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The Happy Office Life

Report 2020
An overview of the current state of workplace
employee engagement and attitudes towards
digital solutions in the modern office.
2,027 Total Respondents
Country of Origin Breakdown of Office Type Age Range Level of Seniority

27,4%

Senior
2,7%
18,6% 19,2%

<1%
51% 17,9%
CANADA
Corporate 45-54 14,3%

FINLAND
US
NORWAY
13%
<1%
SWEDEN
24%

Director
47% <1%
<1% Multi-Tenant

Manager
6% DENMARK
35-44
2%

Associate
2,6%
IRELAND
UNITED S

25%
ND
LA
KINGDOM ER
TH

Executive
NE GERMANY

Entry
BELG

Associate
IUM

Coworking 25-34
FRANCE 10%
2,2%
18-24

14%
Key Findings
Pain Points Value Drivers

1st 2nd 1st 2nd 3rd


Employees’ greatest pain point The second greatest pain point Employees consider the Employees consider their Employees feel that having a
is that they don’t have enough when it comes to the office is physical space and ambience building’s amenities as the tech-forward or “smart” office
control over their working that employers are slow to of their office to be their most second most important driver greatly contributes to their
environment. adopt new technology. important value driver. in creating a happy workplace. workplace happiness.

92% believe that a solution 60% of Europeans feel that 46% of non-management 88% respondents believe 92% respondents believe
which allows employees to AI and advanced analytics employees don’t feel that their building and its technology & innovation is
give feedback on their could improve their workplace significantly engaged at their amenities are important when important in creating a better
workplace and recommend experience vs. 44% of North work or that their workplace choosing to remain at their work environment.
possible improvements would Americans. needs are being met. current organization or
be valuable. changing employers.

Coworking spaces have the Employees from The Executives have the highest Respondents aged 18-34 Despite being less trusting in
highest experience of Netherlands are the most experience of, and expressed the highest interest AI, North American
workplace engagement accepting of AI with 85% expectations for workplace in having amenities and respondents see the most
whereas corporates have the saying that they could enhance engagement. services tailored to their needs. value in innovation in the
lowest. the workplace. workplace to improve
experiences.
Employees are calling out for digital
solutions in the workplace that actively emulate
the control they feel in their private lives.

Iain Thompson
Methodology

Between September & December 2019, over 2,000


professionals working within office settings were surveyed
across North America and Europe through an extensive
anonymous survey.

Qualified respondents were presented with a series of


questions pertaining to their preferences for and opinions of
technology, value-drivers and pain points associated with
employers and the workplace.

Analysis of the results was conducted via quantitative


methods including correlational design and relative
preference, in order to present commercial landlords and
corporates with vital insights on trends and observations
related to employee’s happiness and engagement in the
workplace.
Foreword

Happy employees are what drive growth, empowers innovation and This is not a new phenomenon but with the advent of PropTech and
bring creativity to a workplace. Industry 4.0 in Commercial Real Estate, it certainly is a new chapter.
Thanks to technology and connected spaces, we have more
For any business, employees are your greatest asset. And as such, touchpoints and opportunities that we can leverage to gain insights that
whether you’re an executive, an HR manager, a commercial real estate help improve our employees experience and drive their success.
portfolio manager or a corporate landlord, you have a responsibility to Engagement in the workplace is an essential tool that can help you
strive for better conditions on behalf of the people under your roof. continuously improve and adapt the working environment to best suit
Employers and workplace managers can work with assumptions or the needs of your employees and the business.
common practices to determine what might be best for each
workplace, but this won't provide the best possible environment for The Happy Office Life report serves as initial insight into how it’s
your unique business and the delicate culture you’ve created. possible to leverage data to improve the workplace. Knowing that each
workplace and its users are unique, we wanted to derive a better
Do you know how many employees are in your office building daily? understanding of employee’s general workplace value drivers,
What about how much time they spent anxiously scrambling to find a openness to technology, and the biggest pain points encountered in the
meeting room for an important last-minute call? Are employees actually modern office. We hope these insights provide workplace leaders with
utilizing and enjoying the common spaces you’ve curated for them? valuable information on how to focus your technological and
Even for small companies and offices, it can be hard to have an data-driven efforts to improve your working environment and create a
accurate pulse on the organization and its surroundings in such a happy office life.
fast-paced environment. But listening to your employees and proving
you are responsive to their needs is critical to providing the best Iain Thompson & Thijs van der Burgt
possible working environment for them to thrive. Co-founders of Office App
Context

