U.S. WORKPLACE SURVEY 2019 Very few people say their ideal workplace is“totally open” Quiet zones in offices have significantly higher impact than break rooms One in seven corporate employees use coworking during an average week TABLE OF CONTENTS It’s time for a new workplace narrative; we need to move past a language of extremes.

INTRODUCTION 2 Social and economic change underpin today’s workplace conversations We surveyed over 6,000 people working full-time which ones? Coworking venues now abound, but what 4 The U.S. workplace is becoming more effective, and more collaborative across the United States to understand the key is the real impact, and how are they really being used 6 An effective workplace is critical, but it’s not enough issues facing today’s workers and workplaces. by people working at large companies? In each case, The pervasive narratives around today’s workplace deeper study often points to balance and nuance as KEY FINDINGS environments are often based on the idea of extremes. the best starting points to create a better workplace. 8 People are asking for more private space at work Debates around the “open office” are a high-profile 12 Not all amenities are worth the investment example—open offices are purportedly noisy, What people really want from their workplace is 16 14% of employees at large companies use coworking spaces distracting, and destroying our ability to both focus a great experience. In this report, we investigate the modern workplace and identify factors and design CONCLUSION and collaborate. But they may also make us more physically active and less stressed. These discussions, strategies that optimize effectiveness, experience, 22 Action steps to optimize people’s performance and performance. Today’s workplace is an ecosystem, 24 A framework for workplace experience however, lack solid grounding because there is no consistent definition of the “open office,” and rarely and the best workplace experiences are built on variety, choice, and autonomy. Providing a great APPENDIX is any environment totally open or totally closed. workplace experience also yields direct business 26 Global comparisons Other hot-button issues demand greater scrutiny, performance benefits. Great workplaces create more 28 Role comparisons 30 Research history & methods too. The workplace is increasingly amenity-rich, but engaged employees; and more engaged employees 32 Applied research tools: the WPIx are those amenities truly delivering value—and if so, are the key to business productivity and profit.

1 INTRODUCTION

Social and economic change underpin today’s workplace conversations.

Today’s workplace landscape is mired in organizations that hold the same values change spurred by evolving business and as they do, provide a healthy work/life social contexts. The U.S. unemployment balance, and include the right amenities rate is at its lowest point in nearly a half- in the workplace. These shifts are driving century, putting organizations in heated organizations to increasingly compete on competition for top talent. However, the experience and purpose. predicted end of this extended boom cycle continues to make companies As the workplace accommodates five wary of large investments or long-term generations, its diversity is also growing commitments. The world also continues in other ways. Women and people of color to become more urban, driving up real are entering the workforce at historic estate prices and density in the prime rates. Today, women outpace men in city markets where companies are achieving bachelor’s degrees, and in many increasingly locating. industries, outnumber men in middle and upper management positions. Diverse Since the release of our U.S. Workplace working communities engender diverse Survey 2016, Millennials have become the perspectives and desires. Workplaces largest contingent of the U.S. workforce, that reflect the wide range of needs and and Generation Z’s integration has already expectations of today’s talent pool will begun. Younger workers tend to pursue come out ahead.

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HISTORICALLY LOW UNEMPLOYMENT FIVE GENERATIONS AT WORK GENDER DIVERSITY EDUCATIONAL ACHIEVEMENT Percent unemployment by year U.S. labor force, in millions Percent of the workforce, women vs. men Percent of Americans 25-29 years old with a bachelor's degree or higher

10 80 80 40 Boomers Women 60 35 8 60 56 Men Gen X 53 Women Men 6 40 41 40 25

Silent/Greatest 4% 4 20 20 20 Millennials 9 Post-Millennials 3 0 0 0 0 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1980 1985 1990 1995 2000 2005 2010 2015 1980 1985 1990 1995 2000 2005 2010 2015

Source: U.S. Bureau of Labor Statistics, Current Population Survey (2019) Source: Pew Research Center (2018) Source: U.S. Department of Labor, Women in the Labor Force (2016) Source: Steven Johnson / The Atlantic (2017)

2 U.S. Workplace Survey 2019 3 INTRODUCTION

The U.S. workplace is becoming more effective, and more collaborative.

The U.S. workplace has improved in workplace (44 percent)—a metric defined These improvements align with an greater business performance recent years, with 2019 registering our in our 2013 study to codify workplaces that observed shift toward high-performance and innovation. Perhaps even more highest effectiveness scores of any successfully prioritize both individual and behaviors. As knowledge and creative important, U.S. workers are also starting Workplace Survey over the past 15 years. collaborative work, and which has proven work have become more complex and to see these behaviors as more critical While this may be partially attributable to be highly correlated to effectiveness interconnected, people today report to their job performance, and are reporting to an extended economic expansion, it and performance. People today also spending less time working alone and that their workplace environments are is also connected to improvements in report greater levels of choice and more time collaborating, socializing, more effective overall in supporting the physical and experiential nature of autonomy at work—45 percent of and learning. Our past research directly the full suite of activities that define the workplace itself. A greater portion of U.S. workers now report having choice connects these non-focus behaviors with modern work. people today report working in a balanced in where they work within their office.

