A Knowledge Leader Publication.

The Changing Work Environment Why today’s real estate choices will affect your future business.

The next evolution of the workplace is underway. The office now plays a vital role in a company’s ability to attract and retain talent, breed innovation and do more with less.

Accelerating success.

Pictured: Colliers International, Vancouver

Talent Attraction & RetentionGen Y: Get Ready, They’re HereGen Y, Millennials, Echo Boomers – no matter what you call them, most agree that they are a force to be reckoned with. In less than a decade, they will make up nearly half of Canada’s workforce and are already driving a major shift in ideas as to how and where we work.

Gen Y (most commonly referred to those born between 1981 and 2000) represent the future of our workforce. With a preference for flexible hours, and a need for work-life balance, Gen Y can sometimes be perceived as lazy, unprofessional and having a sense of entitlement. However, reality has shown they are dedicated and hard-working, with the majority of them growing up using technology and willing to work anytime and anywhere.

In a recent survey conducted by Odgers Berndtson, only 41 percent of global executives said they are prepared for the cultural changes that will take place as these generations replace current leaders. However, the majority of the respondents agreed that their organizations are willing to make the necessary changes in order to attract the best talent.1

Since 2011, Canada has seen more employees leaving the workforce than entering it,2 which takes the “war for talent” to a whole new level. Understanding what motivates Gen Y, and putting the framework in place to deliver on it, will give companies a considerable edge over their competition.

In terms of the workplace, Gen Y has different needs than previous generations:

> Central location Gen Y choose where they want to live, and then,

where they want to work. Often choosing not to own a vehicle, easily-accessible locations are paramount to this generation.

Over the last few years, several companies have relocated to more central areas near transit hubs, including Telus, Coca-Cola, and Google, all opening additional offices or relocating their suburban offices to Downtown Toronto.

> Flexibility Gen Y value the independence and flexibility of

working where and when they choose, both in and out of the office.

> Connectivity Gen Y have grown up with a constant connec-

tion to others through social media and other outlets. They value a workplace that enables open collaboration and social interaction.

Currently, many managers are trying to keep up with the workforce changes. With Baby Boomers, Gen X and Gen Y all in the workplace at the same time, and all with very different needs and expectations, the rate of change has been somewhat tempered by this clash of cultures. Considering Gen Y are already here, planning now for the future is critical.

Take Action: Profile your employees to understand generational composition. Employee surveys are a great tool to gather insight on wants and needs.

GENERATIONS IN THE

WORKFORCE2

Gen Y29%

Gen X32%

BB39%

2013

A KNOWLEDGE LEADER PUBLICATIONSPARK | FACING CHANGE - GEN Y WORKPLACE STRATEGIES

Traditionally, employees were restricted to a physical office, but today, the office can be accessed through the palm of your hands. This paradigm shift is ongoing and change is inevitable for companies to stay competitive. In the next decade, savvy business leaders will be focused on three connected factors driving change in the workplace:

> Talent Attraction and Retention > Productivity: Innovation Through Collaboration > Technology: Doing More With Less

Changing Workplace

Baby Boomers: 1946 - 1965Generation X: 1966 - 1980Generation Y: 1981 - 2000

Gen Y48%

Gen X32%

BB20%

2020 (est.)

CULTURE CLASH3

Live to work.

Work to live.

BABY BOOMERS

GEN X

Live, then work.

GEN Y

Colliers projects that by 2018, square feet per employee bench-marks will fall as low as 145 square feet, compared to today’s average of 172 square feet per person. Despite a decrease in individual space requirements, the need for additional meeting rooms and common areas has kept the total amount of space required from plummeting.

Take Action: Technology enables mobility, mobility enables shared workspaces, and shared spaces result in a decrease in square footage per employee. Evaluate how current office space is being used to ensure maximum efficiency.

Final Thoughts Business leaders today have a lot to consider when planning the future of their workplaces – how can they leverage real estate to act as a tool not only to attract and retain talent, but also as a means of boosting productivity and containing costs?

Individually, people, productivity, and technology are not driving change, but collectively, they have created a perfect storm. Real estate has gone beyond just bricks and mortar, and companies that are prepared to take action now will have the potential to accelerate their success.

1. Odgers Berndtson: “After the Baby Boomers - The Next Generation of Leadership,” 20122. Stats Canada, May 20113. Bill Haas, Haas Performance Consultants LLC, AAPEX Expo, 2012 4. WORKshift Canada: “The Bottom Line on Telework,” 2011, David Craig, Director, DEGW quoted.5. Colliers International Research

A KNOWLEDGE LEADER PUBLICATIONSPARK | THE CHANGING WORK ENVIRONMENT

ProductivityInnovation Through CollaborationIn the past, maximizing profits depended on the implementation of ‘systems’ and ‘stream-lined’ processes that got things done better, faster, and cheaper. Only recently have those ideas started to change. Employers have begun to realize that happy, healthy and stimulated employees and an improved office culture directly affect productivity, frequently

leading to more innovation and ultimately to business growth.

Successful companies are now viewing real estate as more than just office space, realizing that having dynamic office space creates a competitive advantage. High-tech firms are making headlines with trendy workspaces that include mini-golf courses and video games scattered throughout the office. However, behind the fun and games, there are very sophisticated design principles at work to ensure that these offices not only support collaboration and creativity, but breed it. Research has shown that “the average worker only sits at their desk around 35 percent of the time,”4

leading to more emphasis being placed on communal areas including lounges, kitchens, brainstorming spots and even spaces designed to simply allow for casual interactions.

Take Action: Review departments and functions to determine which would benefit from specific workspaces to increase team collaboration, casual meetings, and multi-media conferencing. TechnologyDoing More With LessTelecommuting (or teleworking) is a trend on the rise and although it doesn’t work for all companies, certain industries are benefitting from a large boost in productivity and reduced costs. In addition to the flexibility it offers employees, there are increased cost savings to the employer as well.

Advances in technology have allowed us to not only access files and documents from outside the four walls of the office, but to have face-to-face meetings on a national or international basis with virtual meeting software or even apps on your smart phone. While nothing will ever replace the in-person feel, the cost and time savings in using this technology are unquestionable.

In cases where employees work both remotely and on-site, hoteling stations can be arranged to make better use of a company’s floor plan, resulting in a smaller footprint per person in the office and allowing additional costs to be allocated to common area space.

SqUARE FEET PER EMPLOYEE5

In Canada, the average square feet per employee could fall as low as 145 square feet by 2018.

255 215 185 172 145

2000 2005 2010 2013 2018

35%

Employees only spend about 35 percent of their time at their desks, making areas for collaborative work even more important.4

For more market trends and statistics, please visit: collierscanada.com/research

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Commercial real estate market insight is the essential ingredient in all of the services Colliers International offers.

Our market intelligence is derived from careful examination of market data and trends and framed in a context that help you make critical decisions for your business’s future. For more commercial real estate market information, please visit: www.collierscanada.com/research

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