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THE 21st CENTURY WORKPLACE

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THE 21st CENTURY WORKPLACE CURRENT SITUATION Employers are no longer in a position to change workplace rules to fit downsizing strategies: The domestic economy ... – PowerPoint PPT presentation

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Title: THE 21st CENTURY WORKPLACE


1
THE 21st CENTURY WORKPLACE
2
Businesses will increasingly pursue a second
bottom line that has to do with the attention to
the needs of employees and customers as well as
shareholders not as a return to the 1970s idea
of social responsibility, but as good business -
an improved second bottom line (happy employees
and customers) contributes to a healthy bottom
line, profit.
Daniel Yankelovich, Chairman, DYG
Source The Second Bottom Line Competing for
Talent Using Innovative Workplace Design, 1998
Knoll/DYG
3
CURRENT SITUATION
  • Employers are no longer in a position to change
    workplace rules to fit downsizing strategies
  • The domestic economy continues to be robust
  • Unemployment is the lowest its been in 30 years
  • The baby bust is bringing fewer people into the
    workforce
  • 1990s downsizing decimated the existing
    workforce
  • Currently there is a growing shortage of
    qualified information and service workers

4
COST OF WORKER TURNOVER
In an attract and retain employee market, the
cost of employee turnover can be extremely high
  • Workers earning Replacement cost
  • 25,000 37,500
  • 50,000 75,000
  • 100,000 150,000

5
Workplace Design Plays an Important Role in
Company Performance, Holding Employees and
Attracting New Talent
6
COMPANY PERFORMANCE
Employees in high-performing companies rate their
physical working conditions higher than their
counterparts in all other companies
Source Competing for Talent The Hay Group,
Inc., 1998
7
ATTRACT RETAIN
Slightly over half of the employees planning to
leave their current employer are satisfied with
their physical work conditions compared to 75 of
employees planning to remain
Source Competing for Talent The Hay Group,
Inc., 1998
8
FOCUS ON ATTRACT RETAIN
  • As a result, employers will be increasingly
    obliged to pay more attention to workers needs,
    preferences, tastes and requirements to attract
    and retain the best and the brightest

Source The Second Bottom Line Competing for
Talent Using Innovative Workplace Design, 1998
Knoll/DYG
9
THE 21ST CENTURY WORKFORCE
10
BACKGROUND AND METHODOLOGY
  • Knoll, Inc. and DYG, Inc. have been working
    together for the past two years exploring
    workplace issues
  • 1998 qualitative study (focus groups) with high
    tech workers
  • 1999 national quantitative survey of office
    workers, part of the 1999 DYG SCAN program

11
DYG SCAN
Syndicated research program since 1987
  • Tracks social values
  • Hopes, dreams, fears, beliefs about right and
    wrong
  • Identifies trends
  • Also studies attitudes, lifestyles, behaviors,
    demographic trends

12
FOR KNOLL
  • National survey 1,500 interviews
  • An extensive battery of additional questions
    asked of office workers
  • 350 full time office workers interviewed

13
TRENDS
As we enter the 21st century, six critical trends
will impact peoples attitudes towards work and
how they work
14
TRENDS
Demographic and Social Values
1. More diverse workforce on many
levels 2. Breakdown of boundaries 3. Weakening of
hierarchy 4. Simplification 5. Passionate pursuit
of leisure 6. Personal freedom control
15
TREND MORE DIVERSE WORKFORCE
  • There are three significant demographic shifts
    taking place that are expected to dramatically
    influence the workplace of the 21st century
  • More women in the workforce
  • More ethnic and racial diversity
  • An increase in the number of older workers as
    lifespans increase

16
TREND MORE DIVERSE WORKFORCE
Diversity Issue 1
  • More women in the workforce
  • Importantly, more women in much higher positions

17
MORE WOMEN IN THE WORKFORCE
Women Will Be the More-educated Gender
  • of Bachelors Degrees conferred to women

1981 49.8
1971 43.4
1998 55.4
of Masters Degrees conferred to women
1981 50.3
1971 40.1
1998 55.0
Source National Center for Education Statistics
18
MORE WOMEN IN THE WORKFORCE
Projections for Year 2007
  • 9.2 million women enrolled in college
  • 6.9 million men enrolled in college