For professional offices, this can mean creating naturally lit


From personalized employee benefits packages to spaces with flex-desks and communal working areas.
flexible work hours and unlimited holidays, employers Multi-tenant building tenants have undergone a similar
are trying to attract and retain talent like never before. transition, taking advantage of the ability to truly personalize
As Millennials take their dominant spot in today’s their office space. Both of the above have taken a leaf out of
workforce, their demands have decision-makers the co-working playbook, with a focus on ultimate freedom,
constantly searching for innovative new solutions. And regardless of what size the company is.
whilst these solutions come in all shapes and sizes,
sometimes the obvious is overlooked. However, the logical progression of this new reality goes
beyond interior aesthetics and design. By shifting focus to
how employees interact with their physical office, their
colleagues and the world around them, a plethora of options
One such low hanging fruit is the workplace itself, including
open up to improve each working day – and in turn,
the services it provides and its amenities. The recent
employee happiness.
transformation of offices, from functional workplaces with rows
of cubicles, desktop computers and dull beige walls, to creative
In addition, whilst decision-makers are spending a tremendous
and open modern spaces, offices are now being built to reflect a
amount of time and money creating their ideal offices, few gains
brand’s values, work ethic and culture.
have been made in testing their effectiveness.
Context

Because companies morph and evolve over time, measuring environments are utilized, improved, experienced and built,
the effectiveness of an evolving workplace over time is corporates and commercial real estate managers can leverage
important at a strategic level. For instance; if the number of a digitally native workforce and actively improve employee
full-time employees doubles over a one year period, how do we engagement.
know if they find their workplace as effective last year compared
to this year. Workers are hungry to integrate technology into their working
lives. With a delicate balance of privacy and security,
In other words, how can we judge the success down the workplace technology can help employees build their
track? community and personalize their workplace experience.

In this research, we dissect the attitudes of employees in However, this report also serves another purpose. It reminds
corporate buildings, multi-tenant buildings and coworking us that; as decision-makers, we should consistently strive to do
spaces on both sides of the Atlantic. We wanted to compare better for our employees.
how each subject group perceives the importance of
employee engagement and if they’re current employers are
falling short of the mark.

Our goal was to gain a better understanding of employees’


attitudes towards tech-driven solutions in the office.
The results show that by taking control of how physical work
Employee’s Greatest Pain Points

We asked users which pain point had the biggest


effect on their workplace experience and which
had the least effect. For this, we subtracted the
total who selected least in each category from the
Not enough control 1st
over working enviroment total who selected as most important to provide a
Slow to adopt new technology 2nd relative preference score. Higher scores show that
Low community engagment 3rd
the population is overall more affected by this pain
Servicies and
point as opposed to other pain points.
amenities not up to standard 4th

Inconvenient location 5th

Environmental goals 6th


not up to standars Greatest
Pain Points
Least Most 19% 18.8%
Important Important

Not enough control Slow to adopt


over working enviroment new technology
Employee’s Greatest Pain Points

Not Enough Control Over Working Environment

Our results find that employee demands for personalization go


beyond flexibility in the workplace to actively empower
The number one pain point for employees is employees. When employees say they don’t have enough
that they feel they don’t have enough control control over their workplace, they are inevitably comparing
over their working environment. their workplace to their own home. As a result, employees
now demand more control over their interactions with their
working environment as well.
Personalization has long been touted to be the future of
everything from e-commerce to tourism. Demand for Each and every office has specific needs and values, so for
personalized processes that creates a relevant, individualized many, giving the feeling of control can be a subjective
interactions in our private lives is at an all time high. It’s no concept. How can you give control as it is a feeling? For some
surprise that the workplace hasn’t escaped the trend. employers, giving too much “control” away may even seem
uncomfortable. To counter this, by leveraging workplace
The first wave of personalization in the workplace targeted technology and data analytics, it is possible to create
employee benefits and flexible work schedules. Yet, with situation-specific feedback loop that ensures improvements
such a fast pace of digital adoption, it’s a little wonder that are both tailor made to suit each individual workplace.
we’ve moved beyond this initial phase.
Employee’s Greatest Pain Points

