HOK BENCHMARKING REPORT - HOK | A Global Design, … · 2014-09-08 · ramping up as ﬁ rms from emerging markets with distinct ... Percent of Gen Y/ Millennials (born after 1980)

52%

48%

SOFTWARE TECH

53%

40%

2%

3%

1%

6%

HOK B ENC H M A R KING R EPOR T VOLU M E 1.0 | FIN A NCIA L SERVICES | 2014

PAG E 2

H O K B E N C H M A R K I N G R E P O R T | VOL. 1 - F I N A N C I A L S E R V I C E S | 2 0 14

INTRODUCTION

After several years of market uncertainty, the fi nancial services industry is growing. This year, a survey by the Confederation of British Industry (CBI) revealed that 45% of fi nancial services fi rms experienced increased employment over the past year. Additionally, 46% of fi nancial services fi rms expect employment to rise even more sharply throughout 2014.1

The fi nancial services industry encompasses a broad range of organizations including merchant banks, credit card companies, stock brokerages and insurance companies, many of which suffered during the 2008 fi nancial crisis. With renewed growth, these fi rms now face different challenges.

Recent growth in personnel has focused on the hiring of technology staff as the industry attempts to establish itself in areas such as mobile and electronic banking. Leading

firms in the technology sector continue to branch out and compete in areas occupied by traditional financial services firms, increasing competition between the two industries.

The information in this report refl ects design trends over the past three years. It provides a detailed study of key trends and issues, benchmarks and user satisfaction related to new workspace in the fi nancial services industry.

For this report, HOK observed more than 1 million SF of offi ce space from 11 top-tier fi nancial services fi rms in London, New York and Toronto. These fi rms and their space represent best-in-class workplaces. This dataset only includes corporate offi ce space and does not cover retail banking space.

FIN A NCIA L SERVICES INDUSTRY

Capital One, Toronto

PAG E 3


The design of workspace for the fi nancial services industry responds to trends affecting that sector and the overall business world. The following trends are transforming traditional business models as well as how customers and professionals in the industry relate to these fi rms:

Increased competition, both new and old: Competition is ramping up as fi rms from emerging markets with distinct strengths take on longer-established corporations that could take for granted their own hard-won advantages.2

Focus on the new customer: Today’s customers are digitally connected and highly informed. Instead of walking into a local bank and sitting down to open an account during banking hours, these customers purchase their banking services much like they buy music, books or other products—online and 24/7.3

Companies are hiring, but top talent is scarce: Though there are more jobs available in 2014 than in 2013, landing a new position remains a challenge. Many new jobs are so specialized that they require training in skills that many people haven’t acquired yet.4

The digitization of commerce: Low-cost, high-speed, seamless exchange of information enables new types of online markets, payment systems and business models.5

The automation of knowledge work: Using advances in artifi cial intelligence, deep learning and big data, fi nancial institutions can better understand client patterns. These methods and natural user interfaces will increasingly automate knowledge work tasks.6

The automation of fi nancial tools: An increasing array of fi nancial services are being made available online and through mobile applications. Financial software connected to the Internet allows for the automation of many common money management activities. This trend toward automation and convenience is expected to continue.7

Remote work is on the rise: At any given time, about one-third of all professionals are working remotely. Only 30% to 40% of employees with assigned spaces are actually using them. This is largely enabled by remote technology.8

TRENDS

Qube, London Deloitte, New York TD Bank, Toronto

PAG E 4


INTRODUC TION

As the nature of work changes within the fi nancial services industry, the workspace must adjust to accommodate these changes. Readers can use this report to help guide management and design decisions about the workplace.

In the short term, the convergence of technology and fi nancial services may result in fi nancial services companies increasingly adopting the culture and workplace design practices of the technology industry. These include providing increased on-site amenities, fl exible workspaces, creative offi ce environments and mobility strategies.

USING THIS REPORT

ENDNOTES

1 http://www.cbi.org.uk/media-centre/press-releases/2014/03/

steady-growth-continues-in-fi nancil-services/

2 http://d2mtr37y39tpbu.cloudfront.net/wp-content/

uploads/2014/03/Business-Trends2014.pdf

3 http://www.bai.org/bankingstrategies/Operations-and-Technology/

Technology-and-Information/Top-Ten-Banking-Trends-for-2014

4 http://www.forbes.com/sites/womensmedia/2014/04/12/2014-

update-of-business-trends-from-the-trenches/

5 Ten IT-enabled business trends for the decade ahead, McKinsey

Global Institute, 2013.

6 Ibid.

7 http://www.forbes.com/sites/rodebrahimi/2013/12/23/fi nancial-

services-trends-to-watch-in-2014/

8 The New Federal Workplace, GSA Building Services, June 2009

PAG E 5


CIBC, Toronto

PAG E 6


46%OF FINANCIAL SERVICES FIRMS

expect employment to rise even more strongly throughout 2014. But this growth

is accompanied by new challenges related to talent and

competition from technology fi rms.

K E Y FIN DINGS SUMMARY

GROW TH IS BACK . . .

A much larger percentage of young people are entering the workforce of fi nancial services companies than those in other industries. Given the highly specialized requirements of these positions, businesses will need to invest in more training for their people.

Analyzing our three-city data, Toronto has the most balanced talent pool and New York is most skewed toward members of the Millennial generation.

SectorPercent of

Gen Y/ Millennials (born after 1980)

Percent Average of Gen Y/ Millennials (born after 1980)

FINANCIAL SERVICES 60% 37%

Energy 17% 29%

Government 18% 60%

Technology 46% 32%

1

…BUT, SO IS THE NEED FOR MORE TR AINING.

PAG E 7


GROW TH CA N BE ACCOMMODATED THROUGH BET TER PL A NNING &

UTILIZ ATION OF E XISTING SPACES.

HOK’s observation of 6,000+ seats revealed that workstations and offi ces are occupied about half the time.

Typically, conference rooms are not used to their full potential. HOK’s data shows that meeting spaces are used, on average, just 29% of the time.

