Decoding workplace policy announcements...

Over the past year there have been a very diverse set of public announcements made by companies around the world, regarding future workplace policies. We have seen numerous companies wax and wane with their plans, as they wrestle with the pandemic induced workplace (r)evolution. We have also seen passionate debates, with those who are either violently pro-office or equally pro-remote latching onto headlines to serve their narrative. 

As an office leasing broker, someone who is meant to bring various parties together, I see it as my responsibility to get to the bottom of this ever-evolving but essential subject. While seeking the truth is instinctive for me, it’s been made easier by some of my largest clients asking me the question, “but what does it all mean, Basil???” 

Accordingly, I’ve done some research and some self-assessment of these very nuanced announcements that I thought I’d make available publicly (both for consumption & commentary as we need to support each other in seeking the REAL answers and not get so caught up in the headlines/our preferred narratives!). 

So, what does it all mean? I’ll dissect how I interpret each workplace policy below (here's a link to the list I used as a reference), as well as reiterating some of my thoughts on how I think these announcements could impact demand for office space. For a visual, read the the finish line of this article, it's waiting for you!

*Before diving in, it goes without saying that we don’t really need to study what it means to be a conventionally “Office First” company as we’ve been doing that for SOME TIME! I presume many of you have seen the various proclamations from the various “traditionalists” of the corporate world, but just in case you haven’t here are a few soundbites:  

“We want people back to work, and my view is that sometime in September, October, it will look just like it did before. And everyone is going to be happy with it, and yes, the commute, you know people don’t like commuting, but so what...”  

Or when asked about any blowback, this…

“the wife of some guy sent me a nasty note about…how can you make him go back?”

(there’s A LOT that’s wrong with this statement and I have MUCH to say on it but as I’m not an authority on subjects that cut this deep, I’ll leave it to the experts in this area – hopefully some will show up in the comments section of this article!) 

WeWork’s CEO also had some thoughts to share with the Wallstreet Journal when referring to those employees who stand to be most ‘engaged’:

“They’re the ones who want to come back to the office. Those who are least engaged are very comfortable working from home.”

The backfire from this statement has been SIGNIFICANT to say the least! Go check out what a few astute authorities on the subject, Giverny Harman & Kyle Brykman had to say in response.

Suffice to say, I AGREE! But at least he apologized, unlike numerous other leaders.

But as Dror Poleg so eloquently (and cheekily!) pointed out in his recent article ‘Raiders of the lost Bank’:

“Mr. Dimon is facing a technological threat that can, ultimately, dispatch him at the flick of a finger. But he doesn’t realize it.” 

Dror’s entire article is GOLD so go check it out! 

But wait, there’s more…

The Boston Globe put out a piece indicating that they don’t think hybrid working will stick. 

My colleague, Donna Nelham had some alternative thoughts to share, check them out (I concur). I also made a post last week where I had some fun with a comparison to the movie Spanglish that I think bares some relevance (I am ready for the experts to swarm with criticism ??).

Now let’s jump in… 

Fully Remote 

This one is self-evident. These companies have either said goodbye or are saying goodbye to their dedicated offices. Some are/will become FULLY distributed, while others will democratize the use of flex office spaces for employees who either want/need some form of space outside of their homes. These companies are currently their own rare breed, but I think it goes without saying that as the world of work evolves, we’ll continue to see more and more of these companies succeed. 

I can say anecdotally that some companies I was in talks with pre-pandemic about office space have since told me that they plan to become Fully Remote. While I don’t think (at least in the short term) these companies will make any significant impact on demand for office space, they will clearly have some…my colleague Pontus Kilhman used a great boat analogy in my recent article, 'What is the cure to the workplace pandemic?', go check it out for more on how small sailboats and yachts can still potentially make some BIG waves!