Slow Pace of Digital Adoption

By providing employees with the control to create a tailored


working experience, technology actively gives employees the
This leads us to employees second greatest opportunity to thrive.
pain point: The slow pace of digital adoption
across the workplace. For example, if an employee can have a bowl of miso ramen
arrive at their desk at precisely 12:30 via an app on their
phone, but often struggles to book a meeting room, report a
Wanting more control in the workplace is tied to a much maintenance or adjust the temperature, there’s an obvious
larger societal trend; on-demand. Combining personalization disconnect.
and digitalization, the technology that enables on-demand
has an ever-expanding presence in our private lives. Creating tech-forward workplaces, where employees have the
same level of digital control that they feel in their private life is
We are constantly surrounded by high-tech solutions no longer a benefit. It’s become a prerequisite.
streamlining our experiences. This technological ecosystem
gives us the freedom to access whatever we want, whenever Welcome to the age of the in-control, on-demand workplace.
we want it. When you then walk into the workplace and that
feeling is taken away, so is the ability to perform at your best.
By taking ownership of how physical work
environments are utilized, improved,
experienced and built, corporates and
commercial landlords can leverage a workforce
craving digital solutions and actively improve
employee engagement.

Iain Thompson
Employee Engagement

4
1 2 3 4 5 6 7
3 5

18 - 24 The term ‘employee engagement’ is


2 6
25 - 34 defined as the emotional
35 - 44
commitment the employee has to
45 - 54
the organization and its goals.
2
1 7
Kevin Kruse, Employee Engagement for Everyone, 2013

Level of Employer Importance of Level of Employer Importance of


Engagement Employer Engagement Engagement Employer Engagement

In practice, employee engagement means that However, there is a significant gap between To bring it together, employers must yield to
those who work under your roof will go the extra employees’ expectations of engagement in the employees’ desire for freedom and control over
mile without having to be asked. The ROIs which workplace and how engaged they actually are. their own working experience. A fine line thus
stem from engagement can include higher profits, Whilst many have begun implementing presents itself; how much must employers give
better customer care and lower employee turnover. engagement strategies, few are building the away – the feeling of control or actual control – to
In fact, 99% of executives believe that their foundations for an engagement ecosystem. This satisfy this demand whilst maintaining authority?
employees have a major impact on the company’s presents employers with an opportunity to step
success. up their game.
Corporates are Falling Behind Coworking Spaces

4
1 2 3 4 5 6 7
3 5

The global market value of


Corporate coworking spaces is estimated at
2 6
Multi-Tenant approximately $26 billion in 2020,
Coworking with an average growth rate of 15%
per year.
1 7

AllWork.Space, 2019
Level of Employer Importance of Level of Employer Importance of
Engagement Employer Engagement Engagement Employer Engagement

With the advent of coworking spaces, corporates and The rise of coworking has decoupled work from We firmly believe that corporate offices must take a
multi-tenant buildings risk getting left behind. location and elevated workers expectations of leaf out of the co-working playbook and implement
Corporate employees have the lowest expectations flexibility and comfort in the workplace. These aspects creative, engaging solutions within their own walls.
when considering employer engagement, but they also now extend well into the corporate environment. As a This may include emulating the on-demand culture
feel the least fulfilled. This gap presents significant result, we have seen a number of corporate giants and community building aspect which co-working
opportunities to make meaningful improvements and setting up shop in co-working spaces. We expect this enables, whilst putting a firm spotlight on
paints a shadow of the bullish challengers in town. trend to continue until the corporates come up with a technological solutions. The days where the IT
meaningful response. department worked from the basement are over.
Executives Out of Touch

4 1 2 3 4 5 6 7
3 5
On average, companies spend
Entry
$2,200 per employee each year on
2 6 Executive
efforts to improve culture, but only
Associate
30% of HR decision-makers report a
Director good return on that investment.
7 Senior
1

