Regional Employee Preferences and Global Workplace Strategy a Multinational Study and Recommendations

Knoll Workplace Research

Regional Employee Preferences and Global Workplace Strategy A Multinational Study and Recommendations

Dr. Michael O’Neill Senior Director, Workplace Research Knoll, Inc. Regional Employee Preferences and Global Workplace Strategy A Multinational Study and Recommendations

Multinationals can refine Definitions of Geographic Areas global workspace strategy Geographical Area Component Countries by understanding employee North America Canada, USA priorities Latin America Chile, Mexico, Venezuela Ireland/UK Ireland, United Kingdom With global business on the rise, multinational EU Austria, Belgium, Czech Republic, Denmark, Finland, France, organizations are challenged to create a Germany, Greece, Hungary, Italy, Latvia, Luxembourg, Netherlands, manageable workspace strategy that makes Norway, Poland, Portugal, Slovak Republic, Spain efficient use of capital - but also respects Sub-Saharan Africa South Africa, Nigeria regional preferences and expectations for Turkey Turkey office space. To assist, Knoll embarked on an international study to understand similarities Brazil Brazil and differences between North American and Russia Russia “Rest of World” employees in how they rated India India the importance of a wide variety of workspace China China, Taiwan design and technology capabilities. Japan Japan We gathered survey data from more than Pacific Rim Indonesia, Philippines, Singapore, South Korea, Thailand, Australia 20,000 employees of three US multinational organizations in the financial services and Table 1. We surveyed more than 20,000 professional workers in 40 countries. These countries consulting industries, across twelve global were subsequently grouped into twelve “geographical areas” according to generally accepted language, cultural and regional commonalities. geographic regions (Table 1).

Key Findings: 4 Overall, the physical workspace is highly Both North American and We asked participants to rate the important to employees - regardless of importance of nineteen workplace geographic location. Rest of World workers highly capabilities to their work lives value the workplace 4 There are more similarities than differences More than 20,000 employees of three US multinational companies in the between North American and Rest of A global workplace strategy should financial services and consulting World employees – they rated the same recognize the great importance that industries participated. Employees rated top eight (out of nineteen) workspace employees – regardless of their location - aspects of facilities support, amenities, features as most important. place on workplace capabilities. cleanliness, workspace design features and furnishings, equipment, personal and 4 North American employees place top On a five-point scale, North American group technology, and workplace policies. priority on a narrower set of workplace participants rated the overall importance of We then compared the ratings between capabilities: choice over work location workplace a 4.14 and Rest of World a 4.25. North American and “Rest of World” and type of workspace, and technology employees on the top eight issues (listed This shows that all employees highly value the support for collaboration. Rest of World in Table 2). eight workplace facets related to programs, employees also highly value choice of technology and workspace. In the analyses, we statistically controlled workspace type, in addition to broader for the effects of generational affiliation, issues such as having an engaging job type, and employee mobility (time workplace, and physical comfort and spent working in locations other than ergonomics. primary workspace) on the preference outcomes. Thus, the differences in preference among regions that we found exist despite differences in workstyle and demographic characteristics.

© 2012 Knoll, Inc. Regional Employee Preferences and Global Workplace Strategy Page 1 Definitions of the 8 Most Important Global Workspace North Americans want the Features and Capabilities workspace choice and Feature/Capability Definition collaboration technology Choice of Workspace Ability to choose from a variety of Type individual and group workspace that fit tools to “get the job done”; current work needs. Rest of World employees value a broader range of Collaboration The office provides necessary Technology collaboration technologies. capabilities

A global workplace strategy could Comfort and Comfort provided by the furniture and emphasize a broader range of elements Ergonomics equipment within the primary workspace. for Rest of World employees than for North Americans.

Engaging Workspace How well the overall office provides an Workers in Rest of World locations place engaging workspace (feeling of belonging, greater importance on a broader range of Comparison of “Top 3” Most Important Issueability for North to connect America, with others, with appropriate the UK/Ireland, issues, EU, BRIC,rating six and of thePacific eight Rimworkspace Regions image of the company, welcoming facets higher than did North American environment). North America UK/Ireland EU Brazil Russia workersIndia (Table 4).China Like their NorthPacific American Rim Flexible Work Location Availability of other locations to work, counterparts, Rest of World employees highly outside the primary building. First value choice over type of workspace used, but they also value the emotional and physical aspects of the work experience. Their top Safety and Security How safe and secure the employees feel Second in the building and within the primary preferences include having an engaging workspace. workplace/work experience, and comfort and ergonomics (Table 4). The differences

