Companies lose best employees because they do not understand their needs and motivations
Better performance data integral to identifying future real estate opportunities
42% of the world’s leading companies see labour and skills shortages enmeshed with employee preferences as a key challenge to future operations, according to the latest annual European Occupier Survey by global real estate advisor, CBRE.
The survey, now in its sixth year, polls real estate decision makers at 120 global corporations to understand their objectives and associated challenges across a broad range of issues. The respondents represent companies headquartered primarily in Western Europe or North America spanning multiple sectors, of which the largest are: manufacturing, banking and finance, professional services and, healthcare and life sciences.
A significant overhead, and in many cases the largest, for a company is the cost of its people. Increasingly companies want to maximise the return on human capital by providing workspaces that promote choice, collaboration and high levels of employee satisfaction, to attract the best staff and to support their brand. Likewise, employees want a voice – whether that’s the location of work, flexible working or a say in the office layout. This means there is ongoing recognition that the workplace must provide a high quality experience to entice and retain staff. Underpinning the workplace agenda is the increasing focus on performance – both people and property – to drive better business outcomes.
There is a growing number of companies realizing workplace environment directly affect productivity, employee satisfaction and loyalty even in the Czech Republic. This number is still very small when compared to Western Europe or the US. It is mainly multinational companies that are adventurous and not afraid to invest when opening Czech branches because they already have experience with modern office concepts from other, more advanced countries.
74% of addressed companies report having a wellness programme, two thirds see labour and skills as important factors in global location strategies, and a further 67% believe deploying a workplace strategy enables better collaboration with customers and colleagues. The environment settings can stimulate teamwork, information sharing, creativity and a healthier lifestyle. Investmenting in the offices is essentially investing in the people who create corporate values and that pays off.
After all, it’s a war for talent and motivation of existing employees that comes into play. An attractive environment is great marketing tool and an increasingly powerful for attracting talent, as demonstrated by Google or Microsoft. At the same time, it motivates employees much more (and for long-term) than a pay rise. Pay rises motivate only in the short-term, while an investment in the workplace environment brings a broad and long-term effect.
Central to this is the importance of data: 75% of companies now regard better, and more accurate, data as the single most important factor in supporting corporate real estate strategy and identifying new opportunities.
Despite concerns surrounding the macroeconomic environment - 58% cite economic uncertainty as a key challenge – anxieties about cost management have diminished in the last year. 41% of companies, down from half (50%) in 2014, see this as one of their main business challenges.
In recent years we’ve seen some substantial shifts regarding corporate real estate strategy drivers. Companies have lived through the recession. Currently, however, the economy is soaring and there is a rapid recovery.
At some point cost management played a dominant role, but now conditions have improved and employees and office spaces have come into prominence. Companies also have a unique opportunity to take advantage of excellent conditions when searching for new offices.
CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2016 revenue). The Company has approximately 75,000 employees and serves real estate investors and occupiers through approximately 450 offices worldwide (excluding affiliates). CBRE offers a broad range of integrated services including project management; property management; investment management; valuation; property leasing; strategic consulting and research and consulting. In the Czech Republic, CBRE has almost 350 employees and manages nearly 70 commercial premises with a total area nearly 1.2 mil. sq. m. Read more at www.cbre.cz.