WORKPLACE STRATEGY FOR WORKPLACES THAT WORK WORKPLACE ELEVATED

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1 WORKPLACE STRATEGY FOR WORKPLACES THAT WORK WORKPLACE ELEVATED

2 Workplace Elevated Uniting people and place to drive performance. 70+% of employees are not engaged at work $450 billion unmotivated workers annual economic impact 15+ additional sick days per year taken by unhappy employees The State of Workplace The statistics noted above are a reflection of the concerning reality of many of today s office environments. Workplace Elevated (WE) can positively impact this picture: creating workplaces that truly work by enhancing employee choice, engagement, performance and wellbeing. These objectives are increasingly important as employers strive to attract + retain top talent and innovate, while simultaneously optimize real estate efficiencies, maximize capital investment, and reduce long-term costs. worked, in productivity, and in team engagement. Focused attention on optimizing work effectiveness, maximizing access to daylight and views, reducing distractions, modulating temperature, and eliminating environmental toxins to create a high-performance, comfortable environment not only leads to increased productivity and performance but also reduced absenteeism all of which positively impact the bottom line. WE is a strategy program built on stakeholder engagement and research, backed by industry benchmarks and data. Measurable Proof of Success In today s data-driven world, value is placed on measurable proof of success. Workplace Elevated focuses first on defining what the metrics of success will be for each project, which could include: increased collaboration, decreased turnover, limited attrition with a move, decreased sick days, or increased engagement or productivity. Next, we work through a traditional design process with an overlay of WE tools and services that help us track toward and measure that goal. In the long-run, each WE project is influenced by a body of evidence-based design, and becomes part of that body of evidence. By participating in WE, our clients play an integral role in building The Workplace of the Future. Linking Operation & Human Resource Costs When people costs are 200 times design and construction costs, the key to long-term return on investment is design centered on people. At Lutz & Company, occupant wellbeing is a top priority; material selection, light penetration, and acoustic decisions were made with employee comfort in mind. In their new DLR Group designed workplace, Lutz Managers report an increase in the number of hours Designing to Support Behavior As the rise of choice-based workplaces continues, we are drawn to design in ways that support behavior. Technology giants like Google recognize that if a workplace supports certain desired behaviors, the desired outcomes will follow. At a Call Center for a Fortune 500 company, socialization is a key behavior that combats traditionally high-stress positions, increasing customer satisfaction. At a global technology firm, hands-on tinkering is a behavior that encourages innovative new ideas that can be brought to market faster. Workplace Elevated services can help to determine what behaviors most support each of our clients business and cultural goals and to design accordingly.

3 Intelligence Spotlight Priorities in the Workplace Generational Values Both employees with 12+ years experience and those with 1-3 years experience prioritize Transparency, Flexibility/Agility, and Creativity in their workplaces. Challenge is Good Employees of all experience levels would rather feel Challenged, Productive, and Trusted after a day s work than content, relaxed, and comfortable. Image Matters When making a decision about whether to work at a company, physical work environment ranks in the top three factors that younger employees (1-3 years experience) consider. Avoiding the Office Younger employees avoid the office for lifestyle benefits, while experienced employees avoid the office to avoid distractions. Strategic design can help draw employees back into the office. Green for Wellbeing Both employees with 12+ years experience and those with 1-3 years experience prioritize Daylight, Access to outside views, and Clean/ fresh air as essential to health and wellbeing. Desks as Dinosaur? Less than half of respondents report the desk as the place where they do their best work. However, individual workspace is the most essential factor for job satisfaction related to the physical work environment. DLR Group s Workplace research arm recently surveyed 500 young professionals (aged 25-40) working across the nation to learn about their priorities for the Workplace of the Future. Some key findings dispel commonly held notions about the workforce generation gap, while others confirm common perceptions.

4 Change Management Communication Graphics orient employees around the project timeline, move strategies, and new workstyles, amenities, furniture, technology, community context and commute logistics that they will encounter. Tools and services that complement a traditional design path Together, the interrelated services of Workplace Elevated provide our clients with a full suite of strategic tools. Programming and Test Fit Dashboards provide quantitative project data at a glance. Change Management recognizes that every project involves a degree of change. Projects with effective Change Management programs see 6 times increased likelihoods of meeting their objectives. Our scalable approach educates, engages and prepares your staff for their transition into the new work environment with the goal of improving new behavior adoption rates and reducing attrition. We focus on four key elements of change: defining the why, creating desire, identifying and addressing resistance points, and deploying proactive,

