Winning the Great Renegotiation

By Michael Long and Jack Noonan

/ EdgeProp Singapore |

November 25, 2022 10:30 AM SGT

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SINGAPORE (EDGEPROP) - By choice or not, we are in the thick of renegotiating the workplace well-being aspect of the broader social contract. Better-positioned organisations are more likely to win in this unprecedented renegotiation. A sustainable win must be rooted in the triple bottom line — people, planet and profit.

As part of the ramifications from the pandemic years, the function of the workplace has been turned on its head as remote and hybrid work are now the norm rather than the exception. The Great Resignation and Quiet Quitting are realities. Many organisations combatting these workforce-related battles are taking a holistic approach to reinvent strategies that optimise work, workplace and workforce.

The workplace is no longer viewed as a cost centre, but a vehicle to boost employees’ health, happiness and productivity. Might it be fair to say that we have reached a tipping point where business as usual does not translate into the same set-up operationally? Employees are pushing back on pre-pandemic workplace norms, where Monday blues, workplace stress and burnout often follow in cyclical rotation in between jobs. They are putting their health and well-being first, and employers are taking notice.

The workplace is no longer viewed as a cost centre, but a vehicle to boost employees’ health, happiness and productivity (Photo: Samuel Isaac Chua/EdgeProp Singapore)

For employers, there is a bigger conversation to be held around how to make the office relevant, collaborative and progressive. Instead of scaling back on their physical footprint to lower overhead costs such as office rental and maintenance fees, companies should redirect their focus onto workplace innovation and putting a sense of place back in the workplace.

In Singapore, we observe the rebound in demand for office spaces, with rents recovering to the pre-pandemic peak. All signs currently point towards the importance of expanding the role of a workplace and not presuming its demise. This momentum is set to continue as pandemic restrictions lift and the Government looks to redevelop Singapore’s CBD district, which affirms the integral role of physical offices in many companies’ workplace strategies. With Singapore’s fast reopening, there is also a release in labour tightness and as of late, the ratio of job vacancies to those unemployed has been unprecedented, signalling a brooding war for the best talents.

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Research done by Leesman last year showed that around 60% of employees are working in a hybrid way, while only 11% are working solely in the office (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Push factors against the return to workplace

Research done by Leesman last year showed that around 60% of employees are working in a hybrid way, while only 11% are working solely in the office. Leesman’s data also showed that its younger (under-25) and newer employees may be slower or more resistant to returning to the office for one reason or another.

This is surprising given that the younger age group is more likely to recognise the importance of picking up tacit knowledge from their colleagues through in-person interactions and is also less likely to have a dedicated workspace at home (and consequently they are likely to have the poorest home-working experience).

An explanation could be that the under-25 age group is at the point where they value greater flexibility in a tight labour market. This results in diverse views on how employees across different generations perceive value and workplace experience.

Developers play an indirect but pivotal role in building high-quality workplaces where tenants can confidently attract talent and retain them (Photo: Samuel Isaac Chua/EdgeProp Singapore)

A science-based approach for health leadership at the workplace

It is evident that the use of space and the importance of space have not diminished, and instead, have become more pronounced because of the pandemic. Organisations are now held to higher standards as to how they design spaces for occupants, and employers are starting to recognise the importance of people-first workplaces.

Developers play an indirect but pivotal role in building high-quality workplaces where tenants can confidently attract talent and retain them. Leading developers like Lendlease have evolved in providing wellness as a customisable offering, adopting a holistic approach in rolling out well-being-focused initiatives that help facilitate a healthy workplace.

The International Well Building Institute, a leading authority for transforming healthy workplaces, advocates science-based considerations for healthier workspaces by looking into the quality of the office environment such as indoor air quality and light quality.

The light quality in buildings can affect occupants’ health in non-visual ways, such as their physiological functions and alertness (Photo: Samuel Isaac Chua/EdgeProp Singapore)

For example, to ensure clean indoor air and minimise exposure to harmful pollutants, the ventilation design and pollution infiltration management in buildings must meet thresholds specified in the Well Building Standard. Similarly, the light quality in buildings can affect occupants’ health in non-visual ways such as their physiological functions and alertness. As such, proper glare control and circadian lighting design are required in a building to allow for synchronised circadian rhythms of its occupants.

Organisations can also take incremental pathways towards healthy workplaces while achieving recognition. For example, the Well Health-Safety Rating for headquarters and offices is another way to advance human health and well-being.

Promoting health leadership at the workplace will ultimately help corporations to enhance human and social capital performance and maximise real estate value. And what it comes down to is a happy, healthy and motivated workforce whose collective effort can drive greater business performance for the company.

Using a data-led approach that connects place, people and business will also help enterprises unlock insights into place experience, optimisation and sustainability (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Technology’s new role in well-being

Using a data-led approach that connects place, people and business will also help enterprises unlock insights into place experience, optimisation and sustainability. This may include tracking occupancy and attendance rates, usage patterns of the workspaces, indoor air quality and satisfaction.

Such measurement could be automated by technology platforms, such as Lendlease Podium, and help corporations analyse and anticipate future requirements; structure their real estate leases, employee perks and facility management; and gain cost efficiencies.

Chief of all, it will help companies leverage their corporate real estate assets to refine their employee value proposition and workplace experience, as well as embed their culture. This will rebuild employees’ confidence in the health, safety and wellness of their workplace as they begin to return to office.

In today’s war for talent, it is also about “earning the commute” that your employees are willing to make to the workplace because they want to be immersed in the culture of the company they chose to be at (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Earning the commute

Experts now refer to the Great Resignation phenomenon as the Great Renegotiation. Employees want a say in where and how they work. One could argue that this is very much the reality of operating in today’s feedback economy, where everyone can have a say in everything through individual reviews, community actions and global movements.

In today’s war for talent, it is also about “earning the commute” that your employees are willing to make to the workplace, because they want to be immersed in the culture of the company they chose to be at.

A holistic workplace strategy needs to be underlined by flexibility, the workplace buzzword fast rising up the ranks in terms of priority to modern employees. Going beyond the commonly known flex attire and flex hours, people want flex office now too.

What this means is unique for each employee, and we all need to be given the licence to renegotiate how we would like to experience a fundamental part of our daily lives.