2

29%AVERAGE UTILIZATION

OF MEETING ROOMS

75%of fi nancial services

professionals work in

assigned spaces

in the offi ce

OF SEATS ARE UNOCCUPIED THROUGHOUT THE DAY48%

PAG E 8


M E D I U M T O X- L A R G E M E E T I N G R O O M S

MEETING SPACE SHOULD BE A PPROPRIATELY SIZED & FLE XIBLE .

Top-tier fi nancial services fi rms in London, New York and Toronto devote more than half of their meeting and collaboration space to rooms that are medium to extra large in size. Companies can maximize space effi ciency by making larger spaces adaptable to smaller meetings.

Based on HOK’s observational data, 73% of meetings occur between 2-4 people. To maximize utilization, meeting spaces should be highly fl exible to accommodate large, medium or small groups.


3

X-Large Meeting Room (21+ people)

Large Meeting Room (13-20 people)

Medium Meeting Room (7-12 people)

Small Meeting Room (3-6 people)

OF MEETINGS ARE BETWEEN 2-4 PEOPLE

73%

38%

3%

12%

53%

47%

PAG E 9


O P E N O F F I C E

Enclosed Offi ce

Average Size Workstation

Benching

91% OF INDIVIDUA LLY ASSIGNED SPACES A RE ‘OPEN OFFICE .’

Individually assigned workspaces include enclosed offi ces, open workstations and benching areas. The majority of individual workspaces across the three fi nancial services locations are composed of open workstations. Enclosed offi ces make up 9% of all seats counted, while open workstations and benching comprise 91% of seat count.

Of the time spent in the offi ce, fi nancial services professionals reported working alone 54% of the time. This individual work tends to be focused and primarily done in quiet areas that enable concentration. It also lends itself to be conducted at home or in isolated settings away from the offi ce.

4

OF TIME IS SPENT WORKING ALONE54%

91%

68%

23%

O P E N O F F I C E

9%

PAG E 10


Collaboration Space Ratio

MOBILIT Y STR ATEGIES A RE COMMON , BUT A DOP TION R ATE VA RIES GRE ATLY.

The average sharing ratios between London, New York and Toronto range from a high (people observed in seats at peak times) of 1.7 : 1 to a low (people observed in seats during low occupancy) of 1.2 : 1. The lowest value during low occupancy is 1 person per 1 seat in New York, and the highest value at high occupancy is 1.9 people to 1 seat in Toronto.

Individual workstation-to-collaboration (meeting) space ratios indicate there’s a meeting room seat for about every two workstations.


5

1.2 : 1.0LOW

(People to Seats)

1.7 : 1.0HIGH

(People to Seats)

2.2

1.0

Sharing Ratios

R A N G E H I G H T O L OW

PAG E 11


Effi ciency factors (multipliers that reveal how much space increases from assignable to usable to rentable area) are tight across Toronto, New York and London, as real estate costs are at a premium.

Toronto has the highest average Design Effi ciency Factor for assignable-to-usable area at 1.50, followed by London at 1.46 and New York at 1.42. New York has the highest average factor for usable-to-rentable area at 1.18, followed by London and Toronto, both at 1.10.

The average fl oorplate size used to determine these factors was 27,500 SF/ 2,500 SM.

BUILDING EFFICIENCY IS TIGHT. . .

HOK’s data shows an average of 155 RSF per seat for fi nancial services fi rms observed across London, New York and Toronto.

This metric should be distinguished from area per person, which would be even tighter with mobility strategies in place.

6

… A ND SO IS THE AV ER AGE A RE A PER SE AT.

Design Effi ciency Factor (Assignable to Usable Multiplier)

Building Effi ciency Factor (Usable to Rentable Multiplier)

155RSF / Seat

117USF / Seat

This is equal to 14 RSM / Seat & 11 USM / Seat.

NEW YORKLONDON TORONTO

1.101.18

1.10

1.421.46 1.50

PAG E 12


Offi ce & Workstation Sizes

(Note: These exclude large enclosed offi ces and extra-large enclosed offi ces.)

The average size of open workstations is 43 SF. Enclosed offi ces range from an average of 353 SF for an extra-large offi ce accommodating fi ve or more guests to a regular enclosed offi ce, which averages 143 SF and accommodates 1-2 guests.

The chart to the right illustrates the range of sizes for each work environment.

THE AV ER AGE OPEN OFFICE R A NGES FROM 3 3 SF TO 4 3 SF. . .

The size of meeting rooms varies from small two-person rooms with an average of 51 SF to extra-large meeting and training space that can accommodate more than 21 people. As noted previously, small meeting rooms make up 47% of collaborative space.


7

…AND THE AVERAGE SMALL MEETING ROOM IS 148 SF.

Meeting Space — Types & Sizes

120

100

80

60

40

20

0

180

160

140

BENCHINGAVERAGE-SIZEWORKSTATION

REGULAR ENCLOSED

OFFICE

Lowest SF / Type

Average SF / Type

Highest SF / Type

1,200

1,000

800

600

400

200

0X-LARGEMEETING

ROOM

30

97

30

1,1

43

LARGEMEETING

ROOM

31

05

07

76

9

MEDIUMMEETING

ROOM

13

33

05

59

7

SMALLMEETING

ROOM

10

21

48

19

1

PHONEROOM

38 51 72

Lowest SF / Type

Average SF / Type

Highest SF / Type

3326

3643

38

68

143

103

178

PAG E 13


According to HOK’s nature of work study, which examined a total of 14 workplace attributes, the seven attributes mentioned below have the smallest gap between what employees deem important and their level of satisfaction, meaning they are delivered at a more acceptable and consistent level of quality.

The remaining seven attributes listed by respondents have a larger disparity between their importance and satisfaction levels. These attributes represent opportunities for improvement in order to enhance the workplace environment and if left unattended have the potential to hinder productivity.

Low Performers - Importance / Satisfaction Score:• Space for focused work• Overall impression• Tools and technology in the workspace• Ergonomics• Space for private calls• Adaptable/ well laid out work spaces• Suffi cient acoustical separation

14 WORKPLACE ATTRIBUTES THAT ENHANCE HUMAN CAPITAL AND PRODUCTIVITY... 8

… A ND THE 7 AT TRIBUTES TH AT FA LL SHORT.

