen the employee experience, diversify the workforce, tap into nontraditional talent pools, and access new skills — making headway on attraction, agility and productivity in unison”
Mercer (2024) Global Talent Trends
Flexibility will continue to be an important factor to employees in the future. Australian employees in recent Randstad studies say that they wouldn’t accept jobs without flexibility or that they would quit a job if it didn’t provide sufficient flexibility.
57% wouldn’t accept a job if they thought it would negatively affect their work-life balance
42% wouldn’t accept a job if it didn’t provide flexibility around where they work
46% wouldn’t accept a job if it didn’t provide flexibility around their working hours
56% would consider quitting their job if their employer asked them to spend more time working in the office
26% have quit a job because it didn’t provide enough flexibility
63% have made arrangements in their life (eg moved houses, got a pet) based on the assumption that working from home is here to stay
55% say being able to work from home is non-negotiable
Randstad Workmonitor 2023 | 2024
the physical workplace: office design
What does the future of the physical workplace look like? Future office design trends will impact the types of workspaces available, organisational storytelling in the work environment, sustainability considerations, and the integration of technology.
‘We’ spaces | In the hybrid work era, individuals increasingly come into the office for collaboration and social connection, often doing much of their individual focus work away from the office. The future workplace therefore needs to provide a variety of ‘we’ spaces that enable people to collaborate with one another and connect socially.
Workplace character | The design of physical workspaces can play a crucial role to convey an organisation's values, mission and purpose. Spaces should convey what is important to the business and have a clear connection to organisational identity to create meaningful and engaging environments.
Reuse, recycle | Workplaces are increasingly conscious about their environmental impact, as they report on CSR and ESG measures. Particularly during refurbishments and relocations, organisations can make sustainable decisions and purposefully reuse furniture and building materials.
Smarter buildings | the future workplace will increasingly integrate AI into building management systems. AI can collect data and learn from the behaviour of building occupants, increasing efficiency by controlling elements such as lighting, temperature, ergonomics and acoustics. These technologies not only can improve the work environment for employees, but can assist organisational decision-making, improving sustainability efforts, reducing costs and simplifying processes.
With the role of the office evolving and organisations looking for ways to entice people to co-locate, connect, socialise and collaborate, there has been a corresponding increase in demand for appealing and versatile spaces
PWC - 2023 Future of Work Outlook
integration of technology
The future of office work will continue to cater for both remote and in-person ways of working. Technology including the cloud, AI and automation will continue to assist employees in their tasks. Organisations need to be adaptable in their technology strategies due to constant advancement. (PWC (2022) Workplace tech for the office of the future)
Cloud collaboration | The future workplace is cloud-first, modular, and agile, allowing technology and infrastructure to scale as needed. Cloud-based collaboration tools will be essential for organisations to function with employees working remotely and across multiple devices.
Secure information | Technology teams will use ‘Cyber AI’: artificial intelligence programs that can identify risks, threats and respond to attacks as they happen – to meet the challenges ever increasing network-connected devices bring.
Virtual reality | Organisations will begin to leverage virtual reality and the metaverse to provide immersive, differentiated experiences for training and bridging gaps between geographically dispersed employees.
Organisations who have adopted AI in their workplace are 48% more likely to report higher productivity levels compared to those not utilising AI: however, only 21% of companies in Australia have adopted AI to improve productivity, representing an opportunity for big gains across the economy. (Slack - State of Work 2023)
Automation | Increasingly, organisations, teams, and individuals will automate tasks to achieve more with less time and fewer resources, drive more business impact, and to create a better work-life balance.
AI collaboration | The use of AI to enhance work tasks is ever increasing. In the office work context, AI is used mostly to write and edit text, develop voice-to-text transcripts and scripts (e.g. for customer support), create image and video content, and write code.
It is our imagination (or lack of it) that determines our ability to access the new opportunities and possibilities of working digitally
Deloitte Insights (2024)
considering the employee experience
The appeal of flexible working isn’t new. But the emergence of ‘home’ as a viable workplace, or as another setting in an agile environment, has obviously been accelerated in the past few years.
Understanding what will attract people to come the office versus the needs met working in remote locations, including home, is important when considering with future ways of working and the purpose of place.
For our most successful clients, understanding and nurturing employee experience is at the heart of their approach to future ways of working.
our studies find | what that means |
Workplaces with inviting social hubs foster better connections | With more people working from home, social hubs will be essential for employee connections, relationships and maintaining a sense of community |
Team proximity among the most important aspect to employees | When in the office, teams want to sit together. When remote, people want to connect easily. Providing the right technology and adjustable spaces and settings will support employees to work with whomever, whenever, from wherever. |
Finding a place to meet is one of the most common sources of frustration | We need to understand the when, where, why and how of people’s meeting and collaboration routines, and ensure there are the right meetings spaces available – size, bookability, functionality, visual and acoustic privacy. |
Noisy environments have the biggest negative impact on productivity | The proliferation of virtual meetings has the potential to amplify background noise. People need enough quiet and private spaces for focus and concentration. |
Research conducted by Puzzle surveying over 3,000 Australian employees revealed:
Top 3 reasons to work from home
83% No commute saves time + money
80% Better work / life balance
44% Home has less distractions
Top 3 reasons to work from the office
55% Socialise with colleagues
53% In-person team meetings
40% Collaborate and connect
As the way we work is ever-evolves, and the pace of change quickens, now is the time for your organisation to embrace the future of work. A tailored workplace approach provides the foundation: a trusted workplace and people partner like Puzzle will help you:
make the right decisions,
design a future proof workplace
achieve your business goals.
references
Deloitte (2024). Predicting the unpredictable: How will technology change the future of work? https://www2.deloitte.com/us/en/insights/focus/technology-and-thefuture-of-work/rethinking-future-of-work-models-to-predict-theunpredictable.html. Forbes (2024). The biggest workplace tech trends in the next 10 years. https://www.forbes.com/sites/bernardmarr/2024/03/18/the-biggestworkplace-tech-trends-in-the-next-10-years/
Gartner (2024). 9 future of work trends for 2024. https://www.gartner.com/en/articles/9-future-of-work-trends-for-2024. Mercer (2024). 2024 Global Talent Trends. https://www.mercer.com/insights/people-strategy/future-ofwork/global-talent-trends/. PwC Australia (2022). Workplace tech for the office of the future. https://www.pwc.com.au/digitalpulse/future-office-workplace-tech.html. PwC (2023). 2023 Future of Work Outlook. https://www.pwc.com.au/future-of-work-design-for-the-future/2023- future-of-work-outlook.html Randstad (2024). Workmonitor 2024. https://www.randstad.com.au/employers/workmonitor/. Randstad (2023). Workmonitor 2023. https://workforceinsights.randstad.com/workmonitor-2023. Slack (2023). State of Work 2023. https://slack.com/resources/collections/state-of-work-2023. WorkTech Academy (2024). The world of work in 2024. https://www.worktechacademy.com/the-world-of-work-in-2024-toptrends-for-the-year-ahead/. XY Sense (2024). XY Sense Workplace Utilization Index Q2 2024. https://xysense.com/workplace-utilization-index/
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