NZ workers’ return to the office is ahead of the global trend

Friday, 15 September 2023

Over two thirds of office workers are keen to get back into the office for most of the working week, a commercial real estate firm says.

Flexible work arrangements might be here to stay, but companies around the world are now encouraging employees to return to the office.

In New Zealand, an increased employer focus on providing well-located workspaces which allowed for collaboration and wellbeing was paying off, according to JLL’s latest Office Sentiment Survey.

It found that some form of flexible working arrangements were on offer to 90% of employees, and 90% of employees were happy with the options on offer to them.

But 70% of employees wanted to spend about three days a week in the office, and that statistic meant New Zealand was bucking a persistent global trend, JLL NZ head of research Gavin Read said.

“In the US, for example, attendance is still sitting at around 50%, and private companies and government departments are increasingly having to resort to the stick of return-to-office mandates for staff.”

Being in the office made for better collaboration with colleagues, the survey found, and it was a significant driver for employees, with 63% picking it as their top reason for coming to the office.

The office did not necessarily lead to greater productivity, according to employees.

Twenty-eight percent said they were equally productive at home or at the office, while 27% said they were more productive at home, and 19% said the office was the more productive workplace.

But New Zealand workers’ satisfaction with their working environment had increased significantly since JLL’s first survey was conducted in 2021, Read said.

“Back then companies were still coming to grips with the post-lockdown return to work, and employee workplace satisfaction was down to a net promoter score of -5.

“But with facilities such as tech-enabled meeting spaces, huddle zones and hot-desking more prevalent, the NPS now sits at +20.”

This suggested employers were moving the dial in a positive way, and providing office space that was starting to meet more of their employees’ requirements, he said.

“Increased satisfaction reflects a clear synergy between employee and employer priorities, with both focused on location for ease of travel and quality of space as most important for the work environment.”

For employers, the third most important consideration around workspace was having amenities close to the office, such as childcare, gyms, retail and hospitality, the survey found.

Read said employers were thinking about the wellbeing of their staff more, and how they could best retain and attract talent with a modern workplace that catered to a wide range of needs and conveniences.

But while workers were returning to the office, there had been a decline in the amount of workspace being used, the survey showed.

Just 45% of employers said they were utilising 80% or more of their workspace, and 6% were utilising less than 30%.

That was down from 2021 when 85% were utilising 80% or more of their workspace, and only 2% were utilising less than 30%.

Over half of employers were considering a change of space, with 16% looking to reduce, 14% wanting to increase, and 25% wanting to reconfigure.

Read said the theme of more change still to come in the office sector aligned with conversations the firm was having in New Zealand and Australia.

“Many employers are yet to start the journey of providing the optimum space for their employees, and understanding the importance of getting this right to retain and attract staff.”

But demand for co-working space was also on the rise, leading providers have said.

That was because it allowed employers flexible space options without the need to commit to long-term office leases in uncertain economic times, they said.