5 Workplace Elevated services are centered around providing actionable intelligence that influences design solutions. consistent messaging over the life of a project. Communication is paramount and our customized Change Communication Plan is developed at project initiation to clarify the roles and responsibilities of the change team, identify key measures of success, and define engagement opportunities along with related messaging tools. The plan is scalable relative to client resources: messaging can be designed and distributed by the client s internal team or by our project design team. DLR Group is proud to have several Prosci Certified Change Managers on staff. Culture Analysis is an integral part of the planning process, providing a view into how your employees feel about your corporate culture now and in the future, and the ways in which it is visible and exemplified in the workplace. Whether refreshing existing space or moving to a new building, CRE projects provide the opportunity to deliver a physical environment that embodies our client s cultural aspirations. Our Culture Analysis tools, including Futurecasting and the Cultural Continuum, define cultural differentiators and opportunities for cultural change in categories including Collaboration, Activation, Comfort, Flexibility, Spatial Branding, and Technology. Pre and Post Occupancy Surveys use our robust surveying platform to give employees a voice and provide actionable results to the executive and design team. Pre-Occupancy results help the design team to understand how space is currently used, what spaces would be valuable to add, how the space can be designed to optimize performance, and what spatial qualities should be prioritized. It is also an opportunity to gauge aesthetic preferences. Involvement in Pre-Occupancy surveying helps to invest employees in the changes that will occur, generating a sense of pride and positive anticipation. Post-Occupancy results provide insight into measurable changes in employee satisfaction and performance, and identifies opportunities for continued improvement. Pilot Studies allow employees to test new ways of working by implementing a test model area, or pilot, of a design concept, which is worked in for a specified period of time by a strategically chosen subgroup of employees. Feedback from this test period is integrated into later design iterations. Pilot studies are especially helpful when converting a large number of employees to a radically new work environment. Benchmarking allows our clients to understand how they align with their peers industry standard models, and where and why they are distinct. Our robust database holds statistics on over 4.8 million SF of space across seven industry types. The dataset is living: as we continue to capture information with every project we complete, its value grows. Full Workplace Elevated Services Findings Reports provide both detailed analytics, and top-level recommendations and findings in executive summaries. Benchmarking Change Management Culture Analysis Design Guidelines + Standards Energy Optimization Environment Measurement Facility / Portfolio Assessment Pilot Studies Pre + Post Occupancy Surveys Programming + Needs Assessment

6 What does a Workplace that Works look like? Unifying Cultures through Change When this creative design firm decided to consolidate two locations - Pasadena and Santa Monica - to a new downtown Los Angeles office, they wanted to leverage the move as an opportunity to change their culture and work style. The design celebrates identity as a central theme: the identity of Los Angeles as a City, the company and its progressive place in the design industry, and the individuals who make up the eclectic group. To promote spatial equity, the office flips traditional hierarchy of workplace design inside out. Hardwall spaces are clustered around the core, leaving the perimeter to desking and the coveted corners to shared spaces that cultivate escape and engagement. These shared spaces include the The Bru café, featuring locally sourced materials, the Study for quiet focused work, the Wellness Pod for a biophilic escape, and the FabLab, serving as a Hacker and Maker space for experimental application. In support of the diverse types of people working here, and in order to create an activity based workspace, the office is the company s first to formally organize around freedom of choice for nomadic workers. Workplace Identities including Global Nomads, Local Nomads, Host Residents, and Nested Residents span the spectrum of desking, storage, and specialized equipment needs. To ensure adoption, staff self-selected a work identity through a survey, with 40% identifying as Nomads. Touchdown desks, focus rooms, telephone booths, and the corner social / alternative work spaces give these Nomads

7 I feel autonomous and empowered, and more connected. The office enhances our relationships and raises the trust level. 84% of employees report increased team collaboration 65% of employees are more productive in the new office Would you recommend this company? 0 POSTOCCUPANCY NPS: +28 PREOCCUPANCY NPS: +15 Would you recommend this physical work environment? 0 PREOCCUPANCY NPS: -54 POSTOCCUPANCY NPS: +39 freedom of choice in where they do their best work when they are in the office. The single private office is designed with secure storage to enable use as a small group meeting space while the executive is traveling. The office is targeting WELL certification, an innovative Sustainable Design metric focused on sustainable measures that positively impact occupant s wellbeing. Positively Correlating Satisfaction with the Workplace with Overall Company Loyalty Pre and Post-Occupancy surveys - segmentable by generation, work identity, department, and tenure - provided valuable insights. One key finding is that high levels of satisfaction in the new work environment influenced a measurable uptick in loyalty to the company overall, compared to pre-occupancy levels. (charts above) Ongoing Intelligence Other survey results indicate that while 83% of employees acknowledge they have more choice over where to work depending on task, only 40% report taking advantage of that choice. This proves the value of an ongoing Change Management program. Comments to targeted survey questions provide feedback directly from employees that can be used to increase adoption of the new work model.

8 DLR Group is a global integrated design firm providing architecture, interior design, planning, engineering, and optimization services. We are 100% employee owned, creating a culture of entrepreneurship where our 1,000+ employee owners are truly invested in every project s success. Austin Charlotte Chicago Cleveland Colorado Springs Dallas Denver Des Moines Honolulu Houston Kansas City Las Vegas Lincoln Los Angeles Minneapolis New York Orlando Omaha Phoenix Portland Riverside Sacramento San Francisco Seattle Tucson Washington DC Dubai Nairobi Shanghai dlrgroup.com facebook.com/dlrgroup twitter.com/dlrgroup workplace@dlrgroup.com