Introduction
Whilst the COVID-19 pandemic has many legacies, perhaps its greatest is the way we work. After abandoning their offices at the start of the pandemic, employees have now returned to working from the office, though still far less than they used to. Workers are going to the office an average of just 3.5 days per week, some 30 percent below pre-pandemic levels. Global estimates suggest that 37 percent of workers go to the office every day, an additional 56 percent have hybrid work arrangements and spend 1 to 4 days per week in the office, and around 7 percent work fully remotely.
This shift has left organisations with two conflicting challenges:
- How to rationalise significant amounts of underutilised office space and reduce the risk associated with large property portfolios
- How to encourage employees to come back to the office to ensure that staff collaboration and employee development are maximised
Hot-desking, also called flexi-desking, flexi-work spaces and activity-based workplaces (ABW) has appeared as a potential solution to both of these seemingly opposing problems. Indeed, it offers a strategic approach to utilise office space more efficiently while addressing the diverse needs of a modern workforce.
The evolution of workplace strategies has seen the global adoption of hot-desking increase significantly, from an estimated 10% of the workforce pre-COVID to around 20% in 2024[1]. The journey from using offices to cubicles to workstations and then unassigned space has led to significantly greater office density — a reduction from approximately 23 square meters per worker in 1995 to 7 square meters or less per person today. Originally designed for professions that where primarily located out of the office (such as consultants), this model is now being adapted and adjusted to more traditional office-based roles which have converted to hybrid working arrangements.
Flexibility as the new corner office
People want and need spaces that support attention and focus. Hot-desking is the latest evolution in the experiment which tries to reconcile employee space needs with property-related cost pressures. Originally designed for mobile and independent workers like consultants, the COVID-induced work-from-home phenomena has changed the way that employees view themselves. Older employers who were once wedded to a specific office and desk now find themselves capable of working remotely without the historic shackles of the office.
Notwithstanding new preferences for flexibility, hot-desking is preferential for employees that have largely self-contained work processes and more difficult for those requiring routine interactions with a defined set of colleagues. Addressing employee specific requirements needs a customised approach that has in mind the different interaction styles and preferences across teams and across individuals. Hot-desking processes and facilities should ideally embrace the eclectic and bespoke nature of organisational groups rather than seeking to impose a one-size-fits-all solution which is unlikely to succeed.
Hot-desking, when optimised properly, should emphasise the reasons employees choose to work in an office environment while mitigating the inherent drawbacks of a non-permanent seat assignment.
According to recent surveys, the primary motivation for employees with flexible working arrangements to come into the office is to collaborate with their teams (figure 1[2]). This underscores the importance of designing hot-desking environments that facilitate teamwork and interpersonal interactions.
Tamara Rodman, from Korn Ferry, says “While the office may have something that home does not, such as collaboration, better technology, socialisation, or the ability to get away from distractions; the winning card is likely an emotional draw into the office. When employees love their teams or facilities or in-person clients (or all of the above), they show up.”
Hot-desking can be beneficial, but it requires careful implementation to ensure it supports not just operational efficiency but also enhances the overall workplace experience. Tailoring spaces to meet the diverse needs of employees, such as providing areas for quiet concentration and vibrant team discussions, can help in maximising the benefits of ABW models.
Figure 1: Office Attendance Motivators
5 steps to better hot-desking processes
Our experience suggests that there are five key steps that are essential for optimising hot-desking implementations. These steps integrate a blend of cultural, operational, and technological elements that collectively foster a more dynamic and adaptive workplace.
Prior to launching a hot-desking system, it’s crucial to understand employee needs and preferences regarding workspace utilisation. Additionally, securing leadership buy-in and fostering a collaborative work culture are essential for smooth adoption. Foundational elements focus on creating a variety of workspaces to accommodate different workstyles and tasks. This can be achieved through thoughtful space design that prioritises both productivity and collaboration. Technological tools also play an important role, with mobile-friendly booking systems and real-time occupancy data ensuring efficient workspace allocation. Finally, enablers encompass features that enhance the overall hot-desking experience. These include attractive and well-maintained facilities, secure storage solutions, and a user-friendly booking system.
Figure 2: Optimising Hot-Desking
Step 1: Understanding office dynamics
A systematic and thorough understanding of current office dynamics is critical before implementing a hot-desking system. This foundational step ensures that the transition supports both organisational objectives and employee needs effectively.
[1] Gensler Research Institute
[2] McKinsey
Key areas of focus:
- Optimal space utilisation: Assess how various teams utilise space by examining team size, composition, working habits, and physical space requirements. This analysis helps in creating an environment that maximises space efficiency without compromising on productivity.
- Interaction dynamics: It is essential to understand the type and frequency of interactions within and between teams, as well as external communications. Insights into these dynamics allow for the design of spaces that facilitate necessary interactions and enhance overall communication flow.
