shaping the future of work - jll.co.uk
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Shaping the future of work: Three stages of transformation
Shaping the future of work: Three stages of transformation 1
To navigate the future of work, organizations will need to be agile adapting to changing conditions both in the near term and beyond. Work and lifestyle trends were accelerated during the pandemic and organizations have now begun to understand that their
transformation to hybrid will be a longer-term journey in the continued evolution of the future of work. JLL believes a better world of work is waiting, and there are three principal stages in the transformation journey for organizations to follow (see Figure 1).
1
2
3
Stage
Invest in flexibility, technology and health
Figure 1: Shaping the future of work: Three stages of transformation
Embrace and drive the transformation
Create a future of work model with built-in flexibility
Shaping the future of work: Three stages of transformation 2
Shifting priorities and enabling work-from-everywhere
In our previous report, we determined there is no one-size-fits-all answer to what the future of work will look like, but we do believe there are four foundational truths:
9 The office will remain the center of the workplace ecosystem.
9 Hybrid work has a durable presence. 9 Health, wellness and safety are – and will continue
to be – of high importance to employees. 9 The net impact on space usage and footprints will
be relatively minor.
Remote work, even at scale, is not a new phenomenon and history shows that it presents both opportunities and challenges. Whether you call it hybrid, work-from-anywhere or work-from-everywhere, it is clear that many employees now expect greater flexibility. Organizations will need a holistic plan to support both in-office and remote workers in the short-term (2021-2023) and the long term (post 2023).
Hybrid workplace strategies - a mix of in-office, at home and/or third-party work - is highly appealing, both to employers in search of talents highly dispersed, and to employees in need of flexibility, empowerment and fulfilment. There are no set parameters to the hybrid solution, and it is very probable that organizations will require fluctuating degrees of ‘hybridity’ at any point in time.
In what will be a long period of sustained change, introducing flexibility into the way your organization works will be vitally important to ensuring the resilience of an always-on transformation and adaptation. Hybrid is actually an integrated ecosystem of solutions that modulate the degree of flexibility required for a given organization. An ever-changing landscape of opportunities is in front of us. Organizations will need to be flexible, agile and, above all, adaptable to shifting demands to facilitate their ongoing transformation and continuously optimize their portfolios to enable work from everywhere. Achieving full flexibility will be no mean feat and organizations must consider how a hybrid environment will enable their future of work strategy.
Shaping the future of work: Three stages of transformation 2
“Physical office spaces will be even more critical to human performance and company culture. Creating engaging office environments that enable creativity and collaboration will be paramount to realizing this new purpose of the office as the social and innovation hub of the work ecosystem.”i
—Neil Murray, CEO of JLL Work Dynamics
To help identify the appropriate scope of a hybrid workplace strategy, we created a future of work continuum (see Figure 2), that includes four scales: work, workforce, workplace and portfolio. The scales span extremes at either end of the continuum demonstrating the broad range of solutions available and the complexity of a hybrid model. A foremost consideration in establishing the optimal hybrid model will be leveraging the strength of the ecosystem to meet the workforce and the organization wherever they are, have or want to be including the right mix of individual and team activities, face-to-face and virtual activities, working environments and portfolio occupation.
In activating the future of work continuum, drivers and enablers will come into play. Some employees are seeking the socialization of the office and others are comfortable with hybrid and hybrid/remote workplace options for the longer term. On the other end, employers may contemplate a full return to the office as the only option to sustain their growth, or
build on the full flexibility of a hybrid model to boost recruitment and innovation. However, the office will remain a core element of the work ecosystem as it becomes a destination and a social hub within the hybrid model. In parallel, flexspaces will grow in importance to create an ecosystem of hubs to support work-from-everywhere.
Figure 2: JLL Future of Work Continuum
Team-based IndividualWork
Mixture of individuals and team activities in and out of the office through digital enablement
Face-to-face VirtualWorkforce
Mixture of face-to-face and virtual interactions in and out of the office through digital enablement
Office-centric Home basedWorkplace
Maximum activity-based working environments through digital enablement
Company owned/leased AnywherePortfolio
Optimum dynamic occupancy planning and flexible office options to meet variable demand
Portfolio optimization increases toward work-from-anywhere
Shaping the future of work: Three stages of transformation 3
“People expect a much more open and flexible approach to work. They consume work and the office in the same way they consume day-to-day activities, products and services. They want work to adapt to their constraints and wishes, rather than the other way around.”
