BBC Interview: The future of work (and work from home) and commercial property

FINANCE MARK with Dr Mark Humphery-Jenner, PhD

6 May 202106:30

Summary

TLDRAs the UK emerges from the pandemic, a significant shift towards hybrid working is observed among the country's largest employers. Out of 50 firms, 43 plan to implement a mix of home and office work, encouraging staff to work from home 2-3 days a week. This new model raises questions about the future of office spaces, local businesses, and the long-term impact on company culture and employee development. The Australian scenario, with a controlled pandemic, also leans towards hybrid work, with 41% of people working from home at least one day a week in February 2021, indicating a preference for flexibility and a cautious approach to potential future pandemics.

Takeaways

🏢 UK's largest employers are shifting towards a hybrid work model, with 43 out of 50 firms planning a mix of home and office work.
🔄 Companies are encouraged to embrace a flexible work schedule, with employees working from home 2 to 3 days a week.
🤔 Four firms are still reviewing the concept of hybrid working, indicating a cautious approach to the new work paradigm.
🏡 The shift to remote work has implications for office space needs, with companies potentially requiring 20% less space.
🛠️ Employers face the challenge of balancing new work flexibility with maintaining teamwork and collaboration.
🛑 The pandemic has highlighted the importance of having the right technology and infrastructure for effective remote work.
🏙️ The impact of remote work extends beyond offices, affecting local businesses like shops and cafes that rely on commuter traffic.
🚶‍♂️ Not everyone finds working from home suitable, with factors like access to technology, reliable internet, and a quiet workspace influencing productivity.
🌆 The script suggests that working from home may become a lasting change post-pandemic, with varying impacts on enterprise, culture, and training.
🏗️ There's a potential for a decrease in office construction and a possible conversion of existing offices into residential flats as companies adjust to the new normal.
🌐 The report from Sydney indicates that hybrid working is becoming the norm, with 41% of people working from home at least one day a week as of February 2021.
🔄 The Australian Bureau of Statistics found that the majority of people prefer working from home at least part of the week, with expectations for this trend to continue.

Q & A

What is the current plan of UK's biggest employers regarding staff returning to the office post-pandemic?
-Major UK employers have indicated they don't plan to bring staff back to the office full time. Out of 50 firms, 43 embrace a mix of home and office working, encouraging staff to work from home two to three days a week, while four are keeping the idea of hybrid working under review.
How does the shift to a hybrid work model impact the employees' work-life balance?
-The hybrid work model allows employees to balance home and office work, which can be beneficial for those dealing with distractions at home, such as home schooling or working with family members. However, it also requires careful management to ensure teamwork and collaboration are not stifled.
What changes are companies making to their office space requirements due to increased remote work?
-With more employees working from home three to four days a week, companies may require 20 percent less office space. However, they must manage this transition carefully to avoid issues when many employees choose to work from home on the same days.
How does the shift to remote work affect businesses that rely on office workers as customers, such as cafes and shops?
-Businesses like cafes and shops that cater to commuters are significantly impacted when many people work from home. Some locations have seen a drastic drop in foot traffic, making it difficult for these businesses to sustain their operations.
What are the potential drawbacks of working from home for employees without the necessary resources or environment?
-Working from home isn't suitable for everyone, especially those without access to the right technology, reliable internet, or a quiet place to work. It can also depend on where in the country one lives, as commuting times and house prices vary.
How does the pandemic's impact on work culture and collaboration affect industries like advertising and creative sectors?
-The pandemic has raised concerns about the long-term impact on enterprise, culture, collaboration, and training. In industries like advertising and creative sectors, learning from colleagues and being around them in an office is crucial for development.
What changes are being observed in the construction and use of office spaces in light of the shift to remote work?
-Fewer offices are being built, and many existing ones could potentially be converted to flats. As businesses and their staff adjust to the new normal, towns and cities may look very different.
What is the current norm regarding work arrangements in Australia post-pandemic?
-In Australia, hybrid working has become the norm, with the Australian Bureau of Statistics finding that about 41% of people had been working at least one day from home in February 2021, up from around 24% a year prior.
How does the preference for working from home in Australia compare to pre-pandemic times?
-There has been a significant increase and shift toward remote work in Australia. The Australian Bureau of Statistics reported that around 47% of people expected this to continue into the future, with only 11% thinking it would decline.
What are the potential long-term impacts of the hybrid work model on younger employees in terms of collaboration and development?
-Younger employees may be more affected by the reduction in collaboration due to remote work, as they rely on being in the office to build connections and learn from colleagues, which is crucial for their development.
How do companies in Australia balance the need for flexibility with the necessity for collaboration and cost-saving?
-Companies in Australia are seeking a balance between the flexibility of remote work, which employees desire, and the need for in-office collaboration. They are also looking to reduce office space while still meeting employees' needs.

Outlines

00:00

🏢 Post-Pandemic Work Trends in the UK

The script discusses the future of work in the UK as companies plan to not bring staff back to the office full time post-pandemic. Out of 50 major firms, 43 intend to adopt a hybrid model of home and office work, with employees encouraged to work from home 2-3 days a week. Four additional firms are considering such a model. The implications for workers, companies, and cities are explored, including the impact on office space needs, local businesses like shops and cafes, and the potential long-term effects on enterprise culture and collaboration. The report highlights the challenges of balancing remote work with maintaining a healthy work environment and the possible changes to urban landscapes as offices may be converted into residential spaces.

