Covid 19 had upended work patterns as we knew it; The worldwide work from the home experiment was an abrupt, coerced, least damaging path for continuity and survival. Some called it a “forced experience”.
Initially thrilled at the prospect of “working from home” the newness soon wore off and the monotony set in. The boundaries of work and personal space were blurred in some cases. After months of staying away from the office, the companies and employees are now looking at returning to the office as India is getting inoculated against the virus.
There is consensus among corporate occupiers that Office isn’t Obsolete. Offices persist as a vital component of the company ethos. Pre Covid, offices were regarded as a place where you go to “get work done”; however, it had never been just about work. Post-Covid, offices may be repositioned as ‘space ecosystem’ for connecting at a very human level; face to face interactions which enables ideating, brainstorming, collaboration, cultural bonding and social energising.
Remote working has impacted the “human connection” and weakened the inherent empathy which is essential for organizations that rely on innovation and collaboration for value creation. These interactions are also essential in nurturing organizational culture and in fostering learning. Most new employees learn the ropes by observing their colleagues at work; the new employees miss out on this natural learning process thereby losing out on critical insights about work and company culture in a remote work environment. For many organizations innovative, new ideas and complex problem solving are sometimes triggered by informal conversations on the work floor across teams/ functions. According to CBRE’s future of office survey, even with increased adoption of hybrid work, most companies expect employees to work in the office at least an equal mix of the time. The survey records that in APAC, the biggest shift in sentiment seems to be around employees who now opt for working remotely one or two days per week. Most companies are expected to spend most of their workweek in the office.
While organizations gear up for a return to the office for the vaccinated workforce it is important to be mindful of certain factors/challenges:
- Safety and preparedness take a centre stage; it is essential to give employees the confidence about a safe work environment that meets the post-Covid guidelines. This is all the more relevant in light of the uncertain behaviour of the virus and disparate levels of vaccinated people across cities.
- Social Energizing of Workspaces; The newly formed work habits of hybrid working / flexible work patterns of key talent are key factors for organizations in formulating talent retention strategies. The new workplace should be designed to cater to the evolving models of working; while it continues to be a place that attracts and retains talent, it has to fulfil its role as a place that encourages human connections and brings forth collective energy.
- Formulate workplace policies based on nature of work;
- Customise protocols aligned to the nature of work which has a direct impact on production and productivity
- Enable Flexibility in terms of time and place of work – autonomy is a huge contributor to job satisfaction
- Adopt technology as an enabler to close the gap between people working from the office and people working remotely
As we all go back to the office, the new ways of work will continue to evolve as the virus is managed, subdued and controlled. It is evident that a hybrid workplace is emerging – the convenience of new and the benefits of old is what firms are trying to balance for talent retention. What we need to note here is that the expected cut back in time spent in the office need not necessarily translate into big cuts in the amount of space leased.
This trend is evolving and taking shape as organizations are firming up their return to office policies and will settle and mature into a robust model in the next 2 – 3 years. What has also emerged is that the hybrid work model has enabled corporates to tap hitherto unexplored talent catchments across India. This would eventually enable firms to diversify geographically within India for growth.
Office leasing in India had been at a peak before the pandemic hit; while the demand levels dropped the overall pattern remained with tech firms leading the space take-up. There is a positive shift in the horizon as more occupiers look ahead and continue to lease office space. Larger occupiers, especially the Big tech firms have stayed true to their long term real estate strategies involving consolidation and expansion and utilised the fluidity in the market to secure quality office / commercial assets. CBRE’s Future of Work report states that, in APAC, 50% of the occupiers expect their office portfolios to increase in the long term. Some of the existing occupiers are seeking larger footprints to create a welcoming workspace for their employees; with emphasis on collaboration / social areas, break out and activity zones. Quality office spaces that place emphasis on health and wellness and provide a safe environment for human connection and collaboration will always be sought after.
For India, the long-term outlook continues to be strong. India’s demographic dividend is expected to peak around 2041 and retains a strong advantage when it comes to quality talent and cost arbitrage. The capital growth of our economy will continue. The recent deployment of investment by large funds in India and across the world indicates that while the asset class behaviour may have been impacted, the interest has grown for well-managed grade A assets.