Evolution of the Office and Profitability

Some version of “the office” has existed since the Middle Ages. Individuals have been leaving their homes and traveling to a different workspace for the better part of a millennia, but most point to the early 20th century as the beginning of the office space we now recognize. The theory behind the traditional office format considered time management and the division of labor, and office design developed into an open plan bullpen space to maximize productivity.

The widely reviled office cubicle, created by designer Robert Propst in 1968, was a turning point in office design. His cubicle designs, which were adjustable and intended to be designed around the needs of the office, were developed in response to Europe’s growing trend of the open office plan. The Action Office was originally designed as a way to free office workers from the dreaded open office, but instead it led to the beginning of the “cube farm.” The design, when configured into a box with raised panel heights, was a cheap way to pack as many employees as possible into a small space.

After decades with little overall change in the world of office design, significant shifts in design began to occur in the early 2000s. As work became more mobile, the workplace continued to combine work and personal time with little room for separation.

Today, people answer emails at night and on the weekends and complete conference calls on vacation. Work follows employees home, and now home is following them to work as demand grows for workspaces where employees feel more comfortable. The evolution of the office environment is linked to a younger demographic of employees, the changing nature of the work itself, technological breakthroughs, and increasing pressure to be more competitive, innovative and agile.

Workspaces have become increasingly more inviting during the past decade as employers seek to attract and retain top talent. The multifaceted design of the contemporary office embodies a shift in workplace culture and more closely matches the values of a changing employee demographic. A recent Staples workplace survey found that 23% of employees would consider quitting their jobs if their workplace became too out-of-date. Likewise, 94% of respondents in a recent office furniture survey revealed that to them comfortable, casual workplace environments are not a fad. Thus, it’s not surprising that one-third of all design projects now utilize a more casual aesthetic.

Office designs now offer a variety of private booths, cubicle banks, open floor plans and large collaborative spaces. Furniture choices are not sourced from a traditional commercial catalog, but instead favor customized pieces or items from traditionally residential furniture companies, such as West Elm or Restoration Hardware. Lounge furniture is widely used in offices, and conference tables look more like dining room tables than those found in corporate war rooms.

The increasing popularity of tech-friendly offices is also incorporated into an integrated workspace design, with enhanced audio/visual and display technology throughout office spaces. Improved Wi-Fi capabilities, flexible charging stations, easy remote access and tech-facilitated collaboration are becoming industry standard as well.

Employers are adding health amenities to help create a strong workplace culture, increase talent retention, improve quality of work life, and enhance overall employee performance. Haworth’s “Workplace Design for Well Being” report found that in workspaces with actively incorporated wellbeing initiatives, the organization is 2.5 times more likely to be a best performer, employees are 8 times more likely to be engaged, and the organization is seen as 4 times less likely to lose talent in the next year. Amenities and design choices for a healthy workplace focus on incorporating into the office healthy food and beverage options, access to natural daylight, the use of plants and nature, and furniture and strategic layouts that encourage movement throughout the day.

Comfortable casual areas are becoming more important features in the office as work days become longer. Cafeterias and eating spaces are being redesigned to be used throughout the day, not just at lunchtime, with inviting seating options that work just as well for a brainstorming session as they do for eating takeout with colleagues.

The recent shifts in design are changing how companies hold meetings and events. Instead of having client meetings at a nearby coffee shop or renting space for company events, companies are using their recently updated spaces to hold meetings on-site, reducing cost and travel time. Meanwhile, on-site cafe or wellness offerings encourage employees to spend more time at work alongside colleagues. As seen in the campus designs of tech giants like Google and Facebook, offices are becoming more like a neighborhood, where you can complete errands, workouts and even shopping without ever leaving the office.

Smaller companies without the resources of a large organization also seek these benefits and are increasingly relying on shared tenant amenities. Commercial real estate owners will continue to advance this evolution with custom food options, luxury, health and wellness spaces, sustainable design choices, and shared community spaces.

Freelancers, now 35% of the US workforce and rising, represent one of the largest shifts in office work culture in centuries. The growth of co-working spaces like those of We-Work and the Wing demonstrate that not all freelancers want to work from home offices, but still crave the community and resources of an office.

Current office design trends are not a short-term fad. A large-scale shift has occurred in the workplace culture and in the work environment that had remained more or less static for 100 years. Office spaces that feature elements of the home, retail and hospitality outlets encourage greater employee satisfaction, longer work hours and more collaboration — all of which are geared to improve overall company productivity, and most importantly, profitability.

Camille Ames, is a workplace strategist at the architectural firm, Vocon. She works with organizations to align their cultures, business goals and work styles with workplace designs. The views expressed here are the author’s own and not those of ALM’s Real Estate Media Group.