Remote First 

Companies in this category will do exactly what their tagline says…their operations will be Remote First, Office Second. For those in this category that have substantial ‘traditional’ office holdings, it’s fair to say that many/most will substantially downsize. Insurance firm, Nationwide is a prime example, having recently announced that they will go from 20 offices down to just 4. As some of the firms in this category have significant real estate holdings, I think this is a camp that could have a material impact on the office market over the next 5 years or so.

Hybrid 

In simple terms, this group is focused on fostering sustainable/inclusive workplace policies for staff to split their time between the corporate HQ and home (hopefully as time goes on it won’t be so binary and such policies will reflect a true Work From Anywhere approach). They are looking to double down on integrating the physical and digital realms, with best in class emerging technologies (check out Fastoffice) coupled with flexible, employee led workplace policies. 

Google recently invited the press to tour their newest iterations of this model – it’s quite interesting, have a look. What’s interesting about the hybrid crew (+ Optional & Partial which I detail below) is that many of these companies are on hockey stick growth trajectories so they likely won’t be found shedding as much office space as the Remote First group. 

The question will become however, will they absorb office space at the same clip that they did before? Who knows…but by way of example, Caleb Parker recently had Michele Schneider of Salesforce on the #Workbold podcast and she referenced the fact that 65% of their employees will have a hybrid schedule and 20+% will be fully remote. 

*I’m glad that I waited until today to post this article as it’s given me the opportunity to add a last minute addition from my friend across the pond, Tushar Agarwal who put out an OUTSTANDING video this morning detailing why we should all be paying attention to Google’s hybrid working strategies. Tushar is a bo$$, check out this video and continue following him as he regularly drops fire on the Future of Work!

Optional 

These companies are adopting/enhancing VERY flexible workplace policies with the intention of providing the maximum amount of autonomy to each individual employee (subject to any job function requirements). What excites me about this group (and the Partial group which comes next) is that they are co-creating their future workplace policies with their employees, more than any other category (that I’m aware of other than perhaps the Google's of the world - please correct me if I’m wrong).  

Given that many of them come from the tech sector they will also be very data driven and agile in their approach, always seeking to create the most human-centric future for their people. Salesforce is the leader from this camp in my humble opinion, embodied by their new mission statement:

“We’ll put Who, What, and Why before Where work happens, whether that be in an office, at a customer site, or in a cafe.”  

They are “open sourcing” their strategies for anyone to check out too!   

Partial 

This group looks a lot like the Optional group (arguably there isn’t much difference between the two…); but one thing they’ve been very clear about is their willingness to offer permanent remote working to employees whose job function doesn’t require them to be in the office. 

The strength of the word ‘permanent’ may be the differentiator. The leader in this camp is Twitter and if you want to hear more directly from the source, check out this post I made that came directly from a conversation with fearless leader, Tracy Hawkins. As time goes on, we could be more likely to see downsizing from this group, following public announcements from companies like HSBC already.  

C’est fini! 

So, there you have it…! That’s my take on the nuances of the different public announcements made to date. It’s exciting to see so many companies really taking in what’s been happening and adopting new policies/advancing existing ones because of this (r)evolution. 

To me, the only wrong answer is looking in the rear-view mirror… 

You? 

Dave Cairns

*This article reflects my own ideas and does not necessarily represent the positions, strategies, or opinions of any current or past employer.

P.S. While some have made it (very) clear that they are fatigued by the topic of Zoom Fatigue, I personally think it still deserves attention as it speaks to a larger systemic issue inside of many organizations (it’s especially relevant to me as we now all stand to face in-person fatigue once more!). Check out this post and this one too for some of my thoughts and how I tackle it.

P.P.S. Hybrid is tough as being fully remote or fully in-office is the same for all. Check out this Bloomberg article from today (featuring Leesman data) on some of the challenges flexibility stands to create in a hybrid world. My two cents...'blue flame' thinking companies (both big and small) will solve for it standing on their head and like my friend Pontus said in my article, we need to watch what the smaller ships do as they are more nimble!