survey on the influence of workplace design and practices

8/6/2019 Survey on the Influence of Workplace Design and Practices

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Survey on the Infuence o Workplace Design &Practices on the Ethical Environment


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The move toward a more collaborative o ce design eaturing open workspaces, team rooms and common areashas gained even more traction within the last ew years as companies look to reduce costs through increasedspace utilization without compromising productivity. In act, the survey ound that more than one-third ocompanies transitioned rom closed o ces to open plans just within the last ve years.

Patricia Roberts, Executive Vice President, Strategic Consulting, Jones Lang LaSalle

The experience in our own rm has been that open workspaces promote an ethical and collaborative culturewhere transparency is o the utmost importance, and we believe we have reduced the costs to our organization

rom ethical lapses and litigation as a result. Senior management can greatly improve sta morale and eliminatethe detrimental us versus them attitude i they also sit in the open environment, which becomes a constant andvisible reminder that everyones collective responsibility is to the shareholders and the greater good o the entireorganization.

Mark Ohringer, Executive Vice President and Global General Counsel, Jones Lang LaSalle

In todays rapidly changing business climate with its diverse work orce, constantly evolving technologicalinnovations, and intense competition, corporations need to think strategically about the type o environment thatbest supports its employees and allows them to do their best work in a way that maintains the integrity and ethicalculture o the organization.

Alex Brigham, Executive Director, Ethisphere Institute


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Table of Contents

INTRODUCTION

OBSERVATION #1 Open Workspace Environments Are Gaining Favor AmongCompanies

OBSERVATION #2 Including Management in an Open Workplace EnvironmentImproves Corporate Culture

OBSERVATION #3 Open Workspaces May Reduce Employee Misconduct

OBSERVATION #4 Employees Who Work from Home Commit Less Misconduct

OBSERVATION #5 Create an Open Workspace That Makes Sense for YourCompany

SURVEY METHODOLOGY

About Ethisphere Institute

About Jones Lang LaSalle

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200Ethisphere and Jones Lang LaSalle combined orces to conduct a Survey on the Infuence o Workplace Design& Practices on the Ethical Environment compiling 200 responses rom representatives rom a wide variety oindustries, including Pro essional Services, Industrial/Manu acturing, Healthcare/Pharmaceutical, Technology/ Telecommunications and Consumer Industries.


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INTRODUCTIONIn todays rapidly changing marketplace, corporations need to rethink how they are physicallystructured in order to create environments that support and enable employees, while improving spaceutilization and e ciency. Implementing a proper workplace strategy not only empowers employees,increases productivity and improves retention rates, but it can also cut down on the number o ethicalviolations occurring within the corporation.

Ethisphere and Jones Lang LaSalle combined orces to conduct a Survey on the Infuence oWorkplace Design & Practices on the Ethical Environment o survey participants. Representatives

rom a wide variety o industries submitted over 200 responses, and an analysis o this data yields veprimary observations:

Open Workspace Environments Are Gaining Favor Among Companies Including Management in an Open Workplace Environment Improves Corporate Culture Open Workspaces May Reduce Employee Misconduct

Employees Who Work rom Home Commit Less Misconduct Create an Open Workspace That Makes Sense or Your Company

OBSERVATION #1 Open Workspace Environments Are Gaining Favor Among CompaniKey statistics:

The majority o companies surveyed (60 percent) maintain work environments primarilycomprised o open o ces, rather than individual o ces.

On average, companies that provide open o ce space do so or nearly our out o everyve o their employees (79 percent).

Every respondent rom the technology-based companiessuch as those involved in computerhardware, so tware and electronicsreported primarily using an open workspace environmentwithin their organization.

Moreover, more than one-third (38 percent) o respondents changed their o ce spaces romclosed, individual o ces to open plans during the past ve years.

One respondent rom a pro essional services rm explained, We live in an open o ceenvironment in order to maintain open communications and shared learning among oursta . Culturally, our company would die and ultimately not prosper as a business i we hada closed o ce environment.

Another respondent states, Open o ce con guration promotes greater camaraderie andvisible productivity.

