In the 7th edition of the Top 10 Global CRE Trends report, real estate advisory firm JLL identifies the emerging turning points in business in 2022. JLL’s report reveals that when it comes to operationalizing hybrid work or creating future of work programs, organizations appear to be consolidating around a ‘percentage of time’ or ‘function-driven’ approach to hybrid working.
On keeping the possibility to alternate between different places of work
According to the study, 63% of the global workforce want to keep the possibility to alternate between different places of work in the future. 13% of employees in the APAC region prefer to choose when they work in the office. 21% of organizations expect their employees to be in the office a certain percentage of time, with the choice of day informed by work.
The implementation, however, is function-driven—meaning the approach varies by functional needs under the umbrella of the company philosophy.
Physical Workspace: Pillar of Philippine Corporate Culture
Lizanne Tan, JLL Philippines’ Head of Office Leasing Advisory, states that “traditionally, the Philippines’ pillar of corporate culture is still having and being in a physical workspace; yet, this continues to move forward after two years of drastic changes brought about by the pandemic. We see that modifications are imperative.”
In the Philippines, there continues to be mixed views on return-to-office. “Locally, 30% work-from-home and 70% work-from-office is currently being implemented. Moving forward, both local and global organizations are anticipating possible employee resignations—up to 80% of their employee pool who are comfortable working in a hybrid work model as shared in an ECCP event,” says Tan.
Since the IT-BPM industry remains a key driver of the local office market, it is important to look at RTO policies concerning the industry. On this, Tan adds insights on the Philippine Economic Zone Authority (PEZA), and the Board of Investments (BOI).
“PEZA noticed downward trends on applications and registrations. One of the reasons for revenue losses may be caused by hybrid work models not being adapted yet,” says Tan.
What’s more, companies are considering withdrawing their PEZA applications, and applying for grants under BOI. “Certain restrictions would still apply, and both organizations would need to reconvene on policies based on government shift and amendments on policies after election. It must also be noted that companies cannot simply shift from PEZA to BOI, as companies can only apply under BOI if it’s for an expansion or for a new project,” adds Tan.
49% of organizations still have not developed a ‘future of work’ program
JLL’s Top 10 Global CRE Trends report suggests that embracing hybrid work will be key to supporting organizational agility and workforce flexibility. However, 49% of organizations still have not developed a ‘future of work’ program.
In the Philippines, Chambers and Organizations are currently reaching out to government officials to adjust to a hybrid work model. On this, Tan says “they believe that this would affect our global competitiveness to adapt to changes brought by the pandemic.” She cites Malaysia and India as countries that have adapted to a hybrid set-up, and have therefore improved their global competitiveness.
In conclusion, to develop suitable ‘future of work’ programs in organizations, JLL’s report suggests to “undertake intensive experimentation and piloting to control the degree of flexibility required and to make hybrid work.”
For more information on RTO and Future of Work, JLL Philippines is holding a real estate market overview webinar, “The Physical Workspace: A Pillar of Corporate Culture” on May 5, 2022. Sign up here.
JLL has been operating in the Philippines since 1997 as a 100% wholly owned entity and currently manages about 5.3 million square meters of real estate with a workforce of over 1,200 employees. With more than two decades of local expertise working hand-in-hand with its global legacy, JLL provides to the Philippine real estate market an unparalleled synergy of services with a strong commitment to achieve real estate ambitions through future-ready approaches. For further information, visit www.jll.com.ph
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