2013* 2016 2019 2019 44% WORKPLACE EFFECTIVENESS (WPI) 2016 38% 2019 70

WORKING ALONE 54% 50% 45% 2016 69

2013 63 BALANCE 40 90 2013 24% COLLABORATING 17% 28% 30% IN PERSON 2019 marks the highest workplace effectiveness score measured, driven by COLLABORATING 7% 15% 14% high levels of balance and 2019 VIRTUALLY choice at work. 41%

2013 WORKPLACE EFFECTIVENESS 32% LEARNING Workplace effectiveness by year, as measured by 2016 Gensler’s Workplace Performance Index (WPI) score. 27% The WPI is a proprietary aggregate measure of CHOICE 5% 3% 6% workplace effectiveness.

SOCIALIZING

8% 4% 5% BALANCE & CHOICE TIME SPENT BY WORK MODE Percent of respondents who work in a balanced Percent of average week spent in each *Percentages do not add up to 100% because workplace (top), and who report choice in where to work mode, by year. respondents were given an “other” option in 2013. work (bottom), by year.

4 U.S. Workplace Survey 2019 5 INTRODUCTION

HIGH EFFECTIVENESS + GREAT EXPERIENCE

An effective workplace is critical, POOR EFFECTIVENESS + GREAT EXPERIENCE 45% but it’s not enough. OF U.S. RESPONDENTS 8% These people have the highest OF U.S. RESPONDENTS engagement scores in our sample. People The workplace is getting better, but While effectiveness and experience These people are highly engaged, but working in the technology, finance, and significant room for improvement are distinct variables, they do work in struggle with ineffective workplaces. management/advisory industries are most still exists. In this report, we frame concert—with the majority of people People working in the consumer goods, likely to fall in this quadrant. progress and future goals within a dual working either in a workplace that not-for-profit, and media industries are narrative—a focus on both effectiveness scores poorly on both or in one that most likely to fall in this quadrant. and experience in the workplace. On its scores well on both. The latter group— own, the effectiveness of an individual’s whose workplaces are optimizing HIGH EFFECTIVENESS + workplace environment explains a effectiveness and experience in POOR EXPERIENCE significant portion of job commitment tandem—is consistently associated with POOR EFFECTIVENESS + and satisfaction, purpose and meaning our highest employee engagement and POOR EXPERIENCE 8% in their work, and the likelihood they will performance scores. OF U.S. RESPONDENTS recommend their company to a peer—all 39% These people have highly effective Approximately one in five workers are OF U.S. RESPONDENTS direct measures of employee engagement workplaces, but still struggle to have not so easily categorized, however—these and perception of their company. a great experience. People working in workers report either having an effective These people consistently rank lowest on engagement the legal industry are most likely to fall Our U.S. Workplace Survey 2019 workplace but not a great workplace in this quadrant. expands our purview to codify and experience, or report an ineffective and performance. People working in the government or defense industries measure the entire employee experience. workplace and a great experience. For are most likely to fall in this quadrant. By analyzing effectiveness and experience these people, as well as those with below together—as quantified by our proprietary average scores on both metrics, there is a Workplace Performance IndexSM (WPI) distinct missed opportunity for leveraging HOW THE WORKPLACE MEASURES UP SM and Experience Index (EXI) scores— the workplace environment to optimize Respondent breakdown into those above we are able to explain a larger portion of individual performance. and below average on experience (EXI) employee engagement and performance. and effectiveness (WPI), and how the two scores interact.

Quantifying experience and Companies with top quartile effectiveness can explain*: engagement have**: 44% of commitment 21% higher profit 55% of recommendation 41% lower absenteeism 56% of job satisfaction 10% higher customer loyalty To optimize performance, we must Quantifying effectiveness alone can explain*: address effectiveness and experience WORKPLACE WORKPLACE EMPLOYEE BUSINESS 29% of commitment EFFECTIVENESS EXPERIENCE ENGAGEMENT PERFORMANCE in tandem. Currently, less than 35% of recommendation (WPI) (EXI) 38% of job satisfaction half of the American workforce is in a workplace that achieves both.

