A new report from the real estate investment management company Jones Lang LaSalle (JLL), claims companies are beginning to shrink the productive space allotted to their employees, even as return-to-office mandates increase. JLL reports that the average workspace has shrunk from 165 square feet to 132 square feet, and the seat-sharing ratio has increased from 1.1 to 1.3 on average. According to their findings, there is less room for more people in the office — even as more employees are required to be there more often. So as spaces tighten, what happens to company culture? And what does “work” truly mean?
The worker, divided
Before the COVID-19 pandemic, companies across the United States broke down office walls to allow for a more open, social workspace. For a time the free-flow floorplan seemed to foster an increasingly productive and social workplace; however, according to a study from Harvard, these new layouts led to increased stress and harmful interactions between employees.
Following the remote-work revolution, companies over-corrected for the open-office model, opting to separate employees without distinct rank to increase productivity and focus. This is facilitated by the rise of hybrid work (defining 67% of the workforce), that allows employees to operate without an assigned space of their own. It strips the workplace of identity — and strips workers of it too, as they are constantly rotated through new desks.
JLL claims this move to smaller spaces as a push for “portfolio optimization.” In the drive to boost revenue, investors have pressured companies to cut business expenses. One increasingly attractive strategy has been removing hybrid worker’s permanent space in favor of “hot desk” cubicles, which are shared workspaces claimed on a first-come, first-served basis or booked as needed. With the routine, social nature of the workplace is quickly dissipating, the question of what does “work” itself mean today remains?
The worker, lost
When assigned space disappears, Research Gate claims that the worker finds themself without a sense of safety or belonging. This drives disengagement and fails to create a sense of ownership over the work, decreasing performance overall. While the rise of remote work drove comfortability, creativity decreased, as social interactions fell. The office space, having previously operated as a social hub of creativity and innovation, reached a point of non-existence during the pandemic, and its attempted return only continues to perpetuate the existing issues.
Work has found a new definition as a place of uninspired repetition, a space where the revolving door of co-workers creates a lack of identification or interaction. The effects aren’t restricted simply to junior or mid-level employees. Requiring employees to show up to the office without offering the social benefits of the traditional work environment may backfire — weakening company culture and driving talent out the door.
The worker, re-inspired?
And yet, all is not lost due to a shrinking workspace. The savings created by this adaptation can be invested to increase productivity and social interactions, if it’s made a priority. While spontaneous social interaction may be lost, a re-investment in employees through the creation of nooks, phone booths and team spaces may recapture the creative germ that seems so close to extermination.
Some companies have even doubled down on their employees’ wellbeing with particular health initiatives. Take Asana, who offers private nap rooms for employees to seek out if they’re feeling overwhelmed or overworked, or Salesforce, who offers specific mental health sessions for employees. In fact, there are distinct ROIs reported for successful wellness initiatives, demonstrating the importance of investing in the employees human needs, beyond their base working productivity. Even a walking meeting or ergonomic desk options can make a difference in not only the effectiveness of employees’ work, but their overall wellbeing, contributing to a positive workplace and attractive company culture.
Now that the shrinkage of the actual workspace has been made clear, though, the value of each square foot is up for definition by management. But does its value reside in efficiency or culture? And are these options mutually exclusive? The JLL report points out that a reinvestment in some of the lost areas will go to collaborative rooms, clarifying an attempt at managing a work-life balance within the office.
While shrinking the workspace has cut and redirected business expenses, it comes at a cost to workplace culture, whose long-term effects aren’t immediately measurable. Employees are not robots — they are social creatures, reliant on interaction and relationships for inspiration, and without it, production can only suffer. However, the creation of backups in team spaces, specified meeting rooms and even digital social tools may limit these social costs, if they’re implemented.
The question is whether companies truly value the workplace culture needs of their employees, or simply acknowledge them in theory.