SPACE FOR SCHEDULED

MEETINGS

SPACE FOR SPONTANEOUS

MEETINGS

ACCESS TO NATURAL LIGHT /

VIEWS

BRAND / COMMUNITY

RANGE OF WORK SPACES

SUFFICIENTTASK LIGHTING

TOOLS & TECHNOLOGY (IN MEETING ROOMS)

4.74

4.54

3.87

3.22

4.39

3.69

4.03

3.32

4.94

4.18

4.22

3.41

4.30

3.41

High Performers - Importance / Satisfaction Score

PAG E 14


Location # of Floors Average SFof Floor

Average SM of Floor Total SF Total SM

London 11 38,152 3,544 419,676 38,989

New York 11 21,305 1,979 234,359 21,773

Toronto 24 21,235 1,973 509,646 47,348

GRAND TOTAL 46 26,898 2,499 1,163,682 108,110

FIGURE 1: Location, Size and Number of Floors Observed

METHODOLOGY

METHODOLOGY& TERMINOLOGY

HOK used three main sources of data to triangulate the fi ndings for this report: a space analysis database, a space utilization/observational survey and nature of work survey results. HOK’s space data (as summarized in Figure 1) was compiled from 11 top-tier fi nancial services fi rms in London, New York and Toronto, encompassing more than 1,160,000 SF (more than 100,000 SM) within 46 fl oors of offi ce space. The workspaces documented here represent offi ce projects that were completed within the last fi ve years and that embody the latest workplace trends.

Data from London, New York and Toronto locations was extracted from each project’s Building Information Modeling (BIM) system and categorized based on the space classifi cation system established by the Open Standards Consortium for Real Estate (OSCRE). HOK uses BIM software to plan and design buildings in three dimensions while attaching data and attributes to building components. Metrics such as space class types, square footage, cost of materials and occupancy can be recorded in BIM and exported to a database.

Besides space data, HOK’s workplace methodology involves surveying and collecting observational and self-assessment data. In the last three years alone, HOK has conducted a total of 92 space utilization and nature of work surveys for over 11 industries, covering approximately 39,000 observed employee seats for the space utilization surveys and 23,000 survey responses for the nature of work surveys. Within the fi nancial services industry, HOK’s observational and self-assessment dataset included data from 10 clients at 38 locations, mostly in the United States, Canada and the United Kingdom.

To collect space utilization data, HOK observed how people occupy space in a building, and how much time they are observed to spend at their desks versus another location. This observational data was primarily collected through iPads and fed into a proprietary software for analysis and reporting. For the nature of work surveys, HOK collected self-assessment employee data such as demographic information, how much time employees believe they spend in meetings or working from home, and the levels of satisfaction and importance employees place on certain workplace attributes.

PAG E 15


EXTERIOR GROSS AREA

FIGURE 2: High-Level Overview of OSCRE Space Classes 2

Includes the following space types plus others not listed: [OFFICE] - offi ces, workstations, open collaboration space, fi ling space and storage rooms; [BUSINESS SUPPORT] - reception areas, mail rooms, meeting rooms, auditoriums, print rooms, waiting areas, locker rooms, security rooms, libraries, AV equipment rooms, and IT tech; and [TRAINING] - classrooms and computer labs

Offi ce,Business Support,

Training and other types

A S S I G N A B L E A R E A

Includes secondary circulation and everything in Assignable Area

Encroachment & Expansion Space

U S A B L E A R E A

Includes primary circulation and everything in Usable &

Assignable Area

Core Building Service & Primary Circulation

B U I L D I N G R E N TA B L E A R E A

Building Rentable Area: This method measures the occupant space occupied by the owner, manager and/or single occupants. It includes space such as computer rooms, copy/mail rooms and lunchrooms that serve offi ce tenant operations.3 The Rentable Area of a building may vary according to the terms of a specifi c lease.

Usable Area: The Building Owners and Managers Association (BOMA) defi nes usable area as occupant area plus building amenity areas. Occupants include tenants as well as owner occupants. Usable area does not include building service areas, such as building lobby and corridors; fi re control center and equipment; restrooms and janitors’ closets; mechanical, electrical and communications rooms and closets; truck loading, receiving and trash; or building management and maintenance.4

Assignable Area: The International Facility Management Association (IFMA) defi nes assignable area as the portion of the plannable area on a fl oor that can be assigned to occupant groups or functions. It’s calculated by subtracting secondary circulation, restricted areas, interior encroachments and occupant void areas from plannable area (the portion of the fl oor enclosed within the face of interior encroachments).5 Assignable area is used to measure space assigned to tenant personnel, furniture, equipment support areas and common support areas.

Absenteeism: Frequent or habitual absence from work or school.

KE Y TERMS & DEFINITIONS

PAG E 16


M ETHODOLOGY & TERMINOLOGY

Benching: Open-plan workstations typically consisting of a long, rectangular desk occupied by multiple people.

Building Owners and Managers Association International

(BOMA): An organization that publishes the Offi ce Measurement Standard, which provides a methodology for measuring both individual occupant space and the space that benefi ts all occupants.

Building Information Modeling (BIM): A software platform that allows for the creation and management of three-dimensional digital representations of physical and functional characteristics of spaces.

BYOD (bring your own device): A policy permitting employees to use personally owned devices in the workplace. Such a policy requires three components: a software application for managing the devices connecting to the network, a written policy outlining the responsibilities of both the employer and the users, and an agreement users must sign, acknowledging that they understand and will comply with the policy.6

Collaborative Workspace: Open areas for meeting and collaborating in the offi ce. These spaces are part of an open-plan offi ce and may include minimal dividers between seats.

Effi ciency Factor: Represents the percentage of net rentable square feet devoted to the building’s common areas (lobbies, restrooms, corridors, etc). This factor can be computed for an entire building or a single fl oor of a building. Also known as a Core Factor or Building Effi ciency Factor, it is calculated by dividing the rentable square footage by the usable square footage.7 The Design Effi ciency Factor is used as a multiplier from assignable area to usable area.

EMEIA: A regional designation to indicate the countries in Europe, the Middle East, India and Africa, collectively. Used for government, marketing and business purposes, the term is common among North American companies.

