By Daria Glawenda, associate director, Business Generation, Turner & Townsend
Turner & Townsend pole

 

Cultural and lifestyle trends are combining with new technology and economic headwinds to create a new landscape for business. The need to attract, retain and support talent while driving cost efficiencies and productivity is not an easy equation to solve.

These dynamics have been accelerated by the disruption of global pandemic and the volatility that has been seen since, with the geopolitical and economic backdrop remaining unsettled. Social change coupled with an ongoing sense of ‘perma-crisis’ have heightened expectations and the pressure on firms to support more flexible and digital ways of working, while also protecting business interests and maintaining stability.

In an era where businesses are facing so much uncertainty, we are seeing an increasing need to ensure that money is spent in a way that creates best value and impact for people and operations.

While demand to both refit existing space and fit-out new space remains high, businesses globally are being cautious and considered in how they do this – and they require a greater level of visibility on what targeted investments will cost. We are seeing this trend in Poland, in Warsaw and all regional cities including Krakow and Wroclaw.

Lately Turner & Townsend had conducted a thorough research within the sector. Our research has drawn together data from 42 markets worldwide, so that clients in every region can weigh up the average costs for different specifications – high, medium, and low – creating workspaces to suit their needs, budget and cultural objectives.

Focus on flexibility

Dynamic working patterns have made committing to headcount and estimating long-term space utilisation much harder. In Poland many companies do not plan any personnel changes for 2024. Factoring in economic headwinds and potential future downturns, clients are looking to remain adaptable.

Flexibility in workspace is vital in the current market and businesses need to make sure they can reconfigure their space at the most effective juncture, on a carefully costed basis. The growing demand for flexible space allows companies to better respond to evolving work patterns.

For some companies, this desire to remain flexible is leading to increased investment in moveable partitions and non-fixed furniture items – allowing them the scope to reconfigure the office environment without requiring a full-scale refurbishment or office move.

Investing in talent through fit-out decisions

The emphasis on attracting and retaining talent has grown in recent years as many industries have faced talent shortages.

Many firms see the quality of their workspace as a key avenue to recruit the best candidates and keep hold of them long-term.

Increasingly, employees are looking for workspaces that foster productivity and social collaboration, while also providing many of the comforts and flexibility of home. There is also very much aligned with hybrid working requirements.

In this context, investment is not necessarily being targeted to improve the general aesthetics of a workplace but is more being directed to collaborative and practical elements, such as spend on coffee/refreshment areas, adjustable desks, quiet booths, and AV equipment for conferencing.

It is clear that the expectations of the current generation of employees are different to the past. Espresso machines, breakout areas, state-of-the-art technology and social spaces are now part-and-parcel of what workers are looking for in their office space – and firms are aiming to satisfy these demands to stay competitive. We are seeing also in Poland, that smart offices with integrated technology are becoming more popular.

Employers are keen to maximise productivity, while also promoting active communication and a strong sense of company culture – and, to do this, they need to understand the differences between in-person attendance versus home working.

Growing focus on gathering employees’ feedback will enable a clearer understanding how the office can better facilitate activity-based working. As more data becomes available on utilisation and behaviours, this may lead to some firms looking to rebalance the hybrid-working models which have emerged from the pandemic-era. In Poland this is also connected with current regulations.

Sustainability is gaining momentum

The drive towards sustainability is being felt increasingly strongly in the business world. The pace of this progress varies across different markets, but this is increasingly a global concern for companies and staff.

Occupying the right workspace is crucial for organisations looking to meet their environmental, social and governance (ESG) objectives. If the building being occupied does not meet expected environmental performance standards, companies will seek alternative space which is in line with their sustainability agenda.

In recent years, we have seen many clients take the decision to move to centralised campuses or HQs to accelerate their green goals by consolidating into premium-quality space with top-rated NABERS, BREEAM, LEED, Green Star, or other accreditations.

Strong focus on sustainability aspects have been brought also by EU’s Corporate Sustainability Reporting Directive (CSRD) introducing mandatory reporting standard, including both qualitative and quantitative information on environmental, social, and governance (ESG) matters. Poland will need to implement CSRD requirements by July 2024.

Navigating new dynamics for fit-out

The pandemic-era led to a rebalancing towards more people-centric businesses and workplaces. People’s values have changed, and the workplace needs to reflect this. Businesses are more often focusing on building a culture where people feel connected and included. This means introducing design that meets diverse cognitive needs and puts employees’ wellbeing in the centre.  

In this context, companies need to take a holistic and people-first view of the impact of business decisions and capital investments. At the same time, they also need to respond to volatile costs, geopolitical uncertainty and climate change – causing competing demands.

Increasing complexity and shifting priorities makes it vital that clients have the necessary data to make informed decisions while understanding the cost impacts of targeted investments. Evolving market trends, are impacting specification decisions, alongside the requirement for organisations to achieve their ESG commitments through their workplace design standards.

Over the coming years, we expect to see continued change, as businesses look to re-evaluate their hybrid working models and implement new workplace strategies – creating workspaces that have the adaptability to respond to a dynamic business landscape.

Through their fit-outs, businesses will create workspaces that work harder, are more flexible and ultimately embody their purpose, vision and values – so they can face the future with confidence.