Manager
Harvard Business Review, 2019
Level of Employer Importance of
Engagement Employer Engagement
Level of Employer Importance of
Engagement Employer Engagement

Executives are clearly the ones paying for employee For many employees, the terms ‘innovation’ and At the same time, executives have the highest
engagement strategies. While executives believe ‘community engagement’ may be written on the expectations. Decision-makers know that
over three-quarters of employees are engaged in walls, but at the end of the day, they are imposed, employee engagement leads to desirable business
their company, non-decision makers believe that not lived, values. At best, this points towards issues outcomes, but at times are struggling to turn this
only two-thirds feel the same. Perhaps as they are with usability, adoption and internal communications. into effective engagement ecosystem. When
the ones signing off on engagement strategies, At worst, employees may feel that these efforts are considering the importance of workplace
executives are more likely to view their programs as imposed on them and as a result, they’re unlikely to engagement vs. the reality of workplace
positive. Whilst on the ground, employees may not internalize them into their working culture. engagement, executives believe that the gap is
actually feel their efforts. much smaller than in actuality.
Effects
Solely focusing engagement on flexibility and employee benefits is no longer a sufficient strategy. Yet, as these are the most obvious improvements, they remain
the focus for many decision-makers. Whilst employers are dedicating significant budget to improving employee engagement, few are really developing the
foundations to make continuous improvements. Instead of focusing on the low-hanging-fruit, strategies should leverage the insights that technology brings to
the table. Employee engagement software is only qualitative and does not combine powerful metrics on space and service utilization, which requires the
quantitative data needed to truly understand the workplace. As a result, the workforce’s growing calls for in-control, on-demand workplaces present employers
and CRE managers the chance to get ahead of the curve whilst become an early adopter of new data-driven solutions. But what does this look like in practice?

1. Gain a better understanding of


the root causes – the social shift
of millennials entering the
workplace, overall openness
2. The accelerating pace of digital
adoption makes it easy to fall
behind with the market. As
employees are already one step
3. Creating a continuous feedback
loop that allows you to collect
data on employee preferences.
By using data to make better
towards technology in the home ahead in their private lives, it’s decisions, you can integrate the
and the global context of the paramount that decision-makers act of improving into your daily
war on talent – which drive aren’t trying to solve today’s office life.
employee engagement trends. problems with yesterday's
solutions

What does this mean for corporate decision-makers and HR managers? What does this mean for CRE landlords and facility managers?

Significant opportunities arise, as employees become more accepting of For landlords, the war on talent has a trickle-up effect on your relationship with
technology in the workplace. By optimizing the office environment and at the your tenants. As the physical space is within your realm of responsibility, some
same time, capturing data, it’s possible to create a system which introduces tenants may put the ball in your court when it comes to their buildings’ digital
data-driven decision making. However, employers must toe a fine line between features. Proactive attitudes here can solidify established tenant relationships
privacy and their digital engagement strategy. As a result, data security must and enhance your portfolio’s potential to attract new ones.
become a top priority.
The Hawthorne Effect

As decision-makers, it’s your responsibility to make sure the people When the lights were changed back to normal, productivity continued
who work under your roof feel valued. Employees are the key to climb, reaching an all-time high. According to the psychologists who
greatest asset of any company, yet it’s hard to communicate just how interpreted the findings, the improvements were not due to any set of
much we value these people. Often, we tinker with projects that environmental figures, but rather, the active pursuit of improving
make small changes, but little is felt where it’s needed. Instead of conditions in the workplace.
trickle-down communications, employers should actively show that
they are committed to continuously enhancing the lives of their Translating the Hawthorne Effect into the modern-day office provides us
employees. with a glimpse of what employees want. They desire to be respected, to
feel valued and that those principles are communicated in concrete
This theory comes from a series of experiments in a suburban action to improve their day-to-day processes.
Chicago factory back in the 1930s. The factory itself, Hawthorne
Works, was owned by electrical manufacturers Western Electric and Whilst the technology involved has dramatically changed – from
produced metal parts, capacitors, and switchboards for brands like dimmer-lights to a plethora of tech-driven solutions – the primary
AT&T and Bell Systems. driving principles (value and respect) continue to remain.