Enclosed Offi ce: An offi ce space enclosed by four walls. The space can be assigned to individual workers and can accommodate from one to more than fi ve visitors.

Exterior Gross Area: The sum of the floor areas on all levels of a building that are totally enclosed within the building. It is calculated by measuring to the outside face of exterior walls, disregarding canopies, cornices, pilasters, balconies and buttresses that extend beyond the wall face and courtyards that are enclosed by walls but have no roof.8

Financial Services: Professional sector encompassing a broad range of organizations, including merchant banks, credit card companies, stock brokerages and insurance companies.

Flexible Work (or mobile work): A work style in which a person consistently uses multiple spaces/places in which to accomplish his or her work.9

Huddle Room: Smaller room, usually assigned to a specifi c department, to be used for daily team or staff meetings or other quick get-togethers or stand-up meetings.10

International Facility Management Association (IFMA): The world’s largest and most widely recognized international association for facility management professionals, supporting more than 24,000 members in 94 countries.

Meeting Room: Collaborative space enclosed by four walls and typically able to accommodate from three to more than 20 people.

Open Standards Consortium for Real Estate (OSCRE): A non-profi t organization dedicated to the development of industry standards for data exchange. OSCRE has developed space management standards defi ning property and space attributes, space allocations and other metrics.

Phone Room: A small, enclosed space, typically able to accommodate one or two people and often used for private phone conversations.

Plannable Area: The portion of a fl oor enclosed within the face of interior encroachments.11

Presenteeism: The practice of coming to work despite illness, injury, anxiety, etc., often resulting in reduced productivity.

PAG E 17


Rentable Square Feet: Exterior gross area minus exterior walls, major vertical penetrations, interior parking space and void areas.12

Training Room: A space dedicated and equipped for employee learning to support instructor-led courses, individual online instruction, and/or face-to-face and distance learning applications. Training rooms may vary in size and generally include audio-visual equipment to support a variety of educational technology applications.13

Workstation: An individual workspace that can be connected to a series of desks and includes separations in the form of dividers and fi le storage space.

Qube, London Deloitte, New York TD Bank, Toronto

1 OSCRE is a non-profi t organization dedicated to the development of

industry standards for data exchange.

2 This chart provides a high-level view of OSCRE space standards as

they relate to this report.

3 BOMA’s 2010 Floor Measurement Standard

(ANSI/BOMA Z65.1-2010).

4 Ibid.

5 (2010). IFMA. Space and Project Management Benchmarks.

6 Source: http://www.itmanagerdaily.com/byod-policy-template/

7 Source: http://commercial-real-estate-brokers.blogspot.

com/2007/11/effi ciency-factor.html

8 (2009). IFMA. Operations and Maintenance Benchmarks: Research

Report #32

9 (2009). IFMA. Distributed Work: Research Report #31

10 Ibid.

11 (2010). IFMA. Space and Project Management Benchmarks: Research

Report #34

12 (2009). IFMA. Operations and Maintenance Benchmarks: Research

Report #32

13 (2012). IFMA. Workplace Amenities Strategies: Research Report #36

ENDNOTES

PAG E 18


WORK ST Y LES& USE OF SPACE

Sector Average % of Working Alone

Average % of Face-to-Face Collaboration

Average % ofVirtual Collaboration

FINANCIAL SERVICES 54% 26% 20%

Energy 51% 26% 23%

Government 52% 41% 7%

Technology 67% 16% 18%

GRAND TOTAL 55% 27% 17%

FIGURE 3: Benchmarks for Offi ce Activities

HOK’s Nature of Work Study surveyed a range of professionals around the world, asking them to answer the question, “When you are in an offi ce, what percentage of time do you typically spend doing each of the following activities?”

Respondents from the fi nancial services industry reported spending a majority of their time in the offi ce working alone (54%), which exceeded the time reported by professionals in the government and energy sectors, but was less than those in the technology sector (67%).

On average, fi nancial services professionals indicated spending 26% of their time in the offi ce participating in face-to-face meetings, aligning with average benchmarks within the energy industry.

In the area of virtual collaboration, which includes videoconferencing, email, instant messaging and phone conversations, fi nancial services professionals reported spending about 20% of their time in the offi ce communicating with others remotely. This compares with an average of 17% reported by professionals across all four industries.

The table below illustrates a comparison of HOK’s benchmark data for fi nancial services, energy, government and technology sectors. The data was collected over the last three years across global corporate locations.

INDIVIDUA L WORKFinancial services professionals spend 54% of their time on individual work

PAG E 19


Workstations and benching make up most individually assigned space across London, New York and Toronto, with 68% of individually assigned space composed of average-sized workstations and 23% made up of benching areas.

Offi ces in Toronto had the highest number of open workstations relative to enclosed offi ces, at about 93%, revealing a preference for more open, collaborative work in that location.

Open fl oor plans can offer space savings and greater fl exibility for fi rms and their employees. Unassigned hoteling workstations can easily be integrated into open fl oor plans, increasing the utilization of existing offi ce space.

One fi nancial institution discovered that 40% of its employees were working remotely on an average day. By shifting its employees from private environments to shared spaces, the company saved on real estate costs and increased the ratio of workers to seats by as much as 2:1.

Most employees conduct individual work in an open-plan workstation

FIGURE 4: Benchmarks for Offi ce Activities

Virtual Collaboration

Face-to-Face Collaboration

Working Alone

120%

100%

80%

60%

40%

20%

0%

TECHENERGYFINANCIAL SERVICES

67%

16%

18%

52%

41%

7%

51%

26%

23%

54%

26%

20%

GOV’T

FIGURE 5: Individually Assigned Space by Seat Count

68%

23%

9%

Enclosed Offi ce

Average Size Workstation

Benching

PAG E 2 0


WOR K S T Y LES & USE OF SPACE

I N DIVI DUA L WOR K

Financial services organizations are more likely than other sectors to provide ‘free-address’ or

‘unassigned’ workspaces as part of an alternative workplace strategy

FIGURE 6: Assigned vs. Unassigned Space

75%of fi nancial services

professionals work in

assigned spaces

in the offi ce

120%

100%

80%

60%

40%

20%

0%

52%

48%

SOFTWARE TECH

53%

40%

GOV’T

49%

39%

9%

FINANCIAL SERVICES

23%

52%

23%

Other / Telework

Unoccupied / Unassigned

Assigned Workstation

Assigned Enclosed

2%

3%

1%

6%

Compared with the other industries surveyed, a lower percentage of fi nancial services professionals reported working in assigned, enclosed workstations (such as offi ces). About half of professionals from government, software and technology indicated they worked in enclosed spaces.