SupportThird for Casual How well the design and layout of the between geographic areas are statistically Interaction overall office facilitates casual interaction significant in all comparisons. and collaboration throughout the space. A global workplace strategy should Table 3. This comparison shows that no one issue dominates across geographies; seven of the overall top eight features apppear in at least one region. Sustainability Initiatives Corporate programs that reduce recognize that all employees need energy usage, reduce waste materials, workspace and technology that supports encourage carpooling, encourage distributed work. selection of furnishings with minimal environmental impace. North American workers are dealing with two Table 2. Study participants provided importance ratings on nineteen aspects of the office emerging workplace issues: the targeted per environment. This table shows the top eight features and capabilities (those rated a 4 or higher on person space allocation is steadily shrinking a 5-point scale) listed in alphabetical order. (from an average 237 square feet in 2001 to 135 square feet in 2012); and workplace programs are offering previously unheard-of

Comparison of “Top 3” Most Important Issue for North America, with the UK/Ireland, EU, BRIC, and Pacific Rim Regions

North America UK/Ireland EU Brazil Russia India China Pacific Rim

First

Second

Third

Table 3. This comparison shows that no one issue dominates across geographies; seven of the overall top eight features apppear in at least one region’s top three list.

© 2012 Knoll, Inc. Regional Employee Preferences and Global Workplace Strategy Page 2 Comparison of North American to “Rest of World” importance ratings The regions highly value a wide Comparison of North American to “Rest of World” importance ratings range of workspace features

North America North Americans rated “flexible work Top Ranking Workplace Features Rest of World location” as most important Overall average importance rating “Choice of workspace type” was rated as Overall average importance rating 4.1 4.3 Flexible work location the most important capability for the EU, UK/Ireland, and Russia. Flexible work location Choice of workspace type to meet needs 4.3 The Pacific Rim, China and India rated Collaboration technology “safety and security” as their most Choice of workspace type to meet needs 4.3 important issue. Comfort and Ergonomics

Brazilian employees rated “comfort and Collaboration technology 4.3 Engaging workspace ergonomics” as most important. Safety and security Comfort and Ergonomics 4.2 4.3

Support for casual interaction 2011). An engaging, welcoming space that Engaging workspace 4.2 4.3 Sustainability initiatives connects people to each other and binds them to the organization could be a response Safety and security Rating (1–5 Scale) 3.5 4.0 4.1 4.2 4.3 4.4 4.5 5.0 to the sometimes tenuous connection 4.1 4.3 between mobile employees and employers. Table 4. Comparison of the average importance ratings for each of the eight workspace features Support for casual interaction 4.1 4.2 (using a five-point scale for which 1=least important and 5=most important). Top of Table 4 shows Finally, Rest of World employees value a single “overall importance rating” comparison between Rest of World and North America that is a foundational aspect of office work, a Sustainability initiatives 4.3 an average of the eight feature rating scores. The importance scores are arranged in descending comfortable setting with ergonomic order of the North American ratings, with the most important features at the top. features. Good ergonomics characteristics, 3.5 4.0 4.1 4.2 4.3 of course, should be basic to good office Figure 3. Comparison of the average importance ratings for each of the eight workspace features design. People desire a degree of comfort (usingfrom a five-point scale for which 1=least important and 5=most important). Top of figure 3 shows workstyle flexibility in terms of time and location experienced (relatively) small primary their seating and furniture, as well as propera single “overall importance rating” comparison between Rest of World and North America that is (O’Neill and Wymer, 2011). workspaces with much less enclosure as functional relationships between furnishingsan average of the eight feature rating scores. The importance scores are arranged in descending a standard way of working, as well as a and equipment within their workspace. order of the North American ratings, with the most important features at the top. Just as the small size of the workspace is more flexible workstyle (O’Neill and Wymer, Comfort and ergonomics may be a less salient pushing employees to spend more time out 2010). Because of their familiarity with this issue for North American workers because of their traditional “nest” (primary workspace), approach, they do not have the same focus ergonomics is “built in” to the furniture and how they are being offered many new options on these workplace it is specified, and is for work location. These changes are widely issues that are less obvious an issue embraced and, in fact, once experienced, expressed by their Russian employees rated the overall for most employees. employees typically want workplace flexibility North American For Rest of World programs to be expanded (O’Neill and Wymer, importance of the work environment counterparts. workers, comfort and 2011). An important requirement for mobile lowest of all regions. Pacific Rim ergonomics is dealt employees is the technology to support their In addition to valuing countries rated it the highest. North with through more intense need to collaborate (Ouye, 2011). choice over type Americans are almost exactly in visible work rules that of workspace they between these extremes. Thus, it is not surprising that North American directly affect the use, Rest of World employees express a narrow focus of priorities nature of their job. employees also value that highlight flexible work options and an engaging workplace, one that helps them These three features represent a more holistic collaborative technology. feel welcome, and connected to co-workers valuation of the work environment and work and the organization. As the ongoing tempo experience than the more narrowly focused A global workplace strategy should of movement between locations increases set of features that revolve around “choice” recognize that Rest of World workers at work (coupled with a lower proportion of identified by the North American group. require a broader range of capabilities. “assigned” or “owned” workspaces), the need Compared to North American employees, to keep employees feeling connected to their many Rest of World workers have long organization will increase (O’Neill and Wymer,

