2023 Edition

The State
of Workplace
Experience
High-performing companies need high-performing
workplaces and employees. Here’s everything
industry leaders need to know in 2023.
2023 THE STATE OF THE WORKPLACE EXPERIENCE

01 Introduction 03

02 Predictions for 05

Table of
2023 and Beyond

03 Critical Priorities 09

Contents and Must-Have

Amenities and Services

04 High-Impact Areas 18
to Boost Employee
Engagement

05 Top Workplace Experience 23

Takeaways for 2023
2023 THE STATE OF THE WORKPLACE EXPERIENCE

01

Introduction
01 INTRODUCTION PAGE 04

The State of
Workplace Experience
by Chase Garbarino, CEO and Co-founder of HqO

In 2022, the world adjusted to new ways of working, and As industry leaders consider adding workplace experience from roughly 300,000 responses to Leesman’s surveys
many companies experimented with new and exciting technology as part of their increased technology of office workers. By comparing these two datasets, we’ll
technologies to optimize the workplace. In 2023, as the investment, they’ll have to make sure that they’re give you and other industry leaders an exclusive look at
state of the market continues to evolve, new trends will choosing the right technology to meet their business how workplace experience has evolved over the past year,
undoubtedly start to emerge, but the latest data tells us needs, especially in today’s challenging economic climate. what trends will emerge in 2023, and what real estate and
that many employees are dissatisfied with their workplace That’s why we’re publishing an extensive new collection employee experience leaders need to do to stay ahead in
environments and are resistant to return to the office, of employee sentiment data in our 2023 State of Workplace this ever-changing landscape.
despite more and more companies demanding it. Experience report.
When times change, we learn more about ourselves and
As a result, we expect to see strong investments in The data in this report comes from two exclusive what we truly value. That’s one of the reasons why we’re
workplace technology continue into 2023 and beyond. sources: industry researchers at Gartner, and employee continuing to see companies make smart investments
Deloitte’s 2023 CRE Outlook Survey finds, for experience researchers at Leesman, an HqO company. in workplace experience. By strengthening the social
example, that 48% of commercial real estate (CRE) The Gartner insights originate both from Gartner’s infrastructure of our workplaces—and, ultimately, the
CFOs will look to increase their spending on technology qualitative analysis of the workplace experience social infrastructure of the cities that support them—we
in the coming year. Deloitte also found that 17% of CFOs marketplace, and from its rigorous survey of roughly help bring people closer together, and right now, that’s
will look to increase that spending by at least 5%. 200 industry researchers, commercial real estate CFOs, exactly what people want and need.
and industry finance leaders. The Leesman data results
2023 THE STATE OF THE WORKPLACE EXPERIENCE

02

Predictions for
2023 and Beyond
02 | PREDICTIONS FOR 2023 AND BEYOND PAGE 06

The Road Ahead:

Key Workplace Experience
Trends for 2023
In 2023, corporate real estate leaders will continue to make smart recovery has led some in the industry to alter their long-term
investments in workplace experience, but they’ll do so under business plans. In some cases, this has led companies
radically different economic conditions. While office occupancy to reimagine their use of old office space.
rates, for example, have largely rebounded from mid-pandemic
lows, today’s occupancy rates are still significantly beneath their In this section, we’ll look at a few key planning recommendations
pre-pandemic levels. The relatively slow pace of the post-COVID from Gartner and HqO, which are based on best-in-class exclusive
data and industry analysis.
02 | PREDICTIONS FOR 2023 AND BEYOND PAGE 07