However, a higher percentage of fi nancial services professionals reported working in unassigned/vacant spaces when compared to the other industries (23% for fi nancial services vs. 0% to 9% for the other three industries).

All four industries responded with low percentages (0% to 2%) of telework.

HOK surveyed a range of professionals about where they did most of their work: in an assigned and enclosed offi ce, in an assigned workstation, in a unassigned workstation or other/telework.

The majority of fi nancial services professionals reported working in assigned space. Just over half (52%) said they worked in assigned open workstations and 23% indicated they worked in assigned enclosed workstations. In total, 75% of fi nancial services professionals reported working in an assigned space, while 23% work in unassigned space and only 1% indicated that they telework or work in a space type not listed.

INDIVIDUA L WORK

PAG E 2 1


SectorAverage of

Assigned Enclosed

Average of Assigned Open

Workstations

Average of Unoccupied / Unassigned

Average ofOther/Telework

FINANCIAL SERVICES 23% 52% 23% 2%

Government 49% 39% 9% 3%

Software 52% 48% 0% 0%

Technology 53% 40% 6% 1%

GRAND TOTAL 37% 48% 14% 1%

FIGURE 8: Assigned vs. Unassigned Space

HOK’s space utilization study, a survey of more than 6,000 seats, reveals that 48% of employee workstations and offi ces are unoccupied throughout the day, with about 17% of spaces temporarily occupied throughout the day. The technology sector had the highest percentage of unoccupied space at 72%.

“Internal mobility” within the fi nancial services sector is about 33%, which is in the benchmark range of 25% to 35% for knowledge workers. Internal mobility is a metric calculated by dividing the number of temporarily unoccupied seats by the sum of occupied and temporarily unoccupied seats.

WORK SPACE UTILIZ ATIONUnoccupied workstations are common in fi nancial services locations and could be better utilized

by creating fl exible work environments

FIGURE 7: Seat Utilization — Observational Study

120%

100%

80%

60%

40%

20%

0%

TECHENERGYFINANCIAL SERVICES

Occupied

Temporarily Unoccupied

Unoccupied

72%

26%

51%

16%

33%

43%

18%

39%

48%

17%

35%

GOV’T

2%

PAG E 2 2


1.2 : 1.0LOW

(People to Seats)

1.7 : 1.0HIGH

(People to Seats)

WOR K S T Y LES & USE OF SPACE

According to HOK’s data for fi nancial services fi rms, the average sharing ratios between London, New York and Toronto range from a high (people observed in seats at peak times) of 1.7 : 1 to a low (people observed in seats during low occupancy) of 1.2 : 1. The lowest value during low occupancy is 1 person per 1 seat in New York, and the highest value at high occupancy is 1.9 people to 1 seat in Toronto.

Location % of workforce considered mobile

High (peopleto seats)

Low (peopleto seats)

London n/a n/a n/a

New York n/a 1.5 : 1.0 1.0 : 1.0

Toronto 63% 1.9 : 1.0 1.4 : 1.0

AVERAGES 63% 1.7 : 1 .0 1.2 : 1 .0

FIGURE 9: Workforce Mobility and People to Seats

FACE TO FACE TIME IN THE OFFICE

Location Number of Observed 1:1 Meetings 3-4 Individuals 4+ Individuals Training

London 39,379 46% 27% 18% 7%

New York 34,577 40% 30% 23% 3%

Toronto 4,802 62% 17% 5% 16%

FIGURE 10: Benchmarks for Face-to-Face Time in the Offi ce

INDIVIDUA L WORKWhen alternative work strategies are in place, the average sharing ratio is 1.3 people per 1 desk

R A N G E H I G H

T O L OW

PAG E 2 3


HOK’s observational data from the space utilization study reveals that meeting rooms are used, on average, only 29%of the time.

Nearly half of all meetings are between just two people.

Survey respondents from the space utilization study indicated that they typically have meetings with four or fewer attendees. This was in response to the question, “When working with others face-to-face in the offi ce, what percentage of time to do you typically spend on a) 1:1 meetings, b) small group meetings (3-4 individuals), c) large group meetings (4+ individuals) or d) training.” HOK’s global database of observations measures when there

is more than one person in a space, providing a comparison to survey responses. Globally, 73% of all observed meetings were with four or fewer attendees. This is slightly higher than the Americas benchmark (70%) and lower than the EMEIA region (79%).

Traditional meeting space is not well utilized.

Typically, conference rooms are not used to their full potential. Based on observations of more than 6,000 conference rooms globally over the last three years, HOK’s data indicates that meeting rooms (including 1:1, 3-4, 4+ and training rooms) are only used 25% of the time, on average, during the work day.

COLL A BOR ATIONMeeting rooms in fi nancial services fi rms have an average utilization of 29% throughout the day

Sector Average Meeting Room Utilization % (Occupied)

FINANCIAL SERVICES 29%

Energy 29%

Government 23%

Technology 53%

FIGURE 11: Average Meeting Room Utilization

29%

Throughout the day,

meeting rooms in fi nancial

services fi rms were

observed to have an

average utilization of only

1 Difference between OS and SA numbers may be caused due to

observational limitations in differentiating computer work from email

& IM activities.

2 HOK APAC & HOK fi nancial services-only information not available

for this metric.

ENDNOTES

PAG E 24


SPACE ME ASUREMENT & EFFICIENCY FACTORSAre real estate decisions being infl uenced by building effi ciency?

SPACESTANDARDS

Observed spaces included 11 fi nancial fi rms in 12 buildings and 45 fl oors across London, New York and Toronto. The charts below document space measurements as assignable, usable and rentable areas, in SF or SM, and as detailed previously.

