Insights from the forefront of future of work thought leadership

Considering that a person spends over 13 years of their life at work, it’s unsurprising that workplace design plays a key role in people’s happiness, satisfaction, health and wellbeing.

The routines, habits, and daily ebb and flow that your workspace enables are significant and perhaps more life-altering than you might think. This is why your office space needs to be about more than just ‘the work’, and also about creating a space where you are able to express your fullest self.

With all this at stake, it seems like engaging staff in the design of the workplace would be both obvious and simple to do. We know that when people have options and choices about how, where and when they work, they feel empowered and engaged. Which lends even further weight to the theory that engaging your whole business in your workplace design is singularly powerful.

Yet in many projects, a lack of buy-in from employees will result in project failure and a workspace which hampers satisfaction, efficiency and productivity instead of supporting it. On the other hand, a Steelcase survey linked employee-driven workplace design with increased productivity and high levels of employee engagement and satisfaction.

The survey found that it was not just involvement in the design of the physical workspace that kept employees content, it was also providing input on their working style—work schedules, privacy, processes and business decision-making.

So, how can you ensure your entire business, every employee, is engaged with your workplace design?

1. Start by educating them on the benefits of engagement with workplace design (hint: we’ve just talked about them above!)
2. Share the design process and actively seek feedback throughout—let your employees know exactly what they will get a say on.

Here are just some of the areas your employees can be asked for their opinion and feedback on:

Designing for a Strong Company Culture

Company culture is a set of beliefs, norms and values that represent the way a company does business. Disengaged employees, high staff turnover, poor customer relationships and smaller profits are all symptoms of poor company culture, whereas a strong and healthy company culture will improve a business’s overall performance.

Engage your employees in defining your company culture by working with them on:

• Vision and values
• How your business is managed—the systems, structure, procedures and goals
• Policies—code of conduct, dress code, etc
• Workplace processes—training and development, onboarding, benefits, etc
• People—the qualities of people you hire
• Physical work environment
• Communication and collaboration—how, when and how frequently

Boost Productivity Through Design

Check-in with your team to find out how, where and when they are most productive and, most importantly, how your workplace design can facilitate this.

Some examples:

• Quiet distraction-free zones—while some employees love the hum of the open-plan office, others need quiet space to concentrate or at least the option available to them for certain kinds of work.
• Indoor greenery and nature—workplaces incorporating plants are likely to be happier, more productive workplaces.
• Co-working—a third-party managed and fully serviced co-working space is an option that is gaining popularity.
• Breakout areas—kitchens or other casual breakout areas are great options for employees looking for a collaborative and creative space to work in.

Employee wellbeing Through Better Design

Start a conversation with employees at your company about how their wellbeing can be supported by the business. While perks like bean bags and an on-site massage therapist sound great, it might be that what your workers really need is the flexibility to pick the kids up from school twice a week, or their manager supporting them to take their lunch break away from their desk.

Consider:

• Activity-based working—there are many wellbeing benefits of a workplace created with activity-based working principles.
• Active design—as the name suggests, active design encourages more activity, eg. including strategically placed staircases, sit-stand desks, etc.

Engaging your employees and discovering their motivations and unique working styles as a part of your overall workplace strategy and workplace design will not only ensure buy-in, but also a more satisfied and productive workforce into the future.

Wondering how your workplace strategy fits in with digital transformation? Download our Digital Transformation – the role of workplace strategy whitepaper to explore how workplace design influences digital transformation across the key areas of talent, diversity, innovation and technology.

Axiom Workplaces combine your commercial fitout goals with our experience and expertise in evidence-based office design to create a thriving workplace for you and your workforce.

Did you know mental illness is the leading cause of sickness absence and long-term work incapacity in Australia? Given that our work plays such a significant role in our lives—we do spend most of our working weekday hours there—it’s crucial we acknowledge its impact on our mental health and wellbeing just as much as we do on the physical side. Aside from reducing absenteeism, focusing on workplace wellness helps employees to feel healthy and valued at work, enabling them to perform their best. Additionally, a healthier workspace attracts new talent and leads to greater retention.

In recent years, there has been significant talk about the benefits of workplace design, which includes activity-based working (ABW) or agile working. But in this post, we will specifically be exploring how ABW can affect employee wellbeing—both mentally and physically. Let’s start with a definition.