U.S. Dept. Of Education
19
MORE WOMEN IN THE WORKFORCE
Women Will Dominate The Professions
1983 1997 Human Resources managers 43.9
63.4 Accountants 38.7 56.6 Economists 37.9 52.
2 Financial managers 38.6 49.3 Executive/manage
rial (general) 32.4 44.3 Lawyers 15.3 26.6 Ph
ysicians 15.8 26.2
Source U.S. Census
20
HOUSEHOLD COMPOSITION - 1999
61 married 33 single 6 unmarried couples
Single Parents
21
MORE WOMEN IN THE WORKFORCE
This year in SCAN, we have examined the sharpest
expression of this phenomenon
  • Women who are
  • Well-educated (4 years of college)
  • Professional careers
  • High earners (well above median for age)

22
WHY S CLASS?
Self-assured
Salubrious
Sophisticated
Respect
Sacrifice
Satisfaction on the Job
23
YOUNGER WOMEN RESHAPING WORKPLACE
74 of women aged 18-49 agree
Increasingly, I find that I will work only for
employers who allow me a certain degree of
flexibility, especially regarding work hours
Source DYG survey for LHJ, 1999
24
YOUNGER WOMEN RESHAPING WORKPLACE
69 of women aged 18-49 agree
In the future, I will only work for employers
who let me have a real role in decision-making.
Source DYG survey for LHJ, 1999
25
WORKSPACE TIED TO JOB ENJOYMENT
Women more emphatic than men on this issue
Having a nice workspace is one of the key things
that helps people feel better about their jobs
and enjoy their jobs more
men 53
women 65
office workers
(Strongly agree 5 or 6 on a 6-point agreement
scale)
26
BRINGING ASPECTS OF HOME TO WORK
  • Over half of female office workers with young
    children would be more satisfied at work if
    on-site day care were provided
  • Half of all office workers would be more
    satisfied at work if a fitness center existed
  • About one-in-three office workers would be more
    satisfied if an errand service were provided at
    work (dry cleaning, video rental, etc.)

27
TREND MORE DIVERSE WORKFORCE
Diversity Issue 2
  • More ethnic and racial diversity in the workforce
  • Especially among Generation-xers and teens

28
POPULATION PROJECTIONS
(U.S. Census)
29
AGE/ETHNICITY SKEW
Americans about to enter the workforce are much
more diverse
30
TREND MORE DIVERSE WORKFORCE
Diversity Issue 3
  • More older Americans in the workforce as
    productive lifespans increase

31
AGING AMERICA
Population Increase 1998 to 2030
Age
Source US Census
32
END OF TRADITIONAL RETIREMENT
  • 80 of baby boomers plan to work during
    retirement

Almost all at different jobs than they currently
hold (dream jobs)
Source AARP Survey
33
SOCIAL TRENDS THE WORK ENVIRONMENT
34
TREND BREAKDOWN OF BOUNDARIES
Definition
  • Integration of all aspects of life reduced
    compartmentalization

Key Value
Balance
Trend Leaders
Generation X (23-34 year olds)
Source DYG SCAN
35
24 HOUR DAILY FLUIDITY
Source DYG SCAN
36
WORKING AT HOME
37
  • Nearly 4 in 10 office workers work from their
    home at least occasionally

(40 employees)
37
TREND WEAKENING OF HIERARCHY
Definition
  • Less respect/faith in authority at its worst,
    mistrust and cynicism regarding institutions

Especially business
Key Value
Self-reliance
Trend Leaders
Universal
Source DYG SCAN
38
LOW FAITH IN BUSINESS
(Strongly agree top 2 box on a 6-point scale)
39
AS A RESULT, A LOYALTY PROBLEM EXISTS
50 of office workers strongly agree
Workers today have less loyalty to their
companies than they used to.
(Strongly agree top 2 box on a 6-point scale)
40
AS A RESULT, A LOYALTY PROBLEM EXISTS
Men more likely to see loyalty problems than women
Workers today have less loyalty to their
companies than they used to.
men 61
women 45
strongly agree
(Strongly agree top 2 box on a 6-point scale)
41
TREND SIMPLIFICATION
Definition
  • Trade-offs in the name of reducing stress and
    overload

