Ark - Financial Sector Workplace Report

Finance Transformed:

Unveiling the Next-Gen Workplace

“Financial services firms are experimenting more than ever with new ways of working, each one with a unique impact on business and culture. But when you look beyond the basics of hybrid policy and occupancy strategies, you see a clear and unified aspiration for a workplace that meets us at a human level. This new financial workplace energizes and empowers employees, unlocking talent to drive growth and innovation.”

Lisa Knip

HLW Financial Sector Lead/Principal

Discovery begins with curiosity.

WHO WE ARE

The Ark Research Lab solves workplace pain points for clients across industries, using nuance and data to help you stay more agile, smarter, and ahead of your competitors.

ABOUT THIS DOCUMENT

The Ark Research Lab, in partnership with HLW global design leaders, compiled this report to identify the fundamental shifts taking place within the financial services industry and offer strategic advice to help you move forward with confidence.

We’ve leveraged Ark internal data sources and HLW project experience to offer strategies rooted in measurable outcomes and real world constraints.

• Ark Benchmarking Data

• Ark Market Surveys

• Designer Interviews

Research Lab

• HLW Design Imagery

• Third Party Sources

We believe the physical environment has the power to transform how we work, play, and live. Research is the key to unlocking its potential.

Carlotta Dove

Ark Research Lab Founder Psychology (MSc)

Brian Ledder Ark Research Lab Lead Geodesign (MSc)

Jenifer Duong Ark Research Lab Data Analyst Design Analysis (BSc)

Financial services firms are adjusting to hybrid work patterns

Financial services firms are shifting their priorities towards human

01. A vibrant workplace attracts top financial talent

More than ever, prospective employees within the financial industry are taking company culture into consideration before making their decision. A vibrant workplace showcases a firm’s commitment to its employees and its culture.

What are some effective ways to establish vibrancy in the workplace?

FOCUS ON THE CAFE

Identify hubs of activity, often cafes or pantries, and build the workplace experience around those settings. Utilize events and programming to maximize the utilization and value of these spaces.

DESIGN FOR ATTENDANCE

Design and size your workplace based on workplace attendance policy and expected attendance to create space that operates at intended capacity.

MANAGE THE BUZZ

Move past noise concerns and encourage open communication with thoughtful neighborhood sizes and adjacent meeting space.

FINANCE WORKPLACE INVESTMENT

Which spaces had the largest increase in investment in the past two years?

Cafes

“Our most innovative financial clients are prioritizing amenities, wellness, and employee experience over the corner office. The focus has shifted toward equity of experience.”

Lisa Knip, HLW Financial Sector Lead/Principal, 2023

02. Focus trumps collaboration

Finance employees are dissatisfied with open collaboration spaces in their primary work areas. They seek high performance workplaces that includes a mix of enclosed, confidential spaces that support their need for focus work.

What are the characteristics of a high performance finance workplace ecosystem?

FOCUS WORK IS PRIORITIZED

Neighborhoods designed for deep focus work are smaller, with adjacent meeting and support space. Enclosed collaboration areas further segment open workstations.

WORK HAPPENS ANYWHERE

Quality destination space that functions as an alternate work location allows employees to move around the office. Finding the right type of space for an organization requires a deep understanding of how its unique teams work.

MEETINGS ARE SEAMLESS

New tech and furniture solutions enable quality hybrid in-person/virtual meetings that provide meeting equity and ease of information sharing.

THE TRADING FLOOR IS STREAMLINED

Support services are located nearby, in some cases embedded in trading furniture. Furniture, along with power and data, are configured to maximize sight lines and quick communication.

72% of financial services firm employees say the ability to complete required tasks drives their decision to come into the office.

HLW Workplace Satisfaction Survey, 2023

03. Nimble space enables innovative operations

The generative AI revolution, societal shifts, and global recessions are impacting the financial sector, making long-term lease commitments daunting. Including the right kind of spaces and well designed modular components allow clients to test out innovative programs and scale in place as market conditions allow.

How does physical office space drive innovation within an organization?

BY ENABLING A RANGE OF HIGH QUALITY, IN-PERSON EVENTS

To rebuild culture, support ESG goals, and drive attendance, many finance firms are hosting inperson events. Long term, the purpose and format of these events is highly unpredictable. Creating flexibility in these large spaces allows a business to adjust as needed and host high quality tailored events as the situation requires.

