Article
How the Great Stay Is Impacting Office Trends
December 2, 2024 3 Minute Read
First it was the Great Resignation. Then we had Quiet Quitting. Now, with the Great Stay, the workplace continues to evolve and impact office demand and workplace strategy. Fewer workers are quitting their jobs than in previous years, resulting in hiring slowdowns and making it harder for others to get a foot in the door.
“This is a pattern we’ve seen throughout history with events like the dot-com bubble and the global financial crisis,” says Emily Sisnett, CBRE Canada’s Vice President of People. “Hiring is cyclical and in many ways a short term trend. There’s an influx of jobs when employers react quickly to positive economic trends, then it slows in downturns and times of cost containment.
“These days, with less opportunity and greater economic uncertainty, more employees are choosing to stay in their jobs.”
Office Back in Focus
During the pandemic employees had more time to reflect on their lives, work from anywhere and accumulate savings. This gave many the impetus to resign at historic rates, resulting in the Great Resignation.
“Now we’re experiencing economic conditions that discourage taking on personal risk and are more favourable for employers,” Sisnett says. “But this also creates new challenges as employers need to focus on engagement.”
The Great Stay is providing employers with workforce stability, enabling them to test return to office policies. Methods vary widely by industry and company, however. Tesla and Amazon recently rolled back their hybrid work policies in favour of full-time office mandates. Companies like Google, Meta and Salesforce have taken a more balanced approach, requiring employees to be at the office at least three days a week.
“During the pandemic companies took a stand for flexibility and a new way of doing things, in part to attract talent,” says Sisnett. “But it’s been hard for many to maintain that because they’ve realized the benefits of in-office work for their culture and productivity. Now we have reached a point where employers need to find the right balance for their workforce.”
Flight to Experience
Return-to-office guidance not only varies by industry and company but also by role.
“There’s no one-size-fits-all policy and employers need to develop their own narrative, taking into account their goals and employees’ needs,” Sisnett says. “The onus is on companies to explain to their employees why the office matters and that’s a lot easier with quality, inspiring and highly functional office space.”
Whatever the latest employment trend is, the need to engage employees is constant. Companies are increasingly prioritizing flight to experience in their buildings in a bid to meet employees wherever they are at in their career journey.
“It’s not simply a flight to quality,” says CBRE’s Brendan Sullivan, who heads CBRE Canada’s Investor Leasing platform. “Businesses don’t just want offices in well-located, new buildings. They want the building and landlord to engage with their employees.
“If employees are to return to the office several days a week, it’s not to sit at a desk. There is a desire and expectation for experiences that foster relationships and community.”
At Crestpoint Real Estate Investments’ 121 King St. W., for example, with Sullivan advising, the landlord invested millions in renovations of the downtown office tower, known as Roserock Place, including a multipurpose tenant lounge and social club with a terrace, golf simulator and bar. The space can be rented out by tenants for meetings or events. And Crestpoint has hired a community manager to oversee the activation of Roserock Place, which Sullivan describes as critical to the curated office experience.
“Companies are increasingly focused on building community and are seeking real estate partners who value that,” says Sullivan. “The office should be a place that brings people together, and landlords like Crestpoint who lean in on that idea are reaping the benefits and driving the future transformation of the office experience.”
“It’s a great time to be a tenant,” he adds. “There are lots of opportunities on the market and right now, landlords are listening. That’s resulting in exceptional spaces and experiences for their tenants.”
And that in turn will give their employees a great reason to stay.
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