Facilities Management Forum | Forum Events Ltd Facilities Management Forum | Forum Events Ltd Facilities Management Forum | Forum Events Ltd Facilities Management Forum | Forum Events Ltd Facilities Management Forum | Forum Events Ltd

Posts Tagged :

Research

Gen Zs and Millennials have high expectations of employer sustainability efforts

A survey by BRITA Professional of 1,000 Generation Zs and Millennials has revealed what they expect from employers when it comes to sustainable buildings and working practices. 

As reported by Tomorrow’s FM, the research indicates that 86 per cent would stay at a company longer if it reported how it was lowering its impact on the environment to staff. 

The research, published in BRITA’s ‘Life Is Better Filtered: Corporate School of Expertise’, report also included the top three CSR objectives that matter to both generations, with 46 per cent opting for environmentally-friendly buildings, 45 per cent admitting that health and wellbeing support, including mental health support made a difference and 36 per cent looking for charity partnerships to get involved with.

Design elements included quiet zones (52 per cent), hydration stations (31 per cent) and comfy seating areas (31 per cent).

Flexible working hours and locations were also a priority (50 per cent) along with honesty (46 per cent) and personal development investment and progression (44 per cent).

Discussing the findings, Sarah Taylor, MD of BRITA UK said: “Our research shows that Generation Z and Millennials are a force for change. They believe in living a more sustainable life and their day to day decisions will likely reflect this. It’s now up to businesses to reflect these expectations in the workplace. Get this right and you will be rewarded with a loyal, talented and productive workforce.”

CENTRICA REPORT: Future-Proofing Your Company’s Energy Needs

By Centrica

Every business relies on energy for critical tasks – but with this dependence comes risk.

As organisations seek to become more sustainable, it’s vital to plan not only for short-term energy needs, but also for long-term energy security.

Increasingly, businesses that are digitalising processes are becoming ever more dependent on power to run them, making it critical to plan effectively to reduce risks and ensure energy resilience.

Our new report, Future-Proofing Your Company’s Energy Needs, highlights rising awareness of resilience as an issue for organisations across the globe, and practical steps you can take to mitigate risk.

Click here to download the report.

Healthcare FM demand to hit $515.31bn by 2024

The global healthcare facilities management market is set for rapid growth, with a CAGR of 13.6% over the next five years.

That’s according to a new report from Zion Market Research, which says technological innovation in the sector, combined with increased demand from emerging markets, is driving the sector forward.

The research says North America is the largest consumer of healthcare FM among the geographies it covered, followed by Europe.

Meanwhile Asia Pacific will grow at the highest CAGR over the forecast period, at which point the global market will be worth $515.31 billion.

Zion identifies the key market players as Epic Systems Corporation, eClinicalWorks, Practice Fusion, NextGen Healthcare, Allscripts, Cerner and MEDITECH.

Integrated facilities management market worth $802.4bn by 2020?

The global market for integrated facilities management (IFM) is expected to grow at a CAGR of 7 per cent until 2020, according to a new report.

The forecast from Beroe, a procurement intelligence firm, says demand for FM outsourcing and the adoption of an IFM strategy signals an increasing buyer maturity and willingness to partner with suppliers.

APAC remains the fastest growing market for outsourced FM services and the progressive growth of major economies in the region such as China and India are expected to keep the demand high.

Moreover, the increasing levels of commercial property creation and construction are accelerating the market for outsourced FM services.

The Beroe report says one major driver of the IFM market is the improvement in economic conditions across developing countries and large scale industrial development such as construction and real estate.

Alternatively, the low level of awareness among buyers in developing markets about the opportunities offered by outsourcing FM services is a constraint in the industry.

However, Beroe cautions that the IFM industry is facing impediments globally and the situation seems to be critical with several top Tier-2 suppliers such as Serco, G4S, MITIE, Interserve and Carillion struggling to upgrade their services.

Tier 2 companies, meanwhile, are developing skills to provide a wide range of services to various sectors such as housing corporation, oil & gas, retail, hotels, and manufacturing.

Key Report Findings:

  • The major cost factors involving a global IFM model are labor and materials costs, which account for nearly 80 – 90 percent of the total cost.
  • IFM is the commonly used model in the food and soft drinks industry as integrating the services to one principal supplier will contribute to reducing costs, driving greater consistency, and alignment.
  • Programmed FM companies have launched an innovative service in the IFM industry called sustainable solutions, which caters to the conservation of energy, water, and emission.
  • Large buyers such as Unilever and Heinz have adopted and integrated their FM services with a single service provider, which has resulted in 10-20 percent in cost savings.
  • IFM and TFM sourcing models provide the best savings opportunity for consumers with minimal involvement in the process.

