© 2011. CoreNet Global. All rights reserved.
How Emerging Work Strategies
are Changing the Workplace.
CoreNet Global Research
© 2011. CoreNet Global. All rights reserved.
Why do the survey?
To understand:
• the degree to which real estate portfolios are likely to change, and
what are the key drivers
• how closely linked alternative work strategies are to real estate
compression trends
• the adoption levels for alternative work strategies and what the
challenges are for implementation
© 2011. CoreNet Global. All rights reserved.
Survey Statistics
• Survey was launched March 2011
• Over 100 respondents
– Survey includes end users and service providers
– Wide range of industries
– Mostly from North America and Europe
© 2011. CoreNet Global. All rights reserved.
Who Participated?
How would you describe your
role in the industry?
Over 75% of respondents
are headquartered in North
America
83%
2%
5% 2%
8%
End User
Service Providerworking with a singleclientService Provider /Consultant workingwith multiple clientsDeveloper / Investor
Other
1% 3% 1%
15%
78%
Asia-Pacific Australia/New Zealand
Central and South America Europe, Middle East and Africa
North America
© 2011. CoreNet Global. All rights reserved.
Who Participated?
0%
5%
10%
15%
20%
25%
1% 1% 2% 2% 2% 2% 4% 4% 5% 5% 5% 5% 6% 7% 8%
18%
24%
What best describes your
industry?
0%
10%
20%
30%
40%
50%
60%
1-100 100-1000 1000-10,000 10,000 -100,000
Over100,000
Not sure /Unknown
0% 4%
32%
52%
12%
0%
How many employees?
© 2011. CoreNet Global. All rights reserved.
Key findings
• Most companies implemented an AWS starting in 2005 followed by 2009. It is
estimated that about 16% will implement an AWS in 2011
• Companies have always viewed AWS as a viable way to control costs, the current
economic downturn is influencing a high adoption rate
• Cost reduction and productivity were the two highest reasons for making these
decisions followed by attraction and retention
• Home office, mobile work and hotelling continue to be the methods companies are
using to reduce real estate
• Most companies reduce their real estate portfolio by 6-10%
© 2011. CoreNet Global. All rights reserved.
Results
Q: What percentage of your office workers are knowledge workers?
0
5
10
15
20
25
0-25% 25-50% 50-75% 75-100% Unknown
© 2011. CoreNet Global. All rights reserved.
Results
Q: What percentage of your office workers are transactional
workers?
0
10
20
30
40
50
60
Unknown 0-25% 25-50% 50-75% 75-100%
© 2011. CoreNet Global. All rights reserved.
Results
0%
5%
10%
15%
20%
1% 2%
5% 5%
7%
16% 17%
19%
13%
2%
6%
2%
4%
Q: What is the average
net usable square footage
per employee?
Q: How much do you
intend to reduce this
number this year?
© 2011. CoreNet Global. All rights reserved.
AWS Results
0%
5%
10%
15%
20% 16% 12%
17%
12% 8%
5%
18% 14% Q: What year did you
implement AWS?
Other, please specify
Satellite Office Space (a smaller office used by employees thatlive nearby)
Telework (equipping emloyee's home with needed technology andexpecting them to work from home on a permanent, full time…
Hotelling/Free address work spaces (non-assigned offices thatcan be reserved)
Mobile Work (consistently using multiple spaces/places toaccomplish work)
Home Offices (working from the home on a part-time or full-timebasis)
5%
23%
51%
73%
78%
85%
Q: Which strategies are
you using?
© 2011. CoreNet Global. All rights reserved.
AWS Results
0% 10% 20% 30% 40% 50% 60%
Reconfigured to accommodate alternative settings (café,meeting spaces, etc.)
Subleased/rented
Sold/Moved to a smaller more efficient space
Reconfigured to accommodate team spaces
41%
44%
48%
57%
Q: What are you using the space
saved by AWS implementation for?
© 2011. CoreNet Global. All rights reserved.
AWS Results
Q: Our initial target reduction in our overall Real
Estate by using AWS was…
0%
5%
10%
15%
20%
25%
30%
35%
16%
31%
13% 13%
5%
7%
1% 0% 0%
1%
Q: As we have grown in our understanding of
AWS we believe our initial reduction rate was….
0% 20% 40% 60% 80%
Too High
Too Low
About Right
10%
28%
62%
© 2011. CoreNet Global. All rights reserved.
AWS Results
Q: Is there a formal process to determine
eligibility?
