Blog Post

Investing in Workplace Experience

  • By Leni Rivera
  • 13 Nov, 2018

Why this investment is no longer an option.

   People have asked me what my advice is for smaller companies, or for companies who “don’t have the budget” for a Workplace Experience.

   Allow me to answer this through a point made by the CFO and Co-president of Workday (a company among the top 10 Fortune 100 Best Companies to Work For in 2018), Robynne Sisco. She cited that two thirds of her company’s cost are on manpower, and therefore focus on this investment just makes logical and financial sense. She stressed the time-proven equation: happy employees = happy customers = better profits = happy shareholders.

This is the case for most companies, regardless of size. Wouldn’t you want to make the most out of your company’s largest investment?

   Shamim Mohammad, SVP and CIP of CarMax (a company also included among the 2018 Fortune 100 Best Companies to Work For), pointed out that in order to achieve your business strategy, you need to be able to attract, develop and retain the right talent. And that the only way you can do that is to cultivate a corporate culture. “Great culture is no longer an option.”

   The reason why cultivating a great corporate culture is many times brushed aside as being “unimportant” is because it is so difficult to do, and requires consistency and conscious effort across the entire company. But if you think that your company can survive without a culture, you may be in for a surprise.

To continue to quote from Robynne Sisco, “Every single company has a culture. The question isn’t whether you have a culture. The question is who’s defining the culture? Are you going to just let it happen? Or are you going to be intentional about it, and drive a culture that will help your business be more successful?”

   The company called Great Place to Work conducts the largest employee survey in corporate America, interviewing over 5 million employees from over 6,000 companies in 55 countries, and their statistics from 2016 to 2017 reveal that companies which focus on providing a great corporate culture achieved 26% revenue growth, versus 5.5% revenue growth by the best performing companies who don’t.

Statistics already exist which prove that investing in your employees through providing a great corporate culture increases corporate revenues, and retains the best talent. Here’s a clincher: do you know who else is fully aware of this? Your competition.

   Today’s most talented workforce is no longer interested in working for a compnay because of the compensation package and benefits, they need to feel personally invested in its mission.  

   Great Place to Work’s CEO, Michael Bush, said in a keynote address in a Workday Rising summit earlier this year, “You want to be connecting people to the strategy of the company all the time. When people say ‘I’m working too many hours, I need work-life balance’, our research has proven their work has no meaning. Because when peoples’work have meaning, they’ll work 80 hours a week and say ‘I’m tired. I’m fatigued. But that was a hell of a week!’. That’s what happens when the work has meaning.”

   The importance of a corporate culture cannot be emphasized enough. Workplace Experience is the tangible, physical translation of this culture. You cannot have a culture that exists in programs and technology, but is not supported by the workplace environment. As the interior spaces and elements of your own home define the personality and dynamics of your family, so does the corporate workplace define the company’s. Therefore investing in a workplace that expresses, encourages, and supports the company’s culture is, like the culture itself, not an option.  

   And so here is my advice for companies who “don’t have a budget” for Workplace Experience:

   Let me start by emphasizing that Workplace Experience is not about spending on subsidized food or a corporate gym or a game room in the office. Workplace Experience is an extension – a manifestation – of your corporate culture. Don’t make the mistake by thinking that providing workplace “perks” will compensate for having a culture. That’s like saying you want to achieve the look of being physically fit without actually undergoing any physical effort.

   Your company has already developed its own culture, whether you are cognizant of it or not. I advise you to start with that. Become deliberate about defining the culture of your organization. Determine who you are as a company and how that translates to who you are to your customers as well as your employees.

   If you stay authentic to that, you will find that the physical workplace – its environment and all its features – will simply fall squarely into place. Many times, it won’t even cost what you initially thought; but always, the dedicated investment into your employee’s experience will yield triumphs and successes that not only have been statistically proven, they may even surprise you.

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 This time last year, virtually every company around the world shut the doors of their offices, and those that could, asked their employees to work from home. The definition of a workplace began its unforeseeable transformation from a physical office space to a virtual room from anywhere… or did it?

 The reality is that this transformation had already started occurring over a decade ago. The pandemic that struck the world simply caused our perception of the workplace to finally catch up with this reality.

 In 2019 (12 months before the pandemic struck), The International Workplace Group (IWG) released their annual Global Workplace Survey report, in which they examined responses from over 15,000 professionals from 80 countries. This report revealed that 70% of professionals globally work remotely at least one day a week, and more than half work remotely at least half of the week.