Building effi ciency factors—multipliers that reveal how much space increases from assignable to usable to rentable area—are noted for each fi rm and location. Toronto has the

highest factor for assignable to usable area at 1.50, followed by London at 1.46 and New York at 1.42. New York has the highest average factor for usable to rentable at 1.18, followed by London at 1.10 and Toronto at 1.10.

The average fl oor plate size used to determine these factors was 27,500 SF / 2,500 SM.

FIGURE 12: Design Effi ciency Factors

Low Design Effi ciency Factor (Assignable to Usable Multiplier)

High Design Effi ciency Factor (Assignable to Usable Multiplier)


1.841.89

1.53

1.08

1.371.24

FIGURE 13: Building Effi ciency Factors

Low Building Effi ciency Factor (Usable to Rentable Multiplier)

High Building Effi ciency Factor (Usable to Rentable Multiplier)


1.13

1.32

1.131.061.07 1.08

Average 1.46 1.42 1.50 Average 1.10 1.18 1.10

PAG E 2 5


FIGURE 14: Area and Effi ciency Factor Measurements by Firm and Location

Assignable Area Usable Area Rentable Area

SectorTotal

Square Feet

Total Square Meters

Design Efficiency

(Assignable to Usable)

Total Square

Feet

Total Square Meters

Building Efficiency (Usable to Rentable)

Total Square

Feet

Total Square Meters

London 260,183 24,172 1.43 371,658 34,528 1.13 419,676 38,989

Firm 1 260,183 24,172 1.43 371,658 34,528 1.13 419,676 38,989

New York 170,480 15,838 1.33 226,051 21,001 1.14 257,279 23,902

Firm 2 8,448 785 1.35 11,391 1,058 1.08 12,291 1,142

Firm 3 86,594 8,045 1.2 103,659 9,630 1.09 112,937 10,492

Firm 4 36,763 3,415 1.44 52,766 4,902 1.28 67,744 6,294

Firm 5 25,447 2,364 1.43 36,312 3,373 1.06 38,564 3,583

Firm 6 13,228 1,229 1.66 21,923 2,037 1.17 25,743 2,392

Toronto 353,400 32,832 1.49 528,170 49,069 1.1 579,723 53,858

Firm 7 86,361 8,023 1.54 133,202 12,375 1.1 146,123 13,575

Firm 8 25,632 2,381 1.55 39,846 3,702 1.08 42,995 3,994

Firm 9 133,777 12,428 1.53 205,314 19,074 1.1 225,506 20,950

Firm 10 37,824 3,514 1.55 58,791 5,462 1.12 65,875 6,120

Firm 11 69,806 6,485 1.3 91,017 8,456 1.09 99,225 9,218

GRAND TOTAL 784,063 72,842 1.44 1,125,879 104,598 1.12 1,256,677 116,749

The building effi ciency factors are summarized on Figure 14 along with the total square feet and total square meters associated with fi rms surveyed in this report. The factors associated with increasing measured space from assignable area to usable area are higher than factors for usable to rentable area. This is because when measuring usable area from assignable area, a signifi cant amount of circulation is added to the total. When measuring rentable area from usable area there are fewer signifi cant components of a building that are added to total the rentable area measurement.

PAG E 2 6


S PAC E STANDARDS

OPEN & CLOSED OFFICE SPACETop-tier fi nancial services fi rms devote about 36% of building space to open and closed offi ces

The majority of individual workstations at top-tier fi nancial services fi rms are open

FIGURE 15: Percent of Open & Closed Offi ce Space by Seat Count

FIGURE 16: Percent of Open & Closed Offi ce Space vs. Remaining Square Feet

Closed & Open Offi ce

Remaining RSF (includes food service areas, general fi le & storage rooms, lecture & classroom space, lobbies, meeting rooms, circulation, waiting rooms, and wellness & fi tness rooms)

NEW YORK

90%

10%

TORONTO

93%

7%

LONDON

86%

14%

38%

62%

LONDON

41%

59%

NEW YORK

68%

32%

TORONTO

36%

64%

Closed Offi ce Open Workstation

Financial services fi rms employ a large number of people working in individual workstations. These are made up of a range of offi ces, open workstations and benching areas. In London, New York and Toronto, open workstations range from 86% to 93% of the number of total workstations (which includes enclosed offi ces).

The charts below compare the amount of closed and open offi ce space to the remaining square footage by location. Closed offi ce space includes enclosed offi ces and open offi ces include cubicles, average-size workstations and benching areas.

Shared support space makes up an average of 42% of building SF and individual work space makes up an average of 58% of SF.

PAG E 2 7


Location RSF/SEAT Shared Support Space

Individual Workspace

Individual Workspace to Formal Collab.

Seats Ratio

Informal Collab. Seats to Individual

Workspace Ratio

Total formal Collab. Seats to Individual

Workspace Ratio

London 134 53% 47% 1.80 : 1.00 0.03 : 1.00 0.56 : 1.00

New York 179 39% 61% 2.67 : 1.00 0.10 : 1.00 0.37 : 1.01

Toronto 153 34% 66% 2.18 : 1.00 0.17 : 1.00 0.46 : 1.00

AVERAGE 155 42% 58% 2.22 : 1 .00 0.10 : 1 .00 0.46 : 1 .00

FIGURE 17: Financial Corporation Utilization Metrics

PROPORTION OF SPACECollaborative vs. Individual Seats

2.2

1.0Individual Workspace to Formal Collaboration Seats Ratio

The ratio of conference space to total space has been steadily increasing for the last several years. According to HOK’s global benchmark data, financial institutions that have adopted new workplace strategies, such as distributed work and activity-based neighborhoods, are allocating conference spaces at an average ratio of 0.75:1. In other words, for every individual seat, three-fourths of a collaborative seat is dedicated to that space. Conversely, for every one seat of collaborative space, there are about 1.33 individual seats. For financial services locations in London, New York and Toronto, there are about 2.22 individual seats for every collaborative seat. Both the global and location-specific data do not include open collaborative spaces internal to the team (such as a circular table in a bullpen configuration). Collaborative spaces include soft seating, huddle rooms, conference rooms or café areas that are shared across groups and accommodate more than one person. For traditional work environments (where all seats are assigned), the ratio typically ranges from 0.2:1 to 0.4:1 (collaborative:individual seats).