From robotics and wearable technology to IoT, the IFM industry is becoming more interconnected, and the suppliers are looking forward to utilising technology to drive productivity and achieve cost savings for the client.

Additionally, outsourcing to a single FM player would enable buyers to regulate the level of services across various locations, and the productivity and efficiency could be improved through the initiation of various KPIs and compliance clauses.

Contact cleaning sector receives boost ahead of Brexit

A new report on the commercial cleaning equipment market has found that sales showed above inflation growth in 2018, though manufacturers and distributors face several challenges and shifting product trends.

The 270 page report from MTW Research suggests the cleaning equipment market has increased by 15%, boosted by product development – particularly in the powered cleaning machine market.

Whilst Brexit represents a key threat to the cleaning equipment market in 2018, forecasts are positive with above inflation growth likely to 2022.

MTW suggest the Brexit transition phase should offer stability for the cleaning equipment market, though highlights varying product trends and growth across the market.

Powered cleaning machine sales will outperform the cleaning equipment market in 2018, representing the fastest paced sector of the commercial cleaning market equipment.

The hard floor cleaning machine market is exhibiting healthy growth, with volume demand in the vacuum cleaner market and pressure washer market positive in 2018.

The market for these products will exceed £300 million for the first time in 2018, exhibiting growth of more than 50% since 2012.

The report reveals a number of positive product trends within the powered cleaning market.

MTW Director Mark Waddy said: “Whilst price deflation remains apparent in the cleaning equipment market, manufacturers are successfully differentiating themselves and their products. Demand for high quality, user friendly cleaning equipment which enhances efficiency continues to underpin growth for the cleaning equipment market, offsetting the threat of lower priced imports.”

The report also reviews the cleaning chemicals market, finding that whilst demand is strong for ‘antibacterial’ chemicals and ‘deep cleaning’, opportunities for growth in the environmentally friendly chemicals sector are significant in 2018. Often perceived as being ‘safer’ for the cleaning contractor and the end user, ‘green’ chemicals and more environmentally friendly cleaning processes are likely to continue to grow share of the cleaning chemicals market in the longer term.

A focus on hygiene across the spectrum of end use sectors continues to underpin the cleaning chemicals sector, with manufacturers of cleaning equipment working more closely with chemical suppliers to offer enhanced cleaning solutions. MTW report a 30% increase in cleaning chemicals over the review period, with growth set to outstrip inflation to 2022.

European commercial outsourcing grew 5% to €3bn in 4Q18

The sourcing market in Europe, Middle East and Africa (EMEA) grew in the final quarter of 2018 despite unsettling macro-economic and political events across the region.

The EMEA ISG Index from the Information Services Group, which measures commercial outsourcing contracts with annual contract value (ACV) of €4 million or more, shows the EMEA market posted combined fourth-quarter ACV of €3 billion, an increase of 5 percent from the prior year.

This rise was bolstered by a 44 percent year-on-year increase in as-a-service ACV, to €1.3 billion, as strong demand for digital transformation remained an enterprise imperative.

Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS) in EMEA both performed strongly, posting ACV of €960 million and €331 million, respectively. Traditional sourcing, meanwhile, contracted by 12 percent year-on-year to €1.7 billion.

For the full year, EMEA reached €12.9 billion in ACV, up 9 percent against 2017. Traditional sourcing ACV of €8 billion was down 6 percent year-on-year, but as-a-service grew 48 percent to reach €4.9 billion.

The rise in as-a-service sourcing – which now accounts for 38 percent of total ACV for EMEA – continued to be driven by demand for SaaS and IaaS, both of which increased by more than 40 percent in 2018.

Steve Hall, partner and president of ISG, said: “Despite ongoing political and economic uncertainty in Europe and resulting business caution, companies are making significant investment in digital technologies to improve their ability to compete and to engage with their customers. This is a clear testament that the tailwinds of digital transformation are stronger than the headwinds of political and economic issues.”

Globally, fourth-quarter ACV for the combined global market grew 18 percent, to €9.8 billion. As-a-service ACV pushed to new highs in the fourth quarter, up 43 percent year-on-year, while traditional sourcing inched up 2 percent.

Declines in the UK, DACH and France pulled down the traditional sourcing market in 2018.

