The latest research by Hassell and Density shows that North American tech workplaces are still adjusting to new work patterns. The study found that on average, peak utilization in tech offices does not exceed 34%, leading to up to $40 million in wasted rent costs annually due to underused space.
The research report, titled “The State of Tech Industry Workplaces,” analyzed over 1.4 million square feet of tech workspaces to explore the relationship between utilization, return-to-work policies, and office layout. Some key findings from the report include:
– The impact of return-to-work policies on office utilization is not as significant as expected. A shift from flexible policies to a mandatory three-day in-office hybrid policy only increased peak daily utilization by 17%, indicating that hybrid policies may not be fully enforced.
– Employees who have the freedom to choose where they work spend twice as much time in meeting rooms compared to those with formal hybrid policies. This suggests that when given the choice, employees prioritize in-person interactions.
– Tech companies have predominantly adopted open-plan offices, which may not be conducive to the needs of hybrid work patterns. Meeting rooms are often repurposed as private offices or phone booths, highlighting the need for more versatile workspace designs.
Dr. Daniel Davis, Head of Research at Hassell, noted that tech companies have traditionally been at the forefront of workplace innovation but are now facing challenges in adapting to new work patterns post-pandemic. Annie Cosgrove, Director of Analytics at Density, emphasized the financial and environmental impact of underutilized office spaces, calling for better alignment between space design and work patterns.
The report offers actionable insights for businesses looking to optimize their workplace utilization and design, including implementing innovative designs, maximizing space utilization, and fostering a culture of collaboration and adaptability. By leveraging these findings, tech companies can thrive in the era of hybrid work and address the challenges facing modern workplaces.
The research was conducted between May 2023 and May 2024, analyzing data from tech workplaces in North America. The study highlights the need for tech companies to rethink their workplace designs to better support evolving work patterns and improve overall efficiency.
Hassell is an international design practice focused on creating spaces that people love, while Density provides sensors and software to help companies understand space utilization. Both companies aim to drive positive change in workplace design and utilization, ultimately improving the employee experience and maximizing ROI on office spaces.