Predictions for the Coming Years

By 2024 By 2025 By 2027

Organizations with a persistent cross-functional team Corporate workspace allocation will flip from 70% 80% of millennial workers will prefer to spend their
tasked with workplace experience strategy will be individual workstations and 30% collaborative space time in various workplaces rather than full-time remote
80% more likely to have high employee satisfaction to 30% individual and 70% collaborative space. or full-time work from the office, up from 61% in 2021.
with the workplace.
HqO research has found that collaborative workspaces As office occupancy rates continue to rise, remote-
According to research from HqO, a growing number like meeting rooms are still significantly important to only positions have started to vanish; according to
of corporate real estate leaders have started to build out today’s employees. Research from Gartner supports the Washington Post, only 15% of jobs posted to
their workplace experience teams. That’s because more these findings, and even goes a step further: according LinkedIn in October 2022 were listed as remote—
and more industry leaders have begun to recognize to their projections, 70% of corporate workspace that’s down from 21% in March of the same year. In
the financial benefits (decreased turnover costs, allocation will be devoted to collaborative space by place of remote work, hybrid work is evidently on the
higher employee productivity, and improved NOI, 2025. This is a radical shift from the pre-pandemic rise: according to Gartner, 80% of today’s leading
among others) that come with an improved workplace allocation, where only 30% of workspaces were organizations have already adopted hybrid work. As a
experience. Independent research from Gartner designed to enable collaborative work. result, Gartner projects that a large majority of younger
validates the growth of the field and projects that the workers will prefer to spend their time in several office
impact of workplace experience professionals will only locations. This projection underscores the time-
continue to grow in coming years. sensitive imperative to optimize the office for hybrid
Less than 5% of desk workers will prefer to work from a work. It also shows industry leaders how critical it is
corporate workplace full-time, down from 17% in 2021. to reevaluate their understanding of employee needs,
behaviors, and preferences. Hybrid employees might
Gartner projects that the frequency of 5 days per week be working from your office on a given day—but they
in-person work will continue to fall. This projection might also be working from home, from a coffee shop,
corresponds with data from Leesman and other or from another place entirely. This means that the
industry sources, which have widely registered the needs of hybrid workers are both highly-individualized,
falling prevalence of full-time in-person work. and highly susceptible to change.
02 | PREDICTIONS FOR 2023 AND BEYOND PAGE 08

To Weather Stronger workplace

Uncertainty, Build connections lead to a stronger

workplace experience, which

a Better Workplace in turn leads to better business

outcomes—like increased NOI

Experience
and boosted productivity.

Building Engines Prism recently found satisfaction, employers save on turnover

that 96% of property teams are looking costs and increase productivity. An
to maintain or expand their spending on improved workplace experience also helps
workplace experience software. This again build stronger workplace connections,
signals that workplace decision-makers which is exactly what employees will want

96%
will continue to acquire new workplace and need in 2023. Stronger workplace
experience technology throughout connections lead to a stronger workplace
the coming year, even as economic experience, which in turn leads to better
uncertainty looms. business outcomes—like increased
NOI and boosted productivity. That’s
Corporate real estate leaders are why—according to last year’s State of
continuing to spend on workplace Workplace Experience report—76%
experience technology in 2023 because of commercial real estate organizations of property teams are looking to spend on
they understand that an improved currently use a building mobile app. workplace experience software
workplace experience brings tangible
business results. By improving employee
2023 THE STATE OF THE WORKPLACE EXPERIENCE

03

Critical Priorities and

Must-Have Amenities
and Services
03 | CRITICAL PRIORITIES AND MUST-HAVE AMENITIES AND SERVICES

Better Workplace
Connections Deliver
Better Business Results
Today’s employees care more than ever about building strong
workplace connections—and it’s not hard to understand why.

At the beginning of the pandemic, most white- activities can boost employee satisfaction, and
collar employees were confined to their homes, far because better workplace connections have
away from close friends and colleagues. But now, been proven to lead to better business results. A
as the public health picture changes, employees recent study from MIT, for example, found that
are eager to reconnect, and the data shows us that increased network connectivity leads to stronger,
they increasingly see the workplace as a place that more fruitful collaboration among colleagues.
can enable stronger, more meaningful workplace Another recent report found that a better
connections with peers and colleagues. That’s why workplace experience can lead to 21% greater
the importance of activities like informal social profitability and 17% higher productivity.
interaction, group learning, and others have all
shot up. In other words, a better workplace experience leads
to better workplace connections—and
In 2023 and beyond, it will be important to better workplace connections lead to tangible
support activities that lead to stronger workplace business results.
connections, both because support for these
03 | CRITICAL PRIORITIES AND MUST-HAVE AMENITIES AND SERVICES PAGE 11

Change in importance of common workplace activities

Achieve Better before and after the start of COVID-19

Outcomes Through
Improved Experiences
Planned Meetings +3.9%

and Services Collaborating on Focused Work +1.6%

Informal, Unplanned Meetings +1.5%

In 2023, employees will want:
1. More informal social interaction in the workplace. Informal Social Interaction +7.8%
2. Stronger workplace connections.
Accessibility of Colleagues
3. Better support for collaborative activities. +1.3%

Learning from Others +3.9%

The pandemic and the subsequent shift toward hybrid work
have caused many employees to think differently about their
workplace environments. This has led a significant number of Telephone Conversations
-6.8%
workers to modify or reevaluate their workplace behaviors.

