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As the workforce continues to evolve, this expert says business leaders need to rethink and be strategic in their return-to-office policies. 

Andrew Peak, the national director and head of transaction management (Australia) for commercial real estate services and investment firm CRBE, said that aside from lingering health risks concerns due to COVID, the onset of the flu season, transport strikes, international travel and poor weather have made working in the office a bleak prospect throughout winter. 

Earlier this year, the expert reported that office occupancy has averaged between 50 per cent to 60 per cent. 

However, he revealed that the winter months sapped this build-up in momentum, as companies in Sydney and Melbourne reported occupancy figures as low as 30 per cent to 40 per cent in recent months. 

“We’re still yet to really have a solid run at the ‘return to the office’. Occupancy is set to rise as we enter warmer months,” Mr Peak commented. 

But Mr Peak cautioned that there’s a lot to play out for office occupiers over the next 12 months, underlining that there is no one-size-fits-all approach for every business. 

For example, he stated that even the hybrid set-up of having employees in the office for a certain number of days — which is considered to be the middle-ground approach by business owners for employees who have grown fond of a remote set-up during the pandemic — is not just cutting it anymore. 

“The way people work has changed and for many employers, as recent occupancy figures suggest, there’s an ongoing challenge to get employees into the office, even two or three days a week.

“Companies can’t force people to come in, and we’re aware of companies that have a three-days-a-week office policy that’s being ignored by some,” he stated. 

On the other end of the spectrum, he revealed that being a fully remote business could also backfire — as some people would leave a company if they had to work from home all the time, particularly if the employee lives alone or in an apartment. 

Meanwhile, he revealed that some companies are choosing to figuratively knock down the walls of their workspace and go beyond the desk by implementing a “work from anywhere policy”. 

He added that this approach also came with significant benefits for firms that adopted it. “With that, they’re picking up a lot of staff from firms that are probably trying to be more prescriptive in getting people into the office, whether through documented policy or leaders verbally outlining expectations. 

“For occupiers setting policies and trying to ensure their workplace earns the commute, it’s a challenge. But it’s also an opportunity in a hotly-contested talent market,” Mr Peak said. 

With that said, Mr Peak said that enticing workers to return to office with gimmicks like free lunches and coffees are now obsolete, and business leaders need to think outside the box to make the office a conducive workspace.

“It’s about understanding that the office has evolved and making it a place people want to be, with a better working environment and access to top-line amenities,” he stressed. 

Mr Peak revealed that there is now a push for buildings to give off more of a community feel, which has resulted in a flight to quality by occupiers in the 12 to 18 months. 

“Landlords are now developing third spaces like wellness facilities and gyms, to give occupants easy access to more amenities; amenities that add value to an employee’s commute,” he stated. 

He also emphasised that the office “isn’t just the desk these days”. 

“We’re moving away from that old school ‘one workstation per 10-square-metre’ mindset and seeing meeting and collaboration space account for up to 30 per cent to 40 per cent of floorspace,” the expert stated. 

While he acknowledged that in-office technology has to catch up, emerging apps, like those showing who’s going to be in the office when and where they’re going to sit, will give a hand to the collaboration piece.  

In another sign that the workplace is evolving along with the changing workforce, he shared that some companies are rationalising their workspace, with decisions pivoted towards creating the best environment for their staff moving forward, rather than cutting costs.  

“They’re asking about air quality and circulation, and looking for 95 per cent fresh air. These sorts of things weren’t discussed two years ago but are now at the top of wish lists,” he reflected. 

He also offered that the current market offers a chance for firms to upgrade and urged companies to take advantage of landlord-funded fit-outs amid high vacancy rates, rather than staying put and risking getting left behind.  

“By the time you throw out the restart of immigration and managing the blurring of lines from the traditional ‘nine-to-five’ structure, there’s a lot to keep an eye on over the coming 12 months,” he concluded. 

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