The Gig and Shared Economy and Future of Workplace
Flexible work is not just for
entrepreneurs and startups, it
is strongly penetrating all
sectors of business and will
have profound effect on
current and future workplaces
Kent Reyling
Director, Workplace Strategies
Kimball
Learning Objectives:
• Recognize the drivers of this new perspective
• Understand the impact on T.A.R.P.E. (Talent, Attract, Retain,
Performance, Engagement)
• Overcome the buzz and recognize the fundamental implications
• Develop an appreciation for workplace as service
Learning Objectives
The “Sharing Economy” is creating new thinking
What is the Shared Economy?
A socio-economic ecosystem built around the sharing of human
• Physical and intellectual resources
• Assets or services (either free or for a fee)
The Sharing Economy
Technology and connectivity
What is driving this economic trend?
Rachel Botsman
The Gig Economy…
What is it?
How does this relate to the shared economy?
What is the impact on business?
The Gig Economy…
Labor market characterized by…
• Prevalence of short term contracts
• Work “gigs” versus permanent jobs
• No contract for long-term employment
• Contingent workers
• Independent contractors
• Freelancers
• Consultants
• Temporary
New marketplace opportunity…
The Gig Economy…
2 different segments
• Primary (full time…15+ hrs./wk.) 18-19 million
• Supplemental income (part time) 20-25 million
Majority of 10 mil. Jobs created between 2005 and 2015.
Some Predictions of note:
By 2020, 40% of the workforce will be contingent (Intuit)
CBRE predicted 45% by 2017
JLL predicted 30% in 2017…70% by 2030
Structural concern for the industry
1) Shared assets and unassigned workspace
2) Changing make-up of employment
3) Co-working (substitution of workplace)
Liquid (contingent) workforce…many projections
JLL projects…
30% in 2017 - 75% by 2030
Sharing and Gig Economy impact
AI affect on workforce?
Key component of the emerging ecosystem of “places of work”
Will the Gig Economy Make the Office Obsolete?
We are human…”social animals”…driven to connect
The Evolution of Co-Working
Started in 2006
11,000 globally in 2016
1% of world office space
Est. 26,000 by 2020
Triple to 3.8 million users
The Drivers of Co-Working
Driven by:
Shared Economy
Gig Economy
Entrepreneurs / start-ups
Small businesses
Technological advances
Real estate
“Real estate is for us, what books were for Amazon”
Make a life, not just a living - space as an experience - workspace is our craft
Founded 2010 now $20 billion valuation
160 locations 200,000 + members
10 million sq. ft.
$2.3 billion revenues (2018 forecast)
Have their own utilization software
Consumer-Driven Workplaces and SaaS (Space as a Service)
The Evolution of Co-Working
The Positive Perceptions of Co-Working
Enhanced workplace user experience (UX)
79% Happier
71% More productive
70% Feeling healthier
68% Better able to focus
64% Ability to complete tasks on time
62% Believe quality of work better
84% More engaged
83% Less lonely
83% Expanded network
80% Help/guidance from others
Changing Business Priorities
Flexibility and remote work as strategic advantage
Reduce real estate costs
Attract and retain talent
Increase employee engagement
Reduce absenteeism and presenteeism
Increase employee productivity
Improve innovation
Increase agility
Reduce work-life conflict
Reduce employee stress
Gensler 2016
From Co-working to Pro-working
Coworking Implications for CRE (“Enterprise”)
Use Co-working Concepts as Foundation for Design
From facility management to COMMUNITY MANAGEMENT (HR focus)
Communication and news
Events
Listening
Multi-sensory design
Atmosphere
Welcome & engage
Privacy and respect
Life lived
Focus on Delight and Happiness
Stop looking at people as employees and
more as guests and customers to your space
HUMAN Focus
(Security)
(Survival)
Human Needs for Wellness and Well-Being
Highly Engaged
Engaged
Almost Engaged
Not Engaged
Disengaged
Rock Star
Job’s Worth
Desired destination and environment…feels right
Resimercial (feels like home)
Corpitality (hospitality familiarity and amenities)
Collegialise (a learning environment)
For…T.A.R.P.E
Talent
Attract
Retain
Performance
Engagement
Enhance User Experience
Stress will become one of the biggest
health issues in the coming decade and
will cost businesses $300 billion annually
Corporate Real Estate Disruption
Transform real estate…
• From a liability to powerful fluid business tool and asset
• Integrated CRE approach focused on PEOPLE
• Tie to HR, IT and data
Wellness initiatives strongly align
Wellness initiatives strongly align
Fitwell
Collaboration between the: Center for Active Design, Centers for Disease Control and Prevention and GSA
And Evidence Based Design
Developing in Office Design
Research based. Key points:
Mood…affect on cognitive elements and creativity
Design = job satisfaction & performance
Carefully “curated” set of choices. Too much can
become confusing…don’t overdo it
Movement in space is key
Summary Implications
Look to co-working spaces for ideas
Make your office somewhere people want to be
Ignore the buzz and look to the fundamentals
Think about increasing portfolio flexibility
Reinforce brand and culture
Offer people choices
Consider needs of humans
Remember preferences are different
Consider creating pro-working spaces
Stress need for effective change mgt.
Create a COMMUNITY
Thank you!
The Gig and Shared Economy and Future of Workplace
