Category: Future of work

Flex space: the office isn’t dead, it’s different

As business leaders cautiously unbolt their doors after lockdown, blinking to adjust to a new reality, it’s becoming clear that office spaces offering safety, agility and value are highly desirable in these uncertain times. In the raging debate about the coronavirus-era office, there is a strong argument for embracing flexible workspaces. So let’s talk about flex space.

While home working has benefits, numerous studies show it affects both physical and mental health. Little wonder a recent survey published by Office Space in Town (OSiT), providers of serviced offices in London, Cardiff, Northampton and Edinburgh, discovered that just 5 per cent of employees want to work remotely on a full-time basis.

“Respondents cited the inability to unplug, loneliness and distractions as major pitfalls of home working,” says OSiT chief executive Giles Fuchs.

Indeed, statistics released exclusively for this Future of Work report, reveal that 97 per cent of 14,000 members of leading flex-space provider The Office Group (TOG) believe they will require an office as the coronavirus pandemic subsides. Furthermore, the new research, carried out in partnership with Leesman, indicates almost half the respondents (46 per cent) feel disconnected from colleagues during home working, while 38 per cent feel disconnected from their organisation.

“Despite many hailing the pandemic as the death of the office, I believe we’re seeing its evolution from a rigid concept to one of fluidity,” says Olly Olsen, co-founder and co-chief executive of TOG. “More than 40 per cent of our inquiries during lockdown have come from companies that are currently in traditional offices, which just aren’t set up to offer the space density or layout required to meet safety measures and create a comfortable work setting in this new era.”

Embracing new health measures

Enrico Sanna, co-founder and chief executive of Fora, which has 11 flex-space venues in London, is equally bullish. “We are going to continue to see flexible workspaces take market share from traditional offices, probably at a faster rate than we have been doing to date,” he says. “To reopen an entire headquarters for just 10 per cent of the workforce is completely uneconomical.”

To reopen an entire headquarters for just 10 per cent of the workforce is completely uneconomical

Also, having employees stationed across three or four different sites, as flex-space providers often offer, helps from a health and safety perspective. Sanna explains: “There are fewer people to spread infection and, if someone is taken ill, it doesn’t risk the entire workforce.”

Richard Hyams, founder and director of architects astudio, points to findings by Bisnow, published in April, as evidence of the global trend for flex space. Almost three quarters of those surveyed (71 per cent) want their employers to provide some form of flexible workspace following the lockdown. However, he warns that flex space providers must invest in technology and better ventilation systems to take advantage of the predicted uptick in demand.

“Even before we were worried about airborne pathogens, air quality was a growing concern,” he says. “The Lancet reported, in 2018, that 800,000 people in the UK die annually as a result of poor building air quality. At astudio, we have designed displacement air systems that ensure the air we breathe is as clean as possible. Already these systems are helping to future-proof flex spaces against health risks.”

Tech solutions for health challenges

Happily, most flex-space providers are moving with the times. “Fora has installed thermal imaging cameras that test the temperature of people entering the building, signage and one-way-systems, as well as best-in-class ventilation, and increased levels of sanitation and hygiene,” says Sanna.

Similarly, The Argyll Club, which has 38 luxury workspaces across London, has listened to customers’ concerns about public transport and increased bike storage and built more showers. Beth Hampson, commercial director, is unsurprised that flex space is increasingly appealing to business leaders. For one, they need not be tied into long-term office leases for buildings that, due to social-distancing measures and home working, are likely to be woefully under-utilised.

“It’s clear remote working isn’t going away completely, but it’s also evident that getting teams back into offices is needed for the UK’s morale and economic recovery,” she says. “The most successful businesses in this new age will be those that can effectively find an equilibrium between the two.

“For employees, this means a hub they can use as needed to create a working week that best suits them. For employers, it means a safe home for your business, which is run with stringent health and safety policies, but with a shorter lease, so you can adapt to the changing economic cycle and expand or contract as needed.”

