Insights from the forefront of future of work thought leadership

The future of work has been forever changed. As we begin to return to work post COVID, organisations are starting to reflect on the sudden and involuntary uptake of flexible working models from early 2020. Such models have, perhaps permanently, shifted expectations for employers and employees – thanks to the experience of unforeseen benefits for both. 

The benefits of co-located, or office-based working still remain, however – connection, collaboration and culture are still key to organisational success and cannot be completely replaced with remote model variants. As organisations have now realised, a hybrid model of work is the most likely outcome of the pandemic – an extension of activity-based working, where some work is suited to the office, and other work is suited to the home. 

This makes quality workplace design crucial as a way to placemake workplace environments, and ensure that they optimise employee wellbeing. 

How workspace design can aid in employee health and wellbeing as we return to work

Flexible workplace design isn’t a single standalone tactic – it is made up of a whole spectrum of tools that can be deployed to improve productivity and the wellbeing of staff. It can be leveraged across so many workplace aspects – from the physical design of the office to the spaces employees use to complete the work and all the way through to the flexible work hours the organisation offers. 

Designing a workplace to support flexible working has been shown to improve employee wellbeing, in fact, employees tend to be happier in flexible working environments. Some of the benefits include:

• Better work-life balance
• Improved physical and mental health
• Measurable increases in productivity. 

Honing in on the purpose of your office space 

The office of old was all about squeezing people into small, permanent spaces – ensuring everyone is together and that firms can also keep their real estate costs down. More recently, this strategy has begun to shift, and the pandemic has accelerated workplace design towards a more flexible use of space.

In a post-pandemic world, the office is about celebrating the reasons we come together. Some of the common purposes for co-located work include collaboration, social interaction and learning and development, but each organisation will have its own unique requirements. 

The future workspace understands and caters to the specific work purposes, which in turn can augment a sense of employee wellbeing. Here are just some of the dials that can be turned to provide a safe and productive place for co-located work. 

Choreographing movement

In flexible and agile work environments the choreography of movement has always been an important factor of workplace design. In a world that includes physical distancing requirements, this ‘dance’ has become even more imperative. 

Directing movement through design with wayfinding (whether it’s signage, structured paths or colour coding) gives employees simple signals as to where they should walk, stand or sit – keeping themselves and others safe and healthy.

Leveraging smart office tech

With smart office tech, workplaces can support the flexible use of space and optimise utilisation. Whether it’s enabling data-driven facilities and building management or creating a touchless experience for employees and guests. 

Like with many things, the technology to do this already existed but COVID-19 has accelerated the adoption of tech like sensors, room booking systems and occupancy planning tools.

Considering digital and social inclusion

In a traditional working environment staff were able to demonstrate care and connection through in-person interactions: saying hello on entering the office, having coffee with a colleague, celebrating a work anniversary in the shared kitchen. In a flexible work environment where some employees are co-located and some are working elsewhere, inclusion becomes more of a challenge.

Businesses, leaders and teams have an opportunity to introduce new, valuable practices and spaces to ensure the inclusion of those not in the office, such as virtual social events (trivia night anyone?) and well-designed meeting spaces which cater seamlessly to those connecting virtually.

Deploying biophilic design

In a report, psychologist Sir Cary Cooper explains the relationship between workplace design and biophilia as “an innovative way to harness this affinity in order to create natural environments for us to live, work and learn [in]. By consciously including nature in interior or architectural design, we are unconsciously reconnecting; bringing the great outdoors into our constructed world.”

To sum it up, workplaces that incorporate natural plant life are inclined to be happier, more productive spaces.

Managing acoustics

Open-plan offices have often been discredited as noisy and unproductive spaces, yet good design will allow the flexibility of open plan to exist without acoustic downfalls. Careful acoustic design can overcome acoustic shortfalls by using materials which absorb excess noise to enhance communication between teams, reduce disturbance from undesired noise, improve privacy and allow employees to focus on tasks that require concentration. 