60% The majority o companies surveyed (60 percent) maintain a work environment comprised mainly oopen o ces4


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OBSERVATION #2 Including Management in an Open Workplace Environment ImproveCorporate Culture

Key statistics: Many respondents report positive experiences rom both sta and management when

maintaining an open workplace environment. By including managerial employees among thosein open work environments, respondents report improved morale and a greater sense o equityamong sta and management.

One respondent explains, I believe that an open environment brings people togetherand fattens an organization, i done correctly. Allowing o ces based on grades iscounterproductive. Everyone should work out in the open, even the top management o acompany.

Having everyone in an open environment provides employees with a greater perceptiono equality among management and sta . As one respondent notes, The separation o

sta in cubes vs. sta in o ces un ortunately contributes to an us vs. them atmosphere,where the general eeling o those o us in the cubes is that those in o ces seem to beallowed to get away with much more. This tends to hurt the tone rom the top providedby the executive sta .

As our executives are also in open o ces, I believe this creates a better workenvironment and sends the right messages to our people, said an additional contributor.

Another respondent states, I you brought the o cers o the company to more accessibleand observable o ce space, employees would respond with better company identity andmore overall engagement.

OBSERVATION #3 Open Workspaces May Reduce Employee MisconductKey statistics:

Nearly 60 percent o respondents believe using an open o ce space may reduce the typesand severity o ethics violations through visible detection.

As one respondent explains, I believe that people ollow policies and procedures moreroutinely when they know there is a great chance that their actions will be seen.

While speci c cause and e ect is di cult to determine, a compliance pro essional rom aU.S.-based health insurance company recalls, We have seen a decrease in violations.

Implementing open workspace environments appears to be making an impact, as the majorityo respondents (64 percent) have not had any visible ethics violations committed in their openo ce spaces within the past two years.

64%Implementing open workspace environments appears to be making an impact, as the majority o respondents (64percent) have not had any visible ethics violations committed in their open o ce spaces within the past two years.


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More than one- th (21 percent) o surveyed participants believe they experienced a lower levelo ethics violations in their open o ce spaces, compared to perceived occurrences in closedindividual o ces.

One respondent notes, Employees are more aware o openness and sharing in the o ce,and are less likely to commit ethics violations as a result.

Having open o ce space clearly makes it more di cult or someone to commit unethicalactsWe simply no longer get these kinds o complaints about people in open o cecon gurations.

Visible Ethics Violations Non-Visible EthicsViolations

Violations by EmployeesWorking rom Home

36%43%

11%

Percentage of Respondents Experiencing Violations Over the Past Two Years

O those that have, the most common types o misconduct include inappropriateconversations and/or behavior, a misuse o company assets and harassment ordiscrimination.

By contrast, 43 percent o all respondents reported instances o non-visible ethics violations intheir companies (such as expense account raud or bribery) within the past two years.

The most common orms o non-visible ethics violations include expense report raud and themisuse o company assets.

21%More than one- th (21 percent) o surveyed participants believe they experienced a lower level o ethics violationsin their open o ce spaces, compared to perceived occurrences in closed individual o ces.


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The vast majority o those surveyed (81 percent) believe that open o ce plans, which causesta to be more visible to one another, generally promote improved behaviors when comparedto individual o ce plans. Examples o such behavior, as described by survey participants,include:

People are much more considerate o each other, and avoid o ensive language, becausepeople can overhear others conversations.

People learn to appreciate work habits o their co-workers. They realize when they arebeing too loud. Cell phone ringing is kept to a minimum and on low volume.

There is open politeness and a so ter approach by management and sta in dealings. More open exchange o in ormationemployees eel included in decision making. Individuals would be more cautious o others and would be more respect ul or mind ul o

their own behaviors toward others. Increase in desire to learn more rom coworkers. Better team interaction, including mutual support to achieve goals. Sta interacts more, is more sensitive to each others needs and tends to be more

collegial. All about visibility and the constant message o transparency that environment sends to

employees.

However, some additional stresses have been noted in association with the open workspaceconcept:

Noise is o ten cited as a problem or some working in an open environment. Onecommentator says, It probably prevents some idleness and web sur ng, and may make

or more collaborative behavior, but that must be balanced against the potential or moregroup chatter, noise distraction and loss o privacy and quiet or real thinking time.