*Explanatory power of workplace effectiveness **Source: Gallup Q12 Meta-Analysis (WPI) and experience (EXI) as related to employee engagement metrics and business performance

6 U.S. Workplace Survey 2019 7 CURRENT & IDEAL WORK ENVIRONMENT Percent of respondents who currently sit in each type of workplace environment, compared to what they say would be ideal KEY FINDING ONE MOST OPEN

TOTALLY OPEN No walls—everyone in the People are asking organization sits together

7% for more private space MOSTLY OPEN With on-demand private space; at work. 28% offices only when required by role 11%

Only a fraction of people would prefer on-demand private space to support working in a totally open or a totally individual, focused work, but very few 26% private environment; over two-thirds say they would prefer a totally private (77 percent) consider environments environment. And when rating what SOMEWHAT OPEN that fall between these extremes constitutes the “best” workplaces overall— to be ideal. To capture this nuance, not just physically but in terms of Few in private offices; desks with low/medium panels for privacy we measured “degrees of openness” the goals and work processes they 20% with six variables, from “totally open” support—“team building and workplaces with no walls, to “totally collaboration” is the highest-ranked private” workplaces in which all employees aspect of a great workplace according CURRENT IDEAL have individual offices. We asked each to our respondents, a finding respondent to tell us which type of consistent across generation and 28% environment they currently have, and gender segmentations. which they consider to be ideal. Responses SHARED OFFICES to both questions fall largely in the middle, Although these desires may appear 6% DEGREES OF OPENNESS DEGREES OF though on average, people seek greater at odds with one another, the best Mostly shared offices/team rooms that sit 3 to 6 people levels of privacy than they currently have. workplaces treat these goals as Women’s preferences lean slightly more equal—delivering a variety of spaces 8% toward privacy; Millennial and Gen Z that accommodate privacy and focus respondents lean more toward openness. alongside more open spaces that prioritize connection, collaboration, and Which environments work best? innovation. And these greater degrees 20% Environments that are mostly open of openness align with behaviors 23% environments but provide ample on- connected to effectiveness, experience, 7% demand private space have both the and engagement. People working in more highest effectiveness and the highest open spaces are more likely to report MOSTLY PRIVATE experience scores. This largely aligns experimenting with new ways of working, Individual offices for most; the with people’s stated preferences: they taking time to reflect, having fun, and rest have medium/high panels prefer open environments with ample getting inspired.

16%

TOTALLY PRIVATE An enclosed, individual work environment for everyone MOST PRIVATE

8 U.S. Workplace Survey 2019 9 KEY FINDING ONE ATTRIBUTES OF THE BEST WORKPLACES Percent of respondents who selected each attribute People also see team building as describing the “best” workplaces. as the most important aspect Promote team building of great workplaces. and collaboration Provide the latest Help share knowledge and Support health Communicate Inspire creativity Maximize individual technology and tools best practices and well-being shared mission, productivity and innovation values, and culture Build social Foster camaraderie Support connections and and fun experimentation with community new ways of working 29% 31% 32% 33% 33% 34% 43% 14% 18% 20%

Mostly open environments deliver best on performance and experience

EFFECTIVENESS (WPI) EXPERIENCE (EXI)

TOTALLY OPEN 71 69 Mostly open environments have the highest effectiveness MOSTLY OPEN 73 70 and experience scores, driven SOMEWHAT OPEN 67 63 by high levels of choice, variety, and balance. SHARED OFFICES 67 63

MOSTLY PRIVATE 70 64

TOTALLY PRIVATE 71 66

40 90 40 90

PERFORMANCE BY CURRENT WORKPLACE TYPE Experience (EXI) and Effectiveness (WPI) scores for each workplace type, on a 100-point scale.

10 U.S. Workplace Survey 2019 ESD, Chicago, IL 11 KEY FINDING TWO Target workplace investment on the amenities that deliver the highest impact. Those that directly support work process have most value. Not all amenities are worth the investment. EFFECTIVENESS (WPI) EXPERIENCE (EXI) GREATEST VALUE

THOSE WHO HAVE THIS AMENITY +11 +16 INNOVATION HUB* The workplace is becoming more outdoor workspaces and work cafés— THOSE WHO DO NOT choice-based and amenity-rich. But fall toward the middle. The key takeaway: every workplace can’t, and shouldn’t, work-focused amenities that align with the MAKER SPACE* have every amenity. To target the right direct needs and priorities of people’s jobs +11 +14 investments, we must understand the have the most value; amenities aren’t for impact of individual amenities and escaping work, they’re for optimizing it. alternative workspaces on people’s +10 +14 QUIET/TECH-FREE ZONE performance. To measure this effect, A work-focused amenity strategy is also we asked people which amenity and a way to encourage people to work in a more mobile fashion—and those behaviors alternative workspaces are available in OUTDOOR WORKSPACES their office and compared access-related are associated with higher performance. +9 +13 effectiveness and experience scores. For high performers, everywhere is a work setting—both in and out of the The amenities that deliver the greatest office. Employees who work away from +9 +13 FOCUS ROOMS impact connect directly to people’s their desks at least sometimes are more most salient needs and preferences: effective and report a better experience. spaces directly connected to An interesting relationship also exists WORK CAFÉ innovation, making, and collaboration; between spending time outside the +8 +12 and quiet places to perform focused office entirely and great experience— or individual work. Amenities with a it’s curvilinear. That means there is a non-work focus, such as lounges and break balance to strike—too little time, as +7 +10 PHONE ROOM rooms, deliver the smallest performance well as too much time, working away gains in our sample. Amenities that from the office is associated with lower are versatile in their function—such as effectiveness and experience scores. +7 +9 LIBRARY