Letting in the natural light

A survey published in the Harvard Business Review shows that access to natural light is the number one thing employees want in their office environment. And for good reason.

Research by Cornell University strengthens the relationship between natural light and employee wellbeing. A study found the optimisation of natural light in an office significantly improves health and wellness among workers. 

A design based on flexible working principles will allow workers to have access to natural light as they choose the space best suited to work in for themselves.

Despite new models of work becoming prevalent, the benefits of a central workplace – connection, collaboration and culture – still remain, and are key to organisational success. Workplace design plays an even more important role today, in placemaking creation for organisations that want to thrive with a hybrid model of work – but also in nurturing an employee’s wellbeing while they are onsite. 

The future of workplace design is changing and evolving as we speak. With so much information on the future of work, we wanted to help by collecting the most crucial future of work knowledge in one place for you to access easily. Check out all you need to know about the future of work here.

While new business models, fresh ways of working, and an increasingly tech-enabled ecosystem have shifted the workplace needs of companies, one thing remains crucial throughout the disruption: the commercial office lease.

A commercial lease is a binding agreement between landlord and tenant which sets out both parties’ obligations. The lease spells out terms and clauses for both landlord and tenant, so you, as the tenant, can better understand exactly what you’re entering into. Seeking out advice from trusted partners throughout your entire lease expiry process is smart, but when it comes to commercial office lease, advice from a tenant representative or legal advisor can help to ensure your lease agreement is favourable and fair.

What’s in a commercial lease agreement?

All commercial leases include what is known as ‘essential terms‘. As the name suggests, these terms are essential to the contract and without them, it may not exist at all. Essential terms are things like payment of rent, names of the parties involved and a description of the premises to be leased.

Outside of the essential terms, there are a number of clauses that can be included when it comes to your office lease. In this post, we will unpack six commercial lease clauses you can’t afford to NOT know about.

1. Subletting

The option to sublease part of your property to a third party can be helpful if your company’s space requirements are likely to change over the course of your lease. For example, if your business is downsizing, subletting some of your space can support cash flow by making use of unused floor space.

The option to sublease will need to be written into your lease agreement from the outset. Know that your original lease remains in effect even when a new sublease has been signed.

2. Repairs and maintenance

Maintenance and repair obligations should both be set out in your commercial lease. Generally, as a tenant, you are responsible for the ‘rented premises’ like floors, walls and fixtures, and are therefore required to repair and maintain them during your lease.

On the landlord side, maintenance and repairs to the structural parts of the premises, building systems and common areas like lobbies or the lifts are usually included. Check your lease carefully though as sometimes these items can be inserted under the tenant’s obligations.

3. Ending the lease early

Including a ‘break clause’ allows you to terminate the commercial lease earlier than the specified term. Most break lease clauses include a notice period where you must let your landlord know of your intention to break the lease.

If your lease agreement doesn’t include a break lease clause, and you end up needing to leave your lease earlier than the anticipated term, you may be required to buy out the term of your lease, assign it to a third party or otherwise negotiate an early exit with your landlord.

4. ‘Make good’ clause

A ‘make good’ clause is a standard inclusion in many commercial leases. The make good provision is negotiable but basically requires the tenant to return the premises back to their original condition, regardless of any improvements that have been made during the lease period.

Before you sign on the dotted line, ensure the make good clause is clear for both parties and you understand your obligations at the end of your lease. You’ll need to consider this additional cost when you decide whether to move at the end of your lease.

Furthermore, complete a thorough condition report including photos and videos of the office at the start of your lease. This will help you to avoid nasty surprises at the end of your lease agreement by providing clear evidence of the original condition of the premises.

5. Rent review

The ‘rent review clause’ explains the process for increasing the rent as the term of the lease proceeds and is common in many commercial leases. The common methods of rent review include:

• ‘Fixed percentage increase review’ that specifies a fixed rent increase on designated dates during the lease term.
• CPI rent review which is directly correlated to movements in the CPI (Consumer Price Index).
• Market rent review that reassess your rent in relation to the state of the financial market.

