Evolving Workplaces

Analysing Productivity & Engagement Drivers DISCLAIMER

The content herein is based on the primary survey (“Primary Data”) carried out by [KPMG in India] (“KPMG”) on behalf of Smartworks. KPMG has also referred to information from the public domain and other secondary sources (“Secondary Data”). KPMG has not verified or investigated Primary Data or Secondary Data and assumes no responsibility for the veracity, accuracy and completeness of such information and will not be held liable for it under any circumstances. KPMG accordingly disclaims all responsibility and liability for use of such Primary Data or Secondary Data, including disclaims any warranty for accuracy, veracity, completeness or non-infringement.

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This study is commissioned by Smartworks.

By reading this report, the reader of the report shall be deemed to have accepted the terms mentioned hereinabove. 10 05 03 THE COWORKING LIFESTYLE 02 01 INTRODUCTION TO EXECUTIVE EVOLVING SUMMARY WORKPLACES

03 05 THE FUTURE - REIMAGINING THE WORKPLACE

04 WORKPLACE ELEMENTS: AMENITIES, LOCATION, TECH, DESIGN 3

EXECUTIVE SUMMARY

The forces of technology and paradigm of workplaces in urbanisation are transforming India – a growing co- the way we live and work. With working hotbed where many India set to become the homegrown and youngest country in the world international players (average age below 29), its (Smartworks, My Awfis, millennial generation is likely Regus, Springboard91, to play an outsized role in the Innov8, Cowrks, etc.) are spurring the economic growth. rapidly expanding. The country's more than 400 million millennials—those born This study measures after 1982—account for a third employer perceptions of of the population and 46% of employee engagement and the workforce. They are productivity vis-à-vis four already the chief wage earners, different elements of with millennial income workplaces (Location, contributing to 70% of total Amenities, Design, and household income1. By the Technology). year 2026, it is estimated that 64.8% of India’s population A survey was rolled out to would be in the working-age CEOs and Chief People of 15-64 years. Officers, with responses collected from 66 distinct More people – across firms. Half of the generations, races, respondents were from the geographies – are seeking Technology, Media and personal fulfilment and Telecommunication space, meaning in their work. They while the remaining 33 were are working in new & different spread across various ways. Office environment and sectors, including work culture are among the manufacturing, financial top factors these young services, FMCG, energy, and professionals seek in potential professional services firms. employers. The workplace, in turn, has become central to the The Engagement agenda of organisations. Productivity Interdependence Myriad of driving forces and Coefficient (EPIC) score, trends are shaping the derived from the responses workplace of the future, to the survey – reflects the including workplace strategies, factors that influence office design and culture, employer perceptions of geared to the needs of the engagement & productivity. next-gen workforce. This report captures key Our inaugural edition of differences in thinking and Evolving Workplaces – a KPMG working in both conventional report commissioned by and modern workplaces, Smartworks – is aimed at offering a glimpse into the enabling decision-makers in psyche & culture of organisations to understand employers in India. the changing

The Engagement Productivity and engagement through the Interdependence Coefficient lens of workplace elements, (EPIC score) reflects how revealing stark differences in strongly the workplace attitudes and priorities influences perceptions of between organisations that productivity and employee prefer coworking and engagement. This study those that opt for examines productivity traditional workplaces.

EPIC SCORE ANALYSIS 0.71 0.61 0.45

EPIC score for EPIC score across EPIC score for organisations that survey respondents organisations that prefer traditional prefer coworking workspaces spaces

1. As organisations 2. The organisations become virtually which preferred connected, the idea of coworking spaces, KEY ‘community’ is also had a higher EPIC gaining relevance. Co- score, demonstrating FINDINGS: working spaces, as a that they view their result, have garnered workplaces as more increasing attention crucial to productivity for creating truly and employee people-centric satisfaction than working environments respondents who for all types of preferred traditional organisations. offices.

Workplace productivity has long related to an organization’s ability to been a topic of great interest to influence the willingness of business leaders and HR teams. professionals to go the extra mile at Several companies, however, work, innovate, and ultimately boost continue to overlook one of the the company’s profits. There is no biggest enablers of productivity – fixed formula for stimulating the physical workplace and how it employee engagement, but the enhances employee happiness, creation of more collaborative and satisfaction and engagement scores. innovative working environments has Employee engagement is closely proved to be a strong driver.