In this section, we’ll review two sets of survey response data Private Conversations
-2.4%
from Leesman—one set from the year before the pandemic
(Q2 2019 - Q1 2020), and one from the year after (Q2
Business Confidential Discussions
2021 - Q1 2022)—to understand how the pandemic and the -4.2%
rise of hybrid work have changed employee attitudes about
common important workplace activities. In particular, the
0% 20% 40% 60% 80%
research shows us that today’s employees want stronger
and better workplace connections to improve the overall
workplace experience.
2019 - 2020 2021 - 2022 Increase 2021 - 2022 Decrease
03 | CRITICAL PRIORITIES AND MUST-HAVE AMENITIES AND SERVICES PAGE 12

Workplace social interaction has Change in Importance

Pre- and Post-Start of COVID-19
never been more important to
high-performing companies
Before the start of the pandemic, 40% of surveyed employees said
that they thought informal social interaction was an important

+7.8%
activity in the workplace.

After the start of the pandemic, however, work, but also a space for building more Informal social
that number increased by 8%, with almost meaningful workplace connections. interaction
half of employees now reporting that they Whether they’re working from the home
think informal social interaction is an office or the corporate office (or more likely
important workplace activity. No other a blend of both) today’s employees clearly
workplace activity had a greater increase want to feel connected to their colleagues,
in importance than informal social their companies, and their workplace
interaction. environments. This is something that
employers and CRE companies need to be
The large increase in the importance of mindful of as the future of work continues 2019 - 2020
informal social interaction suggests that to evolve.
employees now see the workplace not just
2021 - 2022
as a space for doing individually-focused
03 | CRITICAL PRIORITIES AND MUST-HAVE AMENITIES AND SERVICES PAGE 13

Change in Importance
Pre- and Post-Start of COVID-19

Meetings and
person-to-person activities
are now critical to the +3.9% +3.9%
workplace experience Planned meetings Learning from others

“Planned meetings” and “learning from

others” both saw an uptick in importance
after the start of the pandemic. 2019 - 2020
2021 - 2022
“Collaborating on focused work”, meanwhile, saw an increase
of 2%, while “informal, unplanned meetings” also increased 9:41

in importance by 2%. “Accessibility of colleagues” has also Search for colleagues...

increased in importance since the start of the pandemic.
Today, January 25, 2023 < >

These upticks correlate with the findings of other MON TUE WED THURS FRI
22 23 24 25 26
workplace researchers, who say that the office will become 44 3 6 2 4

a more collaborative place, with greater emphasis placed on Build Stronger Workplace Connections with HqO Who’s In™ 2 close colleagues are going in to ChauncyCo

connectivity and interpersonal interaction. Another study Curious to know which of your colleagues will be in the office on a given day? C Cooper Vetrovs

from Microsoft came to a similar conclusion: according to HqO Who’s In™ lets employees know who will be in the office and when. This K Kaylynn Curtis

that report, 84% of employees would be motivated to come makes it easier to collaborate on projects that require or benefit from in-person,
42 other colleagues are going in to ChauncyCo
back to the office by the promise of socializing with colleagues, face-to-face interaction. T Tom Smithson
while 85% would be motivated to return by rebuilding
LEARN MORE A Anna Johnson
team bonds.
B Berta Smith

Today’s workers value person-to-person contact and group Make my registration visible to others

learning. They want to build closer connections with

I am going
colleagues, and they want to leverage those connections in
their hybrid work environments.
03 | CRITICAL PRIORITIES AND MUST-HAVE AMENITIES AND SERVICES PAGE 14

12:02

<
Mobile Access
Support hybrid work with cardless
mobile access
Ditch your key card – forever. The HqO App

Better access to the office and lets employees use their smartphones to enter
the office, which means that workers can quit

electronic resources are key

worrying about cumbersome, easy-to-lose
key cards. This feature is particularly useful

requirements for hybrid employees

for hybrid workers, who may use their access
cards infrequently.

