2019 Workplace Trends

2019

Workplace Trends Report

The rise of the human-centered office

INTRODUCTION The way we work, and the spaces in which we work, are rapidly evolving. Companies have become reliant on digital systems and processes to conduct business, whether that’s record keeping, communication, tracking sales and revenue, marketing, or running their workspace.

The phenomenon has been dubbed the “digital transformation.” The responsive, interactive technology driving this change has also empowered individuals to seek personalized experiences, cultivate a greater connection to each other, and demand greater customization from the services and goods they purchase, especially through social media. This shift has changed employee expectations for their workplace and as a result, businesses have had to alter the way they operate to meet those needs and keep pace with the demands of a fast changing economy and technological landscape.

A higher tech, more personal, and interactive approach to work and life has been one of the hallmarks of the “millennial” generation. While the millennial generation is still being treated as a “new” phenomenon at work, they already make up the majority of the workforce. Millennials are not just early-career professionals, but organizational and cultural leaders including managers, directors, founders, Vice Presidents, and CEOs. Many of the qualities that have been attributed specifically to millennials, such as valuing community, desiring purpose-driven work, and integrating their work and personal lives, are actually attributes that employees of all ages and generations now value and are actively seeking from their employers.

Staying ahead of these cultural shifts in the workplace is essential for employers of all sizes and industries that wish to effectively attract and retain top talent. Based on our research and experience working with thousands of forward-thinking companies across the United States, we have identified the five workplace trends that forward-thinking companies will need to effectively integrate into their workspace to keep pace with the ways in which workplace technology and culture are rapidly evolving.

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2019

TRENDS TO WATCH IN 2019

01

The technological evolution of human-centered workplace design

02

The rise of coworking and the focus on workplace hospitality

03

Flexible workplace policies

04

Culture is essential for employee recruitment and retention

05

Diversity and inclusion are fundamental business practices

01 The Technological Evolution of Human-Centered Workplace Design Over the past few years, office design

For example, Kickstarter’s headquarters

trends have shifted away from opulent

are located in an old pencil factory in

spaces that may have served to impress

Greenpoint, Brooklyn, while Aeria Games’

clients or bolster a CEO’s ego, and

office occupies in a former warehouse in

now focus on the needs of employees.

Berlin.

Workspaces are being designed to bring the “dream” office to life and create a space

Even companies that are locked into

where employees actually want to spend

leases in commercial office buildings are

time. Far from simply being a functional

incorporating custom design elements that

place to work, the latest office design aims

set them apart. Office teams are working

to deliver a unique, holistic, and inspiring

with local artists to design decorative

experience to employees.

and functional pieces, such as a mural based on the company’s mission and

This design shift is not limited to interior

values, or a custom boardroom table from

decor—office locations are no longer

a local furniture maker. The emphasis

ubiquitous. As formerly industrial

of these spaces is not just on beautiful

neighborhoods in cities large and small

design for design’s sake, but for creating a

are rezoned and revitalized, companies

welcoming and functional environment that

are embracing non-traditional spaces to

communicates a clear sense of place for the

create a unique setting for their office.

people who use them.

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THE TECHNOLOGICAL EVOLUTION OF HUMAN-CENTERED WORKPLACE DESIGN

The shift towards human-centered design

dynamic, flexible, and accommodating of

also comes out of a growing fatigue with

different types of work, working styles, and

the open plan office. An article published

personalities. The goal of these spaces is to

by Inc. in 2016 declared that, “the open

help foster productivity and innovation in

office concept is dead,” and research shows

whatever form it comes in, whether that is

that workers in open plan spaces are less

individual or group work. The office should

focused, experience greater stress, and

also enable employees to shift their focus

get sick more often. Matthew Davis, an

and remain engaged as they stay in the

Organizational Psychologist quoted in the

workplace longer.

article sums it up, writing, “An open plan can easily fit 300, 400 people in one room—it’s

Companies are adding more spaces for

a little bit like chicken factory farms. These

quiet concentration, including libraries,

are not places you want to spend much

phone booths, upholstered pods, and

time.”

