For a moment, imagine it’s 2014. You walk into a flashy tech startup’s HQ to find amenities galore: game tables abound, snack room shelves are lined with KIND bars and premium popcorn, in the corner there’s kombucha on tap.
Jump back to 2024. You walk through an office on a Friday afternoon to find a far more barren landscape. A decade ago, this complex full of dark meeting rooms and empty desks might have signaled an imminent decline in the world of commercial real estate. But today, it is representative of our new era of hybrid work. In the great return to office, companies shifted their expectations of the workplace.
In the hybrid work model, productivity happens both in the office and at home. As a result, the demands of shared workplaces are more centered around collaboration than clicking away for eight hours a day. And what used to draw workers into the office, no longer does. In 2024, ping pong is not the compelling value proposition it once seemed to be.
The Rise of Work from Home
The mass shift to remote work was catalyzed in early 2020, posing an unprecedented threat to the traditional in-office work model. Before that moment, there was virtually nothing corporate or real estate leaders could see disrupting workplace culture that ran deep for generations of workers. Corporate employees were accustomed to in commuting to work, socializing with coworkers, and spending most of their working (and waking) hours in the office. But overnight, that collective routine came to a halt.
Though the pandemic is what ignited the work-from-home revolution, it has remained fueled by conditions that have been a long time coming. The cost of the daily commute has been
steadily rising since the early 2000s. The average family is spending more than
$9,687 on childcare annually (a figure that has grown by
over 30% since). And critically, technology and connectivity were ever more present in the home and office, making the switch to video calls a seamless transition.
Most employees quickly became accustomed to the leisures and economics of remote work. The most significant benefits to working from home, as cited by remote or hybrid employees, are: saved commuting time, saved money, increased time with family, and the ability to work in a more pleasant space (
McKinsey).
These preferences highlight not only the benefits of working from home but also the shortcomings of so many traditional office spaces.
The Great Return to Office
In late 2022, a wave of return-to-office notices began to surface, led by tech juggernauts like Amazon and Google.
Since the pandemic, employers had perceived reduced
productivity (between 8 and 19%, according to a
2023 study) from an entirely at-home work team and felt that team cohesion and employee development were suffering.
But employees saw things differently, often reporting higher perceived levels of productivity. To this day,
98% of the workforce reports wanting to work remotely – at least some of the time. One segment of the workforce, Gen-Z, has been particularly outspoken in their opposition to return-to-office mandates.
The Voice of a New Generation in the Workforce
Gen-Z, born after 1996, has become a growing force as they enter the workforce since 2020. As a result, some of the generation only knows 100% remote work. So it’s no surprise they were outspoken in conversations about returning to the office.
Mindy Honcoop, a workplace advisor with more than 20 years in the organizational leadership space, sees this ambitious, tech-savvy generation already shaping their own future of work – but it’s not in the direction some may think.
“There is a desire to be in community and to be with people,” she says. Togetherness is an asset to attracting Gen-Z back to the office in a digital age. So what’s the hold-up?
“They’re all creators,” Honcoop explains, “being a creator has become so much more democratized and accessible.” In the workplace, that creative agency translates to wanting a voice.
Honcoop believes that Gen-Z is more responsive when they are included in return-to-office plans and able to codesign their work environments. Ultimately, she says, it comes down to this: “It’s not that Gen-Z doesn’t want to be in the office. They just want it to make sense. They want a good why.”
The New Hybrid Normal
As employer and employee desires intersected, the return to office shook out not as an exact replica of prior office culture, but as something decidedly new: the hybrid work week.
Today, it is common practice for employees to go into the office for a portion of the week (often Tuesday through Thursday) with optional work-from-home on the remaining days.
Employers and employees can unanimously agree on the benefits of hybrid work, suggesting that it’s here to stay. And with employees coming in just a few days a week, time in the office is more valuable than ever before.
However, the markers of that value are far different than they were in a pre-covid world.
Moving' On Up: Real Estate Flocks to Quality Buildings
The return to office has prompted workplaces to offer something distinctly different than employees’ at-home spaces. With meetings seamlessly conducted via Zoom and quick questions answered via Teams, the office has become a place befitting more substantial ones. Not the 15-minute check-in, but the many-hours-long brainstorm. The physical spaces that we work in should now reflect that.
The real estate market has seen corporate tenants flock to quality. With the option to work from home, the office has to offer a more compelling value proposition – one that does not align with the cubicle-ridden office space of the past.
“If we feel that being in person leads us to success, what does it mean to do that thoughtfully – and does the space lend itself to that?” Mindy Honcoop prompts employers to ask. In response, she sees corporate entities choosing premium spaces where fewer people gather at more thoughtful times.
“If we feel that being in person leads us to success, what does it mean to do that thoughtfully – and does the space lend itself to that?”
Modern class A office buildings are designed with public transit and relevant technology in mind. Given that commuting is a primary concern among workers and that meeting with coworkers, clients, and interacting with technology are the biggest drivers of in-office work, class-A building have much more to offer.
Designing for The Future of Work
The philosophy of less is more is essential to upgrading the office environment. During the last irrational height of startup culture, shallow amenities like foosball, kegerators, and even rock climbing walls appeared to be a big draw. But the reality of the modern workplace is that these amenities simply can’t compete with the creature comforts of home.
Last year, the New York Times published
a feature on the “Instagrammable” offices that companies are using to, allegedly, “lure young workers back into the office.” This theory was, as you may anticipate, met with strong opinions from commenters.
Today’s worker has a resistance to the old – and even the new – when it comes to physical office space. The digital world, however, has a lot to offer.