LEARN MORE
As the pivot to hybrid work continues, access to technological tools
that make hybrid work possible has increased in importance as well.

The significance of mobile computing teams, and employers all need to optimize
equipment, IT help, and access to remote their workplaces for hybrid employees. This
work files or networks have all gone up in means that they’ll have to expand access to Change in Importance
the years since the start of the pandemic. electronic work equipment. It also means Pre- and Post-Start of COVID-19
Among these three service features, mobile that they’ll have to offer practical tools and
computing equipment (e.g. laptop or hardware – like cardless mobile access –
tablet) increased the most (8%). IT help that remove friction from employees’ days.
and remote access to work files/network,
meanwhile, increased by 3% and 2% The world and the workplace have changed

+8%
respectively. dramatically over the last few years.
Employers, CRE companies, and others
As the pivot toward hybrid work continues will have to take action to keep pace with
to accelerate, CRE companies, property the times in order to compete. Mobile computing
equipment

2019 - 2020
2021 - 2022
03 | CRITICAL PRIORITIES AND MUST-HAVE AMENITIES AND SERVICES PAGE 15

Employees who feel private conversations are supported

With the increasing shift toward 2019 - 2020 53% +9%

the hybrid workplace, support

for individually-focused work 2021 - 2022 62%

is a vitally important area 0% 10% 20% 30% 40% 50% 60% 70%

Employees have started to use the office not just as a

place for doing business, but also as a space that enables
connection and connectivity. Employees who feel business confidential discussions are supported

After the start of the pandemic, 62% toward hybrid work has made it easier
of employees said that they thought for employees to conduct private 2019 - 2020 60% +8%
their workplaces were supportive of work conversations. This might be
private conversations, compared to 53% attributable to the rise of hybrid work,
before the start of the pandemic, when which has made it easier for employees
most employees were working from to conduct private work activities from 2021 - 2022 68%
an office 5 days a week. 68% of hybrid the privacy of their home (rather than
employees, meanwhile, said that business corporate) offices. This again suggests
0% 10% 20% 30% 40% 50% 60% 70%
confidential discussions were supported that employees have started to use
by their workplaces after the start of the office not just as a place for doing
pandemic, compared to 60% before. business, but also as a space that enables
connection and connectivity.
These increases of 9% and 8%
respectively suggest that the shift
03 | CRITICAL PRIORITIES AND MUST-HAVE AMENITIES AND SERVICES PAGE 16

12:02

<
The Hive

<
Jan 30 • 8:00-10:00 am
Streamline Room & Desk Booking
3 results

Increased access to The HqO App helps your employees plan their days in advance by giving them
the power to book meeting rooms and desks from their mobile devices. The
Meeting Room 1
Book

App also integrates seamlessly with other resource booking platforms like
meeting spaces is crucial Microsoft Exchange, which means that you can reserve space in HqO and see it
in Microsoft Outlook.
Meeting Room 2
Book

In the 2021-2022 dataset, 40% of surveyed LEARN MORE

Meeting Room 3
Book

workers were not satisfied with the meeting

rooms (both large and small) offered by their
workplaces. 45% of surveyed employees,
meanwhile, were not satisfied with the room
and desk-booking systems offered by their
workplace environments.

While the data shows us that meeting rooms are slightly less
important to employees now than they were before the start
of the pandemic, it also shows us that meeting spaces and desk-
booking systems remain one of the most important physical
features of the office. Almost three-quarters of employees,
for example, rated “meeting rooms (small)” as an important
office amenity in the 2021-2022 dataset. This means that
40% 45%
small meeting rooms are still more important to employees of today’s employees of employees are not satisfied
than other key physical features like temperature control,
are not satisfied with the with the room and desk-
noise levels, and office lighting, all of which ranked lower in
importance. It also means that small meeting rooms are the meeting rooms offered by booking systems offered by
third most important physical feature of the office. their workplaces their workplaces
03 | CRITICAL PRIORITIES AND MUST-HAVE AMENITIES AND SERVICES PAGE 17

Change in Importance Pre- and Post- Start of COVID-19

Computing Equipment, Mobile (e.g. Laptop, Tablet) +8.2%

Parking more important; IT Help Desk +2.8%

less so for other facilities, Remote Access to Work Files or Network +2.4%

physical amenities
0% 20% 40% 60% 80%
Office space isn’t necessarily being used
less—it’s just being used differently. 2019 - 2020 2021 - 2022

The importance of parking facilities was over 5% higher in

2021-2022 than it was in before the start of the COVID-19
pandemic. However, other service features and amenities Change in Importance
like telephone equipment, restaurants and cafeterias, and
Pre- and Post-Start of COVID-19
hospitality services became significantly less important over
the same period.