“secret” nooks away from the commotion of the kitchen and lobby. These spaces

And yet time is one of the factors that

support quiet focus, a mode of working

reflect the way work is changing. Workers in

that is becoming increasingly necessary

the United States are working more hours—

in the modern workplace. A Gensler study

an average of 47 hours a week according to

found that workers in 2013 spent 54% of

a recent Gallup poll.

their time on work requiring individual focus, which was up from 48% in 2008.

While the disdain for purely open plan

The drive to create these spaces has also

spaces has been accelerating, they are not

been influenced by cultural attention to

being replaced by the cubicles and private

introverts, especially following Susan

offices of the past. Instead, office layouts

Cain’s 2012 book Quiet, which explores the

feature creatively divided space that is more

ways in which introverts are undervalued

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THE TECHNOLOGICAL EVOLUTION OF HUMAN-CENTERED WORKPLACE DESIGN

The library at Fractured Atlas

in the workspace and how they can be an

and video conferencing. Companies that are

innovative force when provided the right

focused on physical products, hardware, or

conditions to thrive.

design are also adding product labs or studio spaces for prototyping and experimentation

Collaborative spaces have also been

with new ideas and technology. Beyond

reimagined to support different kinds of

conference rooms and studios, more

collaboration, both in-person and as well

casual collaborative spaces are also found

as with remote team members and offsite

throughout offices, including clusters of high-

freelancers. With much of these interactions

top desks for standup meetings, comfortable

facilitated by technology, these spaces

seating for relaxed meetings, large work

inherently include large screen TVs and

tables, and white board walls.

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2019

THE TECHNOLOGICAL EVOLUTION OF HUMAN-CENTERED WORKPLACE DESIGN

An extreme example of human- and tech-

The increased interest in biophilic, or

centered design is Amazon’s now iconic

plant-centered, design is rooted in more

spheres—a botanical garden-inspired glass

than aesthetics. Plants create a relaxed,

workspace full of tropical plants and water

natural feeling environment, help divide

features, which opened in early 2018. They

open spaces, and filter the air. A study

are perhaps the most prominent example

published in the Journal of Environmental

of the movement to bring immersive

Psychology found that exposure to indoor

environments and lifestyle touch points into

plants helps prevent fatigue and increase

workspace design, a tendency that will only

focus, both of which are essential in the

accelerate in 2019.

modern workplace.

Source: GeekWire

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Amazon Spheres

2019

THE TECHNOLOGICAL EVOLUTION OF HUMAN-CENTERED WORKPLACE DESIGN

With so many different spaces to oversee,

These developments will necessitate an

office and operations managers are

adaptable approach to office technology

increasingly relying on technology to

on the part of office managers. Even the

seamlessly manage them. Many offices have

most traditional workplace services, such

an entire “tech stack” to meet employee

as lighting, electricity, and heating and

needs and service their space, which

cooling systems will become tech-driven

includes an employee communication

and “smart.” As a result, office managers

platform such as Slack or Skype, a digital

will need to become savvier technology

workplace request and ticketing system,

managers in addition to people managers.

calendaring and scheduling apps such as

They will need to work hand-in-hand

Calendly and Robin, video conferencing

with their IT department to leverage new

software such as Zoom or Highfive, and an

technologies for the office and ensure they

IT provider to support all of it.

enhance the productivity and comfort of the workplace. Ideally, increased office

In 2019 and beyond, office technologies will

automation will enable operations teams

become increasingly sophisticated. Software

to spend less time on the physical upkeep

companies will develop further integrations

of their space and more time supporting

to enable more systems to work together

their team members through creating a

simultaneously, while larger tech companies

responsive, welcoming company culture.

will acquire smaller technology startups.