- Employee preferences and mobility: Going beyond basic workplace health and safety requirements, a deep dive into individual work preferences and mobility patterns can inform more personalised hot-desking setups. Understanding why employees prefer certain work settings and how they move across different spaces can lead to a more tailored and responsive office layout.
The process should begin with an internal audit to observe and record employee behaviours and preferences, setting a precise framework for the hot-desking initiative. This phase should not only outline the strategic rationale for moving to a flexible desk policy but also anticipate potential challenges and plan for their resolution, paving the way for a smooth implementation and adoption.
Case Study: JP Morgan Chase’s New Global Headquarters
Context and learnings
JP Morgan Chase initiated the development of their new global headquarters at 270 Park Avenue with a focus on redefining the relationship between workspace and employee interaction. Recognising the office as a critical extension of their brand, the firm embarked on a strategic effort to understand how employees interact with their physical work environment and what draws them to it.
Through extensive research and employee feedback, JP Morgan Chase identified several core aspects that enhance the workplace experience, building these into design and construction of the next generation of flexible spaces:
- Brand experience: The office is seen not just as a physical space but as an embodiment of the brand, offering a unique environment where senior leaders and teams can collaborate and drive the company forward.
- Personal recognition and welcome: Employees value personal recognition; they appreciate being welcomed and acknowledged, which enhances their connection to the workplace.
- Attention to detail: Small aspects like lighting, aroma, and layout significantly influence the overall work experience, underscoring the importance of attention to detail.
- Learning and development: The primary motivator for coming to the office, especially for younger employees, is the opportunity for personal development and learning from others, highlighting the importance of creating spaces that facilitate mentorship and learning.
Step 2: Fit for purpose booking systems
The successful integration of hot-desking relies heavily on the deployment of user-friendly workplace experience software. This technology enhances the management and reservation of space, streamlines visitor handling, and improves overall workplace coordination (Figure 3). Effective software solutions include comprehensive capabilities across several core and emerging areas.
Core capabilities:
- Reservations: Facilitate efficient booking of workspaces, ensuring users can easily secure desks and meeting rooms.
- Wayfinding: Assist employees in navigating the office landscape, crucial in large or complex office settings.
- Space management: Provide real-time insights into space utilisation, helping to optimise the allocation and use of office resources.
- Integration: Seamlessly connect with other corporate systems such as HR and IT, enhancing overall functionality and user experience.
- Visitor management: Streamline the visitor check-in process, enhancing security and guest handling.
Emerging capabilities:
- Visit Planning: Simplify the scheduling and management of in-office days for hybrid workers, aligning team availability.
- Coordination: Enhance the ability to coordinate people and resources within the workplace, improving operational efficiency.
- Virtual assistance: Deploy AI-driven tools to facilitate routine tasks, from setting reminders to managing daily schedules.
- Amenities management: Allow employees to access and book workplace amenities like parking spaces or fitness rooms through the software.
Employee interfaces:
- Application interfaces: Design interfaces that are intuitive and accessible, reducing the learning curve for all employees.
- Hardware integration: Employ devices such as interactive kiosks and smart lockers that integrate directly with the software, further enhancing the hot-desking experience.
Step 3: Thoughtful space design
Increasingly, organisations are going to need to “earn the commute” The result is a workplace that has transitioned from a place of habit to a place of purpose, with an increase in focus on moments that matter and employee experience.
As corporate real estate prioritises enhancing the workplace experience, thoughtful design becomes crucial in transforming the office into a destination of choice (Figure 4). Effective space design combines functionality with aesthetics to meet diverse employee needs, aligning with the top priorities in corporate real estate.
Key design elements
- Collaborative and productive spaces: Workspaces should cater to various activities –individual tasks require ‘me spaces’ while team projects benefit from ‘we spaces’. This setup promotes both productivity and collaboration, allowing employees to choose environments that best suit their work style.
- Guaranteed access and flexibility: Ensuring all employees have reliable access to workspaces is essential. A mix of reservable areas and flexible seating reduces uncertainty and supports a dynamic work environment.
Case Study: Deloitte Quay Quarter Tower
Overview
Deloitte’s headquarters at Quay Quarter Tower represents a pioneering approach in office design, tailored specifically for activity-based work. This new setup is intended to support thousands of Deloitte professionals in a flexible and dynamic environment.
The office is designed around “attractors” like an oversized beach umbrella, fostering an organic and carefree workspace. Advanced IT infrastructure, such as seamless visitor entry, one-touch AV connectivity, and app-bookable meeting rooms, enhances functionality. The layout promotes ‘bumping and belonging,’ encouraging spontaneous interactions across different floors and communal areas.
The design includes bespoke elements like a “bush” scent circulated through air systems, grounding the high-rise environment with an earthy element reminiscent of the Australian outback. This feature, along with innovative architectural elements, contributes to a unique sensory experience.