Flex space is critical for survival

OSiT’s Fuchs agrees. “Flexible workspace offers businesses the ability to be nimbler as they recover from the financial strains of the pandemic and gradually bring back furloughed staff, as well as the capability to flex space up and down to cater to social-distancing requirements,” he says. “And having flexible access to ‘burst space’ outside their current real-estate commitments is invaluable.”

In addition to helping rehouse teams and assisting with overflow, flex spaces can attract and retain both talent and clients. “The shared services provided by flexible workspaces offer businesses the ability to access HQ-standard facilities,” says Fuchs. “At OSiT, all our tenants can typically access gyms, salons, doctors, restaurants, cafés and even hotel rooms.”

Aside from the promise of exclusive access to dumbbells and haircuts, Hampson from The Argyll Club summarises the primary reason this industry is on course to grow in the coming weeks, months and years. “Flex space has always been about helping businesses remain agile,” she concludes. “Now that agility is no longer just a ‘nice to have’, it’s critical for survival.”

This article was originally published in Raconteur’s Future of Work report in July 2020

Invest in employee training before it’s too late

The nationwide lockdowns, enforced to limit the deadly dissemination of COVID-19, sparked explosions in digital transformation and home-working trends across the globe. Digital transformation, though, is not deployed once: it’s an ongoing strategic campaign.

Technology and people are the two drivers powering successful digital transformation. Yet myopic business leaders, bedazzled by tech, risk forgetting the latter. Investing in staff training is critical. Moreover, it’s a win-win situation.

“The only thing worse than training your employees and having them leave is not training them and having them stay.” Henry Ford, the founder of the eponymous automotive giant and architect of the assembly line technique of mass production, died 73 years ago, but his words live on with matured meaning.

Encouraging employees to re-skill, or up-skill, emphasises a level of care and commitment towards them, at this time of acute vulnerability. If left unchecked, automation advancements and coronavirus’ long shadow are enough to disable anyone’s career. While investment in staff training boosts morale and, in turn, productivity, it also helps better future-proof an organisation and narrows the chasmal skills gap.

The World Economic Forum’s Future of Jobs Report 2018 laid bare the need to learn new talents to thrive in tomorrow’s workplace. Analytical thinking and innovation will be most desired in the 2022 skills outlook; manual dexterity, endurance and precision will be the first shown the door.

Further, the researchers calculated that on average employees will require 101 days of retraining and upskilling from 2018 to 2022 as “emerging skills gaps – both among individual workers and among companies’ senior leadership – may significantly obstruct [organisations’] transformation management”.

MANIFOLD BENEFITS OF INVESTING IN EMPLOYEE TRAINING

“On the one hand, businesses must retain and retrain their workforce to keep up with as well as take advantage of a constant stream of innovations,” says Anthony Tattersall, head of EMEA at online learning platform Coursera, which has generated more than 25 million enrolments since mid-March – a 520 per cent rise from the same period last year. “On the other hand, individuals must keep pace with a constant stream of innovations that hybridise and alter jobs.”

Last year the Office for National Statistics predicted 1.5 million jobs in England are at “high risk of being automated in the future”. Mr Tattersall continues: “Many jobs will slip away, but increased productivity will mean that many more new jobs will replace them – across all industries. These jobs are at risk of going unfilled if we don’t adapt to a new way of thinking about education and learning new skills throughout a lifetime.”

There are manifold benefits of investing in employee training, states Mr Tattersall. Funded learning improves staff engagement and empowerment, and helps facilitate the transition to remote working. It also enhances the emotional wellbeing of employees. “The act of learning helps cope with stress,” he says, noting the average age of a learner on the Coursera enterprise platform globally is 29.

But with business leaders struggling to cope with the onslaught of disruption wrought by COVID-19, is enough being done to protect future careers?