+4 +6 CAFETERIA

+1 +2 BREAK ROOM/LOUNGES

LEAST VALUE THE AMENITIES THAT DELIVER MOST ON *Innovation hub and maker spaces are most prominent in technology, media, management EFFECTIVENESS AND EXPERIENCE advisory, and finance firms. EXI and WPI score comparisons for each amenity, differences in scores between people who have the amenity in their workplace and those who do not.

12 U.S. Workplace Survey 2019 13 KEY FINDING TWO

EFFECTIVENESS (WPI) EXPERIENCE (EXI) The right amenities are a crucial ingredient in a choice-based workplace experience. WORK AWAY FROM DESK 75 +11 73 +15 THOSE WHO DO NOT 64 58 Workspaces that provide variety and 40 90 40 90 encourage in-office mobility have higher IN OFFICE MOBILITY People who work away Experience (EXI) and Effectiveness (WPI) scores effectiveness and experience scores. from their desks within for employees who spend time working away the office frequently have from their desks. higher effectiveness and experience scores.

Only 49% of people without Only 33% of respondents without choice in where to work report a variety of work settings report a a great workplace experience. great workplace experience.

71% of people with choice VARIETY CHOICE in where to work report a great workplace experience.

The vast majority, 79%, of people in workplaces with a variety of settings report a great experience.

THE POWER OF VARIETY THE POWER OF CHOICE Percent of respondents who report a great Percent of respondents who report a great experience—those with a variety of work settings experience—those with choice in where to work within the office versus those without. within the office versus those without.

14 U.S. Workplace Survey 2019 AKF, Philadelphia, PA 15 KEY FINDING THREE OTHER LOCATIONS PRIMARY OTHER LOCATION LOCATIONS COWORKING 5% LOCATION 78% 11% ANOTHER 2% 14% of employees COMPANY LOCATION COWORKING 7% LOCATION 18% at large companies HOME PRIMARY 8% COWORKING U.S. AVERAGE LOCATION use coworking spaces. USERS 42%

ANOTHER Coworking isn’t a new phenomenon. At average week compared to 18 percent, COMPANY its inception, these spaces were designed respectively. This appears to be close LOCATION for individuals or small groups that needed to an optimal allocation of time for 14% HOME a place to work. In recent years, that many: users who spend about a day dynamic has started to shift. There is a a week in coworking spaces have the 15% fast-rising contingent of “enterprise” users highest performance scores, with a of coworking spaces, or people who utilize significant dip when that time exceeds coworking space out of an agreement with 20 percent of their average week. And their employer and a coworking company. we see a similar relationship with time LEGAL FINANCE Fourteen percent of our respondents spent in main office locations— 100,000+ NOT-FOR-PROFIT 3% 12% (over 800 people)—all of whom work too much, or too little, time spent 3% 10% ENERGY for companies of 100 people or more— in one’s primary workspace is a drag 6% report using coworking space as part on performance. 10,000-99,999 CONSUMER GOODS FEMALE of their average workweek. These 10% 9% MANAGEMENT 46% Why do people use coworking spaces? ADVISORY users tend to be young and male. Most 101-999 SCIENCES 14% Collaboration and networking top the list, COMPANY INDUSTRY GENDER are in manager positions or above, and SIZE 43% 5% while focus acts as a detractor—the more an outsized portion work in the MEDIA MALE technology industry. time a person spends working alone, the 10% 54% less time they spend in coworking spaces GOVERNMENT/ For the majority of these users, on average. In many ways, coworking 1,000-9,999 37% DEFENSE TECHNOLOGY coworking appears to be part of their spaces function as another high-value 3% 35% company’s broader plan to facilitate amenity—an alternative place to autonomy and mobility instead of work and support activities not well acting as their primary workspace— supported by the desk. Our data also WHERE PEOPLE SPEND THEIR TIME, and our data suggests this is the right suggests that coworking utilization may BABY BOOMER ADMIN 5% 6% AVERAGE VERSUS COWORKING strategy. Most of these respondents have a negative relationship with the USERS (TOP) PROF/TECH EXECUTIVE use a coworking space for less than one quality of people’s primary workspaces: 16% 23% Breakdown of time spent during an average week day per week, and spend more time in people with better-designed collaborative for the 14 percent of corporate employees who their company’s own workplace than in areas spend less time working in GEN X use coworking regularly. 33% a coworking space—42 percent of their coworking spaces. GENERATION ROLE

GEN Z / MILLENNIAL WHO’S USING COWORKING SPACES? 62% (BOTTOM) Demographic breakdown of corporate coworking MANAGEMENT 55% users by industry, gender, role, and generation.