What is activity-based working?

Activity-based working understands that employees undertake a variety of activities in their everyday work and therefore require different work settings, supported by the appropriate technology, to perform these tasks efficiently and productively. ABW is about creating spaces to meet the needs of individuals and teams, with an emphasis on empowering employees to make decisions which allow them to work at their full potential.

The wellness benefits of activity-based working

There are many wellbeing advantages of a workplace designed with activity-based working principles:

Sense of agency = happiness

The flexibility of an ABW workspace allows individual working styles to be taken into consideration. Employees are able to choose the space best suited to both their task, their style of working and their mood. Naturally, this licence to choose is linked to a feeling of agency or control for the employee, which is essential to a workplace focused on employee wellbeing.

Work/life balance

A key pillar of ABW is flexibility for employees. They are enabled to choose where and when they work according to their individual working style, preferences, patterns and productivity cadences. As more and more employees prioritise a healthy work/life balance, this flexibility is both attractive and significant to their overall wellbeing.

Healthy eating behaviours

A feature of many ABW workplaces is a communal break out area or eating hub for employees to dine and socialise with colleagues. Paired with a policy of discouraging eating at one’s desk, studies have found ABW encourages healthier eating and increased movement.

Collaboration and networking

Businesses and individuals increasingly understand the significance of interaction and collaboration between employees, and are looking for ways to facilitate strong connections between coworkers. ABW supports employees to work collaboratively through enhanced opportunities for formal and informal knowledge transfer and networking. And while collaboration is good for business, it’s also important for employee wellbeing. Research shows teamwork makes people smarter, more creative, and more successful—and who doesn’t want that?

Aside from the business and productivity benefits of working in a team, having friends at work boosts mood and morale, providing emotional and psychological support to ensure employees are resilient and ready for the challenges of the workplace.

Work the way that works

As we’ve already mentioned, a trademark of activity-based working is the flexibility for employees to choose when and where they get their work done. Unlike traditional one-size-fits-all workplaces, an ABW approach takes into account different personalities, habits, associations, styles and patterns of working. This is especially essential for supporting mental health in what can often be a challenging and stressful space.

An attractive workplace

While salary and benefits aren’t off the radar for younger generations, it does appear that millennials prioritise things like work/life balance and a sense of purpose or meaning in their work. With this focus on workplace wellness, it’s clear that a workspace with variations and choice in the work environment is an attractive option for the next generation of workers.

The wellness downfalls of activity-based working

Installing hot desks or knocking down cubicle walls is not enough to reap the workplace wellness benefits of ABW. This approach requires careful consideration and customisation to ensure that a company’s culture and style of working is reflected. It requires the support and buy-in of all levels of the business—from the C-Suite to the student doing work experience.

Important elements to consider when creating a fluid workplace design include:

• quiet spaces where employees can work distraction-free when required;
• making employees feel connected and ‘at home’ even without a permanent desk, such as encouraging opportunities for social interactions.

The bottom line

No matter the workplace strategy, there will be impacts on workforce wellness. However, designing a workplace that meets your business’ future vision and requirements, instead of focusing on what’s cool and trendy, will always result in better outcomes. ABW is a flexible and dynamic style of working which will support your employees to do their best work and encourage a culture of workplace wellness.

Key takeaways about activity-based working:

• One size does not fit all and operating as if it does will be detrimental to your employees’ wellbeing.
• One in, all in. Employees need to feel supported in their working practices, otherwise they can easily sink back into old habits.
• ABW offers flexibility and support which encourages a healthier workforce, both mentally and physically.
• ABW can offer a highly productive and healthy office environment when aligned with the overall business culture.
• ABW as a workplace strategy will only succeed if it meets your business needs.

Want more? In this deep-dive white paper, Axiom explores how workplace design influences digital transformation across the key areas of talent, diversity, innovation and technology. We look at the steps to achieving your own digital transformation and we emphasise the importance of having an ongoing workplace strategy as you move forward.

This post is the second in a series. Please read Part One first to understand what’s happening with the way Australia works.