Ensure you are aware of the type of rent review clause your lease includes and that it suits your business requirements.

6. Option clause

An ‘option clause’ gives the tenant the option to renew their lease at the end of the initial lease term. Usually, the option needs to be exercised within a certain time period (eg. six months before lease expiry), and the tenant must not have breached any terms in the contract during the lease period. An option clause isn’t mandatory, so check your lease before signing.

As you can see, a commercial lease is complex and, as a legally binding document, you want to ensure you’ve got all the bases covered. But the lease terms are just one part of the lease expiry process. To negotiate the right terms for your needs, you need to consider every aspect of the process and develop a robust workplace strategy. For more commercial lease advice and to learn more about choosing the right workplace design partner for your strategy, download our free ebook today.

Workplace wellness is not only important for moral and ethical reasons, but financial reasons, too. In fact, a recent study found that every year, absenteeism costs the Australian economy an estimated $44 billion, while presenteeism (working at a reduced capacity) more than $35 billion.

So what are organisations doing to promote workplace wellness?

At our recent lunch and learn, we covered how organisations can produce the best bottom-line results through workplace wellness initiatives with our panel of experts:

• Dr Debra Villar, Director at Complete Corporate Wellness, a company that provides health and wellness programs for the corporate sector.
• Jack Noonan, Vice President Australia & New Zealand at International WELL Building Institute, which is leading the movement to promote health and wellness in buildings and communities everywhere through their cutting-edge WELL Building Standard™.
• Annelie Xenofontos, Senior Workplace Strategist at Axiom Workplaces, who leads the strategic thinking process that creates intelligent workplace design outcomes for our clients.

Here’s what they had to say about wellness trends they were noticing in Australian workplaces.

How are buildings changing to support workplace wellness initiatives?

Circadian lighting

Noonan explains that 20 years ago, all offices were using bright, fluorescent lighting that didn’t change throughout the day, which led to a disruption of sleep at night.

This is why today, more organisations are using circadian lighting – that is, lighting that mimics your daily cycle. Lighting will mimic daylight midday, and become warmer in the afternoon as you finish work.

Most results are qualitative instead of quantitative, with organisations saying that staff are requesting circadian table lamps and more likely to use meeting rooms with circadian lighting.

End of trip facilities

Noonan explains that Australia is well ahead of the United States in terms of our end of trip facilities, simply because large developers and workplaces are willing to make end of trip facilities spacious enough for tenants to share and enjoy.

For example, the recently opened International Towers in Barangaroo boast the largest bike parking facility in the southern hemisphere, with room for over 1000 bicycles and more than 100 showers. This encourages cycling to work which not only reaps health benefits, but also environmental benefits.

How are organisations supporting nutrition?

Villar explains that some businesses go to the extreme by providing gourmet meals, which are pre-planned by a head chef – but not all businesses can afford this, so it’s more about providing healthy alternatives. If unhealthy snacks are available, you can place them on the bottom-shelf so that they’re not prominently promoted.

According to Noonan, 50% of food options should be fresh fruit and vegetables – or at the very least, organisations should provide two options of fruit and two options of vegetables. This is to ensure that making the healthier choice is the easier choice and that staff have options available.

Additionally, by simply providing inviting spaces for people to come together and eat, organisations are encouraging a balanced diet, as people tend to eat healthier when they eat together. A requirement of the WELL Building Standard is that there is space for at least 25% of employees to have lunch at any point in time. While it’s certainly an investment in real estate (as you’re sacrificing space that could be used as work stations), it’s an important factor for workplace wellness.

How are organisations supporting mental health?

According to Villar, 1 in 4 people in the world have a mental disorder but no one wants to admit it. Stigma prevents people with a known disorder to seek help from health professionals – even if treatment is available.

