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Human Capital:
A Cost and Commodity
Dichotomy Between C-Suite and
Cost-Conscious Occupiers
With the workplace continuing to evolve another
commonality among occupiers is the notable void between
CEOs aspirations and strategic challenges faced when
implementing real estate strategies. While CEOs and other
top executives believe that sourcing the right talent is
critical to an operation, cost remains the core CRE driver.
Despite this, talent attraction and retention, along with real
estate, are of course key contributors to underlying costs,
and so finding the correct balance is critical as these costs
continue to increase squeezing operating margins in many
business sectors. As such, occupier strategies tend to focus
on:
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Future proofing - Reinventing occupational design and
workplace flexibility plans now to meet the needs of
future employees.
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Ensuring a workforce of skilled workers, innovators
and next-generation leaders by building and
maintaining a reliable and sustainable pipeline of
trained workers often aided by successful corporate
branding
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Re-energizing employee attitudes through
engagement, efficiency and sense of purpose
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Devising an adaptable and agile employee base that
bolsters an organization’s ability to cope with sudden
changes and volatilities in internal and external
environments, something we are becoming more and
more familiar with.
Further occupier trends will be analyzed in more detail in
our forthcoming report What Occupiers Want.
TALENT MANAGEMENT REMAINS HIGH ON CORPORATE AGENDAS, AS
ORGANIZATIONS ACROSS DIFFERENT GEOGRAPHIES AND BUSINESS
SECTORS ATTEMPT TO MORE EFFECTIVELY MANAGE GLOBAL TALENT
POOLS IN CHANGING AND OFTEN UNPREDICTABLE BUSINESS
ENVIRONMENTS.
All for One
It is of little surprise that occupiers from differing business
sectors and geographies have discrepancies in opinion
when it comes to the most suited strategy surrounding
talent attraction and retention. Despite this, a number of
common core themes exist:
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The right working environment can prove critical in
helping to foster innovation through the attraction and
retention of appropriately skilled talent within todays
knowledge economy. Many organizations are choosing
to locate within close proximity of industry clusters
helping corporates source skilled labor.
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Managing talent agendas effectively can carry
the potential for a more productive operation
while also reducing the costs associated with
human capital turnover. Higher density ratios and
collaborative working strategies are becoming key
parts of occupiers’ real estate strategies. Technology
improvements also continue to disrupt operations and
are a key consideration during office space renovation.
The right corporate culture also appears to be a key
pull factor for securing the right talent to gain the
competitive advantage.
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Occupiers are actively seeking out new markets, as
well as diversifying into new geographies as the war
for talent intensifies and global integration continues
to reveal new marketplaces for doing business.
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ANDREW HEARD
Client Services - EMEA Research
andrew.heard@eur.cushwake.com