As we learned in Part One of this series, the war for talent is very real, and the complexity and confusion around 457 skilled visas in Australia are not helping. Big international tech companies are consuming local talent and paying above odds on wages plus offering highly desirable employee benefits. And there is currently no national conversation occurring about the future of work in Australia and how to prepare for it.

However, the private sector is beginning to respond: in 2019, Telstra announced a huge $25million upskilling and reskilling program in collaboration with Sydney’s University of Technology. 

So what can your business do to attract and retain talented, productive and forward-thinking employees? And beyond this, how can you future-proof your workplace? Your workplace strategy is an excellent place to start. 

Start by getting to know your employees

Understanding the context around your current and prospective employees is crucial in developing a workplace strategy which suits their requirements and satisfies their health and wellbeing needs – so they can be the best employees possible. 

Future of Work strategist Cindy Lenferna de la Motte recommends considering how your employees are feeling:

• Anxious about whether a job exists for them in the future
• Stressed out living in a share house or overwhelmed by household debt (maybe both)
• Tense and worried about the climate crisis
• Concerned about failure/change/isolation/etc

Cindy says a workplace can act as a ‘release valve’ for employees, so consider how your workplace can alleviate the fears and anxieties your employees have, freeing them to be efficient, productive and happy at work. Some examples include:

• Supportive leadership that provides a future vision, encouraging co-creation and collaboration
• Investing in professional development
• Quiet spaces for ‘deep work’
• Flexible working arrangements 
• Coordinated Wellbeing programs including Employee Assistance programs and Financial wellbeing
• Acknowledging and addressing societal issues like the climate crisis as a company

Keeping the employee experience front of mind will ensure you build a business that is more ‘human’ and supports connection and community, one that is less brittle and more adaptable to inevitable change. 

Explore the nature of work

While it’s important to get to know your employees, it’s also crucial to genuinely understand the work that is taking place. Cindy mentions that often workplace design becomes a little too trendy – like installing ping pong tables when what’s really required is quiet space where employees can escape the hubbub of the open-plan office setting to get deep thinking tasks done. 

The nature of the work is also inextricably linked to the employee doing that work and their style of working. It is, therefore, essential to understand and consider both when designing spaces to work. For instance, some employees thrive in a loud open office environment and need the background chatter to concentrate on the task at hand, another employee, however, would find the same task impossible, the chatter disruptive and need a quiet space. Why not design space for all styles? Creating lots of different ways and areas for people to work – in collaboration or individually providing – sitting, lounging, standing or moving options – is a hallmark of smart workplace design.  

What the future of work in Australia looks like

According to the World Economic Forum, the top six skills required in 2022 will be:

1. Analytical thinking and innovation
2. Active learning and learning strategies
3. Creativity, originality and initiative
4. Technology design and programming
5. Critical thinking and analysis
6. Complex problem solving

Consider how your workplace can support this type of work. Think about both the physical space and also the technology and policy which enables this work to occur. When done well, your workplace will be an essential enabler of productivity, innovation, collaboration and community. 

Go deeper than ‘trendy’

As Cindy points out, ping pong tables, bean bags and other workplace design ‘trends’ can often be employed with good intentions, but without sound intentions. The physical design of your workplace needs to dig a little deeper, to support productivity as well as being an enticing employee value proposition and theories based on evidence which takes into consideration the actual health and wellbeing needs of your staff.

“It’s more than just offering hot-desking (or whatever the latest trend may be). It’s about tapping into the visceral nature of what your people need through intentional design,” says Cindy.

Explore more about workplace strategy, the future of work in Australia and how the COVID-19 pandemic has accelerated transformation in the workplace in our ultimate handbook: A progressive leader’s guide to the future of work in Australia.

When you look to renegotiate your current lease or secure a new lease, you may come across both tenant advisors and landlord agents offering lease negotiation services. Let’s start by clarifying what each of these are and the roles they play:

Landlord agent: A landlord agent is a real estate agent that represents a landlord. When you enquire directly on an advertised office space, it is typically the landlord agent with whom you speak. They can also introduce you to other spaces owned by other landlords that they represent, but they do not represent you as a tenant.

Tenant advisor or representative: A commercial tenant advisor or representative advises and negotiates on behalf of a tenant during negotiations with an existing landlord or potential new landlord (or their representing landlord agent).

