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GUEST OBSERVATION
The past thirty years have seen the demise of the expectation of a job for life. We've seen traditional career paths of apprenticeship, journeyman and master craftsman largely disappear, not just in the trades but also in professions like engineering and government policy analysis. Waves of redundancies have hollowed out the middle layers of many organisations, leaving incumbents in key roles often lacking the depth of experience needed to make wise decisions. 
Demographic changes are one of the <a href="https://www.colliers.com.au/sitecore/content/Global/News/2014/January/7_Forces_Transforming_Your_Office.aspx">seven forces</a> affecting corporate property decision-making. There are of course many dimensions to this, including increased labour force participation by women and a broader ethnic mix in many organisations than we've seen previously. But one of the things that is particularly interesting is the composition of the workforce by age. Traditionally the population pyramid, which is a graphical depiction of the number of people of each age group split by gender, has been fairly, well, pyramidal. That is to say, plenty of younger people and relatively few older folks. 
What's happening is that it's starting to become a population rectangle and is generally getting taller as more people live into a ripe old age and family sizes decrease. This <a href="https://www.abs.gov.au/websitedbs/d3310114.nsf/home/Population%20Pyramid%20-%20Australia" target="_blank">link</a> takes you to the Australian Bureau of Statistics' animated population pyramid, where you can see how the shape changes over time.
Throw together the lingering effects of the global financial crisis (GFC) with a bit of "generational studies", there are some interesting implications for workplace planners:
Baby Boomers have abandoned early retirement dreams - A sad fact of the GFC is that many people have had to defer their retirement plans and remain in or return to the workforce. Many of the so-called baby boomers (people born immediately after WW2, who are now aged up to 70) are seeking part time work to top up their retirement income sources. Notwithstanding the fact that longer life expectancies are forcing people to re-evaluate the level of savings they need at retirement. In some cases people are preferring to continue working at least part time simply to keep themselves physically, mentally and socially active given the expectation of a longer period of retirement. 
Generation X battling to buy into the property market - Generation X (people from their early 30s to late 40s) are in the middle of raising families. Given housing (un)affordability or by choice, many X-ers are in double income families, but often at least one member seeks to work part time to make juggling family commitments a little easier.
Generation Y job-hopping and chasing online start-ups - As Generation Y's numbers in the workforce continue to swell over the next few years as they complete their education, they will become the dominant age group at work. While noted for their upwardly mobile job hopping ways (unsurprising given they are the first generation to enter a workforce with no notion of job security), we expect that as they hit their thirties they will start to moderate their expectations of their employers as they encumber themselves with children and/or mortgages. Nevertheless, some will continue to pursue multiple jobs: the office job for income to supplement their web business or hobby job until it takes off.
Meanwhile the Millennials, who will be joining the workforce before this decade's end, are growing up in a world of iGadgets and social media and will be occupying the offices you are fitting out today.
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Here are three ways to leverage your workplace to help bridge the generation gap:
1. Support multiple generations with a mix of work settings
How do you cope with up to four generations working under the same roof? At one end of the spectrum the Millennials are likely to want something that is contemporary and open, giving them good access to management, cutting edge technology and a sense of personal control over when, where and how they do their work. At the other end of the spectrum is a generation that is perhaps least accustomed to open plan environments and may seek the solace of an enclosed office.