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02 The Rise of Coworking and the Focus on Hospitality Throughout 2018, coworking—already

spaces showcase will remain attractive to

a growing market—gained momentum

companies of all sizes.

with major investment, acquisitions, and market expansion. This growth, especially

Coworking companies such as Knotel,

among new and non-traditional coworking

WeWork, and Spaces added inventory at a

operators, may move the market towards

dizzying pace last year. According to the

saturation and a cooling on entrepreneurial

Commercial Observer, coworking spaces

investment in 2019. However, the amenities

now account for 1.7% of office space in

and style of working that coworking

Manhattan and 1.6% of office space in

The percentage of global commercial real estate that is flexible

5% currently

30% in 10 Years

Source: JLL

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THE RISE OF COWORKING AND THE FOCUS ON HOSPITALITY

Los Angeles. According to a study by real

like environments into their offices to spark

estate services firm JLL, “While the percent

greater creativity, collaboration, and out-of-

of global commercial real estate that is

the box thinking.

currently flexible hovers around 5%, that number is expected to grow to encompass

On the commercial real estate side, CBRE

30% of the market in the next decade.”

entered the coworking market with the launch of subsidiary Hana, which works with

Coworking is especially attractive to

landlords to renovate and operate coworking

growing companies who need to be dynamic

spaces. Andrew Kupiec, Hana’s CEO,

with their headcount and change size rapidly

commented on the turn towards coworking,

based on funding and revenue. Knotel has

remarking, “Sophisticated occupiers want

dubbed the turn towards coworking and

private space, but they also want the

dynamic offices spaces the “agile space

traditional coworking amenities.” However,

movement,” which stands in direct contrast

with coworking becoming increasingly

to traditional commercial leases, where a

ubiquitous, it may be a less attractive option

company is locked into a long lease and

for companies that are looking to create a

must sublet their space if they need to grow

truly unique experience for their employees.

or shrink their square footage.

In addition, as traditional commercial real estate companies foray into the space,

The flexibility, amenities, and hospitality

entrepreneurial investors may choose to

offered by coworking spaces has caught the

back more innovative, disruptive products

attention—and investment—of enterprise-

and real estate solutions. This will lead to

level companies and large commercial real

slower innovation in the coworking space in

estate firms as well. Companies like HSBC,

the years ahead.

Microsoft, and Deutsche Bank have moved specific teams into coworking spaces, while

Beyond the flexibility of not having a

Capital One has incorporated coworking-

traditional lease, one of the reasons the

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THE RISE OF COWORKING AND THE FOCUS ON HOSPITALITY

coworking model has caught on is that it

catching design that includes designer

offers fully managed spaces that emphasize

furniture, artwork, and the latest trends in

hospitality in the workspace. Coworking

office decor.

operators manage the office infrastructure such as wifi, video conferencing, and AV

The pricing models for coworking spaces

systems, and provide a range of amenities

vary from flat, all-inclusive monthly fees,

such as food and beverages. Meanwhile,

to a basic membership fee with ad hoc

their community managers cultivate a sense

charges for access to conference rooms or

of connection between the companies

snacks. The flexibility and “plug and play�

and entrepreneurs in their spaces through

nature of these spaces can be appealing

events and activities that facilitate

to companies that are just starting out.

networking and community. Coworking

However, as a company grows, coworking

spaces package all of this in modern, eye-

can become less cost effective and

The kitchen at SeatGeek

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THE RISE OF COWORKING AND THE FOCUS ON HOSPITALITY

desirable. Coworking spaces often squeeze

While many companies have chosen to

in occupants to maximize space and profits.

outsource a high-quality office experience

For example, CB Insights reported that in

for their employees to coworking operators,

WeWork’s buildings, the average square

employees are coming to expect coworking-

footage per person hovers around 50 square

like services in all types of office space. In

feet compared to the average of 250 square

the year ahead, more established companies

feet per person for commercial offices

will work to replicate the hospitality aspect

industry-wide. This square footage is even

of coworking in their offices. To create a

smaller than the recommended minimum

strategic, coherent experience, companies

of 150 square feet per person for “dense”

may look to hiring an internal community

office layouts. CB Insights also noted that

or employee experience manager who

despite this small footprint, members

can oversee office culture and hospitality.

