How workforce segmentation connects workplace supply and demand

The COVID-19 pandemic has shifted perspectives across the globe from science, to mental health and well-being, to the value of corporate culture and connectivity, to how employers empathize and value their employees. The pandemic has also revealed that a greater level of job flexibility is sustainable and desirable for many, meaning that workplace strategies will account for a spectrum of work locations and arrangements moving forward. With this added complexity, conducting a workforce segmentation analysis is a key first step toward a more defined plan for real estate needs.

In the EY Work Reimagined Employer Survey 2021, 77% of surveyed employers expect to make changes to their workplace real estate strategy, including reducing real estate footprint or aligning the workplace with the needs of the shifting workforce. During the pandemic, many employees were able to remain productive remotely; 79% of employers anticipate there will be moderate to extensive change in remote/hybrid work. As a result, many employers have experienced a greater demand for increased levels of job flexibility, with 79% of employers agreeing that their company is actively promoting hybrid work to retain and attract talent.  However, a one-size-fits-all approach to employee needs will neither support the workforce nor allow accurate real estate demand forecasting.