[Real Beat] "Asia, once strong in hierarchical culture, is rapidly changing offices" [Office Shift]⑫

'What Value Should Offices Hold After COVID-19?'
Interview with Gensler's Nayan Parekh, Head of Corporate Sector, Singapore Office

Editor's Note[Jjinbit] is a segment that stands for 'Jung Hyunjin's Business Trend' and 'Real Business Trend,' showcasing trends in the changing nature of work. The sub-segment within Jjinbit, 'Office Shift,' closely examines changes in offices triggered by the COVID-19 pandemic and aims to lay the groundwork for exploring answers to new work styles through experiments we have experienced together. It is delivered to you every Saturday and Sunday morning. After 40 episodes, it will also be available as a book.

"Asia has had a hierarchy culture that has lasted longer than in the West. However, with the increase of 'hybrid work' (a mix of remote work and office attendance), changes are rapidly occurring with a focus on the function and choice of space more than ever before."

Nayan Parek, head of the corporate division at Gensler's Singapore office, a global architectural design firm based in the U.S., recently shared this insight in a video interview with Asia Economy regarding post-COVID-19 changes in Asian offices. Traditionally, promotion to executive ranks came with better prospects and larger private offices, but changes have been detected in Asia after COVID-19. The shift has begun toward employees using spaces based on their needs regardless of rank.

Nayan Parekh, Head of Corporate Sector at Gensler Singapore Branch (Photo by Parekh)

Parek is a design consultant who has focused on corporate workspace development for 20 years. Currently, he communicates directly with corporate clients across the Asia-Pacific region at Gensler's Singapore office regarding office design. This position allows him to sense trends in office spaces faster than anyone else.

Gensler, founded in 1965 and based in San Francisco, California, is an architectural design firm with offices in over 50 cities worldwide, including the U.S., the U.K., and Japan. In 2022, it was the top architectural design firm in the U.S. by revenue ($1.47 billion, approximately 1.9 trillion KRW). Since 2005, Gensler has conducted 'workplace surveys' tracking office changes in major countries such as the U.K., U.S., Japan, and China.

◆ Asia: Gradual Weakening of Office-Hierarchy Link

Workspaces are inseparable from culture as they are places where diverse employees gather and work simultaneously. Parek said, "Over the past 20 years, this (expansion of office space based on hierarchy) has dramatically changed. People have started to recognize that arranging spaces with the necessary functions for work is best." While this change began earlier in the West, Asia, with its strong hierarchical culture, maintained traditional methods longer, but COVID-19 became a catalyst for change, he explained.

The collapse of hierarchy in Asian corporate offices is due to two reasons. Parek explained, "After experiencing the pandemic, executives' use of offices has decreased in Asia, and there is a movement to hire talent who value the choice of workspace, leading to changes." This means that the two priorities of efficiency and talent acquisition currently emphasized by companies are blending into Asian offices, transforming the past culture where hierarchy dominated space.

Parek also pointed out another characteristic of Asia: limited residential space compared to Western countries. In major Asian cities like Tokyo and Hong Kong, the cost of living is high and space is cramped, making remote work less preferred and increasing the tendency to come to the office. According to a recent Wall Street Journal (WSJ) report citing real estate service firm JLL data, office return rates in Asia range from 80% to 110%, whereas office occupancy in the U.S. is only about 40% to 60%.

◆ "Multiple Tasks in One Place"…Focus on 'Multi-functional' Spaces

Parek revealed that Gensler has received many questions from various companies across industries about the role, value, and function of offices after COVID-19. As hybrid work spreads, many questions have arisen regarding office productivity and efficiency, leading to diverse discussions.

What are the elements companies are focusing on most when configuring offices recently?

When asked what spaces have become unnecessary in offices after COVID-19, Parek cautiously responded, "We cannot be certain about the future yet," but answered, "Spaces used for a single purpose." Spaces fixed for one use, such as meetings, events, or exercise, can only be utilized at specific times, leading to inefficiency. Parek said, "These spaces are evolving. Meeting rooms or training rooms are being designed with partitions to allow multiple uses." He also cited 'multi-functional' spaces as one of the most important spaces after the pandemic.

A typical example of inefficient spaces fixed for one purpose is 'assigned seating.' Parek said, "This has been a topic discussed in the industry for over 20 years. Senior employees who frequently travel often had offices, but there have been criticisms that this is becoming less practical." He added, "With the spread of remote work and reduced office attendance, assigned seating is no longer necessary. Flexible solutions allowing reservations when needed instead of fixed seats for individuals are emerging."

These corporate concerns have led to actual changes in office policies. A representative example is Google recently instructing hybrid workers to share desks to reduce space inefficiency.

Parek emphasized that, besides this, spaces like pantries where employees can gather, wellness spaces, corridors where chance encounters happen, and quiet spaces have become more important after COVID-19. He added that offices are often arranged so that most employees can receive natural light and ventilation is well managed. He noted that technology is the driving force behind all these spatial changes.

◆ What Role and Value Should Offices Show After COVID-19?

COVID-19 has shaken our daily lives, including offices. What does Parek think about the changed role and value of offices after COVID-19?

He identified 'culture' as the most important element of future offices. This means that workspaces should inspire and remind employees of the working culture. He said, "Space is only one component of culture. However, considering the long period of remote work after COVID-19, it is the element employees need most." He added that discussions should proceed to better link office space and HR-related factors.

Parek also said that offices should not be spaces solely for collaboration. Many of Gensler's corporate clients believe employees return to the office mainly to 'collaborate,' but the reality is different. He explained, "Employees who return to the office spend the day there attending meetings, making phone calls, and focusing on individual tasks." He shared that a recent survey showed employees returning to the office were troubled by office noise and desired quiet spaces where they could concentrate as they do at home.

According to a survey Gensler conducted from June to August last year with over 2,000 U.S. workers, the top reason for returning to the office was 'to focus on work.' The second was 'to use technology,' and only third was 'to have face-to-face meetings with the team,' related to collaboration. This suggests employees come to the office not just for collaboration but to find spaces and environments where they can concentrate on their work.

Parek said, "People think employees will bring lots of collaborative work, but they don't work that way," and added, "These survey results surprised many industry insiders."

Employee training is also a role offices should fulfill. Parek evaluated that before COVID-19, employees learned work face-to-face with supervisors and colleagues in one space, but this gap has emerged due to the lack of such interaction. He said, "Training for growth is important," and "An environment for training is necessary."

Parek said, "Depending on the job or country, 2023 will be a year to decide how much time spent in the office is ideal from a productivity perspective." He emphasized, "COVID-19 forced us to experiment, and that experiment showed productivity can be maintained at a certain level. Although there are still aspects to manage socially and culturally, this experiment demonstrated the potential to continue evolving how we manage work."

◆ About Nayan Parek Leader
▲ Bachelor of Architecture, University of Mumbai ▲ Master of Sociology, London School of Economics ▲ UK office space consulting and design firm DEGW (2007?2012) ▲ Gensler (2013?present)