 Working remotely is not a new concept, it was just perceived differently. Companies considered those who worked from home and those who worked in the office, as separate entities. They invested their resources on the workplace experience of the physical workplace, while disregarding the home workplace environment. But the pandemic has altered that perception. Everyone from the top executives down were forced to work from home, and thus experienced together the importance of a consistent conveyance of the company’s culture for all employees, regardless of where they work.

 Taking this new perception into consideration, the corporate world is now facing an evolution in how they will redefine their “workplace” moving forward, post-pandemic. Some companies have evolved to a fully remote workforce, shifting the workplace to the home environment. Some have a hybrid approach. And others are adhering to a fully office-based work environment. Regardless of how this is defined, what is undoubtedly clear is that resources need to be invested in both environments in order to ensure that the corporate culture is consistently felt by all employees, anywhere.

 To demonstrate how this is possible, here is a model of a potential hybrid scenario with employees working in both locations.

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I have been a Workplace Experience specialist for 8 years now, and moved to the Bay Area because this is where the industry is prevalent. When I began developing and running a workplace experience for a company all those years ago, I didn’t even realize it had a name, much less understood the impact it would have on the productivity and happiness of people at work.

What most people seem to get wrong is that Workplace Experience is not – should not be – a mere collection of facility perks and benefits. I learned from that mistake early on, and still witness that mistake being made frequently, even here in the Bay Area. Just because you have a corporate gym on premises, or offer food in a company cafeteria, or designate a space in the office for a pool table, doesn’t mean that (1) your employees will even use it, (2) it will be appreciated, or (3) it will have any significant impact on employee engagement. I have seen free shuttle services for employees being underutilized, food in corporate cafes wasted, free gym classes underpopulated, and facility events fall flat. This is because the biggest misconception about a Workplace Experience is that it will generate a fun, unique, engaging environment all on its own. The mistake is a dependence on a Workplace Experience to create a corporate culture, and not the other way around.

The establishment of a corporate culture that is true to its values, principles and overall mission, is where it all begins, always. This forms the foundation of the relationship between the company and its employees. A solid corporate culture attracts the right employees because people want to invest in relationships that are based on mutual respect, trust, personal growth and a shared vision. But people are also wise to recognize when the company is sincere about its culture, or whether it’s just lip service.

Workplace Experience is the measure by which employees are able to quickly and easily gauge the culture’s authenticity. This is because it is the only element of a culture that can be experienced physically through all the human senses – touch, taste, sound, smell and sight, and so it bears witness to the sincerity of its purpose. That’s why placing a pool table in the office or sleep pods in the corner without having a reason behind their existence will cause more doubt than anything else.

Only if a company’s culture anchors itself on being truly invested in its employees’ health and wellbeing, for example, will facility features such as fitness classes, various healthy food offerings, placement of living plants in offices, allocating special parking spaces designed to optimize step counts, and facility programs aimed at helping people achieve their health goals, succeed. In the same respect, if the office areas of the company executives have vastly higher-end finishes, lighting, comfort and appearance than the work areas of the rest of the company, do you think that employees will believe the company culture supports equality and inclusivity?

And let’s not forget, the purpose of a Workplace Experience is far more than just offering attractive features in a workplace. Its primary function as a tool of the corporate culture is to enable and empower employees to be fully engaged and happy with their work. The scope of Workplace Experience includes the entire journey of an employee throughout their workday – from their transportation to work, their entrance into the facility, the ease with which they are able to access their needs (a meeting room, an appropriate work space, work tools and equipment, locating people and departments, etc.) and collaborate with each other (in engaging spaces, over coffee, with meals, through facility events and programs, etc.), and even providing relief by accomplishing chores before ending the day such as dry cleaning, car wash, or bringing home ready-cooked meals. That’s why Workplace Experience is such a powerful tool. It has within its very purpose, the capacity to directly impact employees’ productivity as well as directly influence their happiness at work.

If a company just throws in facility “perks and benefits” without anchoring them in their corporate culture, this investment will not only be a waste of money, it will be the large elephant in the room that constantly reminds employees of how inauthentic the company is. And conversely, as the only physical manifestation of a corporate culture, Workplace Experience can be the company’s most important tool in expressing to employees their sincerity.

 

 

Watch out for my first book on Workplace Experience, coming out this year!
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