By the end of a career, the average person will have worked for approximately 13 consecutive years. Work takes up a lot of time and energy, and when it goes wrong, it can take a psychological toll, affecting employee productivity and engagement. Many studies have shown that mental health in the workplace is declining.
Has remote work had a negative impact on employees and is it time to return to the workplace to strengthen social connections, receive in-person instruction, and reduce isolation? The answer may be yes, but employers also need to create a supportive and well-managed workplace.
Gallup's annual “State of the Global Workplace” report found that more than half (51%) of North American employees are disengaged and perform at a minimum level in their jobs. Additionally, 16% are actively disengaged and looking for a new employer. Research shows that employee disengagement equates to $8.9 trillion in lost productivity worldwide.
Gallup found that younger workers and fully remote workers were least engaged. Happiness among employees aged 35 and older increased slightly over the last year. However, the percentage of younger employees who said they were fulfilled at work fell by five percentage points in one year after seven years of steady growth. Reasons for the decline in engagement include a lack of connection, not knowing what is expected, not having the resources to do the job, and a lack of work-life balance. Commonly reported negative emotions in the workplace include stress, anger, sadness, and loneliness. Fully remote workers in North America reported slightly higher levels of loneliness than employees in other parts of the world.
Surveys have shown that employees are constantly seeking flexibility, empathy and support in the workplace. Gallup also discovered that the social connections they make at work are one of the reasons employees stay with their companies. Employees are hesitant to quit their jobs because it would mean leaving their friends behind. These findings are also reflected in the recently released NAIOP Research Foundation report, “Recruiting, Training and Retaining Talent in the Real Estate Development Industry.”
Overall, the survey indicates there is a great need for organizations to rethink their business strategies and workplace practices to boost employee engagement and happiness. Gallup found that “best practice” organizations are adopting the following strategies:
Make hiring and development of managers a priority. Specifically, “The best organizations hire talented managers who engage their teams, then develop those managers into effective coaches who can continually provide meaningful, individualized feedback that leads to improved future performance.” Build engagement into every stage of the employee and manager lifecycle. “Make engagement a business strategy that guides how you recruit, onboard, coach and develop talent.” Prioritize well-being at work and in life. Promote employee well-being, with some employers “going beyond physical health to include financial literacy and planning support, as well as events like mental health webinars and encouraging community volunteering.”
Return-to-work mandates are becoming more common. According to a survey by Resume Builder, most companies plan to implement a return-to-work policy by the end of the year. Only 2% of companies surveyed said they won't require employees to come to the office in person.
For the commercial real estate industry, the benefits of these trends are two-fold: office investors and owners not only benefit from return-to-office policies, but also from the implementation of best practices that are expected to increase employee engagement and retention.