Over the past several years, return-to-office (RTO) strategies have primarily focused on determining how much time employees should spend in the office. As organizations move beyond these challenging discussions and establish new working patterns, they should shift their focus to an equally crucial and often neglected question: how can offices provide greater value to employees and the business?
Corporate real estate involves significant costs. On average, businesses in the United States allocate thousands of dollars per employee annually for office space, with these expenditures often ranking second only to the cost of talent. Despite this substantial investment, most businesses consider offices solely as an expense rather than an investment in improved business outcomes. However, the value associated with corporate real estate should not be overlooked as well-designed offices can positively impact employee experiences and help organizations to work more effectively.
The predominant view of corporate real estate as a cost is evident in how organizations measure the effectiveness of their real estate portfolios. For many, the sole measure of RTO success has been badge swipe data, which indicates usage rather than value. Instead of asking whether these spaces effectively serve employees, organizations typically only inquire whether the spaces are being used at all, attempting to infer a link between usage and value. But to gain greater returns on these investments, businesses need to align on why offices are important and the means by which this can be measured.
Technology firm Atlassian has thought a great deal about the value of their offices and how to measure it. After embracing a “Team Anywhere” distributed work model that doesn’t require regular in-office attendance, the company needed to take a fresh look at whether or not they still needed offices. In their recently-released 1000 Days of Distributed report, they describe their journey and the three reasons why they still believe offices are crucial - for engagement, belonging, and accomplishing key tasks. While they still measure the use of their offices, they’ve changed their ROI metrics to consider how offices impact employee engagement and are using that data along with a hospitality mindset to inform the planning of new spaces.
“The purpose of the modern office is to connect a company’s community — and make sure that everyone who visits has what they need to get shit done. Offices should look to hospitality spaces for inspiration, and hold themselves accountable to hospitality-like metrics that measure satisfaction with a space and the presence of desired behaviors instead of how many people badge in.” says Annie Dean, Atlassian’s Vice President of Team Anywhere.
This shift in mindset is also crucial for organizations who have implemented RTO policies requiring in-office attendance. By implementing an RTO policy, businesses are affirming the importance of time within offices. However, they must also articulate why this presence matters and how effectively their spaces meet these needs. While ever organization is different, there is ample data to illustrate broader trends in how offices can deliver value.
From 2021 to 2023, Future Forum conducted quarterly surveys of 10,000 desk-based workers across six countries, revealing consistent preferences related to office experiences. Despite a growing desire for location flexibility, most workers expressed a desire for regular office time, citing camaraderie, collaboration, interaction with management, and spaces conducive to focused work as their key motivations.
As most of these motivations are related to improved employee experiences, incorporating questions about the effectiveness of office space into existing employee experience surveys is a simple and straightforward place for organizations to begin. If specific reasons drove the implementation of an RTO policy—such as fostering culture or enhancing connections—these drivers should guide how offices are evaluated in employee experience surveys.
Organizations should ask questions of employees such as, "To what extent do our offices facilitate interpersonal connections?" or "How much do our office spaces contribute to your sense of belonging to our culture?" Deeper inquiries can delve into how offices promote well-being, support focused work, facilitate interactions with leaders, and encourage cross-team collaboration. As with other measures of employee experience, longitudinal metrics provide leaders a deeper understanding of how the value of offices are improving or declining over time, as well as a way to measure the impact of office improvements.
As RTO policies become standardized and eventually phase out, investments in corporate real estate will endure. To ensure these investments align with evolving organizational needs, businesses must view offices as more than just an expense. Establishing post-RTO metrics of value not only ensures that businesses make wise investments in their spaces but also that the time employees spend there is well utilized.