A vibrant workplace ecosystem calls for a balance between engagement and productivity

Productivity & Engagement are critical and complementary dimensions

Innovative and Collaborative workplaces lead to business success

CONVENTIONAL INDIAN OFFICES vs. WORKSPACES OF THE FUTURE

Conventional Indian Aspect Changing Trends Workplace Features

Hierarchical organisational Flat organisations and cross- Design structures functional teams

More focus on engagement and More focus on profitability productivity through Focus than working conditions collaborative and happy working environment

Style Scheduled work style Flexible work style

Collaboration Workforce in silos Connected workforce

Large teams in central office Small teams in network of Team Size locations locations

Presence across virtual and Physical space with limited physical spaces for mobile remote working workforce Biophillic office design and Office space with artificial emphasis on providing natural light light to workspaces Open and quiet spaces, Fixed seat and cubicle balancing collaboration and Workspace arrangement minimal disturbance Flexible work spaces such as co- Owning office space or long- working spaces or short-term term lease lease Senior leadership is trading Management occupied private offices for open offices/cabins workstations with access to exclusive meeting rooms.

Eliminating perimeter offices, Employee-centric approach. meeting rooms

Innovative ideas need the right measurable outcomes. environment and support. To cut through the complexity, Fostering a robust and it is important to understand sustainable workplace three key dimensions in the ecosystem requires a great workplace ecosystem: deal of effort in determining 1. Organisation where to begin, what is important, and how to focus 2. Employees on activities that deliver 3. Workplace

Productivity and Engagement paradigm: How various elements interact in today’s dynamic workplace

The Coworking Explosion in India

Emerging asset classes shared workspaces such as co-working across different parts of spaces are expected to India, compared with a power growth in the real mere 30 centres recorded estate sector in India, in 2010. As of November which is on track to cross 2019, 10% of office USD 650 billion by 2025 premises were occupied and exceed USD 850 by coworking spaces and billion by 2028. China and this number is expected India have emerged as to rise to approximately the two largest markets 25% in the next few for flexible workspaces in years. Further, the the Asia Pacific region. demand for flexible workspace in India is Bengaluru estimated to jump to 130- accommodates 4.1 140 million sq ft. by 2025, million sq. ft. of flexible accounting for one-third space, which is 2.7% of of global coworking the overall office space in inventory. the city, whereas Delhi NCR is the only market in As per a report by real India where flexible estate consultancy firm space comprises more CBRE, in the 1st quarter than 3% of overall office of 2019, the co-working supply and 2.9 million sq. space witnessed a 277% ft. of flexible space. upsurge in leasing (it Mumbai is home to 2.8 grew by 70% every million sq. ft. of flexible quarter). space representing 2.5% of total office stock.1 The opportunity now lies for organisations in India As of January 2020, the to benefit from the industry had over 350 growth of coworking coworking players networks.2 offering more than 850 1. Exploiting the agile revolution: Prospects for landlords and investors 2. What Is The Future Of Coworking Spaces In India? 3. Rise of flexible workspaces: The new world order

Overview of flexible workspaces in India # The market size for co- # Along with the working spaces top three cities is growing of Bengaluru, rapidly with the NCR and requirement of Mumbai, flexi more than 16 operators are million seats likely to target and around 9 rapid expansion million sq ft in Tier 2 & 3 expected cities. in the coming year. # Increasingly

crowded space in million square feet (msf) in feet million square # Flexi creates the workplace likelihood of operators are future market repositioning consolidation themselves as through mergers managed space and stake operators, purchase by Co-working space leasing trends offering institutional entire centres to investors. single tenants.

Source: www.coworkinginsights.com; What is

Driving Growth of Coworking Space in India

2020) – Growing investor confidence: Co-working they have

facilities have been attracting (msf) (msf) (2014 in million square feet in feet million square the potential interest from to deliver 30– global players 40 per cent over the past gross margin two to three for operators years. Co-working spaces were projected to reach 10 msf at 80 per cent by the end of 2020. However, by the end of 2019, occupancy, the coworking space crossed the 12 msf mark. This number is likely to double or even treble in the next two years, given the rate at which leading players actively leased spaces across major cities in 2019.

with a break-

© 2021 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independenteven memberperiod firms affiliatedof with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. about 6 to 9 months.

04. KEY ELEMENTS

4.1 Amenities 4.2 Location 4.3 Technology 4.4 Design 4.5 EPIC Battle 4.1 Amenities 16 AMENITIES Organisations provide amenities and facilities for health, safety, welfare and personal hygiene needs of their employees. These include toilets, shelter, seating, dining rooms, changing rooms, drinking water facilities and personal and other storage facilities. The study finds that most organisations believe that amenities can significantly impact employee engagement and productivity. This is a clear indication that organisations see merit in investing in amenities as they have the potential to improve employee experience and in turn boost engagement and productivity.