PAG E 2 8


S PAC E STANDARDS

Square Feet (SF) Square Meters (SM)

WORKSTATION TYPES Average SF / Type

Lowest SF / Type

Highest SF / Type

Average SM / Type

Lowest SM / Type

Highest SM / Type

Total Number of

Rooms

Capacity / Type

X-Large Enclosed Offi ce 353 286 595 32.84 26.52 55.28 17 5+ guests

Large Enclosed Offi ce 161 131 305 14.97 12.17 28.34 375 3-4 guests

Regular Enclosed Offi ce 143 103 178 13.28 9.57 16.54 352 1-2 guests

Average Size Workstation 43 38 68 3.99 3.53 6.32 5,558 1-2 seats

Benching 33 26 36 3.11 2.4 3.32 5,932 1 seat

FIGURE 19: Offi ce Space - Types and Sizes

WORK SPACEOn average, workstations are smaller within the fi nancial services industry

FIGURE 18: Offi ce & Workstation Sizes

Lowest SF / Type

Average SF / Type

Highest SF / Type

120

100

80

60

40

20

0

180

160

140

BENCHINGAVERAGE SIZEWORKSTATION

REGULAR ENCLOSED OFFICE

33263638

43

68

143

103

178The average size of open workstations surveyed was 43 SF, which is smaller than the 64 SF associated with a standard 8’x8’ workstation. Enclosed offi ces ranged from an average of 353 SF for an extra-large offi ce accommodating fi ve or more guests to a regular enclosed offi ce accommodating one or two guests at an average of 143 SF per room.

The chart to the right illustrates the range of sizes for regular enclosed offi ces, average-size workstations and benching. Regular enclosed offi ces range from 103 SF to 178 SF across all three locations. These exclude large enclosed offi ces and extra-large enclosed offi ces, which range from a low of 161 SF to a high of 595 SF.

PAG E 2 9


MEETING & COLL A BOR ATIV E SPACEFinancial services fi rms include a lot of highly fl exible, small & medium meeting space

FIGURE 21: Productive Space Comparison

Closed Offi ce

Open Offi ce

Collaboration Space (Small to Large Meeting Rooms)

58%21%

21%

FIGURE 20: Meeting & Training Space by Room Count

X-Large Meeting Room (21+ people)

Large Meeting Room (13-20 people)

Medium Meeting Room (7-12 people)

Small Meeting Room (3-6 people)

12%

47%

38%

3%

Top-tier fi nancial services fi rms in London, New York and Toronto devote, on average, 47% of meeting and collaboration space to small conference rooms.

Based on HOK’s observational data, 73% of meetings actually occur between two to four people. Depending on circumstances unique to individual fi rm locations, it may be prudent to plan for more small meeting space when designing future workspaces.

Fifty-eight percent of productive space (space that is used for meetings or individual work) consists of open offi ce space. Designating space to accommodate small meetings can help professionals locate appropriate spaces for both scheduled and impromptu gatherings.

Open offi ces generally promote collaboration but also generate noise. Having a range of meeting room sizes can allow for fl exibility in how professionals work.

PAG E 3 0


S PAC E STANDARDS

Square Feet (SF) Square Meters (SM)

WORKSTATION TYPES Average SF / Type

Lowest SF / Type

HighestSF / Type

Average SM / Type

Lowest SM / Type

Highest SM / Type

Total Number of

Rooms

Capacity / Type

X-Large Meeting Room 730 309 1,143 67.84 28.71 106.19 12 21+ people

Large Meeting Room 507 310 769 47.12 28.8 71.44 24 13-20 people

Medium Meeting Room 305 133 594 28.32 12.36 55.18 103 7-12 people

Small Meeting Room 148 102 191 13.73 9.48 17.74 225 3-6 people

Phone Room 51 38 72 4.69 3.72 5.95 113 1-2 people

FIGURE 23: Meeting Space - Types and Sizes

Across the three cities, meeting room sizes vary from small two-person rooms (on average 51 SF) to extra-large meeting and training space with capacities of greater than 21 people. As noted earlier, small meeting rooms make up the bulk of these spaces at 47% of collaborative space.

The following table illustrates the range of room sizes and capacities per category as well as the average size within each category.

MEETING SPACETop-tier fi nancial services fi rms include collaboration and meeting spaces with a range of sizes

FIGURE 22: Meeting Space — Types & Sizes

Lowest SF / Type

Average SF / Type

Highest SF / Type

1,200

1,000

800

600

400

200

0PHONEROOM

MEDIUMMEETING

ROOM

SMALLMEETING

ROOM

LARGEMEETING

ROOM

X-LARGEMEETING

ROOM

30

97

30

1,1

43

31

05

07

76

9

13

33

05

59

7

10

21

48

19

1

38 51 72

PAG E 3 1


Confi dential Financial Client, Atlanta

PAG E 3 2


SATISFACTION WITH THE WORKPL ACE EN VIRONMENTFor fi nancial services, having suffi cient “space for focused work” has the largest gap

between importance and satisfaction

WORKPL ACEPERFORMANCE

The table on the following page highlights the workplace attributes that survey respondents deemed most important as well as their satisfaction with those attributes in their current workplace. Access to natural light and having suffi cient task lighting received high importance and high satisfaction scores by respondents representing fi nancial services fi rms as well as HOK global benchmarks. Financial services fi rms also valued adaptable/well laid-out work spaces, space for focused work, space for private calls, and tools and technology in the workspace.

A large delta (or difference) between “importance” and “satisfaction” scores reveals that professionals might have ranked an attribute highly but were dissatisfi ed with it. Among fi nancial services fi rms, these large deltas are apparent in the following attributes: adaptable/well-laid out work spaces, ergonomics, space for focused work, space for private calls, suffi cient acoustical separation, and tools and technology in the workspace.

Financial services professionals reported similar importance scores as the HOK global benchmark in the following areas: access to natural light/views, adaptable/well laid out work spaces, space for focused work, suffi cient task lighting, and tools and technology in the workspace. When compared with the fi nancial services sector, the HOK EMEIA region had higher importance scores for ergonomics and tools and technology in the workspace, while the HOK Americas region placed higher levels of importance on ergonomics.