Movements like R U OK? Day help in supporting those who are struggling by inspiring people to start talking about mental health. Companies and other organisations are also doing their part in supporting mental health and creating a healthy workplace. Villar highlighted that a healthy company not only focuses on the health of an individual but on the health of the whole organisation.

A focus on taking action

Organisations are starting to go beyond the simple measurement of chronic diseases by implementing health programs that build fun and engaging workplaces.

Previous programs comprised mainly of checklists, and centred mostly on the measurement of data. Managers would tick boxes, analyse the data and conclude, for instance, that 10% of employees have a risk of diabetes. But these numbers have no value if they don’t help solve actual health issues and affect change.

Australian companies still conduct biometric testing for glucose and other health checks – but are beginning to move away from that and focus on fun and engaging activities like workplace challenges, team projects and treatment days.

Villar also mentioned that there are cost-effective ways to encourage employees to take the stairs, simply by making them more appealing. For example, you could allow people to draw artwork and write quotes along the wall near the staircase.

These activities actually make a difference in people’s health, instead of simply drawing conclusions around the percentage of staff that have chronic diseases.

Support the mental health of managers

More organisations are recognising the importance of supporting managers with the tools they need to support their own mental health, so that they can, in turn, support the mental health of their teams.

“It’s all well and good to provide education to staff around mental health, but if you’re not providing dedicated support to their managers so that they can walk the talk and inspire staff, then you’re missing an important point,” explains Villar.

Leaders need to have the necessary tools to deal with mental health issues, as they can be quite confronting.
Villar and her team provide a mental health first aid course for organisations – helping people recognise signs of mental disorders, what to do, and how to deal with those signs.

Focus on office design

Xenofontos explains that organisations are using office design to positively impact mental health. One example is through the use of open-plan offices.

She mentioned the experience of a person who worked in a law firm that had partitioned offices for every lawyer. Because of this, no one in the office noticed when one particular staff member was having a difficult time dealing with his wife’s illness and suffering from a mental health crisis. The fact that staff were separated by their own cubicles meant that he could come to the office before anyone arrived, and leave the office after everyone left – without anyone noticing.

Xenofontos stressed that if it was an open plan office, other staff would more likely notice the decline in his wellbeing, and offer some support. This is why it’s important to consider how office design can impact employee health and wellness.

A workplace design partner can help you build a healthier office for your managers and staff. To help you find the perfect one for your business, check out our free ebook, How to Choose the Right Workplace Design Partner.

Or if you’d like some free advice, why not meet with us and get a comprehensive design assessment and execution plan, obligation-free?

Workplace design has a marked effect on a business – if it didn’t, every office would simply be four white walls with rows and rows of identical desks.

Organisations are beginning to understand that, in order to get the best performance out of their employees, they need to provide more than simply a place to work – they need to provide spaces to collaborate, innovate and take a break.

If you want to take your business to the next level, a workplace redesign might just be the place to start. Here are 5 ways a workplace design can make your business more competitive.

Improving productivity

Our environments have an undeniable effect on how well we work, so supporting employees through workplace design can have a very positive effect on productivity. This can be through myriad ways. A workplace design can, for example, incorporate ergonomic furniture and flexible desks to support employee comfort and wellness, helping them do better work throughout the day; or it can make certain workflows more efficient, leaving employees more time to work on things that provide greater value to the company.

Increasing collaboration

Many organisations are realising the benefits of fostering a strong culture of collaboration, with a report by Deloitte finding that Australian companies that prioritise collaboration are twice as likely to be profitable and twice as likely to outgrow competitors.

Studies have also shown that the most innovative employees spend almost half their time collaborating with others, whether that’s in person or via technology.

A workplace design can be a key means of encouraging collaboration. Whether it’s informal lounges, stand-up meeting spaces, or brainstorming rooms, the simple act of providing a space whose purpose is collaboration sends a strong signal to employees that it is an essential aspect of your culture, and encourages employees to find ways to utilise the space.

