Future workplace trends: Are you putting your office to work?

An overwhelming 80% of companies report that their employees’ productivity was “somewhat or much higher” during the past 24 months. About 28% of leaders feel their employees are equally productive when they work from home rather than in the office. At the same time, the top stated reason (29%) for encouraging a return to the office is to increase productivity, while the following three top reasons are maximizing the return on the office investment, improving the work culture and increasing collaboration (all at 18%).

“What we are seeing is a balancing out among corporate leaders regarding how they view and measure employee productivity,” says Mark Grinis, EY Americas Real Estate, Hospitality & Construction Leader. “Most can’t point to specific evidence of decreased productivity in a remote work environment. At the same time, they are unwavering at the importance and role of the office and, accordingly, continue to invest were they think it drives productivity and the culture of the organization.”

When it comes to real estate investment, size matters. Over the past 24 months, companies with 250 to 5,000 employees showed the highest percentage (51%) of adding new office space – which averages the data from small companies (251 to 1,000 employees) at 55% increasing the amount of office space and mid-size companies (1,001 to 5,000 employees) at 47% increasing the amount of office space – while among companies of 10,000 to 25,000 employees, 38% reported scaling back on the amount of office space.

“The scale and structure of big companies lend themselves to hybrid policies, whereas smaller organizations have been more challenged to embrace hybrid work for a number of reasons, including productivity, team building and the greater interdependency that comes with being a smaller business or startup" says Grinis. “In the current climate, they have a greater need for bringing employees together in the office than large companies do.”

When describing the utilization strategy for their office space, the top answer (62%), across all respondents, was “assigned open workspaces and enclosed offices,” with hoteling (reservation-based unassigned seating) and hot-desking (reservation-less unassigned seating — first come, first served) trailing at 19% each.

The quest for quality continues, with 51% of all respondents saying they’re investing in newer, higher-quality office spaces with better technology and amenities, leaving many older office spaces behind.

Even as the office makes a comeback, don’t expect it to be hopping on Fridays.

Asked which days their employees are most likely to come into the office, Monday through Thursday showed an average response of 70% for each day, while Friday earned a 34% response rate.

Employers, however, are not quite ready to let go of Fridays entirely and move to a four-day workweek. In 2022, the index found that 21% acted upon and 19% were in the process of deploying a four-day workweek, but in 2023, the percentage of respondents who are currently deploying a four-day workweek fell to 18%. But all hope is not lost for those who dream of a three-day weekend, as 24% of respondents are still considering adopting a four-day workweek.

Overall, there is an opportunity for employers and employees alike to more fully engage in the hybrid work approach, embracing the advantages of a weekly routine that blends different types of days. Those spent in the office may mean a chance to dress professionally, plan for a commute and lunch with a coworker, and enjoy direct and collaborative interaction with leaders and colleagues; remote workdays can offer focused time to accomplish lengthy tasks in relative quiet.

“This shift toward a more flexible workweek implies that we may be reaching a hybrid equilibrium, where the sharp lines between remote and office work are blurring,” says Grinis. “This is a positive development for both employers and employees, as they fully understand the place and value of both ways of working.”

After three years of investing in hybrid work models — and gaining confidence in the results — corporate attention is turning back to purposeful use of its office spaces.

Overall, 51% of EY Future Workplace Index respondents noted they are currently investing in newer, high-tech office space with enhanced amenities; 63% said they are investing in more digital and virtual collaboration resources; and 65% of respondents are, or are considering, creating a work environment that allows for predictable flexibility in work schedules to further support work-life balance.

The trend toward a well-balanced hybrid work model has been led primarily by the employee workforce, but companies are now overcoming inherent organizational challenges with updated policies, more effective use of technology and space resources, and clarified expectations around productivity.

“We’ve determined that physical office space is essential to effective collaboration, creativity and growth, which alleviates some of the previous risk and trepidation associated with investment,” says Acoba. “Now, it’s about striking the right balance between investing in physical office space and workplace technology innovation, with the end goal of optimizing the performance of the workforce in a hybrid model.”