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OfficesLatest NewsLeadershipPhysical environment

Exclusive: HR’s increasing role in office moves

by Rob Moss 9 Sep 2024
by Rob Moss 9 Sep 2024 Cundall’s offices at Fourways, Manchester. Photo: Savills
Cundall’s offices at Fourways, Manchester. Photo: Savills

HR professionals are playing an increasingly significant role in real estate decisions. Exclusive research from Savills and Personnel Today examines the criteria they apply and the factors that play a role in their decisions around office moves and upgrades.

HR decision-makers are prioritising employee productivity, amenities, wellbeing and ESG in office moves as 35% of respondents to a survey run by Savills on Personnel Today indicated their intention to increase office footprint in the next 12 months.

The research, which represents the views of over 150,000 employees, found that more than 90% of HR professionals believe that real estate plays an important role in attracting and retaining talent.

The survey highlighted several critical areas where current satisfaction ratings lag behind their perceived importance, underscoring where businesses will look to improve in future office moves or upgrades.

It found employee productivity stands out with a lower satisfaction (28%) rating against high importance (60%), with amenities and facilities having a lower satisfaction (16%) rating against importance (44%). ESG performance of the building ranked the lowest with 13% satisfaction against 36% importance.

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The evolving role of HR in real estate decision-making

When looking at how this translates into the type of office space, we can see that the preference is for this higher quality office space which can accommodate and address these satisfaction gaps. Savills found that almost two-thirds of office leasing deals were for Prime or Grade A offices in the first half of 2024.

The survey also revealed that over the next 12 months, 35% of respondents expected to increase their office footprint. Healthcare, banking and financial services were highlighted as key sectors with over 25% expecting to see an increase.

However, over the next five years almost half (46%) expect to increase their footprint with Healthcare (38%), Banking & Financial Services (75%) leading the way.

Mark Walsh, director of Savills’ global occupier services team, said: “The commercial real estate landscape is evolving post-pandemic, driven by the changing needs of employees. Organisations are increasingly prioritising overall employee experience and these findings provide an insight into areas where organisations can look to make improvements. Addressing these gaps can significantly enhance workplace satisfaction, productivity, and overall organisational success.”

James Evans, head of Savills’ national office agency says: “These insights provide a window into how occupiers are looking at their real estate and where the focus will be in the next office move. This is already translating into where the demand is concentrated, with offices that are located well, have flexibility, and good amenities nearby receiving the most competition.

“However, the market is becoming increasingly tight for this stock with all of the major office markets across the UK being undersupplied, meaning many occupiers will need to engage around their office moves much sooner than they think or risk losing out.”

Clare Bailey, commercial research director at Savills, comments: “HR teams are the conduit between employees and management, placing them in a unique position to bridge satisfaction gaps through employee engagement.

“By listening to feedback and monitoring satisfaction metrics, HR can implement targeted initiatives that enhance work-life balance, productivity, health, wellbeing, and ESG practices. Their role in cultivating a supportive workplace culture ensures that efforts are impactful and responsive to evolving employee priorities, ultimately driving higher satisfaction levels across all areas of the business.”

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Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

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