To keep employees safe and organisations functioning as COVID-19 spread around the world, previously office-bound companies shifted to a remote working paradigm. Once the preserve of freelancers and a minority of workers, remote work has permanently altered the workplace ecosystem.
Essential and non-essential workers have been dispersed across multiple locations both across the same cities and country. Organisations are implementing new ways of managing and monitoring workforce productivity and collaboration. Video calls are now the force majeure of work meetings, leading to increased productivity as workdays are managed more accurately and by the minute.
These changes have rendered most corporate workspaces redundant, as organisations seek to lower costs by reducing occupancy and implementing COVID-compliant flexible workspace designs. It is expected that between 30 to 50% of the total global workforce is expected to continue working remotely in the near to medium term. This reality poses a serious challenge to organisations and the property management sector seeking to make use of excess real estate.
Reduced office occupancy has drastically impacted the demand for FM services such as cleaning, security, catering, and so forth. The FM sector, highly labour intensive, has suffered mass retrenchments and service restructuring as a result. Prior to the pandemic, the sector was projected to grow 11% in 2020, yet today the industry faces a highly depressed forecast as the shrinkage in commercial space requirements reduces FM service provider revenue.
Re-imagining the workspace ecosystem under the new normal
As majority of global and local organisations engage in processes to reduce workspace occupancy, the question remains: what should the new workplace look like and how best can excess space be utilised? Organisations must reimagine their workspace ecosystem to account for new challenges and possible future opportunities.
Employee wellness
Organisations are re-thinking their workplace safety and employee wellness strategies overnight and implement responsible re-opening measures such as COVID-19 screening, social distancing, signage, provision of PPE, safe transport, and so forth for essential staff.
Employers must adapt and implement new ways of managing employee wellness virtually to deal with ‘zoom-fatigue’, workplace cultural entropy due to a lack of face-to-face contact, and other physical and mental challenges.
Finding new utility for excess space
While sub-letting to small and medium enterprises is a possible option, demand for office space in South Africa was already at its lowest levels since 2003 prior to the onset of COVID-19 with commercial property values expected to decline by approximately 9% this year. Organisations must innovate to utilise excess workspace. Examples include sharing office space with Enterprise Development suppliers or creating innovation and product incubation hubs.
Greater emphasis on workspace flexibility
Real estate decisions can no longer be made in decade-long cycles because planning for office workspace needs beyond three- and five-year horizons will become increasingly difficult. Workplace strategy must support the business goals of today and the uncertainty of tomorrow. This shift will require organisations to build out spaces with a minimum viable product mindset, a continuous update culture and a departure from infrastructure permeance for increased agility. Flexibility requires active management and application of data analytics and digital platforms to effectively manage workspaces going forward.
Re-imagine facilities management
Scenario planning has become a core function of FM to ensure the workplace is best prepared for all scenarios. From adapting to each ‘wave’ of OHS regulations, implementing integrated and flexible facilities management models, building new skills and competencies, to employing data analytics and digital platforms for actively managing the property portfolios, organisations should re-invent their FM capability to deal with new workplace ecosystem demands..
Increased purview of corporate real estate
Corporate Real Estate and Facilities Management (REFM) as a function can no longer be viewed as an operational responsibility and a cost centre in isolation. REFM must be intimately integrated with business strategy while considering employee productivity and wellness. REFM must partner HR, Strategy, Finance and IT to not only implement practical, impactful and digital workspaces, but play a critical role in promoting seamless productivity, connection, and wellness across a distributed workforce.
How Letsema can help
Letsema is ideally positioned to assist medium to large organisations as they adapt to the changing demands of the workplace ecosystem, through the following service offerings.
Workforce management
- Workforce strategies to manage change, employee engagement, productivity, and wellness across the distributed workforce
- Driving team cohesion, collaboration and innovation in the new workspace ecosystem
- Re-imagining operating models
Facilities & supply chain
- Review of the facilities management service delivery models to ensure fit-for-the-future
- Restructure and renegotiate FM supplier agreements for flexibility, agility and alignment to future workplace strategy
Focus on data
- Data analytics, visualization and dashboarding around workspace utilization and related costs
- Scenario modelling on organization or business unit level and stress test revenues against economic scenarios
Re-imagining operating models
- Next-generation operating models for corporate real estate and other operational functions to build critical capabilities, operational excellence and agile mindset
Cost & working capital optimisation
- Rapid cost savings intervention across facilities management and other indirect spend to unlock cash in the short term
- Predictive analytics for demand planning and forecasting based on scenario modelling
Digital strategy & enablement
- Digital strategy and enablement across corporate property portfolio and supply chain to drive efficiencies, visibility and predictability
If you and your organisation wants to explore how Letsema can assist your organisation in adapting to the new workplace ecosystem, contact us at nextgen.operations@letsema.co.za or info@letsema.co.za, or click here.