Encouraging innovation

The most innovative businesses often have the most innovative workplace designs – think Microsoft’s treehouses, Apple’s spaceship or Amazon’s mini rainforest domes. While these sorts of things might be a bit outside your budget, there are still many ways your workplace design can help your employees be more innovative too.

Because innovation means thinking outside the box, it makes sense that innovators can become more creative when they have more choice in when and where they work. Providing a variety of spaces and more flexibility can help employees be more engaged in their jobs and spark ideas on improvements – a win for the business.

Organisations that consider employee happiness as a fundamental performance objective consistently unlock greater innovation and long-term financial success, according to a Robert Half study. While innovation is defined differently by each business, providing a workspace with places to unplug and unwind can aid the creative process, while also giving employees more organic opportunities for interpersonal interaction.

Attracting top talent

If you want your business to be more competitive, then you need to be able to attract the best of the best. But these days – when many employees have the option to not just work at other organisations, but also become freelance consultants – it’s arguable that companies have to work harder than ever to entice employees to stay in one place.

Your workplace design is one of the best tools at your disposal. With a single glance, potential employees can read a lot into your organisation. For example, a variety of different spaces – cosy reading nooks, formal conference rooms, collaborative open-plan areas – says your organisation is flexible and willing to cater for different work practices.

A biophilic design that integrates nature, or a design that encourages activity throughout the day, shows you care about your employees’ health and wellbeing.

Supporting digital transformation

Successful digital transformation requires an organisation to rethink its entire way of working. A workplace redesign can facilitate this, whether it’s by incorporating new technologies, supporting new workflows or encouraging new ways of working.

REA Group’s headquarters in Melbourne, for example, have ‘wormholes’ – embedded screen portals within walls to allow 24/7 communication with global teammates, allowing them to partake in events like meetings, demonstrations and celebrations as if they were in the same room.

If claiming a bigger market share and outstripping your competitors is one of your organisation’s goals this year, take a look around the office. Could your workplace design be working harder for you?

Did you know that a majority of the world’s population (58%) spend one-third of their adult life at work?

If you do the math, it makes sense that wellbeing in the workplace is so important. After all, if your workforce is spending so much time at the office, making sure everyone is well-looked after means better productivity, performance and happiness at work, which then translates to improved revenue and retention.

Strong leaders acknowledge today’s ever-evolving workplaces, and are always looking for ways to shake up the traditional office space, factoring their people into the commercial design.

That’s why last week, we hosted a lunch and learn on the ROI of workplace wellness and discussed how to produce the best results for businesses through workplace wellness with a panel of experts:

• Dr Debra Villar, Director at Complete Corporate Wellness, a company that provides health and wellness programs for the corporate sector.
• Jack Noonan, Vice President Australia & New Zealand at International WELL Building Institute, which is leading the movement to promote health and wellness in buildings and communities everywhere through their cutting-edge WELL Building Standard™.
• Annelie Xenofontos, Senior Workplace Strategist at Axiom Workplaces, who leads the strategic thinking process that creates intelligent workplace design outcomes for our clients.

So, how do you produce maximum productivity and performance in your people? Here are some of the insights our panel of experts shared:

What are three things organisations can change to encourage workplace wellbeing?

Workplace wellbeing goes hand in hand with a solid culture in the business. It’s not as easy as just getting a massage therapist in for a few days, as Villar explains.

The key elements needed for a successful wellness program are:

• Leadership buy-in: It’s imperative that the leaders of a business are on board and driving wellness initiatives. HR leaders and managers then need to promote it around the business. It’s also a good idea to have a ‘wellness champion’ on-site to continually ensure that programs are carried out on the daily, and that employees have a point of contact if they are unsure of how to make the most of these initiatives.
• Holistic mindset: A wellness program shouldn’t just be aesthetic, it needs to cover all the bases – nutrition, a healthy mindset at work, and continual learning.
• Measurable data: No matter how your business defines ROI, you need to be able to measure data around participation rates, performance and productivity so that you can manage all pre- and post wellness initiatives and see real ROI. Villar recommends that organisations embarking on wellness improvements use just one provider to keep things constant. For example, if you’re getting a new office fitout to include a communal space for yoga classes, your chosen workplace design partner is best-placed to help you measure against the relevant metrics before and after the fitout.