EPIC SCORE ANALYSIS 0.66 0.63 High EPIC score for 0.57 organisations which 0.46 responded saying that they strongly 0.83 agree that workplace amenities are important for their organisation. Impact on Engagement Impact on Productivity Traditional Co-working 0.3 0.75 0.29 Quality 0.72 0.63 0.24 Vs 0.49 Quantity 0.18

More or better? What organisations value in terms of workplace amenities Impact of Quality of Impact of Quality of Impact of Quantity Impact of Quantity Amenities on Amenities on of Amenities on of Amenities on Engagement Productivity Engagement Productivity 1. Provide more with less: Amenities 2. Better amenities yield higher employee KEY are a key element of the modern efficiency & happiness: The high EPIC workplace. Quality of amenities was score among 80% of the respondents FINDINGS: found to have a high positive who strongly believed that workplace correlation with both engagement and amenities were important, underlines productivity, whereas the quantity of the relationship between good quality amenities did not show such a high amenities and productivity & morale at correlation. the workplace.

90.9%

56.1% 37.9% 37.9%

16.7% 21.2% 21.2% 3.0% 7.6% 18

71% 44% 30%

Organisations Organisations Organisations believe that the feel that feel that gym is cafeteria is recreation rooms the most crucial most important are most amenity for amenity for relevant for attracting talent attracting talent attracting talent

In the war for talent, That is one of the reasons organisations are now coworking spaces are paying more attention to growing in popularity. They the standards of amenities often offer top-of-the-line and workplace perks to amenities and initiatives for appear more attractive to enhancing connectivity, their potential employees. collaboration and employee However, offering more wellness at affordable rates. choices to employees may This creates a wholesome not necessarily mean experience for employees, higher engagement, offering a wide range of satisfaction, and options such as concierge, productivity levels. cafeteria, entertainment Additionally, the costs facilities, crèche, knowledge multiply as the number of sharing workshops and amenities increase. cultural programmes.

© 2021 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. “What matters is whether companies let employees make decisions, offer them reasonable job security, and treat them with respect. Not whether or not they give them free food. Those are nice things, and they may represent the corporate attitude, but if they’re all you do, they’re worthless.” Prof. Jeffrey Pfeffer, Stanford University 4.2 Location 21 LOCATION

Choosing the right workplace location matters if organisations want to hire the right skills at the right price. If they are looking for a particular set of skills, some locations might be more suitable than others owing to related industries in that area, unemployment rates or competitors. Further, the workplace’s proximity to residential, commercial areas can be of significant importance to the employees.

0.70 71% feel travel EPIC score of distance is organisations biggest that feel deterrent to location is vital productivity

59% 8% of respondents say location feel location is is the the most reason why important employees consideration have quit

EPIC SCORE ANALYSIS

High EPIC score for organisations that said they strongly 0.7 believe in location being an important workplace choice

Low EPIC score for organisations that said that they did not 0.4 believe in location being an important workplace choice

Factors that influence choice of location 92.4% 62.1% 33.3% 42.4% 12.1%

Proximity to Improved access Access to new Operating Costs Facilities competition to talent markets

0.79 Overall Impact Impact of Radius of Impact of Location Work Policies 0.54 0.77 0.44 0.38 0.29 0.26 0.22 0.34 0.33 0.17 0.18

Impact on Impact on Impact on Impact on Impact on Impact on Engagement Productivity Engagement Productivity Engagement Productivity Traditional Coworking

1. If the distance from work is a 2. The interdependence between hindrance to employee engagement and productivity KEY FINDINGS: engagement and productivity, was found to be lower in cases then coworking emerges as an where the location was not a advantageous option. The key consideration. Location coworking model allows strategy was, therefore, shown organisations to have offices in to be largely dependent on high rent, prime locations. industry, nature of work, and workforce demographics.

© 2021 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Identifying the optimal office location strategy is contingent on demographics, costs, availability of required job skills, accessibility, time zone and quality of life, among other factors. Co-working spaces could offer a cost-effective and pragmatic solution for startups and companies seeking to move base or launch in new geographies. 4.3 TECHNOLOGY 25 TECHNOLOGY

Technology is an integral part of the 21st-century workplace, enabling employees to be more productive and efficient. Organizations typically use various technological tools to improve communication, encourage collaboration and facilitate ease-of-work for their employees. Examples include data sharing, data protection, quick decision making, knowledge management etc. These examples help to simplify the work and in turn, increase productivity.