These changes seem to reinforce what we started to learn

in 2022: that office space isn’t necessarily being used less—
it’s just being used differently. The importance of these

+5%
built amenities will continue to change as the workforce
itself changes.
Parking facilities

2019- 2020
2021- 2022
2023 THE STATE OF THE WORKPLACE EXPERIENCE

04

High-Impact
Areas to Boost
Employee Engagement
04 | HIGH-IMPACT AREAS TO BOOST EMPLOYEE ENGAGEMENT

Pulse Check:
Top Employee
Pain Points in 2023
In 2023, employees will want:
1. A greater sense of community in the workplace.
2. More support for productivity.
3. More collaboration and knowledge sharing in the workplace.

In 2023, as the state of the market changes, access to the latest employee sentiment
many top employers and CRE companies data. That’s why, in this section, we’ll
will be looking to get the most out of their share and analyze Leesman’s insights
investments in office space and workplace into important, and broad questions of
experience. But, to achieve maximum ROI, employee sentiment and value.
workplace experience leaders need to have
04 | HIGH-IMPACT AREAS TO BOOST EMPLOYEE ENGAGEMENT PAGE 20

Poor workplace connections are

hurting employee satisfaction 31%
There’s still more work to be done when it comes to creating and of today’s employees do not think that the workplace
preserving a sense of community in the workplace. contributes to a sense of community at work

Two years after the start of the pandemic, Still, despite the importance of community
many corporate real estate leaders have to the workplace experience, Leesman
12:02
already improved their experience strategies found that 31% of today’s employees do not
to boost productivity and engagement, and think that the workplace contributes to a <
increase workplace connections. But the sense of community at work. This presents Let us know what you would
latest research tells us that there’s still more a problem for today’s employers and Boost Employee Satisfaction with like our next event to be...

work to be done when it comes to creating corporate real estate leaders, who need to In-app Polling and Micro Feedback Vote for your favorites!

and preserving a sense of community in do all they can to attract and retain tenants Wondering how your employees feel about Happy Hour
the workplace. That’s why (according to and employees in a challenging market. their workplace? With the HqO App, you can
LinkedIn data) roughly 10,000 employers track overall satisfaction with periodic surveys
Coffee & Breakfast
were hiring for workplace experience and polling, and gain real-time insights about
professionals in 2022. specific programming or amenities with
ongoing micro feedback before you make any Lunch & Learn

new investments to improve your workplace.

Seasonally-themed
outing
LEARN MORE
Submit
04 | HIGH-IMPACT AREAS TO BOOST EMPLOYEE ENGAGEMENT PAGE 21

Employers and property teams

can support productive work
Support for employee environments by improving
productivity is critically low access to office spaces, adding
new technology, and improving
According to Leesman, 30% of today’s employees do not agree that workplace connections.
their workplace environment enables them to work productively.

While these numbers have improved in can also be discouraged by requiring or

the years since the start of the pandemic, encouraging some in-person presence.
Leesman shows industry leaders that
dissatisfaction with both built and digital Employers and property teams can
workplace environments remain persistently support productive work environments
high. In 2023, as the macroeconomic by improving access to office spaces,

30%
picture remains uncertain, corporate adding new technology, and improving
real estate leaders will have to do more to workplace connections. They can also help
support productive work and justify the create productive workplace environments
commute for their employees. They’ll also by gathering employee sentiment data
want to discourage certain behaviors like proactively, on an ongoing basis, and using
“quiet quitting”, which can be avoided by it to meet their employees’ evolving needs.
boosting collaboration and satisfaction in
the workplace. Behaviors like quiet quitting
of today’s employees do not agree that their
workplace environment enables them to
work productively
04 | HIGH-IMPACT AREAS TO BOOST EMPLOYEE ENGAGEMENT PAGE 22

Boost satisfaction and increase

Knowledge-sharing is a crucial connectivity by adding
technology to bridge the gap
area lacking focus and delivery between hybrid-remote and
in-person employees.
Corporate real estate leaders will have to do more to support
knowledge sharing, which is a key workplace activity.

