Yet a new report from commercial real estate firm CBRE shows a big jump in corporate tracking and enforcement of office attendance this year. From the data it’s clear that 69% of companies are currently in a place where they are auditing attendance. That’s a big jump from only 45% last year. Additionally, punishing enforcement of attendance policies has increased dramatically to 37%, up from 17% last school year. A survey of 184 companies that made the Global 2000 list showed some pretty shocking stats. These findings point to a drastic change in workplace dynamics as workplaces adapt to post-pandemic realities.
The impetus for higher office attendance comes at a time when companies are making record strides in meeting their return-to-office goals. About 3-in-4 of the responding organizations said they achieved their attendance objectives — up from 61% last year. This increase, unfortunately, reflects a larger trend of companies doubling down on efforts to return employees to in-person work. Now, on average, organizations are requiring employees to come into the office just 3.2 days a week.
While we celebrate this progress, fears about the continued lack of high-quality prime space remain. Forty-eight percent of the survey respondents said they are concerned about being able to obtain prime office space in the next three years. This concern is perhaps even more timely given the current state of affairs. Prime office space makes up 8% of the total office inventory and boasts a third of the vacancy rate of the broader office market. In comparison, their overall office vacancy rate is 18.9%, close to a 30-year high of 19%.
Julie Whelan, CBRE’s global head of occupier research, noted a change in companies’ approaches to office design and usage.
“For many, office footprints now are smaller but more effective and better tailored for collaborative work. Employers are much more focused now than they were pre-pandemic on quality of workplace experience, the efficiency of seat sharing, and the vibrancy of the districts in which they’re located.” – Julie Whelan, CBRE’s global head of occupier research.
Nonetheless, the report does point to a crack in the companies’ long-term plans for office space. About two-thirds of companies intend to keep or grow their office footprints over the next three years, according to a recent survey. The Good The rate of companies reporting their intent to reduce size has fallen! Now, just over one-third plan on making cuts, a drop from 36% last year and a steep drop from 53% in 2022.
Manish Kashyap, CBRE’s global president of leasing, noted that the change in corporate office attendance policies is a recent trend.
“I think it was pretty loosey goosey for the last year or two, and I think the companies have got a lot better at that right now.” – Manish Kashyap, CBRE’s global president of leasing.
CBRE’s report underscores a remarkable shift in workplace culture and corporate strategies as companies navigate the complexities of post-pandemic operations. The trends suggest a renewed focus on attendance monitoring and policy enforcement alongside a commitment to enhancing the overall quality of workplace environments.
“You have organizations that finally have clarity and decision making because they’ve been living in this world of hybrid for so long, and now they know what it truly looks like for them. So all those decisions that they may have put off, even if there’s a little bit of economic uncertainty right now, they’re still willing to move forward with some additional deals.” – Julie Whelan, CBRE’s global head of occupier research.
CBRE’s report underscores a remarkable shift in workplace culture and corporate strategies as companies navigate the complexities of post-pandemic operations. The trends suggest a renewed focus on attendance monitoring and policy enforcement alongside a commitment to enhancing the overall quality of workplace environments.