Organisations strongly agree that office 76% technology is important

Organisations feel Internet of Things will impact their workplace in the short-to- 54% medium term

Organisations believe Artificial 40% Intelligence will impact their workplace in the short-to-medium term

EPIC SCORE ANALYSIS

EPIC scores for workplace technology were calculated based on two parameters: — Technology usage: The scale of technology usage at workplace. How mature is the organization’s technology infrastructure? — Emerging technology refers to the degree to which emerging technologies such as IoT, RPA, AI, VR, Machine Learning are used at the workplace

Technology usage Overall EPIC Score Technology as 0.37 0.45 an enabler of workplace 0.39 engagement & productivity 0.21 0.24 0.18 0.19 0.15

Impact on Impact on Impact on Impact on Engagement Productivity Engagement Productivity

Traditional Coworking

1. Organisations that prefer 2. Organisations that are still coworking spaces were adapting to emerging found to have a greater technologies weren’t found KEY FINDINGS: focus on technology than to be significantly correlated traditional ones. On the with either employee whole, the correlation engagement or productivity between technology- according to the survey engagement and results technology-productivity was moderately positive.

The Smart Office – IoT Could Revolutionize The Workplace

Workplace technology themes

Infrastructure for workplace technology

Virtual collaboration

Mobile Experience

Monitoring space utlilisation

Artificial Intelligence solutions & tools

Future ready workplaces

© 2021 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. “Technology disruption is no longer a mysterious figure that companies need to be wary about if they want to sustain a healthy level of engagement in the digital age. It has become an ally in ensuring that employees are productive, satisfied, and well. It accelerates the culture of engagement by providing the company with the necessary tools for communication and collaboration.” David Raj CHRO, Servion Global Solutions 4.4 DESIGN 30 DESIGN

Workplace design plays an integral role in maximizing the productivity of employees. The creative layout of flexible spaces has been cited as one of the major catalysts responsible for the shift away from more traditional office space and has aided the rising popularity of collaborative working environments.

Workplace design is vital to brand and culture

EPIC SCORE ANALYSIS

This study examined the relation between office design and engagement & productivity across two dimensions: — Physical Elements includes components of the tangible workplace environment such as ergonomic workstation designs, disability management design and design and construction of the workplace. — Environmental Factors refers to the adaptation of the workplace to the natural environment in terms of light intensity, temperature, ventilation, noise and other characteristics Overall EPIC Score Physical Elements

0.29 0.29 0.31 0.21 0.18

0.24 0.22

0.19 Impact on Impact on Engagement Productivity

Environmental Factors 0.38 0.27 0.29 0.22

Impact on Impact on Engagement Productivity Impact on Impact on Traditional Coworking Engagement Productivity

1. Natural settings matter: 2. Higher spending on design Environmental factors doesn’t always translate to KEY FINDINGS: were found to have a better performance: higher EPIC score than Although important to physical factors, especially organisations, workplace in those organisations that design is not seen to have prefer the coworking set a significant impact on up. employee engagement and productivity.

1. Creating flexible workspace layouts

2. Workspaces that echo brand’s culture and ethos

Comfortable, ergonomic workspaces that focus on 3. employee health and well-being

4. Environmental cues for biophilicText here office design

© 2021 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. “Creating an office layout that puts employees close to a source of natural light can really boost productivity and make your employees happier. Dim, artificial light can cause strained eyes, dizziness and headaches.” John Crowley Blogger - HR and employee productivity issues 4.5 EPIC BATTLE: COWORKING vs TRADITIONAL WORKPLACES 35

Coworking Traditional

Workplace amenities have highest EPIC score for productivity, underscoring its importance across organisations

Location has highest Amenities have the correlation to highest correlation to engagement engagement

Workplace design has the lowest EPIC score, seen as the least significant driver of engagement and productivity

Higher EPIC scores Low EPIC scores underline their stance across design, that the workplace technology and and its elements are location parameters, crucial to engagement reflecting less focus and productivity on these elements of the workplace.

© 2021 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 05. THE FUTURE: REIMAGINING WORKPLACES IN A POST COVID SCENARIO Industries and organizations world-over have faced disruption due to COVID-19 and have had to acclimatize and realign their ways of working to the “new normal”. Commercial real estate and co-working spaces in particular are facing the brunt of the pandemic. However, that may not remain the case for an extensive period.