A compliance pro essional rom an international technology company mentions,Individuals may become more introverted, keeping to themselves and not reelyexpressing their views.

In addition, some respondents expressed concerns over additional stresses imposedon them due to increased proximity to their coworkers. As explained by a compliancepro essional rom a regional energy supply company, I agree that people will be less ableto conduct unethical or illegal activities in open spaces. However, the closer proximity toother people also brings stresses that wouldnt exist where people had a sense o privacy

81% The vast majority o those surveyed (81 percent) believe that open o ce plans, which cause sta to be morevisible to one another, generally promote improved behaviors when compared to individual o ces plans.


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OBSERVATION #5 Create an Open Workspace That Makes Sense for Your Company

OBSERVATION #4 Employees Who Work from Home Commit Less Misconduct

Key statistics: The majority o companies surveyed (68 percent) allow their employees to work rom home on

a regular basis.

Telecommunications and technology companies (and, somewhat surprisingly, aerospace/ de ense and media companies) are more inclined to provide a workrom-home option ortheir employees than individuals surveyed rom other industries.

Interestingly, the larger the organization, the more likely it is to allow employees to workrom home on a regular basis:

Less than1,000

employees

Percentage of Surveyed Companies That Allow Employees to Work from Home

64%78%

92%

Between 1,000and 9,999employees

Between 10,000and 49,999employees

Over 50,000employees

59%

When asked whether employees who work rom home on a regular basis had committed anethics violation during the past two years, 89 percent o respondents said no. This representsa notable improvement over employees who do not regularly work rom home (36 percent o

respondents report visible ethics violations; 43 percent report non-visible ethics violations). While the majority o companies allow their employees to work rom home on a regular basis,

ew employees exercise the option. On average, respondents report that less than one-quarter(21 percent) o their employees regularly work rom home.

Organizations report a wide array o ways to improve existing workplaces. Those unwilling or unable to transition into a completely open work environment may opt or

lower cubicle partitions, and additional glass and transparent spaces. Respondents reported supplementing their open o ce spaces with plants, common areas, and

open and closed meeting/con erence areas and break sites.

68% The majority o companies surveyed (68 percent) allow their employees to work rom home on a regular basis.8


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Other respondents utilize a pod ormation, in which teams have no walls/partitions betweenthem, and have central meeting spaces within the pods. This proves to be a less-distractingcon guration or members outside o the team, while also breaking down communicationbarriers within teams.

Supplementing an open o ce culture with guidelines or suggestions or interaction may reduceinterruption or other costs due to lost productivity. People dont have to knock on an o ce door, so clear o ce protocols are necessary so people

can eel com ortable to get their work done, while at the same time have enough accessibilityto respond to the internal customers, noted one observer.

Tread care ully when implementing an open working environment. Creating such an environmentwithout ostering a corporate culture based on transparency and trust may give the impression thatmanagement is keeping an eye on the activities o its work orce.

As one respondent explained, I anything, the complete openness o our o ce space makespeople eel like management doesnt trust them at all, and like big brother is watching.

A corporate culture that values ethics and transparency will alleviate employee ears omanagement monitoring and a lack o privacy, as described here: The lack o privacy mayalso negatively impact some and be too distracting, distrust ul and leave them unable orunwilling to concentrate.

There is a sel -policing aspect to having your neighbor aware o when you come and go, howyou work, etc. We do have team rooms, which are more private or sensitive conversations orcalls. I believe our culture has more o an impact than the open space plan.

Furthermore, conduct an internal assessment to ensure that open o ce environments are provided tothose unctional groups where increased transparency and communication are bene cial.

This contributor o ers a counterpoint: The building is comprised o low-level, high-densitycubicles. There are many complaints o lack o privacy, noise and disruptions. Not alldepartments require or need collaborative working environments.

In summary, your workplace design and practices have the ability to infuence your employees ethicalcompliance levels. Be thought ul about leveraging the collective knowledge o the ethics o cerswith the real estate decision makers to build a model best-suited or your companys culture anddemographic composition.