16 U.S. Workplace Survey 2019 17 KEY FINDING THREE

Access to coworking is associated with EFFECTIVENESS (WPI) EXPERIENCE (EXI) better effectiveness and experience. THOSE WHO USE COWORKING 80 +12 80 +16 THOSE WHO DO NOT 68 64 People are using these spaces primarily 40 90 40 90 for collaboration and connection. COWORKING AND PERFORMANCE Coworking performs similarly Experience (EXI) and Effectiveness (WPI) comparison for employees with access to to a high-value amenity; coworking vs. those without. those who have access have significantly higher effectiveness and experience scores.

Time spent in coworking spaces is positively correlated with time spent collaborating; the opposite is true for focused work.

100

80

60

40 WORKING WITH OTHERS IN PERSON

20 WORKING ALONE

0 PERCENT OF AVERAGE WEEK IN EACH ACTIVITY EACH IN WEEK AVERAGE OF PERCENT 0 20 40 60 80 100

PERCENT OF AVERAGE WEEK SPENT IN COWORKING SPACES

COWORKING AND BEHAVIOR Percent of time spent in coworking spaces as it relates to time spent working alone and working with others.

18 U.S. Workplace Survey 2018 Hyundai Studio Black, Seoul 19 KEY FINDING THREE 40%

30% Coworking adds value as an alternative The majority of coworking users from large companies work setting, but only to a point. Spend 20% use the spaces for one day over a day a week in coworking spaces, a week or less. S

and they lose their luster. 10%

0% PERCENT OF RESPONDENT OF PERCENT 0.5 DAYS 1 DAY 1.5 DAYS 2 DAYS 2.5 DAYS 3 DAYS 3.5 DAYS 4 DAYS 4.5 DAYS 5 DAYS

PORTION OF AVERAGE WEEK TIME SPENT IN COWORKING SPACES Number of days spent in coworking spaces during ATLAS Workbase, Seattle, WA an average week, by percent of respondents.

TIME IN MAIN OFFICE LOCATION (U.S. AVERAGE)

EFFECTIVENESS (WPI) EXPERIENCE (EXI)

1 DAY 72 69

2 DAYS 76 74

3 DAYS 74 73

4 DAYS 73 70

5 DAYS 68 63 PORTION OF AVERAGE WEEK AVERAGE OF PORTION

40 90

TIME IN COWORKING LOCATION (COWORKING USERS)

0.25 DAYS 77 78 Time spent in coworking spaces is associated with 0.5 DAYS 80 80

higher scores until it 1 DAY 83 82 exceeds a day per week. > 1 DAY 79 78

TIME SPENT AND PERFORMANCE Experience (EXI) and Effectiveness (WPI) comparisons by the percent of time employees spend in their main office location (top) and coworking space (bottom) in an average week. Top represents all U.S. respondents; bottom represents just those who use coworking spaces.

20 U.S. Workplace Survey 2019 ATLAS Workbase, Seattle, WA 21 CONCLUSION

Action steps to optimize people’s performance:

Open environments should be private, too. Greater degrees of openness are associated with high performance; but noise, privacy, and the ability to focus remain key determinants of workplace effectiveness. A choice-based strategy that provides a variety of spaces and different types of enclosure can reconcile these needs. Amenities aren’t about escaping work—they’re about optimizing it. People are working from everywhere—and greater mobility is associated with greater performance and engagement. The best amenity strategies prioritize anywhere- working, creating hybrid settings that deliver both an amenity and a workspace: work cafés, quiet/focus zones, and innovation hubs, among others. Coworking is a supplement, not a replacement, for a great workplace experience. Coworking does not yet contend as a primary work setting—but as a high-value amenity it delivers. Our data shows distinct benefits from giving people access to coworking spaces; but the effect diminishes for those spending significant amounts of time coworking, and most still spend more time in the primary offices.

22 U.S. Workplace Survey 2019 Hyatt Headquarters, Chicago, IL 23 CONCLUSION

A highly effective workplace is key to the Our Workplace Experience Framework Creating a great workplace experience best experience strategies; but focusing provides a lens through which to only on effectiveness can overlook broader understand the full suite of factors that requires aligning space, culture, cultural or behavioral opportunities to makes a great workplace experience. optimize engagement and performance. By understanding, and using design as interaction, and behavior. Expanding our focus to all aspects that a catalyst to improve culture, interaction, yield a great employee experience means and behavior, helps us move beyond shifting the language we use to talk dichotomous discussions to work in about the workplace—and concurrently the nuanced, complex reality of today’s expanding the metrics and goals for workplace—and truly deliver what people workplace design and strategy. today want and need from the workplace.