Key Value
Cant do it all (shouldnt do it all)
Trend Leaders
Generation X women
Source DYG SCAN
42
MORE WORK TO DO
64 of office workers strongly agree
Companies expect a lot more from workers today
than they used to - workers are expected to get
more done and get it done faster
(Strongly agree 5 or 6 on a 6-point agreement
scale)
43
STRESS SIMPLIFICATION
All Americans 61
Office Workers 75
strongly agree
(mid/large businesses)
  • I often feel that there is not enough time in
    the day to do all the things I need to do

(Strongly agree top 2 box on a 6-point scale)
44
SIMPLIFICATION KEY DIRECTIONS
Prioritizing Rethinking choice Achieving a
balance
Personal Services
Internet, PDAs
45
TREND SIMPLIFICATION
  • Where does work fall on the priority list?
  • Sinking fast (less priority for work)
  • Make it before you are 30 mentality is strong
    among youth

Leads to our next trend
46
TREND PASSIONATE PURSUIT OF LEISURE
Definition
  • Heightened status of leisure

Key Value
Numerous
Trend Leaders
Generation X and Boomers (particularly men)
Source DYG SCAN
47
LEISURE DIRECTIONS
Restorative
Interactive
Spiritual (broadly-defined)
Fun
Family
Enhancing/ cultivating
Active
At-Home Leisure
Source DYG SCAN
48
LESS WORK, MORE FUN
  • For college-educated Generation-X and boomer men,
    knowing how to have fun is a greater symbol of
    success than working hard and making it in your
    career

49
LESS WORK, MORE FUN
Which is a stronger symbol of success
Source DYG survey for Mens Health
50
LESS WORK, MORE FUN
Which is a stronger symbol of success
Source DYG survey for Mens Health
51
TREND PERSONAL FREEDOM AND CONTROL
Definition
  • 1. Individualize whenever and wherever possible
    to fit ones personal style

2. Having a sense of freedom, autonomy and
control in all aspects of life is increasingly
important
Trend Leaders
Upscale, educated
Source DYG SCAN
52
EXAMPLES AFFECTING OUR INDUSTRY
  • Individualize personal workspace
  • Comfort, orientation,arrangement, adjustability
  • On-line buying
  • On your own time, on your own terms
  • Personal style on all levels
  • Diversity and choice

53
THE 21ST CENTURY WORKSPACE
54
WORK DESCRIPTION
All Companies Companies w/40
Empl. Analytic (solve problems, analyze
info.) 41 46 Transactional (process forms,
data) 32 28 Supervisory (oversee
others) 12 13 Creative (generate new
ideas) 7 8 Not sure 7 5
55
WORK STYLE
All Companies Companies w/40
Empl. Collaborative within the office (work with
others in office) 42 50 External
orientation (work with others outside
office) 37 31 Solo producer (work
alone) 20 18
56
The workscape today is extremely varied
No single format dominates
57
THE WORKSCAPE
37 in workstations
36 shared environment
58
WORKPLACE ISSUES
59
WORKSPACE TIED TO JOB ENJOYMENT
63 of office workers strongly agree
Having a nice workspace is one of the key things
that helps people feel better about their jobs
and enjoy their jobs more
(Strongly agree 5 or 6 on a 6-point agreement
scale)
60
WORKSPACE TIED TO STATUS
55 of office workers strongly agree
The workspace someone has is more or less
related to the amount of status he or she has in
the company
(Strongly agree 5 or 6 on a 6-point agreement
scale)
61
MYTH REFUTED
  • The argument that workers care only about
    technology and not space or amenity issues in a
    workspace is refuted
  • A segment of office workers do hold this view,
    however, they are a minority

