Workplace strategies play a more vital role as occupancy costs rise

THURSDAY, JUNE 04, 2015
Workplace strategies play a more vital role as occupancy costs rise

Average office rents across Bangkok have jumped by more than 28 per cent over the past four years from Bt390 per square metre per month in 2011 to Bt500 at present and are likely to rise further, though possibly more slowly as a considerable amount of new

The higher rental rates have forced companies to put a stronger emphasis on smart workplace strategies to maximise efficiency of their workplace.

Most of the relocations and business expansions in which professional-services firm JLL has recently been involved show that more companies require less work space on a per-employee basis. While companies with 100 employees traditionally require 1,400 square metres of office space, many acquire 20-30 per cent smaller offices to accommodate the same number of staff.

It is possible for organisations to have smaller offices by introducing alternative workplace strategies. In fact, smart workplace strategies allow not only allow more efficient use of space but can also improve work environments.

In Bangkok, the most popular strategy implemented by companies is an open-plan environment whereby cube partitions are reduced or eliminated in favour of more open space.

Hot-desking (desks are used on a first-come, first-served basis) is another approach that has gained increased popularity.

Some companies are implementing more innovative approaches such as team-based environments whereby teams have unassigned work areas that may include couches, tables with chairs, and huddle rooms. To make it more interesting, some companies design these areas to function like an Internet cafe.

Telecommuting is a much-talked-about alternative workplace strategy that allows employees to work from anywhere using communication technologies. However, this strategy is not well received in Thailand, as business line managers in most organisations are unfamiliar with supervising a remote team.

While more organisations pursue alternative workplace strategies for a variety of compelling reasons, there remain a lot of companies that are reluctant to jump on the bandwagon.

Rolling out an alternative workplace strategy requires implementing significant changes, which often results in initial rejection and in some cases can put organisations at risk of losing talents who are unhappy with the changes.

Providing smaller spaces and/or hot-desking could result in resistance from desk workers who do not want to give up their traditional offices, which could put a company at risk of losing some unhappy employees. Concerns about distractions and lack of privacy often top the list of objections.

Therefore, the roll-out of an alternative workplace strategy must be well planned and implemented.

First and foremost, the benefits of the strategy must be clearly articulated in order to gain buy-in from business leaders, managers and employees. A good design concept including functionality counts for a lot. The premises must be capable of introducing the supporting technologies like wireless networks and adequate communications connectivity to support the enhanced requirements.

All in all, the success of an alternative workplace strategy will depend a lot on company leaders’ commitment to implementing it.

Alternative workplace strategies offer proven benefits to both companies and their individual employees.

Key drivers for considering such a strategy include gaining additional flexibility, speed and future cost avoidance.

Nonetheless, readiness to implement such strategies varies from organisation to organisation, according to available infrastructures and the nature of the business and corporate culture.

Having said that, sooner or later, alternative workplace strategies will no longer be an option but will become imperative for organisations as they seek new ways to reduce costs and younger workers seek employers that offer flexibility and a work-life balance.

Suphin Mechuchep is managing director of JLL Thailand.