CULTURE

MISSION & INSPIRATION

EMPOWERMENT & AWARENESS Sfera, San José, Costa Rica

CREATIVITY & INNOVATION

SPACE INTERACTION FUNCTIONALITY & EFFECTIVENESS SOCIAL CONNECTION EMPLOYEE BUSINESS VARIETY & CHOICE TECHNOLOGY & TOOLS ENGAGEMENT PERFORMANCE AESTHETICS AUTONOMY

BEHAVIOR

REFLECTION & EXPERIMENTATION

WORKING AWAY FROM THE DESK

WORK MODES

Over nine in ten people who have a People who have a great experience in great experience at work report getting at work also rate their workplaces to 9 10 inspired during an average week. 1.5x be significantly more welcoming. WORKPLACE EXPERIENCE FRAMEWORK

People who have a great experience People with a great experience are at work are significantly more likely four times more likely to be in balanced 1.75x to report experimenting with new 4x environments—those that prioritize ways of working. both focus and collaboration.

24 U.S. Workplace Survey 2019 25 APPENDIX | GLOBAL COMPARISONS

The U.S. workplace is on par, but not MIDDLE GERMANY ASIA U.S. LATAM UK EAST 2018 outperforming, its global peers. 2018 2016 2019 2017 2016

The U.S. workplace has some of in the individual workspace in which most the highest effectiveness scores people sit in each country. as measured by the WPI in any region 58% 57% 45% 42% 33% 30% we’ve studied recently. On other metrics, The U.S. is comparatively the most the workplace falls more toward the enclosed and the most open of any region middle—people in the U.S. report less we’ve studied: 35 percent of respondents U.S. WORKERS ARE ONLY AVERAGE choice than those in the Middle East, sit in individual, private offices; 42 percent ON CHOICE sit in some sort of “open” environment. Germany, and Asia. By global region, percentage of workers who report they Shared and group office environments are have choice in where to work. Data is from most recent The physical nature of the workplace comparatively rare in the U.S.; Germany, Workplace Survey in each country, conducted also varies substantially around the globe. the Middle East, and Latin America are between 2016 and 2019. While our “degrees of openness” variable much more likely to use these settings at People in the U.S. are less is too new to compare across other a large scale. likely to work in shared global regions, we see wide variations environments than workers in other countries.

EFFECTIVENESS (WPI) 24% 27% Effectiveness, as measured by the WPI score, by global region. Data is from most recent Workplace Survey in each country, INDIVIDUAL OFFICE 37% conducted between 2016 and 2019. 35% 41% U.S OPEN PLAN LATIN AMERICA MIDDLE EAST 42% 11%

U.S. 70 18% SHARED OFFICE OF 2 24% LATIN AMERICA 69 11% GROUP OFFICE OF 3–6 18% 12%

MIDDLE EAST 70 21% 26% UK 67 26% 35% 40%

GERMANY 65 12% UK GERMANY ASIA

ASIA 70 50% 40 90 9% 17% 24% 24% 16%

SHARED ENVIRONMENTS ARE UNCOMMON IN THE U.S. Type of individual work setting employees have, by global region. Data is from most recent Workplace Survey in each country, conducted between 2016 and 2019.

26 U.S. Workplace Survey 2019 27 APPENDIX | ROLE COMPARISONS

A great workplace experience

DIRECTOR, shouldn’t just be for leadership. DIRECTOR, MANAGER MANAGER ADMIN AND 52% PROFESSIONAL 56% SUPPORT TECHNICAL People in leadership positions have with few significant differences in 36% 36% a significantly better experience at workplace effectiveness or experience PROFESSIONAL work—and the difference between between these groups. People’s ideal TECHNICAL C SUITE, PARTNER ADMIN AND VPSVP their experience and those in other workplace environments also show SUPPORT 35% roles has been growing over time. Over significant variation by role. The 27% 72% the past six years, scores have improved most senior roles tend to prefer more CHOICE BALANCE overall, but gains for managers and open environments, while those in C SUITE, PARTNER directors have far outpaced professional, administrative, professional, and technical VPSVP technical, and administrative role scores. roles seek more privacy. 77% We now see a consistent pattern in our One crucial place where the professional, data: Partner/VP/SVP respondents have technical, and administrative workplace the highest experience and effectiveness experience does continue to differ is scores, followed by Director- and in the levels of choice people report: Manager-level respondents. Professional, professional and technical workers have PERCENT WITH CHOICE PERCENT WITH BALANCE technical, and administrative workers have more choice in where to work than their Workers who report they have choice Percent of respondents who work in the lowest scores in our sample, administrative peers. in when and where to work. a balanced workplace.