D2L published research in June that showed almost three-quarters (74 per cent) of learning and development (L&D) professionals believe the rise of automation and artificial intelligence is having “a serious effect on their workforce”. While 59 per cent have subsequently evolved their L&D programmes, the same percentage of employees don’t believe these challenges can be met with the current offering.

COLLABORATION AND A CONTINUOUS LEARNING CULTURE

“There is not only a mismatch between employees’ and L&D leaders’ views on the skills crisis,” says Alan Hiddleston, D2L’s director of corporate learning EMEA, “but it would seem that many organisations do not offer engaging learning opportunities that actively encourage personal development and ‘enable’ their workforce to continue to test themselves.

“To deliver effective L&D solutions, there needs to be greater collaboration among departments. Establishing a continuous learning culture is key.”

LinkedIn’s Leading with Learning report, also launched in June, presents a more positive conclusion. Some 76 per cent of L&D professionals in the United Kingdom say that more chief executives are now “actively championing the development of their workforce” since the COVID-19 outbreak – up from 28 per cent in a comparable study conducted in October.

“The coronavirus pandemic has forced many companies to pause hiring,” says Namrata Murlidhar, director at LinkedIn Learning, “and instead focus on helping their existing employees adapt to the ‘new normal’ and develop skills that will be crucial to future growth.”

So-called MOOCs (massive online course platforms) – including Mr Tattersall’s Coursera and Udemy – have stepped up. “The online learning world is now overflowing with courses on pretty much any topic from a professional or personal standpoint,” says Amanda Rosewarne, business psychologist and co-founder of the Professional Development Consortium, which accredits online courses. “Cost-effective online training is disrupting the world of education. Prior to COVID-19, it was estimated that the e-learning industry would be worth $325 billion by 2025. This is likely to have quadrupled since lockdown.”

Ms Rosewarne urges caution when selecting online courses, as many are scams, but says: “With barriers to entry being low, millions of people across the globe are beginning to share their knowledge with the world. The online learning boom shows that people are thirsty for knowledge.”

RISE OF BLENDED LEARNING FOR A LIFE-JOURNEY

Martin Raymond, co-founder of strategic foresight consultancy The Future Laboratory, argues that learning was due a shakeup. “If you could time-port a university professor from the 19th century to today they would think few things have changed,” he says, referencing the youth of students and the hierarchical system. “Prior to COVID-19, this was changing, especially for those in their 50s and 60s, millennials and members of Generation Z.

“We understand that new skills, disciples, and insights are needed to accommodate this multifaceted life-journey we are on. And since universities are still trying to accommodate the single career path, many organisations – recognising that their employees will stay with them, our research shows, for 2.3 years maximum, unless there is a wider prize to be won – are becoming educators in their own right.”

Mr Raymond celebrates the surge of blended learning – “part digital, part remote, part face-to-face” – and traces the trend for lifelong learning back to 2008, and the global financial crash, “when jobs became more precarious”.

It’s a time Lord Jim Knight, chief education and external officer at Tes Global, well remembers. “I was employment minister in the aftermath of the 2008 crash, and was part of preventing the scarring effect on young people of long-term unemployment,” the 55-year old says. “Right now, we are in a deeper economic crisis than anything in my lifetime. I hope a similar focus can help this time, but individuals also have a responsibility.”

Can organisations survive if they fail to invest in their staff? “Frankly no, not in the longer term,” continues Lord Knight. “Technological change and globalisation are redefining work and the wider economy constantly. The only answer is more individual and corporate agility – that is only possible through a deep-rooted, lifelong-learning culture.”

Hackathons, brown bag sharing sessions, and “coffee roulette” on Slack have been embraced to improve the learning culture within Tes, and break down siloes, reveals Lord Knight. “Right now people need to feel active and valued, even when isolated,” he adds. “Investing in them through learning and in making it easier to work remotely is just non-negotiable.”

It’s imperative that business leaders heed these lessons, and invest in their employees.

This article was originally published in Raconteur’s Digital Transformation report in June 2020