For the experiment, workers in the factory were separated into two
study groups and exposed to different lighting circumstances to
determine which lighting scenario improved productivity. The goal of
the project was to find the optimal lighting for factory workers. In
practice, what actually happened was both study groups improved
their output and production improved significantly.
Key Value Drivers

So what do employees actually want then in the office? What


are the most important value drivers that will help raise
employee engagement level at work? These are questions
which are getting asked a lot in board rooms, yet the gap still
Physical Space/Ambiance persists.
1st

Building Amenities 2nd When considering what is most important for office engagement
and happiness, employees say their physical space and its
“Smart” Tech-Forward 3rd ambiance, the building’s amenities and ‘smart’ or tech-forward
buildings. Creating an offering which takes these into account is
Community engagment 4th
crucial in creating a work environment which employees desire.
Sustainabilty 5th The top three are:

Local Services & Amenities 6th


Key Value
Drivers
Least Most
Importance Important

25% 24% 15%

Physical Space/Ambiance Building Amenities “Smart” Tech-Forward


Physical Space Smart and Technology-
1 and its Ambiance 2 Building Amenities 3 Driven Offices

For the majority of employees, the most Providing access to functional spaces and Beyond the basics, employees demand
important value driver when services are important in creating the office that today’s offices should be equipped
considering their office is how the that employees want. This means that with smart technology. We believe that this
physical space is laid out, how it meeting rooms and conference areas is much more than solely having an
functions and how it makes them feel at should be easily accessible, the adequate technological infrastructure and
work. From the art that hangs on the technological framework should be up to plays into the desire for an on-demand
walls to flexible spaces, the physical date (no more Windows Desktops from office. Smart office features can often
office must reflect the culture of the 2002), and interaction with these spaces include a centralized system to control the
company. This means that the office, should be streamlined. Other perks are building’s amenities and the physical
just like any software within it should be often access to good coffee, healthy space and its ambiance. Features
continuously evolving to suit the needs lunches, access to transport/parking and including self-adjusting lighting and
of it’s inhabitants. instant taxis booking. window shades, personalized heating and
lighting, carbon dioxide monitors, digital
room booking and indoor navigation.
Tech in the Workplace

88% 92% 92%


believe that their building and believe technology & believe that a solution which
its amenities are important innovation is important in allows employees to give
when choosing to remain at creating a better work feedback on their workplace
their current organization or environment. and recommend possible
changing employers. improvements would be
valuable.

In our homes, we can access a huge variety of technology which seamlessly For employees, smart workplaces can mean streamlining a mundane process
integrates with our private lives. Homes are becoming increasingly and freeing up to focus on more engaging work. For decision-makers, it can
connected with IoT and often powered by AI, big data and intelligent sensors mean collecting more data to help improve the decision-making process in
– think Amazon’s Alexa, automated lawnmowers, doorbell which are the future. For the building itself, smart buildings can create a more
connected to your smartphone and home security systems. comfortable working environment and happier tenants.

When we enter the office, we have grown to expect a similar experience and As these benefits run deep into the pain points of employees, it’s no surprise
if this isn’t apparent, then we become frustrated. So it’s no surprise that over that 92% of respondents said that a technological solution which allows them
three-quarters of employees believe that technology and innovation are more personalization and control over the workplace would be valuable.
important in creating a better workplace experience.
Tech in the Workplace

How important do you feel technology and


innovation are in creating a better workplace
experience?

29%
28%
It’s likely that commercial offices will take years to catch up to private homes.
Besides from the privacy and data security issues that arise, decision-makers
must become more proactive in their efforts to keep up. With the increase of
technology disrupting the market, this wait-and-see strategy is no longer
viable.

18%
30% This presents a significant opportunity for corporates and landlords to lead the
pack. The incentive for decision-makers to walk the talk on employee
engagement is that it will put them well into the early sphere of early adaptors.

Whilst we are still at the early stage of the intersection of real estate and
1 4 7
technology, with such a high level of demand emanating from employees, we
are likely to see a sharp rise in tech-forward property solutions arising.