pay an average of $8,000 per year. Such

These responsibilities include organizing

cramped, shared quarters can also make it

events and activities, designing a food and

difficult to cultivate and maintain a coherent

beverage program, and building a strong

company culture. Companies that are based

employer brand for a company. Companies

in coworking spaces are limited in the ways

can also partner with modern service

in which they can set up their workspace to

providers who understand the needs of

reflect and reinforce their culture. Working

the technology-enabled, modern office and

in a shared space can also create an uneven

the importance vendors play in creating a

experience for on-site client meetings

positive, coherent, and responsive employee

and lead to a lack of privacy for company

experience.

functions.

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03 Flexible Workplace Policies In addition to personalized office spaces,

market, companies are realizing that to

employees are seeking out more flexible

attract and retain the best talent, they must

ways of working, including working remotely

increase options for flexible work to

full- or part-time. As companies implement

support employees’ work/life integration.

more human-centered design, workplace

Flexibility, including the ability to adjust

expectations and policies are also shifting

one’s hours and work remotely, has been

to reflect the needs of their most critical

found to improve employee productivity,

resource—their people. With a tight hiring

health, and wellness. It enables employees to

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FLEXIBLE WORKPLACE POLICIES

balance caregiving responsibilities with their

offered flexibility, 83% of respondents saw

paid jobs.

an improvement in individual productivity and 61% found flexibility led to an increase in

As such, offering flexibility can also improve

profits.

diversity and inclusion efforts, because employees with caretaking responsibilities

Millennials in particular are seeking greater

are often women. Flexibility also has a

flexibility in working hours and policies.

positive impact on companies’ profitability.

Gallup’s State of the American Workplace

Inc. reported that according to researchers,

report found that 35% of employees polled

working from home appears to make people

said they’d change jobs for a flexible work

“happier and ‘massively’ more productive.”

environment and the ability to work offsite

A 2016 Vodafone study of 8,000 employers

full-time, while an additional 37% said

and employees across small, medium, and

they wanted to be able to choose to work

enterprise-sized businesses in 10 countries

remotely at least part-time. The desire to

supported this, separately finding that when

work at home reflects the developing reality

The benefits flexibility

83%

improved productivity

61% increase in profits

Source: Vodafone

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FLEXIBLE WORKPLACE POLICIES

of the American workplace—the American

back their remote work policies in an effort

Time Use Survey found that 24% of full-time

to drive innovation and increase employee

workers did work at home in 2017. A study

togetherness. Ironically, part of what drove

by Pepperdine University found that 69% of

this policy shift was a need to compete with

millennial workers believe they don’t need to

younger, more flexible companies. In 2018,

work in an office regularly to do their jobs.

the job search startup Werk commissioned a study on flexibility in the workplace and

Despite the desirability and benefits of

found that 96% of the workforce needs some

flexibility, most companies are not keeping

form of flexibility, but only 42% of workers

up with the demand for it. In 2017, large

have have access to it, and only 19% have

companies such as Yahoo, Aetna, and Bank

access to a full range of flexible options at

of America caused a media storm by rolling

work. Unfortunately, flexibility and flexible

96%

need flexibilty

Flexibility in the workplace

42%

have access to flexibility

19%

have access to a full range of flexible options

Source: Werk

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FLEXIBLE WORKPLACE POLICIES

jobs still carry a stigma that workers with

To be effective, workplace flexibility needs

flexible schedules are somehow working less

to be supported by well-defined policies

than those with more traditional hours.

that apply equally to employees at all levels

Flexibility necessitates a culture of trust.

and can be customized to employees’

Without it, employees often feel they have

specific needs and lives. In the coming

to “make up” for the time they are not in the

year, companies will continue to become

office, and as a result, some workers with

more flexible by supporting, and at times

flexible schedules tend to work more hours,

enforcing, work/life integration through clear

according to sociologist Dr. Heejun Chen.