05:00

🌏 Hybrid Work in Australia Amid Pandemic Control

This paragraph examines the hybrid work model in Australia, where the pandemic has been relatively under control, and offices have been open for nearly a year. Hybrid working has become the norm, with 41% of people working from home at least one day in February 2021, a significant increase from 24% a year prior. The Australian Bureau of Statistics indicates that the majority of people prefer working from home at least part of the week, and many expect this trend to continue. However, concerns are raised about the potential negative impacts on younger employees who may suffer from reduced collaboration opportunities. Companies are seeking a balance between the flexibility of remote work and the necessity for in-person collaboration. The report also touches on the cautious approach businesses are taking due to the risk of COVID-19 incidents and the need to prepare for potential future pandemics.

Mindmap

Keywords

💡Future of Work

The 'Future of Work' refers to the evolving nature of employment and work environments in response to societal, economic, and technological changes. In the context of the video, it specifically addresses how the post-pandemic era is shaping work culture, with a shift towards hybrid and remote working models. The script mentions that UK employers plan to implement a mix of home and office working, indicating a significant change from traditional full-time office work.

💡Hybrid Working

Hybrid working is a flexible work model that combines both remote work and in-office work. The script highlights that 43 out of 50 firms in the UK are embracing this model, encouraging staff to work from home two to three days a week. This concept is central to the video's theme, as it discusses the implications of this new way of working on employees, companies, and cities.

💡Remote Work

Remote work is the practice of working from a location outside the traditional office setting, often from home. The script discusses the challenges and benefits of remote work, such as the distractions of home schooling and the need for a quiet place to work. It also raises concerns about the long-term impact on enterprise culture and collaboration due to reduced in-office time.

💡Work from Home (WFH)

Work from home (WFH) is a subset of remote work where employees perform their work tasks from their homes. The transcript mentions that companies are considering how to manage the balance between WFH and in-office workdays, especially to avoid the scenario where everyone works from home on the same days, which could impact office space requirements and local businesses.

💡Teamwork and Collaboration

Teamwork and collaboration refer to the process of working together with others to achieve a common goal. The script emphasizes the importance of these elements in a work environment and raises concerns about how remote and hybrid work models might affect them. It suggests that the physical presence in an office is crucial for learning from colleagues and fostering a company culture.

💡Office Space

Office space is the physical area designated for work activities within a company. The script discusses how the shift towards remote and hybrid work could lead to a reduction in the need for office space, as companies may require 20 percent less space if employees work from home three to four days a week.

💡Commuters

Commuters are people who regularly travel to and from work, often by public transport or personal vehicles. The transcript mentions the impact on shops and cafes that rely on office trade, highlighting the potential economic effects on local businesses if a significant number of people continue to work from home.

💡Urban Landscape

The urban landscape refers to the physical and social environment of a city or town. The script suggests that the shift to remote and hybrid work could lead to a transformation of urban landscapes, as fewer offices may be built and existing ones could be converted into residential flats.

💡Enterprise Culture

Enterprise culture encompasses the values, behaviors, and practices that define a company's identity and operations. The script expresses concern about the potential long-term impact of remote work on enterprise culture, particularly in terms of how it might affect training, development, and the transmission of knowledge within a company.

💡Heterogeneous Impacts

Heterogeneous impacts refer to varied or diverse effects that a particular change or event can have on different groups or individuals. In the script, it is mentioned that the shift to hybrid work could have different effects on senior and younger employees, with the latter potentially suffering more from reduced collaboration opportunities.

💡Pandemic Response

Pandemic response refers to the measures taken by governments, organizations, and individuals to manage and mitigate the effects of a pandemic. The script notes that Australia's relatively successful pandemic control has allowed for a return to offices, but the hybrid system has still become the norm, reflecting a cautious approach to potential future outbreaks.

Highlights

UK's biggest employers plan to embrace a mix of home and office working.

43 out of 50 firms encourage staff to work from home 2-3 days a week.

Four firms are keeping the idea of hybrid working under review.

Implications for workers, companies, and cities are being discussed.

Employers face decisions on staff's work locations and flexibility.

The need to balance new flexibility with teamwork and collaboration.

Employers may reduce office space by 20% if most work from home 3-4 days.

Managing work-from-home schedules on specific days is crucial.

Impact on office-dependent shops and cafes is significant.

Working from home not suitable for everyone due to lack of tech or quiet space.

Differences in work-from-home feasibility across the UK.

Concerns about long-term impact on enterprise, culture, and training.

Fewer offices being built, existing ones might be converted to flats.

Australian offices have been open for a year with hybrid work becoming the norm.

41% of people in Australia worked at least one day from home in February 2021.

Most Australians prefer to work from home 1-2 days a week.

Hybrid work increases due to severe and rapid responses to COVID incidents.

Businesses prepare for potential future pandemics and their impacts.

Heterogeneous impacts on employees, with younger workers affected more by reduced collaboration.

Jamie Dimon of JP Morgan expects people back in the workplace for collaboration.

A balance between work-from-home flexibility and the need for collaboration is needed.

Companies aim to reduce office space while considering employee desires.