62
ITS NOT ALL ABOUT TECHNOLOGY
Only 34 of office workers strongly agree
As long as I have all the equipment and
technology that I need, I really dont care how
large my workspace is or how well furnished it is
(Strongly agree 5 or 6 on a 6-point agreement
scale)
63
MYTH REFUTED
  • The argument that todays office workers are so
    on the go that they care little about their
    workspace is also refuted

64
ITS NOT ALL ABOUT TECHNOLOGY
Only 16 of office workers strongly agree
I spend so little time in my workspace that I
really am not that concerned about its size or
furnishings
(Workers in 40 employee companies) (Strongly
agree 5 or 6 on a 6-point agreement scale)
65
WORKSPACE
Most office workers are still in the office most
of the time
(Workers in 40 employee companies)
66
WORKSPACE
  • In the survey, we tested an extensive battery of
    workspace characteristics and for each asked if
    it would make them
  • More productive
  • Less productive
  • No impact on productivity
  • More satisfied
  • Less satisfied
  • No impact on satisfaction

67
PRODUCTIVITY
68
  • No significant differences between men and women
    regarding workspace characteristics

69
GREATEST IMPACT ON PRODUCTIVITY
  • Technology
  • Storage space
  • Climate control
  • Quiet space
  • Space that can be personalized to your work style

70
MODERATE IMPACT ON PRODUCTIVITY
  • Ergonomic chair
  • Visually appealing workspace
  • Lighting control
  • Privacy
  • Exterior window

71
LEAST IMPACT ON PRODUCTIVITY
  • Personal space for small meetings
  • Large workspace
  • Space for personal items

Big is not necessarily better
72
THE PRIVACY PARADOX
  • Privacy was seen as crucial to ones productivity
    by most workers
  • However, there are significant differences based
    on ones current workspace

Those currently in private offices are much more
likely to say privacy is crucial than are those
in open spaces or workstations
73
THE PRIVACY PARADOX
  • Percentage who say a private workspace
    would/does make them more productive

58
All office workers
74
In own office
Office workers
59
In cubicle
43
In open area
(Workers in 40 employee companies)
74
HYPOTHESES
  • Self-selection workers who need privacy will
    naturally gravitate to private offices
  • Successful adaptation workers in open
    workspaces have learned how to be productive with
    less privacy

75
THREE LARGE DIFFERENCES BY TYPE OF WORK
  • Analytic workers are more likely to say an
    ergonomically designed chair would improve
    their productivity
  • More time sitting than others?
  • Supervisors are more likely to say a private
    workspace would improve their productivity
  • Need the privacy
  • Creative workers place more import on exterior
    windows
  • Aid the creative process?

76
JOB SATISFACTION
77
GREATEST IMPACT ON SATISFACTION
  • Technology
  • Storage space
  • Climate control
  • Quiet space
  • Space that can be personalized to your work style
  • Visually appealing workspace

Also topped the productivity list
70 say these would make them more satisfied
78
MODERATE IMPACT ON SATISFACTION
  • Ergonomic chair
  • Lighting control
  • Privacy
  • Exterior window

50-69 say these would make them more satisfied
79
LEAST IMPACT ON SATISFACTION
  • Personal space for small meetings
  • Large workspace
  • Space for personal items

Again, Big is not necessarily better
47 or less say these would make them more
satisfied
80
COMPARING SATISFACTION AND PRODUCTIVITY
81
SATISFACTION PRODUCTIVITY
  • For most workspace characteristics tested, there
    is a high correlation between what workers say
    will make them more satisfied and more productive
  • However, three workspace characteristics have a
    much greater impact on satisfaction than
    productivity
  • Exterior window
  • Space for personal items
  • Visually appealing workspace

82
DYG Scan Trend Identification
Two critical trends underscore the likelihood of
the growing importance of the physical
environment
  • The rising importance of quality of life in
    defining The Good Life
  • The rising importance of respect in how
    companies are evaluated by workers, potential
    workers, and even customers

Source The Second Bottom Line Competing for
Talent Using Innovative Workplace Design, 1998
Knoll/DYG
83
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