policies that they can also use to build their

Summarizing her study on flexible work she

employer brand, attract new employees, and

wrote, “In general, if you have more control

retain current employees. This may take

over your working hours you tend to worry

the shape of “minimum vacation policies,”

more when you are not at work—and this

implementing “no meeting days,” the ability

is especially the case for those workers

to work from a variety of locations to

with most control over when and where

maximize productivity, or shifting work hours

they work.” Chung found that the most

to accommodate caretaking responsibilities.

flexible workers, those employed by the “gig

However, it will be up to company leadership

economy” were also in the most insecure

working with their People and Culture teams

positions. She explained, “This increase in

with input from all employees to forge

tendency to worry seems to be highest in

innovative, flexible policies that respond to

countries with high unemployment rates,

the specific requirements of their company

less stable labor market conditions, and if

and culture.

employees have a lack of negotiating power.”

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04 Culture is Essential for Empolyee Recruitment and Retention In 2018 the United States experienced the

can add as an “extra” or a perk, instead it

lowest unemployment rate in 18 years,

must be authentic to the company itself.

at 3.7%. In the technology sector, the

According to the Deloitte Millennial Survey,

unemployment rate dropped to 1.9% in

millennials’ loyalty to companies and trust

May of 2018. As a result of the tight hiring

of businesses’ ethics has deteriorated.

market, companies are competing for talent

However, a study by Pew Research found

and the recruitment and hiring process has

that millennials tend to stay with their

become more candidate driven. According

employers longer than the previous

to the website Talent Now, 86% of the

generation did at the same age. According

most qualified candidates for a company’s

to Pew, “In January 2016, 63.4% of employed

open positions are already employed and

Millennials, the generation born between

not actively seeking a new job. As a result,

1981 and 1998, reported that they had

employers must find ways to distinguish

worked for their current employer at least 13

themselves to candidates and retain

months. In February 2000, somewhat fewer

their current employees, making a robust

18- to 35-year-olds (59.9%)–most of whom

company culture an essential factor in the

are today’s Gen Xers—reported similar

health of their business.

job tenure. Looking at young workers with longer tenures, 22% of Millennial workers

Culture is not just something that employers

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had been with their employer for at least five

2019

CULTURE IS ESSENTIAL FOR EMPLOYEE RECRUITMENT AND RETENTION

years as of 2016, similar to the share of Gen X workers (21.8%) in 2000.� Pew speculated that Millennials may be staying with their employers longer due to their overall higher levels of education as a generation, which tends to influence tenure. In addition, because of the tight hiring market, other jobs available may not seem as enticing, high

The cost of employee turnover

40%

Of Employees Planned a Job Change

paying, or as interesting as their current position.

That said, employee churn is expected.

According to a survey by Talent Now, 40% of employees surveyed planned to change

20-26

Weeks it Takes to Get a New Hire Up to Speed

jobs in 2018. When employees do leave, it costs about $7,645 to hire a new employee, according to a study by the National Association of Colleges and Employers.

Replacing an employee also means a loss of productivity, as it takes about 20 to 26 weeks to get a new hire up to speed, during which a company loses 1% to 2.5% of their revenue, according to a study by Mellon Financial Corporation.

