A New Direction for Workplaces

October 1998 Results from a recent "Alternative Workplace Strategies" (AWS) study indicate technological advances have resulted in companies accommodating a more diverse and mobile workforce with little impact on the total demand for office space to date. The survey, developed by LaSalle Partners Inc. and the International Facility Managment Association (IFMA), found that 62 percent of the companies surveyed are using some form of alternative workplace strategy, with team environments as the most commonly used approach. "The study findings highlight the fact that these alternative workplace strategies are still in the early stages of implementation in companies across North America," said Jacques Gordon, managing director of research at LaSalle Partners. "Even though a majority of the companies surveyed in the study are trying out one or more of these strategies, the total amount of space dedicated to them is still quite small today-only about five percent." However, Gordon added that the survey also found that the use of AWS is expected to rise in the next three years as companies get more experience with implementing them. While dramatic examples of savings from hoteling in the accounting industy exist, nearly three-fourths (71 percent) of the companies represented in the survey who have implemented some form of AWS have not experienced any meaningful cost savings to date. As expected, respondents reported that the use of AWS is often accompanied by greater use of technology, with about 40 percent of those surveyed reporting higher technology costs after implementing AWS. The study also indicates that while technology may have an associated cost increase, the costs may be offset by other benefits. "The overall impact of these various workplace strategies on employee morale has been very favorable," said Shari Epstein, IFMA's associate director of research. "More than 65 percent of the respondents said telecommuting in particular had a positive effect on employee attitude." Respondents generally reported the greatest gains in employee productivity for the virtual office and team environment strategies and less than five percent reported a loss of productivity for any of these strategies. Facility managers said their companies experienced no gains or losses in productivity from strategies such as telecommuting or telework centers. Although the findings indicated that overall demand for office space has not been affected significantly by AWS, the location and configuration of office space will continue to change in the future. Respondents report that they expect future use of AWS will grow rapidly. Participation rates for telecommuting are expected to grow the fastest over the next three years, with the projected increase of 11 percent from five percent.

The AWS study was sent to 4,000 IFMA members in the U.S. and Canada. For more information, contact IFMA at (713) 623-4362