Priorities and challenges in the world of work: Survey
A survey by real estate company, JLL, explores the world of work by assessing the key priorities, challenges and strategies that are top of mind for over 2,300 business and corporate real estate (CRE) decision makers.
The biennial global survey, called Future of Work, revealed that two-thirds, or 65 per cent, are expecting their CRE budgets to increase between now and 2030.
Over the next five years, business leaders are mainly focused on three corporate goals. These include growing revenue through expansion and M&A at 57 per cent, attracting and retaining talent at 53 per cent and achieving organizational efficiency at 54 per cent.
Since 2022, strong momentum toward office-based work has created expectations among 62 per cent of respondents to increase the use of office space, with more than half of leaders planning to grow their total footprint over the next five years.
In present day, 44 per cent of organizations would like to see staff in the office five days a week in comparison to 2022, when only 34 per cent of employees were working in the office full time. A total of 85 per cent of organizations have a policy of at least three days of office attendance per week, and 43 per cent expect the number of in-office days to increase by 2030.
The report noted that globally, hybrid work is more likely to take place at large organizations in Europe, the Middle East and Africa (EMEA). Office advocates, who like to see staff in the office on a daily basis, alternatively tend to be small-to-medium sized companies in Asia-Pacific (APAC) or the Americas, across sectors such as healthcare, retail and manufacturing.
Office advocates in present day, however, also make an effort to address diverse workplace needs and are more focused on making accessible workplaces tailored to meet the needs of different generations, cultures, and neurodiversity specificities. The report noted that they may even pay a premium to occupy buildings with leading health and wellbeing credentials.
More than a third or 39 per cent of respondents said they could envision introducing different pay and benefits to employees who attend the office on a regular basis.
“The future of work looks different across companies and regions, reflecting the unique nature of organizations and employee needs. It keeps shifting and requires building evolutionary office programs and spaces, able to adapt to continuous changes in the workstyles,” said Cynthia Kantor, CEO, project & development services, JLL. “Globally, as CRE budgets and footprints receive new investment, the corporate real estate function must effectively partner with the C-suite to demonstrate the desired value.”
Globally, 41 per cent of business leaders believe CRE can add the most value by supporting business growth, while 38 per cent believe it can enable organizational efficiency and 37 per cent say it can reduce operating costs. Organizations in the Americas are more likely to expect CRE to support business growth, innovation and efficiency, while companies in Asia-Pacific put more of a focus on digitization.
A total of 41 per cent believe CRE is perceived as a “cost center” as opposed to a value driver and 46 per cent of CRE leaders say influencing and leadership will be critical skills in the future.
CRE leaders also believe that 70 per cent of their activities will be at least partially supported through the use of artificial intelligence (AI) by 2030, and a quarter of the CRE function could be initially completed through automation. Almost two-thirds or 62 per cent of decision makers see technology and AI adoption as critical for enhancing the value that CRE delivers in the future.
“Since our 2022 survey, the CRE landscape has become increasingly complex and dynamic, evolving toward better office use. We see that in these results, and in our conversations with clients,” said Neil Murray, global CEO, work dynamics, JLL. “Looking ahead, business and CRE leaders working to drive talent and efficiency throughout their organization must consider the unique needs of their organization, and leverage tools such as tech, AI, and upskilling, as well as strategic partnerships across the value chain to enable the CRE function to reach its full potential as a powerful agent of transformation.”
This year’s findings are unveiled through various articles that explore key areas of focus for corporate real estate teams: Managing the implications of shifting work patterns; Partnering with the C-suite to support CRE investment; Identifying CRE activities for ‘AI copiloting’; Moving from ambition to action on sustainability commitments; and Defining the future-fit CRE function.