“Distributed work” is a broad descriptor of an emerging workstyle

A combination of heads down “focus” work, formal and informal collaboration of varying duration, and social interaction, distributed work occurs in a wide variety of settings within the building, campus or other locations. In addition to physical space, work policies, technology and communications networks play a key role in facilitating distributed work (see O’Neill and Wymer, 2011).

© 2012 Knoll, Inc. Regional Employee Preferences and Global Workplace Strategy Page 3 Drilling down into regional Thus, a workplace strategy assuming North 4 Electronic security systems and alarms differences, one size does American preferences would be missing the 4 Controlling access to various parts of mark for most other regions of the world. the facility not fit all but some broad Certainly individual elements of the North 4 Protection of company secrets, trademarks patterns emerge American top three appear in the top rankings and copyrights of the other regions, but in no case (other than A comparison of the top three employee These issues can be addressed in different the EU) is there more than one element workplace priorities reveals several insights ways, through rules and policies, physical from North America in another region’s top about regional preferences (Table 3): security measures such as locks and alarms, three rankings. 4 No single issue really and plans to be enacted in the event of an In addition to respecting dominates; in fact, A workplace strategy emergency. regional nuances, seven of the eight top assuming North American a global workplace Capability 2: Support comfort and effective issues that emerged preferences would be missing strategy should in this study are also work with “holistic” offi ce ergonomics. the mark for most other regions incorporate features that represented as top Ergonomics issues are handled differently in of the world transcend borders. A issues among these North America than in Rest of World locations. secure, engaging work eight regions. Regardless, supporting comfort in the increasing environment with comfortable settings that 4 Safety and security, choice of workspace variety of individual and group settings must support a distributed work styles should be type, comfort and ergonomics, and an remain a priority. The relatively newer distributed offered to all employees. engaging workplace appear a total of workplace strategies in North America, with sixteen times as a top three issue among their wider variety of space types, are not yet the seven comparison regions (out of a addressed by ergonomic standards, so careful possible 21). Of these, only choice of A global strategy should offer attention to ergonomics as a global issue is workspace type appears in the North four fundamental capabilities critical to maintain health and comfort for American top three. employees regardless of their work setting. 4 Safety and security 4 The EU is more similar to North America “Holistic ergonomics” recognizes that the 4 Comfortable, ergonomic work settings than not, sharing two of the three top physical, mental and social dimensions of work 4 issues (choice of workspace type and An engaging work environment that must be addressed together for a successful location). connects people workplace solution. Offi ce ergonomics remains 4 The UK/Ireland region is similar to the EU, 4 Support for “distributed work” a top priority for many organizations and forward sharing two of the three top issues (choice thinking ergonomists embrace the holistic of workspace type and comfort and Capability 1: Ensure employees have a safe perspective. Effective ergonomics is more than ergonomics). and secure working environment. just specifying an individual workstation. 4 India and China identify identical issues Safety refers to procedures and other and ratings including safety, engaging matters taken to keep workers from being workspace and collaborative technology. injured or getting sick. Security overlaps safety somewhat because it can also mean protecting workers from injury, but it is broader Holistic Ergonomics Sustainability is ranked relatively and refers to other threats as well, such as low in importance but may be an data security, and employee assault or theft. emerging issue Physical Mental Businesses can take measures to ensure that Aspects of Aspects of The lowest ranked issue for both North their workplace is safe, such as minimizing the Work: Work: American and Rest of World employees, Study of body size, Work load, job tasks use of materials that emit harmful chemicals in capabilities — software interface— “sustainability initiatives” pertains to fi t of the workspace the individual at work programs that reduce energy use, reduce choice of fl oor coverings, furnishings and other to the individual waste materials, encourage carpooling, products. Separate workers from specifi c Social, site hazards, via protective clothing and Collaborative and selection of furnishings with minimal Aspects of Work environmental impact (Table 4). Technically, equipment or architectural features. Provide Formal and informal group this issue did not meet the 4.0 cutoff score for work, transitions between adequate ventilation to protect against fumes. work modes— group inclusion into this analysis, but it was included Enact rules and protocols that promote safe spaces overall layout because the score was within .04 of the mark, of space work practices and emergency procedures. and because of the rising importance of sustainability issues in general. Consider specifi c security issues, including:

The somewhat lower score may indicate its 4 Computer and internet-related activity Holistic ergonomics broadens the scope of relative “newness” as an issue that affects engineering and cognitive ergonomics, to 4 Crisis management offi ce employees. It will be interesting to include the social and collaborative context see if it rises in importance over time in a 4 Prevention of theft and fraud of work, group workspace and overall layout global context. of space 4 Prevention of violence

© 2012 Knoll, Inc. Regional Employee Preferences and Global Workplace Strategy Page 4 Capability 3: Use the workspace to Capability 4: Support distributed work by enhance employee engagement with the providing choice of location and type of organization. workspace.

While an engaging workplace is currently Plan and create a variety of spaces that less important to North American than support individual work, as well as formal Rest of World employees, it may emerge and informal interaction. Plan for the following as a critical issue. Rest of World employees criteria, and implement a program that already experience greater mobility than provides guidelines for how people choose— North Americans and, thus, understand how and access—these spaces: great mobility incurs the risk of disconnecting 4 Correct proportion of individual and people from the social network of their meeting spaces organization. The need for an engaging work experience may rise in importance 4 Formal and informal nature of these spaces to North American workers because their 4 Number of each type of space required increasing levels of mobility will also strain the 4 Convenience of location relative to primary ties of connection with each other, and the workspaces, technology and furnishings organization. used Regardless of location, plan workspace so 4 Ease of reserving or accessing the spaces that it conveys a similar work experience and (whether through electronic reservation “feel,” which will promote connection between systems or work rules) employees and their organization. Consider the café - an emerging space type that is becoming the social center for employees. The way social Organizational leaders are increasingly recognizing that employees need to feel emotionally connected connection is communicated through design, to the organization. Workspace design and visual cues, and programs will vary from culture planning can be used to foster a strong sense of to culture. Incorporate design elements or cues employee engagement in the workspace. that help employees learn about enterprise values and traditions and let them make a Holistic ergonomics includes traditional personal connection with their co-workers and concerns (preventing injuries to individuals in the organization. their workstation—the “micro” work environment), but expands to include the shift to more open spaces, issues such as group work, group spaces, employee retention and productivity, and ergonomic issues for a variety of place types (the “macro” work environment).

This broader perspective includes the need to accommodate seamless transitions between heads-down work and various types of casual and formal interaction in your facility plan. The workspace should support ongoing changes to individual work processes. Both of these goals can be achieved by designing to enhance employees’ abilities to shape their work environment and, thus, work experience (O’Neill, 2012).

In the individual workspace, provide ergonomic seating that accommodates a wide range of postures, small meeting tables, tack boards, white boards, adjustable monitor arms and other flexible features. With the ability to work anywhere, employees are working with greater frequency away from their primary desks. Good workplace planning supports a variety of work locations and types of space for employees, as they move through the facility

© 2012 Knoll, Inc. Regional Employee Preferences and Global Workplace Strategy Page 5 References and Additional Reading O’Neill, M. (March 2010). A Model of Environmental Control and Effective Work, Facilities Journal. Volume 28 Issue 3, Special Issue: Environment Behaviour in Facilities Management.

O’Neill, M. and Wymer, T. (2009). Design for Integrated Work. Knoll Research, White Paper.

O’Neill, M. and Wymer, T. (2010). Implementing Integrated Work. Knoll Research, White Paper.

O’Neill, M. and Wymer, T. (2011). The Metrics of Distributed Work. Knoll Research, White Paper.

O’Neill, M. (2011). Holistic Ergonomics for the Evolving Nature of Work, Knoll Research, White Paper.

O’Neill, M. (2012). Choice by Design, Knoll Research, White Paper.

Wymer, T. (2008). Magnet space: Space that Attracts Users, Knoll Research, White Paper.

Wymer, T. (2010). Proportional Planning for the Adaptable Workplace, Knoll Research, White Paper.

Knoll conducts research to investigate links between workspace design and human behavior, health and performance, and the quality of the user experience. We share and apply what we learn to inform product development and help our customers shape their work environments. To learn more about this topic or other research resources Knoll can provide, visit www.knoll.com/research/index.

Follow Knoll research on Twitter @AskDrMike_Knoll