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Evolving Workplaces

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Evolving Workplaces 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. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. In connection with the report or any part thereof, KPMG does not owe a duty of care (whether in contract or in tort or under statute or otherwise) to any person or party to whom the report is circulated to and KPMG shall not be liable to any party who uses or relies on this report. KPMG thus disclaims all responsibility or liability for any costs, claims, damages, losses, liabilities, expenses incurred by such third party arising out of or in connection with the report or any part thereof including for any acts of commission or omission therein, howsoever caused. Although we have attempted to provide correct and timely information, there can be no guarantee that such information is correct as of the date it is received or that it will continue to be correct in the future. Use of companies’ names in the report is only to exemplify the trends in the industry. We maintain our independence from such entities and no bias is intended towards any of them in the report. The views and opinions expressed herein are those of the interviewees, survey respondents and do not necessarily represent the views and opinions of KPMG in India. 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 14 36 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 © 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. 4 EPIC SCORE: UNDERSTANDING WHAT ORGANISATIONS VALUE 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. © 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. 02. INTRODUCTION TO EVOLVING WORKSPACES 6 UNDERSTANDING WORKPLACE PRODUCTIVITY & ENGAGEMENT 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 © 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. 7 Productivity & Engagement are critical and complementary dimensions Innovative and Collaborative workplaces lead to business success © 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. 8 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 © 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. 9 The Holistic Workplace Ecosystem: A Working Model Innovative ideas need the right measurable outcomes. environment and support. To cut through the complexity, Fostering a robust and it is important to understand
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