Peacocks on the ascent

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Pre-pandemic, an office was just a place designed to fit as many people into the floor space as possible. Now, with the hybrid work model, things have changed dramatically. You might not need fabricated desks for every employee. That means some companies don't have to invest in large office spaces.

However, because the style of work has changed, something interesting is happening. Businesses are looking at what high-end hotels have been doing and taking cues. The clearly demarcated lines between customer-facing luxurious spaces separated from the working employee spaces are being blurred. The trend has taken on a rather unique name - office peacocking.

Back to office conundrum

Post-pandemic, companies grappled with what the working situation will become. Is it time for people to return to their daily office routines? Should everyone continue to work from home? Is the hybrid working model here to stay? Will it evolve? There were plenty of variables and unknowns.

A CISCO study from last December showed that 96% of Indian companies mandated full or partial return to the office, and 76% of employees responded positively to that mandate. One thing was certain - it wasn't going to be exactly like before.

One way to tackle this issue was to make the office an experiential stay, not a business-as-usual experience. Companies realised that if they wanted to bring people back to the office, hire and retain new talent, and build a culture, formality needed to go out the window. Embrace the colours of the peacock, it seemed.

Titir Dey of the workplace design firm Space Matrix said remote working has prompted companies to reevaluate their office spaces to encourage employees to return to the office. Talking about hiring and retaining talent, millennials are probably the hardest to please. A Clutch Future of Work Survey stated that 58% of millennials value aesthetically designed workspaces.

High-end hospitality design blends with office space design. At HP India's Gurgaon office, there's a space that can be adapted for customer visits and employees to collaborate. It's all about making use of a space and the value it adds.

Another example is Spotify's office in New York. The floor with the legal department is quite formal. Step into the artistic management space and things are remarkedly different, with guitars, autographs, and art. It's a way to let employees create and feel the culture they represent.

Valued investments

Office peacocking has resulted in a remarkable 25-30% growth in investments in office aesthetics and interior design over the past 2-3 years. Leading the way are Bengaluru, Mumbai, Delhi NCR, and Hyderabad, thanks to many multinational corporations and startups.

Some estimates say companies allocate 5-10% of their office budget for 'Office Peacocking'. This obviously fluctuates depending on the company's size. But where is the money going? Here are a few common examples:

• New and unique spaces inside the office where employees can relax. Perhaps even a dedicated space with games for folks to unwind.
• Interior design aesthetics and a new design language are other important components. That means wooden flooring, luxurious rugs and sofas, artwork, and decorative lighting.
• In terms of real estate, companies are adopting the campus model. They’re looking at investing in offices that employees can access easily. For example, offices with residential options.

Bright future

This phenomenon is driven by the fact that companies and management have seen the importance of "making culture count". They've realised employees need to be expressive, like a peacock, leading to better collaboration and ideas. Investing in a space that fosters that has become paramount, especially in the creative field.

In some ways, the pandemic was a boon to employees. It challenged companies on the traditional office space and work culture under the weight of formality and toxic hierarchy. While the office peacocking trend alone won't change everything, it's now an important part of the puzzle in the broader commercial real estate landscape.