Innovative Offices: One in Five Companies Invests in Modern Office Technology

Only one in five companies includes modern office technology in its strategy for competing for employees

In one in five companies, creating a modern and digitally advanced workplace is part of a broader vision that includes, among other things, competing for the best candidates – according to the CBRE report “PropTech Index 2019: Technological advancement of office buildings versus tenants’ digital expectations and needs.” However, there is still a sizable group of companies that do not support technological progress in the office because, despite high awareness, they are not ready to implement new solutions. CBRE experts indicate that the group of companies prioritizing office technology will grow due to the changing needs of young employees. Generation Z feels most comfortable in a technology-driven environment, which is why a modern office is becoming a bargaining chip in attracting them.

- It is true that Generation Z was not born with a smartphone in hand, but it certainly grew up with one. Young people accustomed to the convenience offered by access to the latest technologies will look for the same thing in the workplace. All the more so because Deloitte’s analysis shows that Generation Z is decidedly more pragmatic than experience-seeking Millennials. Therefore, the issue of a modern office that supports employees so they can be as productive as possible is crucial. Our research shows that many companies recognize this relationship between a office’s technological advancement and attracting talent, but they are not yet fully able to properly go about implementing it – says Krzysztof Mogielski, Director of Digital Transformation at CBRE.

We will soon catch up with Europe

The Polish proptech market in numbers

Proptech refers to all modern technologies, usually IT and telecommunications technologies, that influence real estate development worldwide. Their impact is most visible in office buildings, of which more and more are being built in our country. As many as 21% of Polish companies asked about supporting the implementation of such solutions admit that technologically advanced workplaces are an important element of company development. 39% have attempted to implement them but still have not developed a coherent concept, while 27% admit that they are important – according to the CBRE report “PropTech Index 2019.” This means that in as many as 66% of enterprises, this important element is not being implemented to a satisfactory degree. Only 13% of respondents consider technological innovations unimportant.

Level of awareness in the CEE region

In the CEE region, Poland is at the same level as the Czech Republic and Romania in terms of awareness of office technologies. In Romania, 22% of respondents view the creation of a modern and digitally advanced workplace as part of a broader vision; in the Czech Republic, 23%. Greater awareness is visible among Austrians – 28%. However, the countries most aware of proptech are Hungary (37%) and Slovakia (45%), where nearly every second company has incorporated the pursuit of a modern office into its strategy.

Spending on technology will increase

Generation Z and the future of offices

Innovative offices and the future of the labor market

As CBRE experts indicate, there is no doubt that modern office technologies bring benefits. However, companies need advice on the best solutions that will meet the needs of young people, especially the Generation Z now entering the labor market. These are people born between 1996 and 2015, who in 2020 will be between 5 and 24 years old. According to Deloitte analyses, what distinguishes them from Millennials above all is a pragmatic approach to life; for example, they are more conservative and more willing to save, and also much more focused on using new technologies. It is harder for them to imagine a world without the convenience offered by smartphones and apps, so they will definitely be more likely to choose a workplace that offers them that convenience. New generations of consumers and employees are forcing employers and landlords to accept the fact that technology is crucial in the workplace.

The report can be downloaded here: https://www.cbre.com/report-download?PUBID=f638ef92-021a-467e-9050-9b680a4f52b4.

Summary

The CBRE report “PropTech Index 2019” shows that only one in five Polish companies treats modern office technologies as part of its strategy for competing for employees. As many as 66% of enterprises do not implement them to a satisfactory degree, and only 13% consider them unimportant. In terms of proptech awareness, Poland matches the Czech Republic and Romania but lags behind Hungary and Slovakia.

The key driver of change is expected to be Generation Z (born between 1996 and 2015), which – as Deloitte analyses emphasize – is characterized by pragmatism and a strong attachment to technology. CBRE experts indicate that the modern office will become a bargaining chip in attracting young talent.