SmithGroup‘s Mark Adams turns to data to detect the top three global forces affecting work in 2025.
Over the past four years we’ve seen a complete dismantling and rebuilding of the world of work. Designers, developers and organizations alike have been challenged to reassess and reimagine everything from operational policies, space utilization and amenities to lease structures and beyond. Research, data and strategic initiatives developed in partnership with clients and leaders within the commercial real estate market have revealed three distinct forces that will continue to reshape the structure of work in 2025 and beyond.
For those willing to embrace the challenge, these drivers present a new and exciting range of opportunities to take the workplace beyond its physical attributes and create an adaptive experience that reflects an organization’s values and promotes sustainability, inclusivity and human-centered design. Here, we explore how these forces intersect with and are impacted by current trends and what this means for the commercial real estate and workplace markets.
What is the Reconfiguration of Work?
The current reconfiguration of social, organizational and institutional structures involves a shift away from primarily hierarchical ideologies toward more collaborative, flexible, purpose-driven mindsets and operations. Driven by humanity’s innate desire for more authentic, meaningful interactions, this shift parallels design trends centered on increasing demand for flexible, accessible, amenity rich spaces in corporate, commercial and community environments. Designers are fielding increasing requests for more inclusive, shared, multigenerational spaces that support a range of demographic groups, community-oriented activities and talents – before, during and after working hours.
This shift does not come without complexities. Data supporting this movement suggests that approximately 65% of businesses view the move from traditional hierarchical establishments to more team-centric network and community-based models as essential, though only 7% report feeling truly ready to manage this transition. As a result, organizations and leaders are challenged to reconfigure teams to foster collaboration and adaptability while also working to reimagine flexible, decentralized systems and spaces to meet evolving needs. Workplace designers and strategists can become valuable partners to companies looking to realign their real estate holdings to better serve a new era of technological, ideological and functional priorities.
1. Addressing Global and Mulit-Generational Needs
The global talent pool is also experiencing a reform of its own. The World Economic Forum notes that the global marketplace is seeing an estimated 70 million new workers from diverse cultural backgrounds enter the workforce each year. As populations continue to outlive previous generations and the workforce continues to expand, companies recognize the need to support a diverse and multigenerational staff – with an emphasis on the large segment of employees that are simultaneously caring for children and aged parents while balancing work-related responsibilities.
Flexible environments that thoughtfully address cultural and demographic preferences and enable caregivers to balance the needs of multigenerational dependents are projected to gain in popularity. For broader (namely younger) segments of the population, the conversion of office buildings into residential spaces also has great appeal, enabling talent to live and work in more fluid and adaptive environments that cater to various work styles, preferences and values.
2. Embracing Exponential Technological Change
Automation, AI, human-machine collaboration and the continued rise of digital connectivity are also dramatically reshaping industries, the workplace, the design profession and the world. Applications that enable the automation of tasks, the rapid testing of iterations and the creation of personalized solutions have found favor in the design profession and across all corners of industry. The widespread popularity of these advancements will continue to propel innovation and growth at breakneck speeds.
How we, as designers, harness these tools to improve and enhance the workplace, and the built environment at large, is still to be determined.
A report generated by the Harvard Business Review spotlights the pivotal role that advanced technologies can play within a workplace from monitoring and protecting air quality to optimizing climate-related goals and more. A study conducted by PwC takes technology and AI-focused forecasts a step further, stating that 67% of executives believe that AI will help humans and machines work together to enhance productivity and operational efficiencies. Additionally, McKinsey reports that companies implementing AI-driven processes see a 20-30% boost in efficiency. The World Economic Forum forecasts that by 2025, AI and automation will eliminate 85 million existing jobs while creating 97 million new roles that prioritize AI oversight, data analysis and human-machine collaboration. As a result, workplaces must be designed to adapt to and support a myriad of new job functions that balance machine-driven processes with human oversight and innovation.
3. Let’s Not Forget the Humans
No matter how innovative the technological advancements, companies must prioritize how their most important assets – human resources and capital – continue to grow within their organization. According to a CBRE survey, 85% of employees now view flexibility as critical to their overall work experience, while a study of global talent trends revealed that experiencing a sense of belonging at work can boost employee productivity by 12% and reduce turnover by as much as 50%. At the same time, a recent Gartner report reveals that more than 90% of organizations have adopted virtual platforms and cloud-based services to support collaboration and productivity across borders.
These staggering figures underscore the breakneck speed and substantial investment that companies are undertaking to create technologically robust workplaces with flawlessly simple connectivity. Businesses will most certainly become even more creative in how they integrate technology to enhance their culture, operations and physical spaces, but employee satisfaction and the employee experience will still remain top priorities. High-technology, multimodal experiential environments and access to vibrant social districts will become “must-haves” that are critical to an organization’s growth and success.
Looking to the Future
Ultimately, the forces shaping the workplace of the future and the trends shaping its design are defined by rapid technological change, flexible and inclusive environments, sustainable practices, and a deeper connection between human experiences and the spaces they inhabit. The integration of technology and design will not only transform how we work but also how we live, learn and connect with one another in a global and increasingly digitized world. Companies that take these factors into account and move first to shape the future of work will have the upper hand when it comes to attracting and retaining the talent needed to implement new ways of working.
All images courtesy of SmithGroup.
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