What are some easy ways to improve the quality of your environment?

The first step to doing this is to ‘use data to understand where you’re at first,’ says Noonan; without knowing where you stand currently, you won’t know how much you need to improve. This includes tangible elements such as the building itself, and intangible elements like HR policies around issues like mental health.

Then, it’s about changing mindsets. How can we change the question around wellness to be less about ‘how can we do less harm’, to ‘how can we do more good?’.

Instead of focusing solely on minimising harm (with things like asbestos, poor lighting, and poor ventilation), Noonan says that businesses should also speak to occupants to learn what they actually want, and invest in people and HR policies. Combine these elements, and organisations can see a huge return on investment.

It’s not news that changing our environment can make an impact on staff wellbeing. But with a new project, businesses are usually thinking solely about the cost of the fitout – when in fact, 90% of the cost of your business goes to your people, according to Noonan. So investing in the fitout is part of investing in your people, and if you see improved staff performance, attraction and retention, then there’s your ROI.

Noonan also reports that some commercial fitouts pay for themselves through ROI in less than 3 months.

From a physical standpoint, what changes should business leaders implement in order to improve wellness in the workplace?

Over 50% of Australians have at least one prominent chronic condition, yet most organisations say that they have no budget for wellness initiatives. If you consider the cost of absenteeism (currently at $44 billion per year across Australian companies), it’s easy to see how a wellness program will pay for itself in the short- to mid-term.

Additionally, you don’t need a big budget to start implementing wellness-led activities in your business, even small things can make a big impact. For example, encouraging employees to take meetings outdoors, creating a walking club, providing healthy snacks in the kitchen and encouraging people to stand up and walk around every 15 minutes.

Noonan also encourages creating a supportive environment; allowing people to come and chat to you if they have an issue about their health. He also revealed that more than a third (39%) of potentially preventable hospitalisations are due to chronic diseases; however, only 1.5% of health spending goes to the prevention of chronic diseases. He opines that in relation to our buildings, there are so many ways to design our workspaces that can encourage physical activity and prevent chronic diseases. An example is to prominently feature staircases instead of elevators in a building design; if you make wellness easily accessible and inviting, people will want to take part.

How can organisations collect and use data to help them continually improve their wellness programs?

There are a few ways to measure your wellness programs:

• Participation rates: How many people take part in your wellness initiatives? If the number isn’t too high, it could indicate that the programs aren’t relevant or difficult to access.
• Health data and outcomes: If the wellness program is customised to the health needs of employees (through needs testing and health risk assessments), then metrics against employee health can be used, e.g. absenteeism due to falling ill with the common cold.
• Satisfaction measures: For example, how happy the team is with services, worker’s compensation, sick days, stress leave and other data from HR.

In talking about data, it’s important to note that with certain programs, you might see immediate change, but no sustainable difference in the company. For example, after a physical challenge intended to promote health, you may see staff losing weight – but what about their health in the long-run? Noonan says that it’s important to also consider wellness initiatives that take into account long-term health and wellbeing, and that’s also how you retain staff for longer.

Want to learn more about wellness in the workplace?

Download our eBook, The fundamentals of wellness and wellbeing in workplace design, which discusses the seven principles of designing for wellness and wellbeing at work, including agility in the work environment, the impact of technology and the demands of a multi-generational workforce.

And don’t forget to stay tuned for Part 2 of this blog, where we cover the experts’ discussion on industry trends relating to workplace wellness! Subscribe to our blog below to make sure you don’t miss out.