‘Mega trends’ are making activity based (ABW) work a more attractive CRE option, according to a new report from JLL. It also says ABW can benefit an increasingly generationally-varied employee base.
Jones Lang LaSalle’s report highlights ‘mega trends’ and the impact these are having for corporate real estate (CRE). The trends include:
JLL says these trends mean a workplace must be environmentally friendly, culturally flexible and creative. JLL’s Activity based working report says these factors require a new approach to CRE and shift in thinking towards ABW as a solution.
The report says companies that have implemented ABW to address trends have pointed to its ability to support business growth and objectives, create brand differentiation and drive talent retention and attraction as the most important drivers.
Providing a flexible real estate strategy was not the overall driver of going down the ABW path, and improving sustainability credentials were noted as important - but further down the list, according to the report.
Most organisations featured in the report showed space utilisation rates of 60 to 70 percent, meaning at any one time 30 to 40 percent of the space is vacant. “This is not a sustainable solution from both an environmental or financial perspective,” the report says.
It says cost savings were not listed as a major driver.
“Whilst still remaining cost conscious, organisations are not ranking cost savings as a reason for embarking on the journey. Rather, they see cost savings as a by-product of an ABW program.”
Tony Wyllie, JLL Australia corporate transactions and consulting head, says generational factors come into ABW.
As JLL points out in its report, there are four generations in the current Australian workforce, at times with an almost 50-year age gap.
“We believe it [ABW] supports the generational gap in the workforce by catering for different work styles and needs of generations,” Wyllie says.
|The Millennials: (also referred to as Generation Z)
make up less than 5 percent of the working population.
This generation has never known a world without computers, the internet, mobile phones, email or instant messaging.
currently represent 20 percent of the workforce, and are predicted to make up almost 50 percent by 2020.
This generation is willing and able to work anywhere, anytime; comfortable with digital communication and are constantly connected.
currently comprise 50 percent of the working population.
This generation was brought up on technology and are more open to change than previous generations. Generation X are balancing career ambitions with the needs of a young family and require flexibility.
make up 25 percent of the workforce.
This generation is increasingly extending retirement age and is adopting a more flexible approach to traditional employment terms; opting for part-time, consultative roles or working from home arrangements.