EFFECTIVENESS (WPI) 2019 EXPERIENCE (EXI) 2019 C-SUITE, 81 80 PARTNER/VP/SVP TOTALLY MOSTLY SHARED SOMEWHAT MOSTLY OPEN TOTALLY DIRECTOR, 73 70 PRIVATE PRIVATE OFFICES OPEN W/ON-DEMAND PRIVACY OPEN MANAGER PROFESSIONAL/ C-SUITE, 66 6 1 TECHNICAL PARTNER/VP/SVP 9% 16% 4% 24% 38% 9% ADMIN AND 67 61 SUPPORT 40 90 DIRECTOR, MANAGER 13% 20% 6% 22% 32% 7% 2016

79 EFFECTIVENESS AND EXPERIENCE BY ROLE PROFESSIONAL/ TECHNICAL 19% 27% 7% 18% 23% 6% 70 Effectiveness, as measured by the WPI score, and experience by the EXI score, by organizational role. Comparisons by year for WPI scores from 2013 66 and 2016. ADMIN AND SUPPORT 22% 25% 6% 19% 22% 6% 67

2013 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

70

IDEAL WORK ENVIRONMENT BY ROLE 63 People’s ideal work environment based on “degrees 63 of openness,” segmented by organizational role.

62

28 U.S. Workplace Survey 2019 29 APPENDIX | RESEARCH HISTORY & METHODS

History Methods

Gensler’s U.S. Workplace Survey 2019 relates to employee effectiveness, This survey represents data collected Gensler’s WPI and EXI alongside additional is the latest iteration of ongoing research business performance, and innovation. via an online survey conducted among questions that asked respondents to rate on the workplace, which began in 2005. A 6,000+ anonymous, panel-based their workspaces and companies across subsequent survey in 2006 established the This report represents the integration respondents representing a broad cross a variety of factors, including innovation, connections between workplace design, of our historic workplace surveys with section of demographics, including motivation, choice, and technology, as well employee productivity, and business recent insights into the nature of education, age, gender, and geographical as individual patterns of behavior competitiveness. In 2008, our research experience, drawing from the 2017 location. Respondents do not work for and preferences. established a framework for understanding Gensler Experience Index. These Gensler and were recruited via a third- knowledge work through the lens of the questions, in addition to existing party panel provider. The Gensler Research Institute team four “work modes”—focus, collaborate, workplace survey questions, allow for employed inferential statistics techniques, learn, and socialize. We discovered that the direct comparison with data collected Respondents were required to be full- such as multiple linear regression, bivariate effectiveness and support of all four work through past research efforts as well time knowledge workers who work in an correlation, and analysis of variance modes connect to employee engagement as parallel surveys conducted around office some or all of the time, and work for (ANOVA), as well as descriptive statistics, and company performance. the globe in the UK, Middle East, Asia, companies with more than 100 employees to derive these findings. For all inferential Germany, and Latin America. This within 10 designated industry segments. statistical tests, the Institute team utilized Gensler’s 2013 and 2016 U.S. Workplace puts our findings in the context of Survey questions included those from a p-value cut-off of 0.005. Surveys continued these efforts, taking fundamental work and life shifts over the pulse of the American workplace as it that time period.

2005 2006 2008 LEGAL FINANCE 6% 12% NOT-FOR-PROFIT UK WORKPLACE SURVEY U.S. WORKPLACE SURVEY U.S. & UK WORKPLACE SURVEYS 9% Employees see a clear link between The link is confirmed between the physical Research integrates new questions focused the physical work environment and work environment and productivity in the on experience to measure effectiveness and MANAGEMENT MALE personal productivity. minds of workers. experience in tandem. ENERGY ADVISORY 32% 7% 11%

INDUSTRY GENDER CONSUMER GOODS

11% TECHNOLOGY 2012 2013 2016 15% WPI META ANALYSIS U.S. WORKPLACE SURVEY U.S. WORKPLACE SURVEY Analysis of client survey data reveals the Focus, balance, and choice in the workplace Findings connect workplace design directly SCIENCES 10% FEMALE outsized impact of focus effectiveness on emerge as key drivers of satisfaction, to organizational innovation and an GOVERNMENT/DEFENSE MEDIA 10% 68% overall workplace performance. performance, and innovation. “innovation ecosystem.” 9%

GEN Z DIRECTOR/PARTNER/ ADMINISTRATIVE/ BOOMER 1% C-SUITE 2016–2019 2017 2019 SUPPORT 8% 15% 20% GLOBAL WORKPLACE SURVEYS GENSLER EXPERIENCE INDEX U.S. WORKPLACE SURVEY Surveys conducted in the UK, Asia, Research into the qualities of experience Research integrates new questions focused Latin America, Germany, and the Middle identifies emotional and behavioral drivers on experience to measure effectiveness and East build a global database of workplace of experience at work. experience in tandem. respondents. GENERATION MILLENNIAL ROLE MANAGER 49% 37%