More than a job, employees want to feel

$7,645

The Average Cost to Hire a New Employee

1-2.5%

Loss of Revenue During the Transition

like work gives them personal purpose and

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CULTURE IS ESSENTIAL FOR EMPLOYEE RECRUITMENT AND RETENTION

an opportunity to be part of something

concerts, they are focusing on the same

larger than themselves. Many candidates

idea of building bonding and standout

can have their pick of employers, especially

experiences into the workday and office

in low unemployment fields like high

culture. Companies are sponsoring and

tech—so companies need to stand out by

encouraging employee clubs and activity

appealing to their employees’ personal and

groups, such as game nights, running,

professional ambitions. As a result, 2018

yoga, book, and movie clubs, and groups

saw the rise of branded, company-wide

that focus on community service. They are

experiences, such as Camp WeWork and

also expanding opportunities for learning

Camp Compass, as an essential part of an

beyond traditional professional development

employee’s job and company culture. While

to include employee-led classes and skill

company retreats have long been part of

shares, language lessons, and internal

businesses’ practice, these gatherings not

speaker series. For example, Glossier hosted

only focused on an opportunity for creative

Samin Nosrat, host of the Netflix show Salt,

thinking and strategy, but reinforced

Fat, Acid, Heat for a talk for their employees,

company culture, connected national and

and Hubspot’s internal speaker series has

global employees, and established the

hosted prominent guests such as the former

companies as desirable places to work.

Governor of Massachusetts to the editor of

WeWork flew in teams from all over the

the Boston Globe.

world, including from recently acquired companies like Meetup and Flatiron School,

Vanessa Shaw, founder of the Human Side

and brought in pop band Bastille to perform,

of Tech, commented, “Employees want

adding a veneer of exclusive cool to their

professional development. They want

company-wide retreat.

promotions. Millennials, in particular, want to feel like they’re making an impact.” To

While not all companies can afford, or

this end, companies are also incorporating

choose to spend their money on, private

volunteering, civic engagement, and social

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CULTURE IS ESSENTIAL FOR EMPLOYEE RECRUITMENT AND RETENTION

responsibility into their employee experience

bolster their cultural and community efforts

and their employer brand. For example, REI

to differentiate themselves and publically

has closed on Black Friday for the past few

illustrate their values.

years, publicizing the slogan “Opt Outside,” to raise awareness about outdoor spaces

Another way companies are working to

and activities—and make a bold brand

stand out is by building a distinguishable

statement. Employers such as Patagonia

brand not only for their customers, but

publicized their decision to close on Election

also for their employees and prospective

Day to give their employees the day off to

employees. Building an “employer brand”

vote, a trend that is growing.

that works alongside the sales-driven

Companies are looking for creative and meaningful ways to reward and recognize their employees to highlight the company’s values, support employee retention, and appeal to potential hires.

A survey by the Society for Human

brand has been prioritized in the past

Resources Management found that a record

year. In conjunction with employee-centric

44% of U.S. firms gave workers paid time off

workplace design and company policies,

on Election Day in 2018, up from 37% in 2016.

companies are looking for creative and

Efforts like these not only attract positive

meaningful ways to reward and recognize

attention to the company as an employer,

their employees to highlight the company’s

but make employees feel like they can not

values, support employee retention, and

only express their personal values at work,

appeal to potential hires. To this end, more

but through those of their employer. As the

companies are creating unique employee

labor market remains tight, companies will

gifts that mark personal personal and

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CULTURE IS ESSENTIAL FOR EMPLOYEE RECRUITMENT AND RETENTION

professional milestones. These gifts, like

forgettable swag of the past and using

custom backpacks, water bottles, jackets,

employee gifts and company swag as an

hats, and enamel pins create an air of

important part of the overall employee

collectability and exclusivity—

experience.

strategies more usually associated with designer streetwear brands. They also

In another effort to differentiate themselves

add to a company’s desirability as an

and further showcase their values, companies

employer. In creating these gifts, companies

are connecting their in-office amenities to

such as Casper, BARK, and Intercom are

their values and ethics. For example, many

emphasizing quality over the disposable,

are choosing to order team meals and event

Employee swag at Casper

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CULTURE IS ESSENTIAL FOR EMPLOYEE RECRUITMENT AND RETENTION

catering from businesses that support

the need to order canned drinks. Finally,

local farmers and independent restaurants,

the vendors and service providers that

such as New York City’s Green Top Farms

companies choose to maintain their office

and FoodtoEat or growing chains like

can also reflect their values. Managed by Q

Sweetgreen, Dig Inn, and Tender Greens.

