Key Findings. Foreword. Introduction

Transcription

1 Foreword Key Findings We may spend nearly a third of our day in the office, but how often do we stop to reflect on how far our work environment meets our needs, or indeed, how things should be developed to meet future requirements? The findings of the survey with the Chartered Management Institute are revealing and echo our own experience as providers of workplace solutions. The need for greater flexibility in terms of working methods, patterns and environments is one of the most significant preoccupations of today s workforce, and a complex challenge for management to address. There is no doubt that change is one of the few certainties in business today. Drivers such as increasing competition, the 24/7 culture and the impact of technology are forcing management and employees alike to adapt and evolve the way in which they do business. This applies as much to the physical working environment as to methods of working with a drive to reflect the real increases in productivity which technology should facilitate. As the survey findings show, there is still significant progress to be made before UK plc enjoys a truly productive working environment one which will support both the needs of the individual and organisations. David Walker Business Development Director, MWB BusinessExchange Introduction New technology is transforming the way that we work, yet the human need for social interaction means that we still need the physical shared workplace. However, the concept of work as a place that people go to each morning and leave every evening is becoming less applicable to the reality of our working lives. Many people are no longer working from the same fixed location day after day, preferring instead to use modern technology to allow them to work from a location that is closest and best suited to their business needs. Even so, this development has not replaced the need for some sort of fixed base, although these days employers are increasingly searching for more flexible solutions to their property and office needs. In order to assess the extent to which current work environments are meeting the needs of individuals and organisations, the Chartered Management Institute and MWB BusinessExchange, a leading supplier of outsourced accommodation services, have undertaken a collaborative research project in order to: The survey s findings confirm that UK workplaces have become more flexible in recent years as employers respond to employees increasing desire for a better work/life balance by introducing alternatives to traditional working hours and patterns of work. Yet 33 per cent of managers confirm that their employer has made no provision for employees to work remotely. Sixty-five per cent of respondents work on average at least one extra unpaid hour per day and 45 per cent report an increase in the number of hours worked compared with three years ago. Twelve per cent spend at least two hours per day travelling to and from work. Although the shift from a manufacturing to a service economy and technological advances have produced much cleaner and safer workplaces, many offices still do not meet employees needs. While only 22 per cent of managers claim to be unhappy with their immediate physical environment, concerns remain about various other aspects of their office facilities such as the need for more quiet areas (46 per cent); under-equipped meeting rooms (45 per cent) and lack of adequate meeting space (17 per cent). Nearly four in ten (38 per cent) are worried that their office may not make a good impression on clients and visitors. Thirty per cent of managers work in an open plan environment, while given the choice, 67 per cent would prefer their own office. Over eight in ten (82 per cent) describe as completely integral to their job, followed by a desktop PC (78 per cent). Videoconferencing and teleconferencing are seen as less essential tools however, reflecting perhaps the importance of personal face-to-face contact. Office space in the UK is not being used to its maximum potential, with 70 per cent of survey respondents reporting unused desks/offices at any one time, yet one in three organisations sometimes have to rent extra office/meeting space. Furthermore, many employers remain tied into property agreements which cannot always be adapted to changing business needs. A third of managers anticipate a fall in the number of permanent employees within their organisation over the next three years, and only ten per cent think that the number of parttimers will decrease. This, coupled with the fact that 82 per cent of managers agree that companies will increasingly seek to reduce their property and office costs, could contribute to a continued rise in the number of individuals and organisations working more flexibly. Examine managers experiences and attitudes in terms of their physical working environments Explore related issues around changing work patterns and the impact of new technology Assess future scenarios in terms of workforce and workplace development Research was undertaken among a random sample of 4,000 individual Institute members, drawn across all management levels, sectors and size of organisation. They were sent a postal questionnaire in October 2002 and 1,200 managers replied, a response rate of 30 per cent. 1