8%
16%
31%
58%
0% 10% 20% 30% 40% 50% 60% 70%
It's open only to people in ourformal AWS program
It's open to anyone in a veryunstructured way...very fewlimits...we expect people to
manage themselves in this regard
There are only specificdepartments or groups who are
eligible
It's open to anyone pendingagreeement with manager
Q: Our structure is such that we have team
members distributed in different locations such
that they are not regularly together?
87%
13%
Yes
No
© 2011. CoreNet Global. All rights reserved.
What percentage of your employees are covered
under your AWS approach?
0%
5%
10%
15%
20%
25%
30%
0-5% 6-10% 11-15% 16-20% 21-25% 31-35% 46-50% 26-30% 36-40% 41-45%
Response percentage
© 2011. CoreNet Global. All rights reserved.
What attracts these AWS
employees to the office?
0% 10% 20% 30% 40% 50% 60% 70% 80%
Never go into the office
New to the position and need to be mentored
Required to come into the office at least one day a week
Required to come into the office multiple days per week
Only go into office for team meetings (less than 1 per week)
Office provides access to technology and tools that I need (i.e.projectors, large marker boards, project rooms)
Office is best place to interact with colleagues
© 2011. CoreNet Global. All rights reserved.
AWS Results
0%
5%
10%
15%
20%
25%
30%
0-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-100*Percent
Q:What percentage of the time do employees spend working with distributed teams overall?
26% said 21-30% of the time employees work in distributed teams
© 2011. CoreNet Global. All rights reserved.
AWS Results
5%
49%
17% 21%
2% 6%
0%
10%
20%
30%
40%
50%
60%
Less than 1 1 Between 1-2 2-4 More than 4 I don't know
Q: What is your
average sharing ratio of
people to seats?
49% of the organizations still have 1:1 ratio
© 2011. CoreNet Global. All rights reserved.
AWS Results
• Q: Why does your company support working in alternative locations away from
the office such as a coffee shop or library?
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
We do notsupport
employeesworking in
"thirdplaces"
Work-lifebalance
Supportsreal estate
compression
Reducecommute
time
Reducescarbonfootprint
Supportscreative
work
Lack ofeffectivespace in
yourworkplace
32%
49%
31%
35%
29% 29%
3%
© 2011. CoreNet Global. All rights reserved.
AWS Results
25% 25%
38%
12% 12%
62%
0%
10%
20%
30%
40%
50%
60%
70%
Does not supportcompany culture
Confidentiality ofcompany data
Technologylimitations
Workplacecollaboration
Employees needclose supervision
Other, pleasespecify
Q: Why don’t you support it?
© 2011. CoreNet Global. All rights reserved.
AWS Results
Q: What is the most important consideration when making real
estate and workplace decisions?
48%
28%
13% 10% 9%
2% 2% 1%
0%
10%
20%
30%
40%
50%
60%
© 2011. CoreNet Global. All rights reserved.
AWS Results
Q. What is the least important consideration when making strategic real estate
and workplace decisions?
21%
16%
10% 9%
7% 7% 6%
0% 0%
5%
10%
15%
20%
25%
© 2011. CoreNet Global. All rights reserved.
AWS Results
Q: When considering “Geography,” what factor is
most important in your decision making?
47%
30%
15%
9%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Lower Cost Location Locating in Metropolitan Centers Proximity to Amenities forEmployees
Reduce Employee Transportationcost or time
© 2011. CoreNet Global. All rights reserved.
Results
Q: How important is a transitional/culture change
initiative when planning a work space change?
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
NotImportant Somewhat
Important ImportantVery
Important
5%
19%
28%
48%
Q: If your company has used a transition/culture
change plan, which resources were used to
prepare and implement the plan?
50%
33%
3%
47%
Outside architectureor design firm
Outside consultingfirm
Outside humanresources firm
Internalorganizationalresources only
© 2011. CoreNet Global. All rights reserved.
Concluding Thoughts
• Organizations recognize that there has not been adequate team
spaces and have implemented AWS to provide more space for
these teams to work together.
• Most organizations stated that the AWS may have started as a
real estate strategy but quickly became an overall business
strategy
• Management in some cases is still resistant to allow employees to
work anywhere based on historical precedence and entitlement
• When implementing an AWS strategy it is very important to have
a change management strategy
© 2011. CoreNet Global. All rights reserved.
Contact Information:
JD Hughes
Research Associate
CoreNet Global
260 Peachtree Street NW, Suite 1500
Atlanta, GA 30303
404.589.3244
Sue Warmels
Steelcase
Market Developer
Brand Communications, Insights