Could a slowdown actually boost the office?

“It doesn’t work for an apprenticeship programme, it doesn’t work for spontaneous stuff,” JP Morgan’s Chief Executive, Jamie Dimon, said about working from home at the latest annual gathering of globetrotting leaders at Davos.

So, are the bosses who are pushing back against homeworking set to get their wish in 2023 as a changing economy shifts people’s priorities?

The post-pandemic recovery has been notable for its shortage of skilled workers, a problem that placed power firmly in the hands of employees, many of whom suddenly demanded flexible working and high levels of working from home. However, with vacancies falling and the unemployment risk rising, are the tables turning with employees now spending more time in the office once more in a bid to be visible, save on heating costs – or simply because they prefer to?

Of the seven major economies, British workers appeared to be the most reluctant to return to the office, with footfall 24% below pre-pandemic levels, according to a survey conducted in October last year by Google. In November, an employment workplace sentiment index, the Leesman Index, revealed that 85% of office employees work from home at least part of the time, with hybrid working dominant.

Despite this data, recent evidence suggests there has been a swing back to working in the office. The last Wednesday of January 2023 saw TfL’s passenger traffic reaching 84% of pre-pandemic levels, up from 75% to 80% at the end of last year. Furthermore, traffic on the new Elizabeth Line hit around three million passengers a week, exceeding the two million expected.

Several factors appear to be driving this upward trend. Some employers such as Mr Dimon do indeed seem to be upping their anti-homeworking rhetoric, and this is particularly the case in the finance sector. Fellow banking industry CEO David Solomon, of Goldman Sachs, recently made clear his belief that successful banking depends on collaboration and a young workforce being able to benefit from in-person learning from its veteran bankers.

Employees being increasingly aware of the tougher economic environment is no doubt also upping the pressure for them to get back on that 06:39 commuter train. Goldman Sachs in January announced a second round of redundancies that would reduce its headcount by a further 3,200. The tech giants, many of which were pandemic winners, are also in the process of making large layoffs. Staff may understandably be feeling visibility in the office is more important.

But, job insecurity and FOMO (Fear Of Missing Out) are perhaps not as significant motivating factors than a simple desire to return to collaborative spaces – albeit on their own terms. People crave social interactions and want to enjoy the high-quality space and amenities found in the best workplaces. It’s not just about being able to spontaneously ask colleagues what they think of an idea without having to book a virtual meeting, it’s the post-work drinks, team bonding and networking. Much of social life, particularly for young people, revolves around work.

Having said this, workplaces still need to offer more than ever before to attract talent and retain staff. Organisations with workspaces located in vibrant, well-connected areas with outstanding amenities will have employees wanting to make the journey in. At our OSMO scheme near Battersea Power Station and our YY London development in Canary Wharf, amenities include space for yoga classes, treatment rooms,  expansive roof terraces, meditation rooms, spa quality changing rooms and showers, and secure cycle parking – all features promoting health and wellbeing, an important consideration for today’s workforce.

At YY London, what could have been internal area is instead sheltered, outdoor balconies on every floor. Socially, new bars, restaurants and riverside parks in the buildings and on their doorsteps create a buzzy afterwork vibe. People are certainly eager to return to London’s most vibrant places. In 2022, footfall on the Canary Wharf Estate reached 54m – the highest annual total in Canary Wharf’s history.

For businesses dependent on highly skilled staff, high-quality offices that people feel proud to work in and socialise around remain important. Furthermore, sustainable workspaces also help businesses reduce their carbon footprint, which is rightly more important than ever and is why sustainable design sits at the heart of all Quadrant projects.

The risk lies in mediocre offices that are unappealing not just to staff but the CFO, particularly when they look at the bottom line!