2 Desire for Flexibility Managers working hours Recent Institute research 1 has indicated that many managers are working in excess of their contracted hours. The trend is confirmed by this study which shows that 65 per cent of respondents work at least one extra unpaid hour a day. Furthermore 15 per cent of managers work 16 hours or more over their officially contracted weekly hours. When asked to compare the total number of hours worked now with three years ago, 35 per cent of managers feel that they have increased and ten per cent believe that they have increased considerably. Commuting and travel Nearly a third (32 per cent) of those managers surveyed spend more than an hour travelling to and from work each day. This rises to 62 per cent for managers who work in London. (%) Figure Length of time Total time spent travelling to and from work each day No travelling / work from home Less than 30 mins 30 mins 1 hour 1-2 hours 2-3 hours More than 3 hours Eight out of ten managers travel to work by car. Unsurprisingly, this is not the case for managers working in London where less than half drive to work (46 per cent). This figure could well diminish further with the introduction of congestion charges in the capital in February London managers are also more likely to travel to work by train (44 per cent compared with eight per cent overall), and are of course, more likely to use the Underground. Flexible working Table 1 illustrates that a range of flexible working practices has been introduced by UK employers (perhaps out of a desire to reduce the impact of unproductive travel time), giving employees greater freedom to tailor their working day to suit their individual circumstances. Over half of all those surveyed state that their organisation operates flexitime, 46 per cent provide a PC/fax/modem link to enable regular home working and 35 per cent report that their organisations give employees the opportunity to job share. It should be noted, however, that no indication was given as to the extent of these schemes in organisations. In some cases, such as flexitime, it is likely that the scheme is organisation-wide. However, the provision of a PC/fax/modem link may well be limited to senior managers, and in general, it was those organisations with over 100 employees and public sector employers that offered more opportunities for flexible working. Base: Been introduced 885 Been Would Within Base: Would like 804 introduced like 3 years Base: Within next 3 years 281 % % % Flexitime PC/fax/modem link for homeworking Shift working Hotdesking Job sharing Career break Sabbatical Annualised hours Compressed working week Term-time working Table 1 Existence of flexible working practices 2002 A compressed working week (eg four days of ten hours) though currently in place in just 13 per cent of organisations, is another practice that would be welcomed by many managers with 59 per cent indicating that they would like to have a shorter working week. A third of those managers surveyed expect their organisation to encourage home working within the next three years by providing a PC/fax/modem link and 28 per cent plan to introduce hotdesking which may well have implications both for the amount of office space and/or number of workstations required in future. One in five managers expect their organisation to introduce annualised hours in the next three years whereby working hours are averaged out across a year. 2 1 Quality of Working Life 2000, Professors C. L. Cooper and L. Worrall, Institute of Mangagement

3 New technology Over the past decade, both internal and external communication methods have changed considerably. has enabled individuals to make contact almost instantaneously, whether with a colleague along the corridor, in an office at home, or on the other side of the world. Its impact has not always been completely positive however, as 55 per cent of managers agreed that has discouraged personal/face-to-face interaction within their office. While many organisations are starting to provide employees with the facilities needed for remote working (such as PC/fax/modem links), a third of the managers surveyed state that their organisation has made no provision for this. Public sector managers are slightly more likely to state that their organisation has made no provision for remote working (37 per cent compared with 30 per cent in the private sector). Views were also sought on the advent of broadband (which allows faster Internet access). While 30 per cent state that their organisation has introduced broadband, a further 19 per cent expect it to be introduced in their organisation within the next three years. Impact of different work environments Existing and preferred layouts Forty-four per cent of managers have their own office within their workplace. This is particularly the case for directors (71 per cent) and senior managers (57 per cent), compared with 18 per cent of junior managers. Base: All respondents Have Prefer % % I have my own office within my workplace I work in an open plan office with own desk I have an office at home I work at more than one office/site 24 4 I share an office [with one or two others] I work at the premises of clients 11 1 I work in rented/leased office space 8 2 I hotdesk in an open plan office 6 5 I work in a serviced office 5 2 Table 2 Workplace environment Managers working in Scotland are the most likely to have their own office within their workplace (59 per cent), while London managers are the most likely to work in an open plan set-up (42 per cent) reflecting the higher costs per square foot of space in the South. Four out of ten IT/computing managers work at more than one office or site, and 11 per cent hotdesk. On average, three out of ten managers surveyed work in an open plan office but when asked, over two-thirds would prefer their own separate office. Nevertheless 44 per cent of managers still believe that open plan offices encourage more effective communication. Eleven per cent work at the premises of clients, and five per cent currently work in a serviced office. This is particularly true for management consultants and others working in the business services sector, illustrating the trend towards a more project-based and flexible style of working by some organisations. Staff are consulted on decisions about their working environment in 41 per cent of organisations, and while only 22 per cent of managers are unhappy with their immediate physical environment, concerns remain about some other aspects of the workplace. For example, nearly one in five managers (17 per cent) would argue that they do not have access to adequate meeting room space and nearly half of all managers (45 per cent) agree that their meeting room(s) can sometimes be under-equipped. This in turn, could contribute to a negative external image of an organisation from clients/visitors. In fact, 38 per cent of managers surveyed also admit that they have concerns that their organisation s offices may not make a good impression on clients/visitors. Over a third (34 per cent) of managers have found that their organisation has had to rent extra office/meeting space in the past. Of those who have had to do this, reasons given are quite diverse and fairly evenly split, as Table 3 illustrates. Base: 413 respondents % For a one-off meeting 70 For training purposes 61 To accommodate short-term project needs 45 Overspill purposes/outgrown existing facilities 31 For Annual General Meeting 29 For press launch/press conference 22 For regular meetings 21 For interviewing purposes 21 During relocation 11 While renovation/refurbishing 9 During disaster recovery 7 Table 3 Reasons for renting extra office/meeting space It is also clear from the research that office space is not being utilised to its maximum potential, with seven out of ten managers stating that the desks/offices in their organisation can be unused at any one time. Table 4 illustrates this. 4 5

