Thought of the Week

The Pursuit of Vibrancy: What Makes an Effective Workplace?

August 15, 2024 3 Minute Read

By Jen Siebrits Richard Holberton

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According to our recent European Office Occupier Sentiment Survey, two-thirds of companies reported they had an effective workplace that fulfilled its purpose. However, findings from the same survey indicate that only 46% of companies actually measure workplace effectiveness. In other words, for many companies’ workplace effectiveness is as much a matter of faith as evidence.

But what exactly is an effective workplace? The answer is almost certainly more complex than it used to be. As well as having to achieve financial targets, in the world of hybrid work offices also need to satisfy lots of other objectives: high-quality user experience, enabler of collaboration, social hub, expression of company culture and more. A difficult balance and outcomes will differ depending on specific needs, but the common denominator for an effective workplace reduces down to one word - purpose.

This makes it important to be able to generate good evidence to support and refine workplace purpose. Among the 46% of companies in the survey who said that they measure workplace effectiveness, the most common method (89%) by some margin was space utilisation. This has its place, not least because there is some link between utilisation levels and effectiveness. Nobody wants to commute into an empty office devoid of vibrancy, and it is encouraging that the survey revealed rising levels of office attendance. Over 60% of companies are now seeing average utilisation of 41-80%; less than half were in this position a year ago. But over a quarter of companies are reporting peak utilisation levels of over 80% - high enough to risk overcrowding. 

However, space utilisation is, on its own, a very blunt measure of workplace effectiveness. Its dominance overlooks the fact that there is a range of increasingly sophisticated diagnostic tools available. In particular, those that capture human-centred experience have a great deal to add here. By applying principles of psychology, change management and workplace design it is increasingly possible to measure and refine the moments that matter in delivering high-quality user experiences effectively. And to apply these learnings across a range of real estate decisions.

It needs a high-quality and responsive data architecture and organisational structure to deliver an effective workplace. The survey finding that only about half of companies have a coherent digital strategy and roadmap shows the scale of opportunity for improvement.

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Thought of the Week

Navigate the ever-changing real estate landscape with CBRE's Thought of the Week. The series features our experts’ views, offering insightful perspectives into the latest market trends in the UK that are shaping the industry.

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