—Denis Pennel,Author and Managing Director of the World Employment Confederation
Shaping the future of work: Three stages of transformation 4
Stage 1Create a future of workmodel with built-in flexibility
The right future of work model can help gain competitive advantage, but organizations will require continuous flexibility. Forming a clear vision, that includes the purpose of the transformation as well as how work will be done and how workforce preferences will be enabled, will be vital for organizations to sustain the right work model.
A model with built-in flexibility will be an absolute necessity and work-from-everywhere needs to be the new norm, enabled by both suitable technology and dynamic occupancy management. Work is no longer just somewhere we go, it’s something we do, and now, we can do it everywhere. The magnitude of change we are living through and its impacts are significant on the workforce (people), the workplace (place) and digital experiences (technology). In what might be a long period of sustained change, flexibility and the dynamism it can produce for an organization, will reinforce the resilience of any organization and provide a tremendous opportunity for leading practice organizations to “rethink and reimagine” how we work, where we work and what services we really need. However, building in flexibility will not be easy and will have to be based on numerous assumptions
underlying an organization’s transformation. Flexibility must be woven in at all levels: from the organizational policies and processes around remote work to the people actually living and breathing work-from-everywhere.
An elongated interim period of uncertainty through discovery and continuous learning is an opportunity for deep and long-term transformation towards a hybrid work model. Knowing that the shift to hybrid may be more challenging for some employees and leaders, organizations will need to be mindful and consider all perspectives. Pilots are an essential tool to learn, discover and progress along the right path in the journey.
“Trends that have been gathering momentum for years, such as increased workplace mobility, have now rapidly accelerated during the course of the pandemic due to increasing digital transformation and the emergence of innovative workforce models and the intensifying demand for new talent. The need for more agile and flexible workplaces that will enable highly ‘resilient’ real estate portfolios has never been greater.”
—Peter Miscovich, JLL Managing Director, Strategy and Innovation, Americas Consulting
While 68% of employees have felt supported by their employer throughout the pandemic, only 36% of the workforce are able to maintain quality interactions at distance with strong personal connections with their colleagues.ii Source: JLL Towards a Regenerative Workplace
When an integrated future of work model (see Figure 3) is constructed with flexibility and implemented at scale it has the potential to deliver powerful outcomes:
• Dynamic occupancy • Work-from-
everywhere capabilities• Enhanced employee
experience and performance• Better employee well-being
and responsible behaviors• Talent attraction and retention• Greater agility to respond to
future crises
Shaping the future of work: Three stages of transformation 5
PeopleFirst
Portfolio
Workforce
Workplace
Work
Figure 3: JLL Integrated Future of Work Model
Technology and digital enablement
Something you do
Talent-centric
Work from everywhere
Optimize for flexibility
Health
& Well
ness
and
Saf
etySustainability & Net Zero
Experience / Anywhere & Dynamic Occupancy
Creating a regenerative employee experience
Organizations will fall short if they leave their people behind. As we plan for a post-pandemic future, people are expecting their employer to be more caring and their workplace to offer a regenerative experience:
• A dispersed and optimized portfolio will allow greater flexibility, and dynamic occupancy planning will unlock the right utilization of the space.
• A robust technology collaboration platform will enhance performance of the workforce wherever they work from, and a consistent experience will provide continuity and high standards to users.
• Reinforced health and wellness solutions will guarantee the safety of employees every time they step into a corporate environment and expect their organization to have a long-term commitment to ensuring their good health and well-being.
• Employees aspire to experience the ‘vibrancy’ of their work community again. They will expect a new and refreshed regenerative workplace to help them recovering from the trauma of the pandemic.
Shaping the future of work: Three stages of transformation 6
Stage 2Invest effectively in flexibility, technology and health
Achieving continuous flexibility will be challenging and organizations will need to invest robustly in their transformation (investment in resources, services, policies, technology and employee support and health services) to attain what will be considerable targets, enabling hybrid work and flexing the portfolio.
Ever-evolving technology is enhancing the way we work. Navigating the future of work will require a range of technological tools to support new ways of working and collaborating. To be successful, the transformation must be deep-rooted in organizations aligning their technology strategy with organization and portfolio goals (see sidebar Transforming work through technology)
Shaping the future of work: Three stages of transformation 7
Transforming work through technology
The pandemic has advanced the digital transformation of organizations, and the workplace is now truly boundaryless, with employees expecting a safe, productive and seamless experience wherever they work. To achieve these aims, organizations will need to
find ways to enable hybrid work, empower and engage employees wherever they are, and manage variable and dynamic occupancy patterns. Technology will play a critical role in successfully transforming to an integrated future of work.