4 Base: All respondents % Yes 70 No 25 Don t know 2 N/A 3 Table 4 Whether desks/offices in organisation unused at any one time Unused space certainly has cost implications for organisations and is something that employers are increasingly becoming aware of, and are looking at ways of reducing. Managers were then asked to rate the importance of various factors in creating a productive working environment on a five-point scale, and Table 5 shows that basic creature comforts score highest. Younger managers (24-29) are much more likely to want a chill-out area than their older counterparts (49 per cent, compared with just 18 per cent of managers aged over 50). Women managers are more likely than men to rate green plants as important (50 per cent compared with 35 per cent of men). Pictures/artwork were also seen by women as important in creating a productive working environment (42 per cent compared with 31 per cent of men). Base: All respondents Table 5 Factors contributing to productive work environment Very/quite important % Tea/coffee making facilities 81 Quality washroom facilities 78 Storage space 76 Good quality office furniture 71 Water cooler 64 Printers/photocopiers in separate room 57 Air conditioning 55 Decor 53 Welcoming reception area 51 Natural ventilation ie no air conditioning 48 Green plants 38 Pictures/artwork 33 Decor 30 Chill-out area 28 Background music 5 Improving the working environment Survey respondents were asked to describe the ONE thing that would improve the environment in which they work, and managers did not confine their written comments merely to their day-to-day surroundings. Many made the usual requests for more private/quiet areas, less clutter and more tidiness, less noise, natural ventilation/natural light and better temperature control, for example: Some quiet space/meeting rooms away from the open plan office environment. Realisation that clutter impedes/prevents/hinders effective working. Fresh air, a window and a view. Temperature at work those that can put up with the changes in the temperature get waylaid dealing with the complaints of those who can t. However a significant number of managers referred to their desire for improvements to the overall culture and management style of their organisation. The level of trust, information sharing and communication flows were seen as key areas for improvement. Typical comments included: Friendlier and more open senior management who are not afraid to empower middle management. People taking responsibility for their own work and moving from a negative blame culture. Improved communication that enables my team to deal with strategic requirements. Future workplace trends Possibly reflecting current business uncertainty and lowered confidence, a third of managers anticipate a fall in the number of permanent employees in their organisation over the next three years, 29 per cent think the number will stay the same and 36 per cent think there will be an increase (see Table 6). Base: All respondents Increase Stay same Decrease % % % Permanent employees Contract employees Part-time employees Temporary employees Table 6 Anticipated change in employment levels in next three years 6 7