Across all generations we see  distraction avoidance as a key requirement, though some individuals are more adept at dealing with this than others. While some advocate a set of ear buds and a good music collection, listening to music can potentially introduce more distraction and reduce cognition, impacting productivity except for mundane repetitive activities. Quiet rooms for individual use and so-called "library" spaces where groups of people can work quietly and phone calls are banned are becoming more common. The success of such environments depends on an appropriate mobile technology solution and managerial permission for staff to move about the office and select an environment that meets their needs (including off premises options).
2. Hot desk to create space for part time and part remote workers
Even an open plan workstation is a relatively expensive overhead, generally costing a CBD based corporate in the order of A$10,000 - A$18,000 per annum in rent, fit out depreciation and operating costs. Economically (with the <a href="https://www.colliers.com.au/sitecore/content/Global/News/2014/February/A_flash_new_office.aspx" target="_blank">new world economic order</a> in mind) it makes sense to optimise utilisation by imposing some form of desk sharing regime for all those part timers. It's an approach being adopted at a growing number of workplaces as we've seen in <a href="https://www.colliers.com.au/sitecore/content/Global/News/2013/September/How_to_cut_accommodation_costs_by_20_per_cent.aspx">other posts</a>.  Organisations must be careful when introducing desk-sharing regimes. <a href="https://www.colliers.com.au/sitecore/content/Global/News/2013/October/The_office_moves_that_scare_staff_away.aspx" target="_blank">Our experience</a> is that staff are more likely to accept workplace changes that take something away (such as an office entitlement) if something else is given back. Given the property, fit out and churn savings derived from largely or completely eliminating enclosed offices, it should be possible to channel a benefit back to the affected staff, in the form of an expanded potential bonus pool if nothing else. Effective communication of this balance is critical, which is why workplace projects need great change managers.  Before we leave this topic I'll point out that there are several pitfalls with staff working part time (and even full timers who work remotely some of the time). The first is that many part timers target at least three days per week, therefore limiting opportunities for desk sharing due to the overlap. Another is that the opportunities for team interaction and collaboration may diminish and/or demand for meeting spaces peaks on the overlap days (and indeed we typically find midweek mornings to be the most popular time for meetings). In some cases the use of mobile technologies can overcome such issues. Nevertheless, as talented employees seek work/life balance more employers are needing to gear up to accommodate this change.
3. Mentoring the trick to keeping younger employees engaged
A problem with older fit outs is that they do not facilitate the mentoring opportunities younger staff crave. However, an issue in some cultures is the sense of entitlement that mature staff may feel towards an enclosed office, particularly if promotions or longevity have traditionally been rewarded with the proverbial "nice piece of carpet". But as more people remain in the workforce past the traditional retirement age, there won't be enough senior management positions to go round. In any case (and partly due to the loss of traditional apprenticeship based career paths), there's a fantastic and desperately needed opportunity for mature, long term staff to mentor younger workers, which is not easily achieved from an individual office.  As can be seen, walking the tight rope between each demographic group's expectations while maintaining fiscal prudence is difficult. The compromise solution may be some form of activity-based or agile workplace strategy, but perhaps without going to the extreme of forcing people to find a new seat every day.
David McEwen is a management consultant working at the intersection of workplace strategy, sustainability and technology with <a href="https://www.colliers.com.au/%E2%80%8E" target="_parent" rel="nofollow">Colliers International</a>.
You can connect with David on <a href="https://www.linkedin.com/profile/view?id=9321351&amp;locale=en_US&amp;trk=tyah&amp;trkInfo=tas%3Adavid" target="_blank">LinkedIn</a>.
This article first appeared on <a href="https://www.colliers.com.au/News.aspx" target="_blank">Colliers International News</a>.
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Three ways to leverage your workplace to help bridge the generation gap