GEN X 35% PROFESSIONAL/ TECHNICAL 35% 30 U.S. Workplace Survey 2019 31 APPENDIX | THE WPIx Applied Research Tools: the WPIxSM Bibliography

Gensler’s Workplace Performance Index to measure the success of the design Advanced Workplace Associates. (2018). Bureau of Labor Statistics. (2019). “Current Lindberg, C. M., Srinivasan, K., Gilligan, B., (WPIx) is a proprietary, web-enabled solution. By using a core set of parallel “Advancing the Debate on Open Plan Offices.” Population Survey.” Department of Labor. Razjouyan, J., Lee, H., Najafi, B., . . . Sternberg, survey tool designed to measure the questions, individual projects can then Retrieved from https://www.advanced- Retrieved from https://www.bls.gov/cps/ E. M. (2018). “Effects of office workstation 350,000 workplace.com/advancing-debate-on-the- type on physical activity and stress.” performance of an individual workplace be directly benchmarked against the client respondents open-plan-office/ Dunn, A. L. (2018). “An architect's defense Occupational Environmental Medicine, or client portfolio. The tool is used for results of national surveys to put project of open plan offices.” Fast Company. 2018(75), 7. both pre- and post-occupancy analysis to work into a context of broader knowledge Bernstein, E. S., & Turban, S. (2018). “The Retrieved from https://www.fastcompany. allow for comparisons and to document and trends in workplace design. impact of the 'open' workspace on human com/90218754/in-defense-of-open-offices McLaurin, J. P. (2018). “The Open Office Isn't collaboration.” Philosophical Transactions B, Dead.” Gensler. Retrieved from http://www. improvements in workplace effectiveness. Fry, R. (2018). “Millennials are the largest WPI surveys are conducted as a part May(2018), 8. gensleron.com/work/2018/7/26/the-open- At the beginning of a project, the WPIx generation in the U.S. labor force.” Pew office-isnt-dead.html of direct client engagements. The 50+ 11 Bureau of Labor Statistics. (2017). “Women Research Center. Retrieved from http://www. is used to gather employee input on countries languages how they work, space effectiveness, and results of WPI surveys are collected in in the labor force: a databook. United States pewresearch.org/fact-tank/2018/04/11/ Semuels, A. (2017). “Poor Girls Are Leaving Department of Labor.” Department of Labor. millennials-largest-generation-us-labor-force/ Their Brothers Behind.” The Atlantic. workplace experience factors to inform a separate database from Workplace Survey responses. The WPI database Retrieved from https://www.bls.gov/opub/ Retrieved from https://www.theatlantic.com/ design decisions. reports/womens-databook/2016/home.htm Harter, J. K., Schmidt, F. L., Agrawal, S., business/archive/2017/11/gender-education- now has over 350,000 survey responses Plowman, S. K., & Blue, A. (2016). “The gap/546677/ Post-occupancy, typically 3 to 6 months from employees of Gensler clients. Relationship Between Engagement at Work after move-in, employees are surveyed and Organizational Outcomes. 2016 Q12 Meta-Analysis: Ninth Edition.” Gallup.

WORKPLACE EXPERIENCE FRAMEWORK Photo Credits CULTURE

MISSION & INSPIRATION Cover Connie Zhou EMPOWERMENT & AWARENESS 2–3 Gensler/Ryan Gobuty 10 Tom Harris CREATIVITY & INNOVATION 15 Ari Burling 18 Nacasa & Partners 20 Gensler/Heywood Chan 23 Rafael Gamo 25 Andres Garcia Lachner

SPACE INTERACTION

FUNCTIONALITY & EFFECTIVENESS SOCIAL CONNECTION

VARIETY & CHOICE TECHNOLOGY & TOOLS

AESTHETICS AUTONOMY

Team Oversight Analytics Team Editorial Team Design Team Additional Contributors Diane Hoskins Michelle DeCurtis Tim Pittman Laura Latham Nick Bryan Janet Pogue Nicholas Watkins Kyle Sellers Minjung Lee Meredith Bucaro Christine Barber Amrapali Agarwal Stella Donovan BEHAVIOR

REFLECTION & EXPERIMENTATION

WORKING AWAY FROM THE DESK

WORK MODES © 2019 Gensler. The information contained within this document is and shall remain the property of Gensler. This document may not be reproduced without prior consent from Gensler. www.gensler.com/research

32 U.S. Workplace Survey 2019 gensler.com/research

Open environments should be private, too. Amenities aren’t about escaping work— they’re about optimizing it. Coworking is a supplement, not a replacement, for a great workplace experience.

A publication of the Gensler Research Institute The Gensler Research Institute is a collaborative combination of global and local research grants, network of researchers focused on a common goal: and external partnerships, we seek insights focused to generate new knowledge and develop a deeper on solving the world’s most pressing challenges. understanding of the connection between design, We are committed to unlocking new solutions and business, and the human experience. Through a strategies that will define the future of design.