5 Table 7 below shows that 42 per cent of managers expect their organisation to refurbish its offices/premises in the next three years. Conclusions and Recommendations Base: All respondents Likely Unlikely Neither % % % Expansion into new geographic market/area Contraction to focus on key market/area Refurbishment of offices/premises Relocation of offices/premises Use serviced offices Table 7 Likelihood of organisational and office changes in next three years Over a third of managers (36 per cent) think it s likely that their organisation will relocate within the next three years, while nearly one in ten (9 per cent) envisage using serviced offices. Managers were asked to predict the likelihood of various future scenarios (see Table 8). Eighty-two per cent of managers agree that companies will increasingly seek to reduce their property and office costs. This could contribute to a continued rise in the number of people working flexibly and a further move away from the more traditional office environment of a fixed desk and computer for each employee. Base: All respondents % Companies will increasingly seek to reduce their office costs 82 The number of people working on a freelance basis will increase 69 Video conferencing will increase in popularity 61 Number of people commuting longer distances to work will increase 60 People will move out of the major cities for a better quality of life 51 Employers to actively encourage better employee work/life balance 46 There will be more international travel for business purposes 39 There will be less international travel for business purposes 34 There will be increased flexibility in lease terms for premises 27 The number of people cycling to work will increase 24 Table 8 Future scenarios envisaged The onus is now on employers to respond to requests for a more flexible approach to work. New legislation coming into force from April 2003 for example will enable working parents of children under six to request more flexible working arrangements. Employers should also regularly assess the workplace from a health and safety perspective, and consider suggestions from employees that might help to create a more productive and welcoming workplace for staff and clients/visitors alike. Physical openness can lead to complaints about noise and distractions and it is important, where possible, to give individuals some control over their working environment. The ideal workplace would have a range of different spaces within it ranging from quieter private areas to concentrate on work tasks, and more sociable spaces for sharing knowledge and exchanging ideas. Sick building syndrome is a widely recognised problem in many of today s offices. Contributory factors include incorrect room temperatures, poorly maintained airconditioning systems and inappropriate lighting and noise. A comfortable norm is around 20 degrees Centigrade and again, the ability to have some control over room temperature makes a difference. Employers should also try to optimise the amount of natural daylight available to employees and avoid fluorescent lighting which can flicker, leading to headaches and fatigue. At a more personal level individuals should be encouraged to keep desk clutter to a minimum, while employers need to ensure efficient office cleaning arrangements. Organisations also need to exploit the potential of new technology more effectively and to make provision for both office-based and remote working. Wider acceptance of nontypical working hours could offset the impact of commuting and parking issues for example, while wider broadband availability and consistent IT support can help improve managers productivity. The survey suggests that the increasing pace of change in business is driving the need for more flexible property solutions such as outsourcing and satellite offices. However this trend can pose a challenge for organisations, as managers must have the confidence to ensure productive team performance without all team members necessarily being under the same roof. Nearly seven out of ten managers (69 per cent) predict an increase in the number of people working on a freelance basis, probably from home, which again may affect future office supply and demand calculations. These calculations may also be affected by the predicted trend away from city centres to improve quality of life (51 per cent of managers thought this a likely development). 8 9

6 Chartered Management Institute As the champion of management, the Institute shapes and supports the managers of tomorrow helping them deliver results in a dynamic world. It helps set and raise standards in management, encouraging development to improve performance. Moreover with in-depth research and regular policy surveys of its 91,000 individual members and 520 corporate members, the Institute has a deep understanding of the key issues. The Chartered Management Institute came into being on 1 April 2002, as a result of the Institute of Management being granted a Royal Charter. For more information contact: The Public Affairs Department, Chartered Management Institute 2 Savoy Court, Strand, London WC2R 0EZ Tel: Fax: [email protected] website: Registered charity number: incorporated by Royal Charter Chartered Management Institute March 2003 The Workplace Survey 2003 MWB MWB BusinessExchange was formed in 1997 and is now the second largest serviced office operator in Europe. As a division of Marylebone Warwick Balfour Group Plc, one of the UK s leading property developers, it provides serviced offices and workplace solutions in 40 prime locations throughout the UK and continental Europe. Monitoring the property market closely, it seeks to develop viable property solutions which meet the demands of its customers in today s constantly fluctuating market. All MWB BusinessExchange properties offer immediately available furnished office space and are supported by a state of the art IT and telecoms infrastructure. In addition to serviced offices, the company also offers a virtual office product, hotdesking and meeting and conference rooms fully equipped with the latest audio visual facilities, available for hire by the hour or day. The extensive range of business support services including a fully staffed reception, personalised telephone answering, catering and general facilities management ensure customers are free to run their business and not their office. For more information contact: MWB BusinessExchange, 1 West Garden Place, Kendal Street, London W2 2AQ Tel: [email protected] website: M A N A G E M E N T I N S I G H T M A N A G E M E N T C R E D E N T I A L S M A N A G E M E N T S U P P O R T