A new report from CBRE, estimates that an additional 5.1 million sq ft of office space will be required for professional services firms in London by 2019. This, the report says, will create a tension between rising property costs, competition to attract talent and employee satisfaction.
The report found that 92 per cent of respondents believe that the workspaces they offer employees play an integral role in achieving high levels of employee satisfaction, and are therefore utilising workplace optimisation techniques as a means of securing new talent.
Therefore – along with traditional workplace staples such as on-site amenities – connectivity and location, more importance is being placed upon investment into technology and good design.
Unfortunately, though, the shortage of prime space in London is beginning to have an impact upon the way firms are able to improve the working environment – at present, for example, accountancy and management consultants allocate 1.25 people per desk to accommodate for flexible working initiatives, but this is expected to rise to 1.5 or even 1.75 people during the next five years.
Executive director of CBRE’s Central London office, Robin Wickham, believes space constraints will place further pressure upon businesses trying to keep costs down whilst striving to lift employee satisfaction rates.
He says; “The report highlights the very real tension between rising property costs, competition amongst firms to attract and retain the best talent, and employee satisfaction.
“Occupiers are under pressure to keep costs down and are continually exploring strategies to use space more efficiently.
“Whilst escalating costs are a key challenge facing occupiers, firms are using office space to attract staff with 92% of respondents citing employee satisfaction as a business driver shaping workplace strategy – a total of 55,500 new jobs in the professional services industries are expected by 2019, making the requirement of an effective property strategy even more prevalent, especially as the war for talent heats up.”
Fortunately, though, CBRE’s report also highlights the many strategies businesses can use to make the most of the space they have available to them through the use of agile working. These can include creating collaborative spaces rather than the more traditional office set-ups, with breakout areas and touchdown spaces dedicated to flexible usage.
Furthermore, CBRE points out that investment into national infrastructure has allowed businesses to “branch out” from key UK regional cities and open small satellite touchdown offices in lower cost areas. These are largely used for internal and client meetings, and can help in expanding customer bases nationally.
John Kent of CBRE’s Central London office concludes; “Professional services firms will require the appropriate investment in technology to facilitate this new style of working.
“Though the costs of adopting the required technology may well be a constraint for some, it should be considered as an essential investment – 82% of respondents stated that technology will be the key enabler to delivering greater collaboration and flexible working solutions whilst intending to increase visibility on social media platforms.”
