Awfis and Savills have released a collaborative report titled “Gen-Flex Workspaces”. The report challenges preconceived notions about the new-age workforce and explores the evolving dynamics of the industry.
Awfis and Savills conducted a survey over the course of one month, collecting responses from 500+ occupiers across various sectors such as IT-BPM, BFSI, consulting, e-commerce, healthcare, engineering & manufacturing, and more. The survey had a particular focus on gaining valuable insights from the perspective of Millennials and Gen Z, who represent a significant portion of today’s workforce. To ensure a comprehensive range of perspectives, participants from different age groups and both Tier I and Tier II cities were included in the survey, providing a diverse and inclusive dataset.
The report also examines workplace trends, the overall workplace experience, sustainability and technology integration. It places a particular emphasis on gathering insights from the next generation entering the workforce to find out what will be the next generation work environments.
Amit Ramani, founder & CEO of Awfis, said, “Workplace transformations have come a long way from being cookie-cutter and strictly utilitarian design to an open setting facilitating employee communication and inclusivity. Breaking the barriers of hierarchy, these workplaces are now ruled by the two most talked-about generations: Millennials and Gen Z. The shifting work preferences of these two successive cohorts, with a significant presence in today’s workforce, have notably impacted the dynamics of modern workplaces. To understand this tectonic shift in the workplace landscape and chart a path to a successful future, we need to map the dynamics that revolve around their preferences.”
Sumit Lakhani, deputy CEO of Awfis, added, “Despite the common belief that the younger workforce seeks remote isolation, our research uncovers a significant desire for the indispensable impact of human interaction in a physical workplace. This revelation not only dispels misconceptions about Gen-Z and Millennials but also highlights a universal truth that goes beyond age and location: the profound need for meaningful connections and collaborative synergy in our professional lives. In a digital age, it is heartening to observe the enduring significance of the physical office as a center for fostering creativity, innovation, and shared learning experiences.”
Anurag Mathur, CEO, Savills India said, “In the three years following the pandemic, we’ve witnessed a radical shift in our understanding and connection with the workplace. These changes, accelerated by global upheavals, pushed workplaces to the brink, resulting in a metaphorical rebirth between 2020 and now. The workplace of the next generation is an arena of discovery, experimentation, and adaptation, with key considerations such as air quality, flexible work arrangements, and the integration of corporate real estate and people functions. Our in-depth research into this has unveiled both fascinating insights and complex challenges, with more to be revealed in the future.”
Gen Flex workspaces report:
Return to work
*Overall, 66% of respondents are mandated to go to office every day and 50% of respondents prefer coming to office
*While 23% of the respondents are company-mandated, 31% of respondents prefer hybrid (office-dominant) and 6% of respondents are mandated to work remotely, displaying a mix of people coming to the office or working remotely for 3-4 days in a week
*Only 5% of the respondents prefer working all five days remotely. These results indicate that both the traditional office and the hybrid work model remain significant, despite some experiencing fatigue with remote work. Only a small percentage have the opportunity to work remotely full-time
Biggest challenges of the ‘return to office’
*Our survey reveals that the most prominent challenges include the extended commute to work, lack of work-life balance and the elevated cost of living (particularly pronounced in Tier I cities), and the need for relocation from hometowns
*31% of respondents considered commuting to work as their biggest concern, while 26% of respondents considered the high cost of living to be their primary challenge
*16% of respondents expressed relocation from their hometown as a challenge and 15% of respondents considered poor work-life balance to be a reason to not return to office
*The proportion of Gen Z respondents citing relocation from hometown and Higher Cost of Living as a challenge was higher when compared to the proportions that picked the same challenge among other generations, which potentially indicate the after-effects of the turnaround of reverse migration. Similarly, Gen-X plus had a higher concentration of respondents for poor-work life balance while for Early Millennials it was the inability to focus.