HOK Americas professionals revealed low deltas between importance and satisfaction for the following attributes: brand/community, space for spontaneous meetings, suffi cient task lighting, and tools and technology in the workspace. Of these, fi nancial services professionals shared a low delta in suffi cient task lighting.

Capital One, Toronto TD Bank, TorontoConfi dential Financial Client, Dallas

PAG E 3 3


N: 23,007

DELTAHOK GLOBAL

IMPORTANCE SATISFACTION

4.36 3.68 0.68

4.41 3.39 1.02

3.94 3.56 0.38

4.39 3.54 0.85

3.88 3.28 0.60

4.36 3.29 1.07

4.18 3.12 1.06

4.07 3.46 0.61

3.92 3.28 0.63

4.20 2.96 1.24

4.37 4.03 0.34

4.25 3.55 0.69

4.33 3.91 0.42

4.54 3.41 1.13

N: 10,381

DELTAHOK FINANCIAL SERVICES

ATTRIBUTES IMPORTANCE SATISFACTION

Access to natural light/ views 4.94 4.18 0.76

Adaptable/ well laid-out workspaces 4.49 3.53 0.97

Brand/ Community 4.22 3.41 0.82

Ergonomics 4.45 3.40 1.05

Range of work spaces 3.87 3.22 0.65

Space for focused work 4.51 3.23 1.28

Space for private calls 4.48 3.44 1.04

Space for scheduled meetings 4.30 3.41 0.88

Space for spontaneous meetings 4.03 3.32 0.72

Suffi cient acoustical separation 4.27 3.37 0.90

Suffi cient Task Lighting 4.74 4.54 0.19

Tools & Technology (in meeting rooms) 4.39 3.69 0.71

Tools & Technology (in workspaces) 4.67 3.57 1.10

Overall impression 4.87 3.66 1.22

FIGURE 24: Importance and Satisfaction Scores - Global, Americas and Financial Services

Highlights on the table above call out the highest relative scores that respondents placed on the importance of various workplace attributes and their satisfaction with those attributes in their current workplace. The turquoise highlights represent the six largest values in the “importance” columns and the six largest differences between importance and satisfaction in the “delta” column. The orange highlights represent smallest differences between importance and satisfaction in the “delta” column.

PAG E 3 4


WOR K PL AC E PERFORMANCE

PRIORIT Y A RE AS

SPACE FOR SCHEDULED

MEETINGS

SPACE FOR SPONTANEOUS

MEETINGS

ACCESS TO NATURAL LIGHT /

VIEWS

BRAND / COMMUNITY

RANGE OF WORK SPACES

SUFFICIENTTASK LIGHTING

TOOLS & TECHNOLOGY (IN MEETING ROOMS)

4.74

4.54

3.87

3.22

4.39

3.69

4.03

3.32

4.94

4.18

4.22

3.41

4.30

3.41

High Performers - Importance / Satisfaction Score

According to HOK’s nature of work study, which examined a total of 14 workplace attributes, the seven attributes mentioned in Figure 25 have the smallest gap between what employees deem important and their level of satisfaction, meaning they are delivered at a more acceptable and consistent level of quality.

On the other hand, the remaining seven attributes listed here feature a larger disparity between their importance and satisfaction scores. While employees believe space for focused work, tools and technology in the workspace, ergonomics, space for private calls, and adaptable and well laid-out workspaces are important workplace attributes, they

are not satisfi ed with these attributes in their current work environment. These attributes represent opportunities for improvement in order to enhance the workplace environment and if left unattended have the potential to hinder productivity.

• Space for focused work• Overall impression• Tools and technology in the workspace• Ergonomics• Space for private calls• Adaptable/well laid-out workspaces• Suffi cient acoustical separation

FIGURE 25: Importance and Satisfaction of Workplace Attributes

PAG E 3 5


Qube, London

PAG E 3 6


Action Item: Ensure existing facilities are optimized to make the best use of space. Consider multi-purpose and multi-use environments.

KE Y FINDINGS SUMM A RY

1

4

Action Item: Financial services work is increasingly interrelated with information technology and may require more frequent training for a new generation of employees.

2

DESIGNPRINCIPLES

Growth is back…but, so is the need

for more frequent training.

Growth can be accommodated

through better planning/utilization of

the existing spaces.

Action Item: Ensure support spaces can easily adapt to user needs.

Meeting space should be appropriately sized and fl exible. It’s important to

make larger meeting spaces adaptable

to smaller meetings.

3

Action Item: Work on individual tasks can be done on-site or off-site, representing an opportunity for fl exible work strategies.

54% of time is spent working alone.

PAG E 3 7


Action Item: Ensure existing facilities are optimized to make the best use of space. Consider multi-purpose and multi-use environments.

5

8

6

Mobility strategies are common, but

adoption rates vary greatly.

Action Item: These are averages for top-tier fi nancial services fi rms in London, New York and Toronto. Use common size planning modules.

The average offi ce is 143 SF, while

workstations are 43 SF, bench seating is

33 SF and meeting space is 148 SF.7

Action Item: Firms might want to focus on attributes such as these when assessing their space. Investing in your human capital pays off.

The following attributes fall short: space

for focused work; overall impression; tools and

technology in the workplace; ergonomics; space

for private calls; adaptable/well laid out work

spaces; suffi cient acoustical separation.

Action Item: There may be opportunities to implement mobility strategies in offi ces. Assess and choose appropriate sharing ratios suited to your organization.

Building effi ciency is tight…and so is the

average area per seat (155 RSF/seat).

C O N TAC T: G O R D O N W R I G H T | G O R D O N .W R I G H T @ H O K .C O M | +1 . 415 . 3 5 6 . 8769

C O P Y R I G H T © 2 0 14 H O K . A L L R I G H T S R E S E R V E D.

Documents

HOK BENCHMARKING REPORT - HOK | A Global Design, … · 2014-09-08 · ramping up as ﬁ rms from emerging markets with distinct ... Percent of Gen Y/ Millennials (born after 1980)