43% 43 percent o all respondents reported non-visible ethics violations committed in their company (such as expenseaccount raud or bribery) within the past two years.


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SURVEY METHODOLOGYThe survey was conducted rom November 2010 to February 2011. More than 200 responses werecollected using a web-based survey tool. All respondents received the same question set.

Individual respondents represented a variety o industries and positions within their organizations, asillustrated below:

While the majority o respondents came rom U.S.-based organizations, the data collected representsa diverse pool o organizations with regard to operational industry, work orce size and annualrevenues.

Accounting & Finance 2%

Administrative 3%

Executive Management 8%

Human Resources 9%

Internal Audit 3%

Legal, Compliance, Risk & Ethics 53%Other 17%

Real Estate 5%

Respondent Functional Area Percentage

Pro essional Services 40%

Industrial/Manu acturing 23%

Other 16%

Healthcare/Pharmaceutical 9%

Technology/Telecommunications 8%

Consumer Industries 3%

Respondent Industry Percentage

Figures do not add up to 100% due to rounding

Americas 90%

APAC 2%

EMEA 8%

Respondents by Location of Corporate Headquarters

Less than 1,000 employees 38%Between 1,000 and 9,999 employees 30%Between 10,000 and 49,999 employees 21%

Over 50,000 employees 10%

Respondents by Workforce Size

Less than $500 million 37%

Between $500 million and $1 billion 14%

Between $1 billion and $5 billion 21%

Between $5 billion and $10 billion 10%

Greater than $10 billion 18%

Respondents by Annual Revenues

Be thought ul about leveraging the collective knowledge o the ethics o cers with the real estate decisionmakers to build a model best-suited or your companys culture and demographic composition.

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The research-based Ethisphere Institute is a leading international think tank dedicated to the creation,advancement and sharing o best practices in business ethics, corporate social responsibility, anti-corruption and sustainability. Ethisphere Magazine, which publishes the globally-recognized WorldsMost Ethical Companies Ranking, is the quarterly publication o the Institute. Ethisphere providesthe only third-party veri cations o compliance programs and ethical cultures that include: EthicsInside Certi cation, Compliance Leader Veri cation and Anti-Corruption Program Veri cation. TheInstitutes premier membership group, the Business Ethics Leadership Alliance, is a business ethics

orum that includes more than 100 leading corporations, universities and institutions who collectivelyleverage their experience, expertise and innovative ways to address emerging compliance challenges.More in ormation on the Ethisphere Institute, including ranking projects and membership, can be

ound at www.ethisphere.com.

ABOUT ETHISPHERE INSTITUTE

Jones Lang LaSalle (NYSE:JLL) is a nancial and pro essional services rm specializing in real estate.The rm o ers integrated services delivered by expert teams worldwide to clients seeking increasedvalue by owning, occupying or investing in real estate. With 2010 global revenue o more than $2.9billion, Jones Lang LaSalle serves clients in 60 countries rom more than 1,000 locations worldwide,including 185 corporate o ces. The rm is an industry leader in property and corporate acilitymanagement services, with a port olio o approximately 1.8 billion square eet worldwide. LaSalleInvestment Management, the companys investment management business, is one o the worldslargest and most diverse in real estate with more than $43 billion o assets under management. For

urther in ormation, please visit our website, www.joneslanglasalle.com.

ABOUT JONES LANG LASALLE

Mark Ohringer, Executive Vice President and Global General Counsel, Jones Lang LaSallePatricia Roberts, Executive Vice President, Strategic Consulting, Jones Lang LaSalle Alex Brigham, Executive Director, Ethisphere InstituteDouglas S. Allen, Senior Ethics Analyst, Ethisphere InstituteJulie Allen, Vice President, Marketing & Communications, Jones Lang LaSalleDebra Moritz, Managing Director, Jones Lang LaSalleRaquel Enriquez, Branding & Partnerships, Ethisphere

ACKNOWLEDGEMENTS


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www.ethisphere.comp: 800.369.7583 : 602.712.0019

1185 Avenue o the Americas, Suite 1750New York, NY 1003

ETHI SPHERE

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