specifically works with independent, local

Some offices may even extend this idea

businesses to provide high-quality office

by working with farm-to-desk providers

services custom to an employer’s space.

like Brooklyn-based SquareRoots, which

As companies work to strengthen their

delivers locally grown greens directly to

culture and differentiate themselves as

offices. Amenities can also emphasize

employers, they will increasingly focus on

health and environmental impact. For

amplifying their mission and values through

example, choosing to have cold brew coffee

employer branding, cultural experiences in

on tap reduces the need buy coffee in

the workplace, and employee services and

plastic cups, and having a smart water and

amenities that reflect their team’s lifestyle

seltzer dispenser like Bevi cuts down on

choices.

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05 Diversity and Inclusion are Fundamental Business Practices Over the past year, the practice and

Reset and reporter Emily Chang’s Brotopia

conversation around building inclusive

brought increased critical attention to

workplaces has evolved rapidly. Efforts to

discrimination in the tech industry. Over the

build strong workplace culture, effectively

past year the #metoo movement has also

recruit and retain employees, and create

exposed employee harassment by company

a human-centered office will not endure

leaders, highlighted weak corporate anti-

without policies that create, support,

discrimination policies, and illustrated how

and enforce an inclusive and respectful

far many industries have to go to create

workplace.

safe and inclusive work environments for all employees.

Diversity and inclusion are now a requirement when it comes to the

Post-#metoo, workplaces and governments,

workplace, both legally and culturally.

including New York State, have implemented

While tech companies have long sponsored

mandatory training on sexual harassment in

events like women’s coding programs or

the workplace. Companies have also begun

conferences in an effort to tip their hat

to scrutinize which aspects of their company

towards diversity efforts, these surface-level

culture could potentially contribute to a

efforts are no longer viewed as sufficient.

hostile work environment. For example,

Books such as venture capitalist Ellen Pao ’s

WeWork put limitations around the hours

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DIVERSITY AND INCLUSION ARE FUNDAMENTAL BUSINESS PRACTICES

in which their occupants could consume

sponsored and employee-driven groups

complimentary beer on tap during the day.

that advocate, organize activities, and raise

Companies are also more widely adopting—

awareness for employees from diverse

and publicizing—clear codes of conduct,

backgrounds. These groups often focus on

which outline unacceptable behavior and its

members of underrepresented communities,

consequences.

such as veterans, LBGTQIA people, or specific ethnic groups within the workplace.

As prospective employees scrutinize employers more heavily based on their

Finally, when it comes to equal pay, more

diversity and inclusion policies and

companies have been going through

practices, companies will adjust their

independent, third-party reviews and audits

recruiting practices to build more diverse

of their compensation data, such as those

teams. For example, Facebook has taken

offered by bethanye Blount’s company

what they call a “diverse slate” approach to

Compaas, to ensure that all employees

hiring where they aim to interview at least

are being equally compensated based on

one candidate from an underrepresented

their work, position, and experience. These

background for every open role. Other

kind of audits will become more common

companies are choosing to lengthen the

and companies can use them as another

hiring process for open roles so that they

tool for employer branding, so prospective

can ensure they consider a diverse range of

employees from diverse backgrounds can

applicants.

be confident that they will be compensated fairly when joining a new company.

To retain employees from diverse backgrounds, companies are also

In addition to being more responsive to

sponsoring groups that help team members

employees’ personalities and working

feel welcome and connected. Employee

styles, the physical office space must also

Resource Groups (ERGs) are executive-

support inclusion. In offices with more than

Managed by Q

2019

DIVERSITY AND INCLUSION ARE FUNDAMENTAL BUSINESS PRACTICES

50 employees, the Department of Labor

with limited mobility and disabilities.

requires a wellness room for nursing parents

Companies are becoming more responsive

and employees with medical needs that is

to employees’ gender identity and

separate from the rest of the office, blocked

expression through cultural initiatives,

from view, has a locking door, comfortable

company policy, and workspace changes.

