Changing Expectations and the Future of Work Insights from the Pandemic to Create a Better Work Experience January 2021
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Steelcase Global Report Changing Expectations and the Future of Work Insights from the pandemic to create a better work experience January 2021 About the Study Steelcase Global Reports study work, workers and Key findings covered the workplace. They explore important issues facing in this report include: leading organizations today to uncover key insights 4 Working From Home that can help improve the work experience. Around the World Benefits and Challenges Since the onset of the pandemic, Steelcase has conducted ongoing research to help organizations 12 The First Wave of understand its impact on their people and business. Workplace Change The Hybrid Future A science-based and data-driven approach uncovers new perspectives about how and where people 19 Changing Employee want to work going forward. Expectations Five Critical Elements This issue shares the synthesis of eight primary studies designed to measure how the COVID-19 33 Four Macro Shifts pandemic will change the future of work. The Organizations Need quantitative and qualitative studies deployed to Address methodologies based in the social sciences and were conducted in multiple countries, including over 32,000 cumulative participants. Steelcase is committed to continuing research to understand what’s next and share what we’re learning to help make work better. To receive future issues of the Steelcase Global Report, visit: steelcase.com/subscribe. Steelcase Global Report 2 Learning From What People Have Been Through The extended duration and reach of the global pandemic have changed fundamental patterns in our lives, accelerating existing trends and revealing new unmet needs. How we shop, entertain, travel and As the pandemic stretched on, learn are different, and the same is it became apparent that working true for the way people work. As the from home is not a one-size-fits-all pandemic began, people who could experience for people, nor is there work from home suddenly found a single ideal solution for each themselves in the middle of a massive organization. There are, however, global experiment, uncovering new key themes and patterns that have insights about what people need — emerged from which organizations and will expect — to do their best can learn and develop new work. Whether they are still at home workplace strategies that meet or have returned to the office, people the changing needs and demands have learned from what they’ve of their employees. been through and are looking to their Organizations around the world organizations to create a substantially face dramatically different better work experience than what circumstances depending on the they had before the pandemic. state of the pandemic, their locations, Working from home during industries, cultures and many other the pandemic enabled many variables. Resilience is critical to organizations to sustain business all of them, and leading organizations operations — some prospering and are looking to this moment as an others struggling — which led to early opportunity to challenge assumptions speculation that it might become the and reset the way they work so new default position and that office they can emerge from the crisis real estate would be significantly stronger, with employees who are reduced, or even eliminated. energized and engaged. Steelcase Global Report 3 Working From Home Around the World The experience of working from home has varied dramatically based on many factors, including geography, industry, job type and job level. The quality of people’s home work space, their caregiving responsibilities, their ability to block out distractions, their individual work styles and their perspective in general have all impacted how they've felt and performed. People who live and work in urban areas, usually with smaller or even shared living spaces, have had different experiences from people in suburban or rural areas. Overall, in every country, people who were dissatisfied working from home struggled more than others. Organizations can learn from what researchers have discovered about working from home to improve the work experience moving forward. Steelcase Global Report 4 Work From Home The Key Benefits and Challenges of Working From Home People’s experience working from home is deeply personal and as diverse as individuals themselves. How people perceive the benefits and challenges of working from home varies significantly, yet the data reveal some consistent issues around the world and patterns that emerge in different countries. 8 of 10 10 of 10 No Commute: Benefit Isolation: Challenge Not commuting to the office is almost Everyone everywhere struggles universally the main thing people like with a feeling of isolation while about working from home. Eight out working from home. In fact, of 10 countries rank the lack of a isolation ranks the highest among commute as the top benefit, and it participants in all 10 countries as was a close second in China. Only the leading factor that worsened India ranked it significantly lower. One during mandatory work-from-home participant summarized the sentiment orders. It was especially high in of many by saying, “I’m not wasting Australia, Mexico and Spain — 45 minutes in a commute. I can go for countries that rate isolation twice a run in the morning and then quickly as worse than any other factors. get right into work.” Ironically, the Despite all the efficiency-based thing most people like the best arguments for embracing a about working from home was not heavy work-from-home strategy, related to their company’s workplace, people are social animals and do but simply to how long or difficult not thrive when they feel alone. it is to get there. Loneliness was a growing issue The notion that commuting is before the pandemic, and this has essentially wasted time is important only accelerated over time. Virtual for organizations to understand as meetings can’t replicate the same they consider their long-term real level of connection people feel estate strategies and flexible work when they are together. policies. It is equally important to note that some degree of commute can be helpful as it can act as a temporal threshold between work life and home life. Steelcase Global Report Work From Home Engagement and The level of dissatisfaction with Productivity: Benefit working from home may explain the All 10 countries and Challenge seemingly contradictory messages that the experience is both better report drops in Engagement and productivity are and worse for engagement and other key issues, but they are not productivity. On average, 41% of engagement as straightforward. In seven of the workers globally are not satisfied and productivity 10 countries studied, engagement with their situation, which means is among the top five things that they are more likely to experience when people are deteriorate while working from drops in both areas. home. Productivity rates in the top dissatisfied with five as well for every country (with There are a variety of factors the exception of Mexico which that influence whether people their work-from- rated it sixth). feel productive and satisfied working from home. For example, home experience. Yet, participants also rank their Steelcase researchers find that, In most cases, ability to focus and be productive when working from home, common at home in the top five things that office furnishings, specifically an engagement and have improved (with the exception ergonomic chair, actually help of Canada, which ranks it sixth). increase productivity — but only productivity drop Can both be true? Can employees 24% of individual contributors in the more significantly find working from home both more US have one. This look at the role of and less productive? furniture and productivity suggests when work-from- The divided responses reinforce that physical discomfort can be a home frequency the notion that working from distraction, taking its toll on people’s home is a different experience for ability to focus. The bottom line: it increases. everyone and productivity levels is important people have a place are impacted by how people feel. that is distraction-free, where they Steelcase researchers found a can focus, regardless of whether distinct correlation between people’s they are at home or the office. satisfaction with their work-from- Speed of decision-making, clarity home situation and their engagement, around responsibilities, and work- as well as productivity. Both life balance also suffer as people engagement and productivity drop work from home. All of these are in all countries when people aren’t interconnected with the issues of satisfied, and it usually declines engagement and productivity. If further when people have to work employees feel decisions happen from home more frequently. more slowly, are unclear about their work, and have to work longer to accomplish the same amount of work or less, the results can be reduced productivity and less commitment to the organization. Steelcase Global Report 6 Work From Home Benefits and Australia Challenges of Working Benefit Challenge From Home by Country 1 No Commute 1 Sense of Isolation 2 No Office Distractions 2 Productivity People told us the three things they liked most and what got 3 Ability to Focus + Be Productive 3 Engagement significantly or moderately worse while working from home. Canada Benefit Challenge 1 No Commute 1 Sense of Isolation 2 No Office Distractions 2 Clarity of Responsibilities 3 Better Work-life Balance 3 Engagement China Benefit Challenge 1 Ability