Office gimmicks designed to boost productivity and attract talent are falling out of favour as companies prioritise practical amenities that meet modern employee needs.
In place of perks such as games rooms and beer-on-tap, services including gym, cafeterias, dry cleaners, health centres and multifaith rooms are among the top facilities being installed in premium office space.
“Spaces that provide a great experience, prioritise technology, promote wellbeing and diversity and create a connection with the external community are rising up the agenda as companies recognise the role real estate plays in attracting and retaining the right talent,” says Lee Daniels, Head of Workplace, JLL UK.
“Companies are doing this because it’s what their people want rather than following trends,” he says.
The work/play balance
There’s a clear link between workplace design and happy, productive staff, according to JLL research.
Striking the right balance between work and play has seen some companies strive to offer a wider range of recreation space and entertainment options. But increasingly, the offices commanding the highest rents do so through subtler tactics such as integrating cutting-edge technologies and offering people choice and variety over where and how they work, says Daniels.
“Technology is the biggest enabler for people to work more effectively,” he says. “Premium offices combine top facilities with high tech and attention to wellness details like acoustics and fresh air; it’s then that staff become more effective.”
No one-stop solution
What works in one location won’t necessarily replicate well in another, Daniels says.
“In some locations, people say services such as crèches and gyms are underutilised because employees prefer to use facilities near home,” he says. “Some companies jump the gun and select a site based on thinking all of this is necessary when it later transpires that their people don’t want that.”
Understanding what employees’ want first and then planning what the right space will be is essential. Thereafter, measuring how the space is used is as important.
“Businesses with the winning edge are able to combine top-class services with the ability to measure their impact,” says Daniels. “These companies are seeing an increase in efficiency, effectiveness and cost savings per square foot.”
The premium end of the market
Globally, the supply of premium office space is growing but top-of-the-range offices remain reserved for companies who can afford some of the world’s highest rents in cities like Hong Kong, London and New York. According to JLL’s latest Premium Office Rent Tracker (PORT) report, banking and financial services firms are driving demand, occupying more than half of high-spec space in the world’s priciest office locations.