[Interview] "Generation Z is Coming"... Companies Gradually Adopting 'Hybrid Work System'

Interview with Lee Jae-hong, Director at Cushman & Wakefield
Hybrid Work System Complementing Remote Work Draws Attention
Commuting Combined with Office Using Flexible Seating System
'Two-Track' Method Linked with Metaverse Also Popular

Lee Jae-hong, Director at Cushman & Wakefield Korea (Photo by Cushman & Wakefield Korea)

"Working from home every day is not necessarily always good. For some people, working from home is difficult, and others want to build camaraderie by communicating with colleagues. The hybrid work system combines the advantages of working from home and the necessity of going to the office to enhance work performance."

Jae-Hong Lee, Director at Cushman & Wakefield Korea (hereafter Cushman), a global real estate consulting firm, summarized the emerging corporate office work environment in the post-COVID era in an interview with Asia Economy. The 'Project & Development Services' team led by Director Lee consults on the overall process including area, composition, design, and change management when tenants look for office spaces.

Director Lee explained that the traditional structure of mandating only office attendance or only working from home is being replaced by the trend of office forms based on the concept of a 'hybrid work' system, which combines office attendance and remote work for employees. They are building systems that create the same work environment anywhere, whether working from home or taking a seat at any flexible desk in the company.

This smart work approach is especially gaining attention with the influx of Generation Z (born mid-1990s to early 2000s). They prefer to concentrate alone during work hours and are more accustomed to digital communication than face-to-face nurturing. For the same reason, demand for metaverse offices that transcend the boundaries between online and offline is also increasing. Director Lee said, "There are more companies operating both physical offices and metaverse offices simultaneously."

Below is a Q&A with Director Jae-Hong Lee of Cushman regarding changes in office workspaces in the post-COVID era.

- It has been well over two years since COVID-19 emerged. What has changed compared to the early days of the pandemic?

▲ Two major things have changed. Until last year, there was insufficient data on working from home initiated by COVID-19. It was unclear how much sales or work performance would differ if remote work continued. However, after more than two years of remote work testing, enough data has been accumulated, allowing confident decision-making.

The generational distribution of the workforce has also changed. With Generation Z actively entering the workforce, their proportion has significantly increased. As of last year, Generation Z accounted for about 13% on average across all industries. Over the next 5 to 10 years, this group is expected to make up 20-30%, increasing awareness of the need to build environments suited for them.

- Has the easing of the COVID situation reduced the necessity of working from home?

▲ No. Regardless of the pandemic, there is a trend to leverage the work efficiency benefits of working from home. Survey results show that 72% of respondents are satisfied with remote work. Commute times are reduced, environments that allow focused individual work are created, and personal work productivity has increased. Additionally, the freedom to choose working and resting times plays a significant role. Consequently, there is a growing atmosphere to build environments focused on individual work.

- Are there any downsides to working from home?

▲ There are quite a few cases where employees experience inconvenience because they cannot use their preferred work equipment as they would in the office. Also, it is difficult to communicate immediately with colleagues, making it hard for many to build camaraderie or feel a sense of belonging. Working from home every day can lead to a strong feeling of social isolation, causing mental strain. To address these issues, the 'hybrid work' system, which combines working from home and office attendance, is becoming a trend.

- What exactly is the hybrid work system?

▲ As the name suggests, it is a method that takes advantage of both working from home and going to the office. The key is to create an environment that supports work differently even when attending the office. Previously, fixed personal desks and open office layouts where team members faced each other were common. Now, even when personal seats are created, partitions are raised high to allow full concentration on work. More companies are adopting flexible seating systems, increasing shared workspaces, and creating separate work areas such as meeting rooms and focus rooms (dedicated desks for concentrated work). Many also establish satellite offices for employees who find commuting difficult due to distance.

Additionally, there is an increasing number of cases where networks and systems are built so that employees can work in the same environment regardless of whether they are at the office or home. For example, logging in with an ID and password on any computer or laptop instantly recreates the desktop environment they usually use, so employees literally just need to show up to work.

Employees are working at the smart office in SK Innovation Seorin Building, Jongno-gu, Seoul. Photo by Jinhyung Kang aymsdream@

- Are there any examples of companies applying this?

▲ Kakao and Naver have shifted to allowing employees to autonomously choose between remote and office work. Large domestic companies such as SK, KT, and LG Energy Solution have already introduced satellite offices to provide efficient work environments for employees who find working from home inconvenient or commuting to headquarters difficult.

- With the shift to remote work, is there a trend of reducing in-house welfare facilities?

▲ Yes. As time spent at the company decreases compared to before, usage rates of welfare spaces like fitness centers and cafeterias have dropped, leading companies to remove these spaces except for rest areas. Conversely, spaces where employees can refresh or rest alone are increasing. Creating small parks inside company premises is a representative example. Previously, it was difficult to use parks far from the office because it took too much time, reducing work productivity and efficiency, but this has been addressed.

- Are more companies securing metaverse offices?

▲ Yes. Many companies operate 'two-track' systems linking offline offices with metaverse offices, rather than having offices only in the metaverse. Older generations are accustomed to face-to-face vocal communication, while MZ generation prefers online communication. This approach satisfies the older generation's need to confirm presence?whether someone is at work and what they are doing?while also meeting the 20s and 30s generation's desire to feel a sense of belonging. For example, if an employee carries a laptop around the company, it is recognized in the metaverse, allowing others to see where and what they are doing.

- What is the outlook for shared offices in Korea?

▲ I expect competition in the domestic office market to intensify. As rapidly growing startups and IT companies expand, demand to move into offices in key areas is increasing. However, A-grade office buildings in those areas have almost no vacancies and no new supply. Compared to this time last year, available building space for relocation has significantly decreased, while rents and maintenance fees have risen by about 30-40%. Until new supply increases over the next 2-3 years, demand for better offices is expected to remain strong.