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This week I’m drilling into the first of <a href="https://www.propertyobserver.com.au/office/the-seven-forces-that-are-transforming-your-office/2014021867634" target="_blank">seven key forces</a> influencing contemporary workplaces. The shadow still looming over corporate Australia and many other countries is what we call the "new world economic order."
Following the global financial crisis (GFC), organisations are more conscious about their costs and cautious about their spending, while many individuals may be a little more tolerant about working conditions in order to safeguard their employment. This is translating to a lot of property consolidation as organisations compact themselves into a smaller footprint and release or sublease excess office space.
I've looked previously at the <a href="https://www.colliers.com.au/sitecore/content/Global/News/2013/September/How_to_cut_accommodation_costs_by_20_per_cent.aspx" target="_blank">ways organisations use less space</a>, through space intensification and more recently hot desking strategies.
We've seen many organisations trying to combine efficiency with a more effective workplace - increasing the variety of work settings and implementing flexible mobile technologies. Our research looks at the adoption of flexible working as a workplace strategy and found that one in three organisations had already deployed it (to at least part of their workforce) or had firm plans to do so. We think this level of interest was clearly driven by the impacts of the GFC and wonder if the catalyst of a certain investment bank's celebrated activity-based working implementation in Sydney (occupied in 2009) would have had the same level of impact on market trends if it had been rolled out in, say, 2006 when the economy was still riding high. At the other end of the spectrum we're also seeing many organisations defer refurbishments or relocations, preferring to sweat their accommodation assets rather than sink capital into a new fit out. Our research shows 15% of tenants are more likely to renew and stay put with a further 30% focusing on cost savings. In cases where the existing workplace is not aligned with the organisation's employment brand or is impeding productivity or restricting opportunities for collaboration, this could be a case of robbing Peter to pay Paul.
The latest ME Bank Household Financial Comfort Report shows job insecurity is in the top three money concerns noted by respondents. As such, employees may be more accepting of older fit outs, lower quality buildings, fringe locations or desk sharing arrangements. There's a realisation too, that spending on a flash office fit out has a direct and long lasting impact on a firm's bottom line. Workplace projects that achieve a balance between cost savings versus staff amenity and other benefits may be viewed more favourably by current and prospective employees.  Conversely, while there's no evidence that people leave organisations primarily because of physical workplace arrangements (it's more likely to do with relationships with colleagues, pay, or the work itself), it can be an influencing factor in some cases.
In the various top employer rankings there are many examples of high ranking organisations where the workplace arrangements are cited as a significant strategic factor. In times where many organisations are tightening the purse strings on accommodation, those that do invest in workplace arrangements that appeal to employees may derive some advantage in the so-called war for talent.
But it's important to understand what will appeal to the employees you want to retain - those with the right cultural and productive fit - as opposed to those you don't. For instance, if many of your competitors have introduced desk sharing, perhaps the retention of assigned seating could be a point of difference.
David McEwen is a management consultant working at the intersection of workplace strategy, sustainability and technology with <a rel="nofollow" target="_parent" href="https://www.colliers.com.au/%E2%80%8E">Colliers International</a>.
You can connect with David on <a target="_blank" href="https://www.linkedin.com/profile/view?id=9321351&amp;locale=en_US&amp;trk=tyah&amp;trkInfo=tas%3Adavid">LinkedIn</a>.
This article first appeared on <a href="https://www.colliers.com.au/News.aspx" target="_blank">Colliers International News</a>.
                               
