Smart buildings will turn the tide in the war for talent

The war for talent rages on. UK unemployment has officially fallen to its lowest rate since the early 1970s, while live job vacancies between July and September 2022 were 56.6% higher than pre-Covid levels in January to March 2020 (ONS).

A recent survey by HR and payroll services provider SD Worx revealed that 59.1% of UK businesses are struggling to hire qualified new employees. In fact, more than half of UK employers (51.8%) say it’s never been more difficult to attract talent. Changing demographics, competition from the gig economy and profound changes in the expectations of workers are all contributing to the shortage of candidates for vacant roles.

Gen Z workers, loosely defined as those born after 1997, are entering an era of work that is more agile and flexible than ever before. The pandemic has accelerated a wholesale adoption of technology that facilitates remote working. Coupled with Gen Z’s cynicism about traditional notions of presenteeism, this means graduates carefully scrutinise the hybrid working policies and office amenities of their prospective employers. Many will refuse to work for a company that fails to offer them either a smart, amenitised workspace, or the flexibility to avoid an outdated office proposition altogether.

The importance of employers’ office provision will only increase this winter as energy bills soar, potentially pushing the cost of heating and powering home offices above the cost of the average commute, despite the government’s consumer price freeze. Foreseeing the need to spend more time in the office to keep bills down, new graduates will pay even closer attention to the workspace environment offered by prospective employers, with best-in-class offices acting as a significant draw for new talent.

For this reason, it’s critical that landlords understand the workplace issues which are important to Gen Z, so that they can optimise their space for this generation and attract the best of new young talent. Given this generation’s technological proficiency, it is also essential to embrace the important role that smart building technology can play in creating welcoming, attractive workplaces that will give employers an edge in the war for talent.

Chief among the concerns of graduates and young professionals is the impact of the built environment on our planet. Employees are aligned with investors and regulators in prioritising the measurement and reduction of their workspaces’ operational carbon emissions, and the war for talent is empowering more young people to vote with their feet on climate change, joining only those companies which share their vision of a cleaner, greener world.

The most conscientious corporates must reflect their morals, and those of their employees, through the buildings they occupy. The next wave of talent is tech-savvy and sustainably minded. To them, the appeal of prospective employers therefore hinges, at least in part, on the ESG and tech credentials of their workspace.

The installation of smart building technology can enable landlords to monitor the energy efficiency of their assets, identify opportunities to upgrade and optimise elements of properties and develop positive feedback loops with occupiers. It can facilitate more flexible working patterns via desk and meeting room booking and create central repositories for employee engagement initiatives and cultural events taking place within a building.

In this regard, smart building technology could be the tool through which employers get the edge in the war for talent. As the office environment grows in importance for each wave of graduates and young professionals, they will reward corporates capable of manifesting their values in the office space which they inhabit. Gen Z workers are tech-savvy and progressive, embracing the potential of technology to create a more equitable and comfortable post-Covid working world. If employers hope to attract the best and brightest of this group, they must be too.