seating, and refrigeration. Offices also must

This is especially important because

ensure that their workstations, common

an increasing number of states prohibit

areas, conference rooms, and other spaces

discrimination based on gender and sexual

are accessible and welcoming for people

orientation and open legal avenues to

Source: Basicspace

Managed by Q

A private office space at Ordergroove

2019

DIVERSITY AND INCLUSION ARE FUNDAMENTAL BUSINESS PRACTICES

identify as gender non-binary on legal

companies are also adding gender-neutral

documents. During employee onboarding,

restrooms in their offices and informing

office introductions, and at public events

their employees they are welcome to use

that require name tags, more companies

the facilities that correspond to the gender

are inviting employees and guests to self-

with which they identify. As the number

identify with their preferred pronouns,

of Americans who identify as LGBTQIA

including the gender-neutral they/them.

and gender non-conforming increases,

HR departments are also auditing benefit

from 8.1% of millennials according to

packages to ensure they cover health

a 2017 Gallup poll, these practices will

care for transgender employees and

become increasingly important and central

revising dress code policies to ensure

to workplace inclusion and employee

they are gender-neutral. In line with the

recruitment and retention efforts.

Human Rights Campaign’s 2016 report “Transgender Inclusion in the Workplace,”

Employers need to be intentional,

over 330 companies have adopted “gender

thoughtful, and explicit in their efforts to

transition guidelines” to ensure they are

increase diversity and foster inclusion,

administratively and culturally equipped to

understanding that they are not simply

support employees who undergo a gender

“nice to have,” but factors that are

transition during their tenure. To ensure that

connected to a company’s overall success

transgender and gender non-conforming

and performance.

people feel comfortable and safe at work,

Managed by Q

2019

CONCLUSION Throughout 2018, the movement towards more “human-centered” workplace design, policy, and culture has accelerated. This approach to work spaces and culture contrasts the purely “open plan,” “hierarchy-free” spaces and organizations that became popular four to ten years ago. These offices offered little respite for different types of work and different personalities. In their effort to enforce a feeling that everyone was equal, they instead took a blanket, generic approach to work and the office. While coworking spaces have been gaining momentum and major investment, the one-size-fits-all coworking model is also antithetical to this movement to customize offices to the specific people and companies that are using them. Despite their trendy design and slick amenities, many of which come at an added cost, coworking spaces tend to take a cookie-cutter approach to what creativity and collaboration looks like in the workspace.

Instead of one-size-fits-all or adhering to specific trends, company leaders, office operations teams, and people and culture departments can feel empowered to create a workspace that serves their team members, culture, and business needs. Just as the “digital transformation” has enabled consumers to demand and expect a more personalized experience when it comes to the goods and services they purchase, these shifting cultural expectations around work enable companies to look within and see how they can best meet the needs of their employees and culture. Companies can now fully embrace their own model of hospitality, design, and culture to highlight their values and differentiate themselves as an employer.

In an era when employees are looking for purpose as well as a profession, and work and personal life are becoming increasingly integrated, employers will be scrutinized based on how well they support flexibility and diversity and inclusivity in both their policies and physical office space. To be successful and remain relevant in 2019 and beyond, companies must embrace their individuality and create spaces that respond to the needs of their employees and align

Managed by Q

2019

In an era when employees are looking for purpose as well as a profession, and work and personal life are becoming increasingly integrated, employers will be scrutinized based on how well they support flexibility, diversity, and inclusivity in both their policies and physical office space. To be successful and remain relevant in 2019 and beyond, companies must embrace their individuality and create spaces that respond to the needs of their employees and align with their mission and values.

For companies looking to create a forward-looking experience for their team, Managed by Q can help manage the entire workplace, from regular maintenance and event planning to custom design and staffing an employee experience manager. Managed by Q’s services enable workplace operations and people and culture teams to implement the many features, amenities, and policies that have quickly become fundamental to the modern, human-centric workplace.

Managed by Q

2019