Workers demand offices that provide a place to meet, eat, learn and connect
More than half of businesses say they plan to redo their office space over the next year to accommodate hybrid working arrangements, and tempt employees back, a survey shows.
Most respondents said flexible work was here to stay, with 56% expecting most employees would still be working in a hybrid format a year from now, according to the report from commercial real estate firm JLL.
That was because 85% said offering workers remote or hybrid working options would be critical in the war for talent, while 83% said hybrid working allowed for greater workplace diversity. But there was also a consensus that hybrid work models had some limitations, and it was important to ensure it was not detrimental to career progression, collaboration and organisational culture.
JLL NZ managing director Todd Lauchlan said that to maximise the potential of the hybrid model and attract and retain the best talent, creative solutions were necessary. More than just technology solutions were required because workers missed the social side of the office and in-person collaboration.
‘‘We know that New Zealand businesses are not simply looking for space that will accommodate flexible working. They want it to be modern, sustainable and state-of-the-art to enhance the overall office experience.
‘‘Employees are looking for offices that provide a place for them to share experiences with their colleagues – where they can meet, eat, learn, and connect.’’
Human-centred offices that met the varied needs of workers were in high demand, and premium office buildings in top locations had virtually no vacancies now, as businesses looked to up their game, he said.
But 56% of respondents planned to redesign, or refit, their office within the next year to accommodate this new dynamic, and tempt employees back to the office, the report found.
And to ensure the best use of hybrid work models, 56% had invested in spaces designed to boost collaboration between onsite teams and remote staff, while a further 35% planned to do so.
On top of office redesigns and refits, respondents reported offering incentives to encourage the return to the office. These included catering, new staff amenities, such as decked out break rooms, subsidised or free transportation for staff, and providing access to third-party facilities close to workers’ homes.
Graduates or those in entry-level roles benefited most from being in the office, and the report showed 43% of respondents said it was essential for them to be based in the office fulltime.
Lauchlan said the office environment accelerated learning and development opportunities, but young employees could not be asked to go it alone. It also provided a platform for two-way mentoring, and helped leaders stay connected to evolving trends and human needs.
‘‘This is why we ultimately see the new model as evolution, not revolution.’’
The report included 36 New Zealand businesses across a range of industries as part of a wider survey of 241 businesses across the Asia-Pacific region.
Lauchlan said there were minor regional differences in responses, but broad alignment on key trends indicated a global movement towards a new way of working, with the office at the centre.
An earlier JLL report found 85% of the traditional office work force wanted to return to the office for between two and five days a week, but did not want a return to the prepandemic style of office work.
Fisher & Paykel Healthcare shares slumped after the company said its first-half profit could fall as much as 62%, as demand from hospitals for its breathing aids slows.
The company forecast net profit in the six months to September 30 could fall to between $85 million and $95m, down from $221.8m last year.
Its shares were the biggest decliner on the S&P/NZX 50 benchmark index in mid-morning trading yesterday, down 8.8% to $19.30.
Fisher & Paykel experienced a surge in demand for its products during the pandemic, selling 10 years’ worth of devices in two years as hospital clinicians turned to nasal highflow therapy as a frontline treatment for Covid-19 patients. However, demand has now slowed as hospitals have stocked up their supplies and fewer patients are requiring treatment.
‘‘During the most recent waves of the Omicron variant, fewer patients have required hospitalisation and respiratory support,’’ said managing director Lewis Gradon.
‘‘We believe customer stock levels have been elevated during our first half, which impacts our short-term sales.’’
The company expects first-half revenue of about $670m, down from $900m in the same period last year but ahead of the pre-pandemic level of $570.9m for the six months to September 30 in 2019.
Revenue should increase in the second half from the first half as hospitalisation rates rose during the northern hemisphere winter and sales of sleep apnoea products increased, it said.
Gradon said the company expected a gross profit margin for the year of about 60%, below its long-term target of 65%, as it faced higher freight and Covid-19 costs. ‘‘This year, we are also experiencing some manufacturing inefficiencies, as we are carefully balancing demand fluctuations and targeted inventory levels with manufacturing throughput – while managing higher rates of absenteeism in our manufacturing work force due to sickness,’’ he said.
‘‘Although we have reduced our manufacturing cost base over the past six months, manufacturing inefficiencies are likely to persist for this financial year as demand stabilises and inventory levels reduce to our targets.’’
The company did not provide profit guidance for the full year, citing uncertainties around customer inventory levels, their staffing challenges, and their capacity to change their practice to use Fisher & Paykel’s products for a broader range of patients requiring respiratory support.
Gradon said Fisher & Paykel remained confident it could reach more patients with its respiratory therapies, providing longer-term growth for the company.
It continued to increase its investment in research and development, and grow its sales teams, he said.
‘‘We ultimately see the new model as evolution, not revolution.’’