255%

increase in the number of in-person events since the end of 2021. Many of these events include a virtual element as well, demanding space with quality tech and AV capabilities to support.

Forbes, 2023

BY

SUPPORTING NEW WAYS OF WORKING

Modular sizes of enclosed rooms provide flexibility to explore progressive office assignment policies or accommodate growth in new ways.

An increasing number of furniture solutions for enclosed or semi-enclosed space allow for faster and easier reconfigurations of existing office space.

76% of financial firms are revising their office assignment policy based on new utilization patterns.

Ark Workplace Benchmarking, 2023

04. Authentic commitment to ESG’s is a requirement

“Employees get on board with ESG goals when they feel it lived and breathed through company culture and space. Otherwise, it’s just hot air. ”

Increased accountability toward company ESG goals is taking root among top financial services firms. An authentic commitment to these goals is embedded in company culture and reveals itself in how physical space is allocated.

How does an office demonstrate authenticity toward ESG goals?

DEMOCRATIZE THE SPACE

Prioritize shared spaces that provide direct benefits to all employees. Rethink office allocation and provide enclosed private areas for employees without an office to use as needed.

25% Increase in the size of the workplace cafe space.

INTEGRATE WELLNESS

13% Decrease in the size of individual offices.

Ark Workplace Benchmarking, 2023

Health and wellness incorporated into the open work area through controlled lighting and biophilia provides a constant benefit that even wellness rooms can’t offer.

REMAIN SUBTLE BUT SERIOUS

ESG initiatives are important to integrate into the physical space, but going overboard on them can dilute a company’s unique brand identity.

Currie Gardner, HLW Associate Principal, 2023

High quality office design has the power to articulate company values in subtle but impactful way. The client visit is a chance for a firm to showcase who they are and make a meaningful connection with their clients.

How does design make a positive impact on

the client experience?

SHOW HOW YOU THINK

The office aesthetic offers clients a glimpse into how a firm thinks and what it values. Being tactful with aesthetics gives a firm a chance to control that unspoken narrative and remain upscale without feeling ostentatious.

ENABLE SIMPLE HOSPITALITY

Showcase hospitality in ways that don’t require extensive effort so that it feels like a natural extension of day-to-day operations.

DESIGN A BRIEF TOUR ROUTE

The path from reception to a meeting room is likely short, but it is a great chance to showcase a firm’s best qualities. Visuals like artwork and awards are one tactic. In some cases, firms are providing sight lines into other areas of the business, maintaining privacy/confidentiality while giving clients a sense of company scale.

05. Client visits are about meaningful connections

Ark Visioning Session, 2023 - Confidential Private Equity Client

“When our clients come in they want to see that this is where the best thinking happens.”

Strategies that push the boundaries

DESTINATION SPACES TALENT DEVELOPMENT WORKPLACE ITERATION

Unique destination spaces provide a greater spatial hierarchy and drive movement through the office, increasing energy and vibrancy. High quality working environments that employees want to use and the proper tech to support them make these spaces successful.

Junior and senior staff seek out learning and development in the workplace. High quality talent development programs often involve formal training sessions; however, most learning happens at the desk. Configuring neighborhoods to ensure a free flow of communication and access to experts/senior staff will enhance day-today talent development.

Periodic improvements to the workplace signals a commitment to innovation and a willingness to fail. This attitude catches on with employees and results in an increased willingness to experiment, driving innovation.

HLW Project Showcase

Workplace Designs From Industry Leading Clients

Confidential Wealth Management Client

“One Unique Experience” was the driving concept for this wealth management firm’s new workplace. The warm and unexpected aesthetic is consistent throughout the office, creating a unified experience that values employees and clients equally.

Attractor zones at each stair landing create a hierarchy of space and increase the potential for chance encounters among employees.

Focus work is prioritized with a variety of private and semi-private work areas, given prominent locations in the office.

Small neighborhoods separated by supporting services and biophilia creates an efficient work environment with integrated wellness.

Morgan Stanley

New policies regarding attendance and agile working demanded high performance office space that is intuitive and flexible. Morgan Stanley’s new downtown headquarters employs a range of settings that allow employees to work how they see fit, resulting in innovative uses, creative thinking, and a well connected, yet dispersed workforce.

Enclosed spaces at multiple scales support a range of work types and user preferences. Full tech enablement ensures the right tools in any setting.

Meeting culture is transparent with glass enclosed rooms and on-the-spot reservations systems. Additional open meeting areas allow for quick conversations away from the desk.