Workspaces and offices will continue to see the ramifications of the pandemic for a foreseeable amount of time as the global work-from-home environment is causing organizations to question their office space needs. Landlords with short-term leases will experience the greatest degree of exposure, but the long-term impact will most likely result in downsizing of office space and investment in technology. Based on market observations, the office market fundamentals have been lukewarm over the past decade as illustrated by a minor decline in vacancy rates from 2010 to 2016, with an uptick in vacancy rates during the last three years, and an effective rent growth averaging only 2.6% from 2011 to 2019 per year. With average fundamentals and increasing vacancy rates, national office vacancies may rise upwards of 20% in the coming future. The sector may experience an additional increase in vacancies next year before it begins declining. The asking and effective rent growth is anticipated to be negative before recovering in 2022. Further office-using job losses and the pace of employment recovery will determine the trajectory of office market performance over the next two years or more.

The co-working industry has seen an impact in the short to medium term largely in the following areas:

• Proactive renegotiations: Re-negotiations of rental/rates and/or deferment of lease payment arrangements are already being evaluated by occupiers. There is an expected rise in vacancies to drive co-dependence with lessors willing to offer flexibility, to mitigate cashflow concerns.

• Efficiency-driven focus: There is a lackluster projected demand level to drive occupiers to seek efficiencies and innovative cost management mechanisms instead of only focusing on revenue growth. Furthermore, expansion plans may be put on hold

• Technology-enabled workplaces: Social distancing restrictions may lead to rotational staff presence and working from home norms, accelerating adoption of technology-based solutions.

• Decrease in sales: Reduction in purchasing power of the customer will result in a negative impact on number of seats sold and overall revenue generation.

While in the medium to long term, co-working would primarily see an impact in terms of: Operating model innovations: Social distancing related changes at the workspace may lead to higher space per employee requirement, efficiency-based workplace utilization models and rationalization of available spaces. Customized real estate: Demand for purpose built customized spaces may observe marginal uptake. Increased preference for Built-to-Suit (BTS) commercial spaces may mitigate speculative construction-based risks

Localized driven demand: Organized segment commercial spaces will remain under- penetrated compared with international counterparts. Rise in localization of business operations and contraction of global footprints may lead to revived commercial space demand in the long term. Longer transaction cycles: Deal cycles are expected to be marginally longer owing to deeper diligence or evaluations by investors on transactions.

The silver lining

Work from home might pose as an attractive alternative at first glance. However, eventually, challenges faced by most employees when operating from home would potentially surface as unignorable hinderances. This will call for a change to a hybrid style of working – one that involves the safety and flexibility to work from home as well as have the option to visit a physical office space . Multiple factors make the co-working industry a strong player in the future of working; some of these have been listed below:

The demand for “flexible workspaces” in the “new normal”

Going forward, it is expected that candidates would turn down a job that does not offer flexible working. As companies slowly fall back into their business as usual activities, they will now look to adopt flexible working opportunities and scope out options that involve decentralization – this is where co-working spaces will arise as a fitting alternative. Companies will seek smaller offices to ensure business continuity, lay more emphasis on cost optimization to avoid capital expenditure, and move towards coworking facilities to expand their business. Apart from being a cost-effective solution, co-working spaces also offer flexibility in their rental agreements. Typically, co-working spaces offer an array of plans or subscriptions that allow the member to rent out the space on a monthly, daily or even an hourly basis. This poses as a massive advantage to the freelancer or entrepreneur, and even to large enterprises. Even before COVID-19 presented itself to the world, one could see the employee spends a shift towards a “Work-Near-Home” regime since a substantial amount of time in commuting to their place of work. Employees spend significant portion of their day commuting to their respective offices, because of the pandemic, it has become even more integral for the workforce to be localized and distributed in order to reduce the usage of public transport significantly. Co-working spaces offer respite in this department too, as they are typically present across different locations. Co-working spaces allow large enterprises to move past enormous expenses in the long-term through their uncomplicated entry and exit policies and overall flexible approach thereby giving the co-working industry an upper hand overall.

“Community” will be the road to revival

The pandemic does not mark the decline of coworking culture. Eventually, the workforce will feel the urge to reap the benefits of social gatherings once again. Co-working spaces act as hubs for community building – they provide spaces where individuals can network and meet people from different industries under one roof. Now, more than ever, business owners will require social networks to bounce back to normal.