Not Moderately Extremely


Important Important Important
Acceptance of AI and Advanced Analytics

100% Do you feel that analytics and AI


24% 38% 28% 17% 15% 20% 3% 15% 14% 0% 9% 3% could help improve their workplace
13%
19%
9% experience?
17%
75% 35%
18%
20%
31%
35% The Dutch are the most accepting of these new technologies
27%
50% 19% in the workplace, closely followed by their northern neighbours,
38% 85%
82% Denmark and Finland. Surprisingly, the Anglo- and
81%
70% Francophone countries are significantly less sure than their
68%
62% counterparts in Scandinavia and the German speaking world.
25% 60%
53%
48%
45%
44%
38% Highest
0% Accepptance

CA NO US FR GB IE BE SE DE FI DK NL
85% 82% 81%
Yes Not Sure No

The Netherlands Denmark Finland


Corporates have the least trust in AI & Analytics

AI and advanced analytics are making their way into multiple Together with multi-tenant buildings, they are falling behind
aspects of our working lives. We are confident that advanced their coworking peers, who are more likely to have already
automation and data are going to play a role in creating the implemented industry 4.0 solutions. When asked whether they
workplace of tomorrow. These results point towards an feel AI and analytics could help improve their workplace
optimistic workforce, yet corporates have the furthest to go experience, 52% of responded in the AI and analytics could
to build trust when implementing solutions. help improve their workplace experience.

Corporate Coworking Multi-Tenant

31% 28%
22%

60% 49%

45%

24% 18% 23%

0% 100% 0% 100% 0%
100%

Yes Not Sure No Yes Not Sure No Yes Not Sure No


North Americans weary of AI in the workplace
When it comes to acceptability of AI and advanced analytics in This could be due to the fact that in Europe, GDPR – the
the workplace, European respondents were much more open. overarching EU legislation that was brought into effect in 2018
North Americans are much more weary of whether digital to increase data security and privacy – has lessened the burden
innovation could help improve the workplace experience. for Europeans.

Europe North America

60% vs. 44%


Chemical & Energy Most Open to AI

100%
26% 30% 35% 13% 25% 29% 21% 20% 18% 15% 10% 17% 14% 5% Surprisingly, respondents from the
14%
19%
Chemical and Energy industry are the
75%
30%
31%
21% most open to AI and advanced
29%
30%
28% analytics in the workplace.
24%
27%
50% 28%
46%
32%
36%
80%
62% 67% Whilst highly digital industries usually exhibit the most
59% acceptance of new technologies, 80% of respondents from
25% 53% 55%
52% the Chemical and Energy industry believe that analytics and
49%
48%
42% 47% artificial intelligence could help improve the workplace.
38%
38%
37%
0%
Highest

Media and Advertising


Other

Travel & Hospitality

Consultancy
Non-Profit

Real Estate & Construction

Manufacture & Automotive


Healthcare

Consumer Goods & Retail

Finance & Insurance


Government & NGO

Education

Computer Technology

Chemical & Energy


Acceptance

80% 67% 62%

Chemical & Energy Computer Technology Finance & Insurance


Yes Not Sure No
About Office App

Office App exists to bring a happy office life to your


employees and tenants, the professionals.

We are Europe's leading tenant experience platform,


and the only platform to combine hard tech
integrations with soft tech community & amenities. In
5 years we have grown our company to 12 countries
in Europe with customers like LaSalle, UBS, Nuveen,
BNP Paribas, Cushman & Wakefield, HPE, Heineken
and Dell.

We’ve also partnered with a broad ecosystem of fully


integrated and collaborative partners in order to offer
more than 100 functionalities, facilities and services
to revolutionize the way office environments are
utilised, improved, experienced and built.
Ready to upgrade your
workplace experience?
Office App offers a scalable experience platform with a
broad ecosystem of 60+ fully integrated partners. Pick
and choose out of 100+ features, and enjoy the modular
design tailored to fit your office needs. All in one:
Community, Amenities & Services.

getofficeapp.com

Amsterdam Office London Office Toronto Office


Weesperplein 4B 3 Minster Court 180 John Street
1018 XA Greater London Toronto, Ontario
Amsterdam EC3R 7DD M5T 1X5

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