Paradigm assymetry across cities
*In the top three metropolitan cities (Delhi-NCR, Mumbai, and Bengaluru), 71% of employees are required to work exclusively from the office in contrast to 63% in other cities. It suggests that there is a higher requirement for in-office work in the top three cities
*In the top three cities, the “only office” model is more prevalent, indicating a higher emphasis on in-office work
*Other cities are more likely to adopt “only remote” and “remote-dominant hybrid” work models, highlighting a greater preference for remote work or a mix of remote and office work
Understanding work models across generations
*Approximately 80% of respondents from various age groups are open to working in an “only office” or an “office-dominant” hybrid model. However, the split between these two categories provides an interesting insight
*39% of Gen-X plus, which represents an older generation in the workforce, tends to prefer more flexibility and is more inclined toward the hybrid (office-dominant) model compared to other generations
*Gen Z and millennials show more than 50% preference for the “only office” model than Gen-X plus. This preference among the younger workforce might be linked to the significance they place on interpersonal interactions in the workplace
*When closely analysing the preferences of two significant workforce generations, namely Millennials, who currently make up most of the workforce, and Gen Z, who represent the future workforce, across various cities, a distinct pattern emerges. This pattern, referred to as the ‘Willingness Pyramid’, illustrates the inverse preferences for the ‘only office’ work model among these generations in different urban areas
*The ‘Willingness Pyramid’ shows a strong inclination toward the “only office” work model, primarily driven by Gen Z and Late millennials, in cities like Bengaluru and Delhi-NCR. This preference gradually diminishes as we move to older generations within the same cities
*In cities like Hyderabad, Kolkata, Mumbai, and Pune, Early millennials show a higher preference for the “only office” model. This preference becomes less pronounced as we move to the younger workforce generations of Late millennials and Gen Z
People matter
*A common theme that emerges from these work modes is the central importance of “people” in the workplace. 49% of respondents attributed human-centric reasons for returning to office. This is supported by the survey findings, which indicate that aspects like collaborating with their teams, socializing and bonding with colleagues, and having in-person meetings with clients are among the top reasons why employees want to go back to the office
*29% of employees prefer a collaborative work environment, often referred to as ‘we’ spaces, which includes areas designed for connection and networking
*26% of employees favour a more professional and peaceful corporate setting, known as ‘me’ spaces, which include quiet spaces & conducive work environment
Integration of flexible workspaces
*On an analysis of ‘Where’ people prefer to work, 49% of employees prefer working from a branch office or coworking space closer to their home
*33% of employees prefer the flexibility to work from any place of their choice, including home or cafes
*A stark 82% of the respondents who prefer a company-mandated central location cite collaboration with their team and in-person meetings as the primary motivators for returning to the office. Similarly, those who prefer working from a branch office or coworking space closer to home emphasize collaboration with their team, social interaction, and bonding with colleagues as key factors
*Noteworthily, the preference for working from a branch office/co-working space closer to home is equally valued by employees in Tier I and Tier II cities and across age groups. However, in contrast to the trend in Tier I cities, employees’ preference is tilted towards working from a company-mandated central location than working from home/café in Tier II cities
Flight to quality workspaces
*The report highlights the importance of creating high-quality workspaces that meet employees’ functional requirements while also addressing their desire for a sense of community and access to amenities
*74% of Gen Z & 63% of millennials & 67% late millenials ranked inclusive spaces among the top 3 features enhancing the office experience
*While a diverse range of working environments is equally important across generations, there is a shift in priorities when it comes to recreational and wellness spaces as 74% of respondents consider them highly important
*Regarding external aspects contributing to an ideal office location, the survey reveals that short commute time, accessibility to public transport, and the availability of parking are the top three reasons that employees prefer. These factors are essential in enhancing the overall office experience
Preference for sustainable workspaces
*The data showcases the growing trend in businesses towards creating eco-friendly and sustainable workplaces as they recognize the importance of minimizing their environmental impact. This trend is expected to continue and expand as environmental consciousness among both businesses and consumers continues to grow
*According to the survey findings:
*82% of employees prioritize air quality in a workplace
*78% of employees consider water quality as crucial
*55% of Gen Z and 54% of Late Millennials prioritize fitness slightly more as a sustainable feature in the workplace, while Gen-X plus places a greater emphasis on seeking more comfort in the office
Embracing technology
*According to the survey, the most essential office features, as perceived by most employees, include technology-driven meeting room scheduling systems, visitor management systems, parking management systems, and automated temperature control. These features are believed to significantly ease the workplace experience for employees
*On the other hand, optional features like EV charging stations, touchless systems, daylight sensors (to optimize lighting), and sustainable technology (occupancy/motion sensors for reducing energy consumption) contribute to an improved work experience