At the end of the day, humans are social beings and require social connections for emotional fulfillment. This is essential for our mental health. It has been observed that large chunk of people struggle to adjust to remote work on a long-term basis and report mental health challenges. Exchanging ideas and managing tasks with other teammates is also a challenge when working from home. With the economy and the nation slowly seeing “Unlock” in phases, we are already noticing a return to the workplace due to this very reason among others. Soon, there will be a strong demand for return to a safe and flexible workspace. Too lengthy and hard to understand

Opportunity for shift in business strategy

Unlike many organizations that will continue to face the brunt of the pandemic, there is light at the end of the tunnel for the co-working industry. Co-working spaces will need to rethink their business strategy with stricter checks in place in order to seem like an attractive and safe option to the workforce.

This would include safely distanced workstations, frequent sanitization checks, and a deeper focus on office design at large. Leveraging technology to ensure safety will also be an integral component in this strategy - right from contactless biometrics to creation of web applications that allow the member to choose their workstation virtually. Another important area would be having a crisis contingency plan in place to mitigate risks with a team trained exclusively to address any issues that may arise in terms of the health and safety of members.

Furthermore, co-working spaces will need to innovate and revamp their offerings for the audience that would be hesitant to regularly visit the office space despite all protocols in place. For instance, creating a virtual plan for members that gives them the option of coming into the office only to use conference rooms when required and remaining officially registered with the space, however, having the flexibility to work from home in the remainder time.

In this unprecedented economic and operational environment, agility and innovation in the co-working industry will be fundamental attributes for surviving and eventually thriving. 40 Coworking Spaces: The Considerations

Culture clash as Data privacy and Policies and processes corporates might lose information security haven't matured yet their distinct brand culture

The versatile format of co-working spaces is not a replacement for conventional workplaces but a vital complement to traditional models

Employee Conventional Current Fixed office satisfaction structure & workforce setup and design needs vs engagement vs vs Remote working vs Flexibility & Next gen or Cost savings adaptability workforce needs telecommuting

Hierarchical organisational Work focus Engagement Innovation structure vs vs vs vs Flat organizational Collaboration Performance Optimisation structure

“Evolving Workplaces” is an outside-in view of the changing paradigm in office spaces, curated to guide decision making around ‘the workplace’ in Indian organisations.

Our Methodology

EPIC Coefficient Analysis Expert/Leader Interviews For all the valid sample set, the We secured the correlation coefficient viewpoints of both between employer Global and Indian perception of experts and leaders for engagement and the purpose of this productivity was study. We asked determined to show questions about their how strongly pairs of experiences in modern variables are related workplaces and the Survey to each other. tangible and intangible benefits they have The Evolving Workplaces witnessed. Survey - rolled out to CEOs and Chief People Officers of several organisations had questions on workplace productivity, engagement vis-a-vis the 4 different elements of workplaces (Location, Amenities, Design and Technology). Correlation to Elements of Workplace

Regression analysis was carried out to determine which of the Secondary Research elements of workplace (Location, We also referred to a host of past Amenities, Design and studies, literature, articles and Technology) most closely impact thought leadership in order to form employer perception of the premise of this report. A majority employee productivity and of these belong to KPMG’s Global engagement. repository of past research on this topic.

KPMG in India‘s team: Smartworks team: Anurag Aman Neetish Sarda Anupam Rozario Harsh Binani Aruj Arora Anita Sharma Pranav Mahajan Gopika Gulati Abiram V Viraj Nair AboutSmartworks

Smartworks is India’s largest provider of agile workspaces, with a footprint of over 4 million sq. ft. across 31 locations in 9 cities (Delhi-NCR, Kolkata, Bengaluru, Mumbai, Hyderabad, Chennai and Pune) catering to more than 400 organizations across large enterprises, SMEs and established startups. Founded in April 2016, Smartworks is redefining the Indian office experience by focusing on design, hospitality, technology and customer delight experience. Smartworks is also the only Indian agile workspace provider to have become profitable in India.

Central to this ambition is the company’s motto, ‘Workspaces that work for you’, with the vision of creating the perfect environment by just not building communities, but also ensuring their member employees are productive in the workplace. For more information, log in to www.smartworksoffice.com Contacts

KPMG in India contacts Smartworks in India contacts Anurag Aman Harsh Binani Partner Co-Founder, Smartworks E: [email protected] E: [email protected]

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professionaladvice after a thorough examinationof the particular situation.

© 2020 KPMG, an Indian Registered Partnershipand a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),a Swiss entity. All rights reserved. The KPMG name and logo are registeredtrademarks or trademarks of KPMG International.

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