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A flash new office? I'm worrying about my job!

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Work in the future will no longer be a place you go, but a thing you do. With new ways of working evolving, modern office environments need to be flexible and responsive to change to attract talented staff and boost productivity.
However, property is traditionally an inflexible resource, with buildings lasting longer than many companies. While the average office lease in Australia is around six years, larger firms typically take out 10 or 15 year terms with extension options. In a good quality, well maintained office fit out, many of the fittings and furnishings can wear well for nearly 15 years.  In comparison, product life cycles for many industries are now less than two years and technology is changing our lives in ways we could have barely imagined even seven years ago when the iPhone first debuted.
When considering renewing or relocating your office, you need to think long-term about whether your workplace actually supports the way people work and how your business will react to change.
For starters, many of the key decisions, like building selection and the amount of space need to be made several years prior to occupation.
This presents a real challenge for project teams as they gaze into their crystal balls and predict the future. Both in terms of internal questions, like what markets their organisation will be operating in and its consequent labour force composition, plus external questions like the direction technology is heading and what sort of workplace prospective staff will expect. Colliers International's research team has had a crack at identifying what might be on the horizon that could affect the way we design and use office space. We don't claim to be futurists and aren't in the business of predicting disruptive technologies so our point of departure is what we are starting to see today.  
Here are the seven forces transforming your office:
1. The new world economic order
Prevailing weak economic conditions leading to a focus on cost reduction and in many cases making employees more accommodating of changing and constrained working conditions. At the same time, organisations are becoming hyper competitive in order to survive, meaning the facilitation of product and process innovation has become paramount.  
2. Demographic change
The need to balance differing generational expectations at work and deliver work life balance. Ageing populations in many economies, combined with other factors such as weaker economic growth, are challenging traditional notions of apprenticeship, skill mastery and graceful retirement.  
3. Technology
Having enabled and created the expectation of a mobile and connected distributed workforce, we now need to think differently about the role and functional requirements of office buildings.  
4. Health and well-being
Healthy workers are more productive and effective workplace Arrangements can facilitate this in many ways.  
5. The regulatory environment
Restrictions and obligations on business activity are becoming tougher in many parts of the world. Sometimes this goes counter to what we hope to achieve through our workplace strategy.  
6. Sustainability
We have a duty to the planet and future generations to limit our environmental footprint at individual, business and community levels. We also need to make our organisations more resilient in the face of increasing severe weather and other events related to the impacts of climate change. Workplace strategy can play a significant part in this goal.  
7. Urban planning
Given the foregoing trends, how must our cities, buildings and workplace expectations adapt? I'll be examining each of these forces over a series of posts in the coming weeks. 
David McEwen is a management consultant working at the intersection of workplace strategy, sustainability and technology with <a href="https://www.colliers.com.au/%E2%80%8E" target="_parent" rel="nofollow">Colliers International</a>.
You can connect with David on <a href="https://www.linkedin.com/profile/view?id=9321351&amp;locale=en_US&amp;trk=tyah&amp;trkInfo=tas%3Adavid" target="_blank">LinkedIn</a>.
This article first appeared on <a target="_blank" href="https://www.colliers.com.au/News.aspx">Colliers International News</a>.
 
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The seven forces that are transforming your office

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Location, location, location. The age old real estate mantra should not just apply to where you live. Choosing the right location should be a key element of any good business strategy.
The location you choose for your business is critical in positioning your brand, while a good choice in location will be vital in attracting and retaining the best staff.
But don't be enticed to a premium location if it doesn't match your brand. Alternatively, don’t be put off by the cost of a premium location until you’ve done your due diligence and understood the benefits it can bring to your business.  A premium location may retain good staff, so ultimately cut down on your recruiting and training budgets.
Having a clear understanding of your business strategy and how your organisation sits in its market environment are the first steps to choosing your location.  Here are a few tips to consider when that all important choice has to be made:
Position it right and talent will follow
 In order to attract a steady supply of the right people to your business, you need to consider the type of person you wish to attract, their ages, qualifications, salary expectations and where they live.  Once you have a clear understanding of their profile, choose a location which will appeal to them. 
Keep competition close
 In most countries and cities there are clear geographic clusters for certain types of organisations. Employees move between these organisations and become accustomed to the geography.
 
What location tells your clients
 Where do your potential clients expect you to be? A company's physical address sends market signals that should be in tune with your branding and convey the appropriate stature and size to your target market.
 
Be easy to work with
Look at the type of business you are in and where work is carried out. Some businesses need their sales or support personnel to be based according to their clients' geographies. Major call centres are often located in proximity to major telecommunications hubs.
 
Catch talent with an easy commute
Consider where your preferred talent are likely to reside, then ensure that you choose a location that is as easy commute.
Don’t expect staff to walk for a sandwich
Amenity covers a wide range of considerations, from convenient and affordable parking, to cafes and bars, retail, banking and other services.
 
There's safety in numbers
With longer working hours the norm for many organisations, the relative risks involved in making it safely into one's car, bus or train when leaving the workplace after dark do impact on people's employment decisions.
 
Pay only for what you need
Do you actually need a physical office presence? Some organisations may be able to operate successfully on a largely virtual basis, with team members working from their homes, co working sites or clients' sites. Where previously staff needed to work in a central office to be able to access records and equipment, this is no longer the case. However, for many organisations a central office fulfils important collaborative, social, cultural/brand and other requirements.
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David McEwen is a workplace strategy consultant with <a href="https://www.colliers.com.au/?" target="_parent">Colliers International</a>.
 
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David McEwen

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