Step 4: Development of attractive facilities for enhanced hot desking
To optimise the hot-desking experience, facilities must cater comprehensively to the following needs of a dynamic workforce:
Investing in superior facilities not only supports the practical aspects of hot-desking but also significantly boosts employee morale and productivity. By creating an inviting and well-equipped workplace, organisations can encourage a higher rate of office attendance and foster a more collaborative and innovative work culture.
Storage & cleaning
- Effective flexi-desk programs offer sufficient secure storage for personal items to minimise relocation hassles.
- Enhanced cleaning protocols are essential, as shared spaces demand more maintenance to remain clean.
Great work tools
- Adaptable desks, ergonomic chairs, optimised lighting, and oversized monitor setups
- Lighting fast connection to IT applications
- Full suite of digital work tools
Delight factor
- Developing unique office-based offerings is about asking people what they like, and then using your budget for things that excite them.
- This could be a food or coffee cart, high value trainings and brainstorming events or wellness related offerings.
Step 5: Achieving cultural alignment in hot desking implementation
For hot-desking to succeed, it must be embedded within a culture that supports flexibility and shared values. This requires the introduction of supportive policies and a commitment from all levels of the organisation, especially leadership (Figure 5).
Effective cultural alignment around hot-desking hinges on clear communication, consistent leadership involvement, and an adaptive policy framework. By closely aligning organisational culture with the practical aspects of hot-desking, companies can enhance employee buy-in and facilitate a smoother transition to new ways of working. This approach not only maximises resource efficiency but also boosts morale and collaboration across the workforce.
Figure 5: Cultural alignment
Key challenges in implementing flexible work policies
- Avoiding hasty decisions: Effective workplace transformation is an ongoing process, not a one-time change. Organisations should avoid making impulsive decisions without considering long-term impacts. Instead, they should evaluate how hot-desking fits with current work habits, routines, and the office infrastructure to ensure its success and sustainability.
- Inclusive stakeholder engagement: Leadership must ensure that the introduction of flexible workspaces includes input from all stakeholders. This includes not only full-time employees who are regularly in the office but also remote workers, part-time staff, and clients who use the space. Engaging a diverse group ensures the workspace meets the needs of all users and enhances buy-in across the organisation.
- Clear communication of change: Successfully implementing a new workspace arrangement requires clear and ongoing communication about the benefits and intended use of the space.
Case Study: HSBC’s Workplace Transformation
In a bold move, HSBC’s CEO, Noel Quinn, eliminated the executive floor at the bank’s Canary Wharf skyscraper, significantly transforming traditional office dynamics. This strategic shift involved converting executive spaces on the 42nd floor into flexible work areas to facilitate collaboration and hot-desking among all staff levels.
This change stemmed from an observation that much office space was underutilised, with executives often traveling and offices remaining vacant. Quinn himself has adopted this flexible work model, choosing to work alongside his team without a designated office, demonstrating a strong endorsement of the hot-desking model.
HSBC’s shift is part of a broader effort to modernise its workplace culture and reduce overhead costs by 40%. The bank aims to optimise space utilisation, moving towards a more efficient model where only two employees share one desk. This approach also aligns with their goal to not renew many of their city-centre leases, reflecting a significant shift towards flexible working environments.
Our insights
- Leadership plays a crucial role in the successful adoption of new work models. By leading through example, HSBC’s leadership has effectively communicated the benefits and practicalities of hot-desking to the entire organisation.
- The move demonstrates a strategic alignment of economic benefits with environmental sustainability, showcasing a reduction in physical space requirements.
- This initiative is a clear step towards transforming corporate culture by embracing flexibility and collaboration, which are essential in today’s dynamic business environment.
Conclusion: Streamlining the future of work through effective workplace design
The transition to hot-desking and flexible workspaces is a critical evolution in modern workplace strategies. Successful implementations, as demonstrated by companies like Deloitte and HSBC, depend on comprehensive planning and execution across several key dimensions such as:
- Leadership advocacy is essential, requiring leaders to actively participate and champion the new working models and foster organisation-wide adoption.
- Technological integration and design and facilities must focus on functionality and employee satisfaction, incorporating robust tools that enhance the overall work environment
- Aligning the organisation’s culture with its physical and operational changes with clear policies and ongoing stakeholder engagement.
The effectiveness of hot-desking strategies hinges on a holistic approach involving cultural adaptation, proactive leadership, and sustained innovation in workspace management.
Luke Ingles
Managing Partner
luke@barcley.com.au
Sanuri Da Silva
Senior Consultant
sanuri@barcley.com.au
About Barcley Consulting
Barcley Consulting is a boutique management consulting firm focused on helping market leading companies with Strategy, Innovation and Execution. For more information on other publications please visit www.barcley.com.au