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Flexible space• Flex space listings platforms• Flexible lease management tools• Portfolio analytics software
Workplace design and infrastructure• Building connectivity and digital infrastructure• Workplace design software• ‘Smart’ videoconference facilities• VR and AR collaboration tools
Understanding and managing space• IoT devices and workplace sensors• Access control and security systems• Automated and predictive FM platforms• Remote, cloud-based HVAC and IT controls• Cybersecurity systems
User experience• Employee engagement and communication apps• Real-time booking and scheduling tools• Touchless access control• Automated workplace assisstance systems• Personalized space managementAdapted from JLL Transform with Technology iii
Shaping the future of work: Three stages of transformation 8
75% of employees expect to feel protected at work when expressing their difficulties or concerns.v Source: JLL Towards a Regenerative Workplace
While constructing the right future of work model will enable resilience against future disruptors and crises, it will also allow organizations to seize emerging opportunities and continuously adapt to meet their objectives. The role of the real estate industry will be to provide a high level of comfort with an integrated future of work model that brings flexibility to the portfolio, the workforce and the organizations themselves.
During the pandemic employees have been afforded the ‘luxury’ of integrating well-being into their working routines. Today, as they are asked to return to the office, they want to migrate this experience to the workplace and aspire to work in a more supportive environment. Ultimately, we see an organization’s ability to attract and retain top talent will be significantly improved by creating workplaces that prioritize health and wellbeing, helping employees realize their potential and get the support they need.
The durability of hybrid presents both a challenge and an accelerator of the transformation to organizations. A world of opportunities is knocking at the door. A new landscape of innovations and technologies will energize solutions more closely aligned to workforce demands and aspirations, and in tune with leadership goals and ambitions. Organizations will need to leverage these opportunities now to build their competitive advantage for the future.
1 in 3 employees don’t have access to any health and well-being offerings today.iv Source: JLL Towards a Regenerative Workplace
9
Stage 3Embrace and drive the transformation
As an organization’s future of work model becomes clearer and the obstacles to normal work activities are removed, they will increasingly embrace the transformation ramping up efforts toward constructing and operating a model with flexibility at its core.
Organizations will have to view their employees as consumers who demand more from their work and workspace in terms of experience and benefits, and they will have to care more vigorously for their safety, health and well-being. The office will have to be reborn with a different purpose, one which empowers the workforce, provides choice and is more engaging and more fulfilling. It will need to be reimagined to motivate and invigorate returning employees with something ‘better than before’: a regenerative workplace, putting people at the center and genuinely taking care of their health and wellbeing to achieve sustainable performance. Importantly, the hybrid workplace will need to be orchestrated as an ecosystem of solutions and services to support work-from-everywhere.
The right hybrid workplace model for any organization will need to be continuously engineered to meet their own workforce preferences and work process requirements.
Shaping the future of work: Three stages of transformation
33% of employees do not consider their company a great place to work anymore.vi JLL Towards a Regenerative Workplace
Transformation success will depend on those who lead it and those who consume it so leadership mindsets will need to change along with their behaviors. According to our hybrid workplace transformation framework (see Figure 4), imperatives to reaching a future state include aligning leadership and employees with a vision and key principles while deploying pilots across the organization to learn and change the culture and mindset. What will be most important for leadership to fully understand and evaluate is the
Strengthening organization communication and gaining greater ‘intelligence’ on the workforce will be essential. Organizations that can better articulate the specific policies and approaches for the future of work will see employee well-being and productivity rise. Other organizations where employees feel they have yet to hear about post-pandemic working arrangements around remote working and return to the office may require leaders to communicate more frequently and differently.
important intersections of: Work (how work is being performed today and how will work be performed in the future), Workforce (how the workforce is behaving and performing today and what does the workforce of the future really desire), Workplace (how hybrid workplace pilots support and enable work and the ever-changing dynamic workforce requirements over time), and Portfolio (how can we optimize the real estate portfolio and operationalize elasticity).
Continuous ‘employee sensing’ will continue to provide invaluable insight and data to organizations. We have observed a significant increase in the frequency and intensity of employee surveys to accurately measure at scale the mindset and aspirations of the workforce in the short, medium and long term. Realizing the desired transformation will require sustained commitment at the top of the organization and will only work if it has the engagement and buy-in of employees and leadership at every level. Organizations will have to become listening and learning entities and shift from being ‘know-it-alls’ to ‘learn-it-alls’ to make real progress.