Some tenants decide to work directly with landlord agents, without the use of a tenant representative, researching and finding their own space and then negotiating a commercial lease or commercial lease renewal with the landlord agent directly.

In some circumstances, like a straightforward and uncomplicated commercial lease renewal, this is pretty easy to do and has the added benefit of saving you from having to pay an additional fee to use a tenant representative.

In other cases, however, having a tenant advisor on your side comes with some worthwhile advantages, including saving you time, ensuring you get the best commercial terms possible – saving you considerable money in the long term, and providing access to spaces that may not yet be on the market (due to their market knowledge and network).

Your representative will start by matching your company’s business objectives to options on the market. They will consider things like your need for flexibility or your business’s expected growth rate.

Next, you will receive a shortlist of options that match your requirements. This list could also include off-market options thanks to your tenant representative’s industry contacts. Once you’re ready, the tenant advisor will be by your side throughout the process of inspection, offer and negotiation of a deal.

Even if you’re not moving office spaces, and you’re just renewing your current lease, a tenant representative can be brought on in a smaller capacity to help you negotiate a new, more favourable deal with your landlord, and save you from tricky or uncomfortable conversations with your landlord.

6 benefits of working with a tenant advisor

1. An expert in your corner

With most commercial leases lasting between three to five years, it’s unlikely in-house real estate expertise exists within your company. And with leases being such a significant transaction, running easily into the millions of dollars over the lifetime of the contract, it makes sense that you would want an expert on board. A tenant representative has years of specific experience in their field, making them a valuable asset when it comes to ensuring your lease is ‘right-size’ and the best deal available.

2. Professional lease advice on what is appropriate for your needs

A tenant representative will work with you on matching your business objectives to different options on the market. For example, if you are looking to attract and retain talent, you may need to find a location near public transport, with good amenities and in a character building. As an expert in this area, your advisor can objectively view your requirements and help you stay focused in the excitement of finding a new space, always bearing in mind your overarching company values and goals. They will also be able to advise you on what you really require, not what you think you require (i.e. you may think you need more space than you really need).

3. Access to more commercial properties and a network of contacts

Thanks to a great real estate network and years working in the business, tenant representatives have unique access to properties. Some of these options may not even be listed publicly. An advisor might be able to work out creative options for you as well. For example, they may know of a tenant that is outgrowing their space but still have three years left on their lease. In this case, they might be able to coordinate an office shuffle in which they help relocate the other tenant to free up this office space (and then have it subleased by you).

4. Save time and keep your focus on core business work

You have a job to do and it probably isn’t just office relocation or tenancy. With leases only coming up every few years, it’s unlikely there are dedicated resources for this within your company; rather, there are business-as-usual tasks to complete and core business work to be done. By working with a tenant advisor, you can save yourself both time and hassle, allowing you to get on with what boosts your business revenue.

5. Negotiating power

A landlord rarely comes forward with their best offer upfront. There is typically room to negotiate, and an experienced tenant representative has the knowledge and expertise to get you a first-rate deal. Whether it’s knocking off dollars or working out favourable incentives, rent review periods and ‘make good’ clauses, you can proceed with confidence that you signed a good deal.

6. Saving your tenant / landlord relationship

Sometimes negotiations require playing hard ball or having tricky, uncomfortable conversations in order to secure your best deal. This is a delicate dance when you are negotiating with your landlord or future landlord with whom you need a good working relationship. A tenant advisor can step in as the go-between so you can accomplish both objectives: negotiating a great deal and having a great relationship with your landlord.

Now, what is better than having a tenant advisor or representative in your corner? Having a tenant advisory team that includes a tenant representative as well as a workplace design partner. This team will give you the complete picture of both the lease contract terms and costs as well as the fitout options and costs for each office space. For example, option A may have lower rent, but when you factor in an extra $500K of fit out work, option B might actually be the more suitable and cost-effective choice.

So how do you get this power tenant advisory team in your corner? Select a workplace design partner early in your lease expiry process. Invite them along to view potential office space with you and your tenant advisor. They can give you valuable insight early on that will save you big bucks down the road.

To learn more about choosing the right workplace design partner for your strategy, download our free ebook today.

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.