The sharing of knowledge and ideas to support this key workplace activity.
amongst colleagues is essential for the Employers and CRE decision-makers
success of any organization. But, according can do this by improving workplace
to Leesman, 25% of today’s employees do connections and adding support for
not agree that their workplace environment important newly-important work activities
supports the sharing of ideas and like informal social interaction. They

25%
knowledge among colleagues. can also boost satisfaction and increase
connectivity by adding technology to
In 2023, as the shift toward hybrid work bridge the gap between hybrid-remote and
accelerates and workplace connectivity in-person employees.
becomes more important, corporate
real estate leaders will have to do more

of today’s employees do not agree that their

workplace environment supports the sharing of
ideas and knowledge among colleagues
2023 THE STATE OF THE WORKPLACE EXPERIENCE

05

Top Workplace
Experience Takeaways
for 2023
05 | TOP WORKPLACE EXPERIENCE TAKEAWAYS FOR 2023 PAGE 24

Maximize Productivity
& Achieve Peak Performance
Meaningful Workplace Connections
01 Sentiment data shows us that today’s employees want better, more meaningful
workplace connections. And yet, 31% of today’s workers do not agree that their As the future of the workplace continues to evolve,
workplace contributes to a meaningful sense of community. companies can insulate themselves from uncertainty by
building stronger and better-connected workplaces.
Support for Productivity
HqO equips employers, property teams, and
02 Employees need more and better support in the workplace to stay engaged and be
commercial real estate companies with practical tools
productive; 30% of today’s employees do not agree that their workplace enables
them to be productive. that improve the workplace experience, which leads to
decreased turnover, and increased NOI over time. By
delivering engaging events, exciting programming,
Hybrid Work Setting
and a wide array of practical tools to our customers,
03 With more and more companies calling employees back to the office, remote work
HqO helps make the workplace a more human and
continues to become less and less common. 80% of companies now operate in a
hybrid work setting. connected place. And, in 2023, that’s exactly what
employees need.
Improve Workplace Connections
04 Interested in learning more about how HqO can help
Workplace experience will continue as a high priority in 2023, as corporate real
estate leaders look to leverage technology to facilitate and maintain improved your company succeed?
employee connections. 96% of property teams plan to maintain or expand their
spending on property technology in 2023. SCHEDULE A DEMO

Workplace Experience Roles

05 Workplace experience professionals are in high demand as corporate real estate The data in this report comes from Gartner’s Market Guide for Workplace Experience
leaders continue to invest in workplace experience: over 10,000 companies were Applications report, which was prepared exclusively for HqO. Other data comes from Leesman, an
hiring for workplace experience roles in 2022. HqO company.
 PAGE 20

About HqO
HqO, ranked No. 75 on the Inc. 5000 list, is transforming how
people connect with each other and the places they work. The
HqO Workplace Experience Platform and App makes it easy for
companies and commercial property teams to create modern
workplaces through world-class amenities and services that allow
people to thrive and produce the best results. Active in over
250 million square feet in 25 countries, 57% of the Fortune 100
rely on HqO to enhance their workplace experiences, improve
employee satisfaction, and drive operational excellence.

For more information, visit www.hqo.com

Gartner does not endorse any vendor, product or service depicted in its research
publications, and does not advise technology users to select only those vendors with
the highest ratings or other designation. Gartner research publications consist of
the opinions of Gartner’s research organization and should not be construed as
statements of fact. Gartner disclaims all warranties, expressed or implied, with
respect to this research, including any warranties of merchantability or fitness for a
particular purpose.

Gartner, Market Guide for Workplace Experience Applications, Tori

Paulman, Janel Everly, Romita Datta Chaudhuri, Mujtaba Shamim,
4 January 2023
38 CHAUNCY STREET, FLOOR 12 • BOSTON, MA 02111 • WWW.HQO.COM