In 2024, the office is improved not with surface-level amenities or social-media-worthy furniture, but by taking away from the physical space and investing in smart digital solutions that simplify the commute, improve comfort, foster collaboration, and offer compelling flexibility.
Features like reservable meeting rooms, event calendars, and maps with nearby points of interest can spark connections between employees and create a sense of certainty in workplace culture. Employees know that when they come into the office, they will have designated spaces to collaborate in, coworkers to socialize with, and a seamless transition to after-hours activities, whether that’s workout classes or happy hour.
Both physically and digitally. Offer an abundance of closed-door meeting spaces. Collaborate with nearby networking events or fitness classes and offer in-house team building activities and ongoing education programs.
Design spaces that can adapt to different needs, accommodating events as well as individual work. Designing spaces with flex desks and private spaces for heads-down work gives employees options, regardless of how or when they are working. A more intuitive parking operation that takes into account varied work schedules will give commuters a choice in how they get to work.
Drivers should know there will be ample spaces to park and those who choose other forms of transportation such as bikes or public transit should know their needs are considered as well.
Over the past two years, some companies that issued return-to-office mandates have since seen their top talent leave.
Mindy Honcoop explains her perspective on the so-called great resignation: “When you force people back, it’s so separated from what it is to actually do the job. We need to coshare and codesign with employees, actually understand their problems and codesign solutions. Don’t take agency and autonomy away from people.”
Involving employees in an ongoing feedback cycle fosters an environment for success in the modern office. “When you see companies returning to the office and not losing top talent, it’s because they had a voice,” she says. “It’s not about going in or not going in, it’s about having a voice in how it happens.”
Opening the channel of communication between employers and employees not only improves retention and satisfaction, it prevents companies from investing in amenities that will go unused. Employers can share the factors that influence their desire to return to office and employees can voice their needs. Together, these companies will opt for and design spaces that impact everyday work with real value.
Community & Collaboration
Cubicles
Few meeting spaces that are always occupied
No designated space for socializing
No facilitating of office events or gatherings
Open floor plans that encourage collaboration
Researvable meeting rooms
Space for socializing
Calendar of group events
Offer standard tools
Little advantage over at-home work
Facilitate access to leading technology
Integrate high-tech tools into building
Outdated parking garage
Only daily or monthly parking options
Far from public transit
No accomodations for alternative mobility
Close to public transit
Seamless garage access
Flexible parking options
Designated area to store bikes, ect.
Shuttles
Limited acces to sunshine
No fresh air
No plants or greenery
Natural light
Abundant greenery
Community fitness classes
High-quality air filtration and monitoring systems
For asset owners and property managers, there is compelling financial upside to updating workplace culture and the digital infrastructure to support it. More intelligent buildings see significantly reduced energy consumption in addition to lower vacancy and higher lease renewal rates.
Today’s smart buildings are primed for hybrid work. When employees are empowered with digital tools that support flexible schedules and unique work styles, they tend to stick around longer.
Hybrid work is not only popular among employees, it is the choice approach of highly effective companies. An
Accenture report found that using productivity anywhere hybrid workforce models are embraced by 63% of high-revenue growth companies, while 69% of companies with negative or no growth reject the concept of hybrid workforces and prefer all onsite or all remote employees
As hybrid work persists, the building that does not become intelligent and connected becomes obsolete. However, employers must do more than invest in technology to make their workplace thrive. The office can become, once again, a source of culture, community, and collaboration – with one key ingredient.
The single greatest advantage among modern employers is purpose.
A staggering 82% of individuals believe it is important for their employer to have a purpose (
McKinsey) and employers who take an active role in fostering a sense of goodwill and positive intent among their employees reap the benefits of more dedicated work and higher employee retention and satisfaction.
Creating inspiring physical and digital workspaces is fundamental to nurturing this sense of purpose. Employees who operate in environments that reflect and reinforce their organization’s mission experience increased motivation and commitment.
In the new hybrid landscape, employers who effectively instill this sense of purpose can make the answer to the question employees now ask – “Should I go in tomorrow?” – a resounding yes.
As hybrid work cements itself as the norm in modern workplaces, employees are increasingly finding their rhythm, embracing a model that promotes a harmonious work-life balance.
Forget Quiet Quitting, It's a Seller's Market
The rise of flexible work is a pivotal consideration for employers. Rather than the phenomenon popularly known as “quiet quitting,” in which employees do only the bare minimum in their corporate roles, workers are gravitating towards employers who offer the environment and benefits that align with their personal and professional aspirations.
Even as the job market shifts to a “buyer’s market” in the wake of a wave of tech layoffs, workers in the market, particularly those from the tech world, are fast to jump from unfulfilling roles.
Empowering the Employee
The hybrid work model that emerged from COVID-19 champions collaboration in the office and independent work at home, fostering a culture where employees are empowered to shape their unique professional environment.
Third spaces, like coffee shop-style areas for informal interactions, are becoming essential. Companies can sponsor these spaces without dictating their tone or content.
This more relaxed approach to the office not only bridges the gap between work and personal life but also nurtures a culture of ongoing learning and appreciation, where opportunities for skill enhancement, like Artificial Intelligence and Diversity, Equity, and Inclusion initiatives, are abundant.
Ultimately, these evolutions lead to a workforce that is happier, healthier, and more engaged, resulting in increased productivity and loyalty.
The workplace of the future is not just a physical space but a dynamic environment that enriches the employee experience, fostering a community where every individual feels valued and empowered to thrive. Cohesion is a smart building platform focusing on these priorities every single day.
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