Figure 4: Hybrid Workplace Transformation Framework
Shaping the future of work: Three stages of transformation 10
Current
• Competitive intensity• Customer dynamics• Industry convergence• Disruptive technology• Global mega trends• New business models• Emerging markets
Complexity**Source: Cracking Complexity; Komlos, David
Future
• Hybrid workplace• Talent attraction/retention• Employee experience• Improve workplace agility• Change management• Financial performance
Digital transformation and technology enablement
Business strategy
Talent strategy
Workplace strategy
Workforce automation
Integrated hybrid workplace pilots
CRE portfolio transformation
Flexibility
Shaping the future of work: Three stages of transformation 11
“Anything is possible for a company when its culture is about listening, learning and harnessing individual passions and talents to the company’s mission. At Microsoft, we are committed to building leaders by unlocking their potential and by empowering them. The learn-it-all does better than the know-it-all.” vii
— Satya Nadella, Chief Executive of Microsoft
Initiating and implementing the right future of work transformation for your organization will be a complex but rewarding exercise in developing strategy scenarios and defining robust execution plans that drive the desired outcomes (see sidebar Key transformation elements to consider).
Key transformation elements to consider
As organizations adopt a work-from-everywhere model here are some key elements to consider:
1. Plan for hybrid work success: Construct and implement a workplace strategy that works with your organization strategy and culture.
2. Safeguard efficient facilities: Facilitate healthy environments that support safety and wellness procedures and safeguard both the assets and the people within them.
3. Elevate the employee experience: Prioritize the physical and mental wellbeing of people to enable worker productivity.
4. Revive the workplace: Bring life back into workplaces with greater agility to respond to daily space demand fluctuations, increased mobility and evolving workstyles.
5. Accelerate technology innovation: Technology will bridge the physical and digital workspaces while unlocking actionable insights and efficiencies to generate enterprise value.
6. Profit from Portfolio Resiliency: Reposition property portfolios with space utilization data, optimization, and sustainability to enhance financial performance.
Best time to start is nowCrucially, your transformation needs to start now, and while we believe the right strategy will deliver sustained organization resilience and success over a long period, organizations should be motivated by the clear benefits that can be realized in the early stages. A flexible hybrid workplace model enabled by technology can improve the employee experience and increase organizational performance.
Ultimately, we see only upside and value for those organizations who commit to their transformation. A win for the organization through enhanced human performance and greater productivity. A win for the employee in terms of a better, healthier, more fulfilling working life. And a win for the environment, society and community through the associated benefits that a responsible transformation can help bring.
The opportunity to shape your organization’s future of work has never been stronger. It will not be a simple journey, but we can help make it easier to plan, navigate and complete the transformation enabling the future of work through a hybrid workplace strategy.
Shaping the future of work: Three stages of transformation 12
This paper is part of a series on the future of work. Please watch for additional pieces to follow on topics including sustainability, hybrid, technology health & well-being, and experience & design.
In the meantime, learn more at JLL.com/FutureofWork, and contact us to better understand how you can apply these concepts to your organization.
Contact
Global Consulting
Peter MiscovichManaging Director, Strategy and InnovationAmericas [email protected]
Sundar NagarajanStrategic Consulting Lead, Americas [email protected]
Dr. Guzmán de Yarza Blache Head of Workplace Strategy [email protected]
Iain FranklinHead of Consulting, EMEA [email protected]
Lee DanielsHead of Workforce (EMEA) and Workplace (UK)[email protected]
Tony WyllieHead of Consulting, APAC [email protected]
Global Research
Dr. Marie PuybaraudGlobal Head of [email protected]
Tom CarrollDirector, EMEA Corporate [email protected]
Christian BeaudouinDirector, Americas [email protected]
James TaylorDirector, Asia Pacific [email protected]
Shaping the future of work: Three stages of transformation 13
Shaping the future of work: Three stages of transformation 14
About JLLJLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of December 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About JLL ResearchJLL’s research team delivers intelligence, analysis and insight through market-leading reports and services that illuminate today’s commercial real estate dynamics and identify tomorrow’s challenges and opportunities. Our more than 450 global research professionals track and analyze economic and property trends and forecast future conditions in over 60 countries, producing unrivalled local and global perspectives. Our research and expertise, fueled by real-time information and innovative thinking around the world, creates a competitive advantage for our clients and drives successful strategies and optimal real estate decisions.
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iSource: https://chiefexecutive.net/new-study-some-workers-really-dont-want-to-be-remote/ iiTowards a Regenerative Workplace, September 2021, https://www.us.jll.com/en/trends-and-insights/research/regenerative-workplace iiiTransform with Technology, September 2021, https://www.us.jll.com/en/trends-and-insights/research/2021-global-proptech-report ivTowards a Regenerative Workplace, September 2021, https://www.us.jll.com/en/trends-and-insights/research/regenerative-workplacevIbidviIbidviiSource: https://www.livemint.com/news/business-of-life/how-satya-nadella-brought-a-growth-mindset-to-microsoft-11614874643362.html