Full-year ACV in the UK fell by 27 percent, to €2.5 billion, despite a 5 percent increase in the number of contracts. The traditional sourcing market in the UK has slumped since the Brexit vote in June 2016. Prior to the vote, the UK averaged three €800-million quarters for traditional sourcing per year. Since the vote, only one quarter – the first quarter of 2017, which included the signing of some exceptionally large mega-deals – reached that mark.

Traditional sourcing ACV in DACH was down 4 percent in 2018, with a 19 percent drop in contract signings. The economy in DACH slowed in 2018 and fears of a recession have slowed decision-making. The UK Government defeat over the Brexit vote presents a further substantial economic risk to Germany, as well as the UK.

While UK and DACH companies are exercising caution in traditional sourcing decisions, both are increasing their investments in new technologies and as-a-service contracting to improve efficiency and meet consumer demand for new services and channels.

The results of unsettling economic and political factors also are evident in France, where traditional sourcing ACV edged down 3 percent, to €640 million, despite a steeper drop of 13 percent in contract volume. French consumers have turned to online shopping in recent weeks as the Gilet Jaune demonstrations spread, benefiting Amazon and other online retailers and potentially affecting the Retail sector in 2019.

In the Nordics, traditional sourcing was up 20 percent, to €1.1 billion, with the number of contracts growing by 14 percent. The smaller EMEA markets also showed strength with gains in Southern Europe, Africa/Middle East and Russia/Eastern Europe.

IFMA releases benchmark report for facility management

The International Facility Management Association (IFMA) its latest Operations and Maintenance: Qualitative Analysis Benchmarking Report.

The report, produced by IFMA’s FM Research and Benchmarking Institute (RBI), is a comprehensive analysis of the most recent operations and maintenance benchmarking survey of more than 2,000 individual responses representing 98,000 buildings in 35 industries

The industry body is particularly keen to focus on a section exploring FM strategies for organisational agility and change management.

The 2017 report focused primarily on financial metrics, while the Operations and Maintenance: Qualitative Analysis Benchmarking Report provides data from the United States and Canada on practices and tools being used by industry professionals in managing facility services quality.

For example, the report describes outsourcing of in-house maintenance needs and preventive maintenance plans.

The report includes data-based insights that can translate into operational guidelines for:

  • Solid waste diversion
  • Legislative mandates
  • Energy management
  • Green janitorial training and programs
  • Maintenance management
  • Planning
  • Work requests and device usage
  • Satisfaction with and perception of information technology services
  • Benchmarking plans
  • Customer satisfaction survey use and frequency
  • Organizational agility

“Like the businesses they serve, FM professionals are themselves operating in a perpetual state of change,” said Nickalos A. Rocha, RBI’s director of ​research and operations. “Benchmarks have always captured a cross section of time to help inform strategic decisions, provide external validation or reveal operational shortcomings. For that reason alone, this report comes through in a big way, covering tools and tactics that define modern FM. On top of that, we’ve taken an extra step to ask FM professionals about their strategies for organizational agility. This analysis offers insights for how FM is thriving in a dynamic environment of change.”

The report is available for purchase and immediate download at: bit.ly/ombenchmarks18

Top trends impacting the global workforce in 2019

Artificial intelligence, people management and hiring practices are among the top six trends impacting the global workforce in 2019, according to a leading think tank.

The Workforce Institute at Kronos Incorporated asked its board members around the world what they think will be the most important workplace trends in the coming year, with employment law, flexible working and disaster management rounding out the list.

The full list of 2019 predicted trends is as follows:

  1. AI and machine learning unmask previously-hidden workforce data to make people-centric decisions. Artificial intelligence (AI) and machine learning will finally be woven into workforce management practices, revealing a treasure trove of data organizations have been collecting – but not using – for decades. With insight into their workforce data trends – like scheduling accuracy, absenteeism, overtime usage, and burnout – managers will be able to head-off potential issues before they arise. Intelligent automation will also free them from admin-heavy tasks – like managing schedules, approving time-off requests, and shift changes – while enabling data-driven decision-making that. Our board encourages caution here, though, warning that organizations must avoid a “one-size-fits-all” model.
  2. Historically tight labor markets and emerging technologies put people managers in the spotlight. With unemployment low and the exodus of baby boomers reaching critical mass, employers globally will face a historically tight labor market. Sourcing great candidates has never been more difficult, and retention will become an all-out dogfight. While an employer’s brand, innovative hiring technologies, and proactive recruiting practices are more important than ever, it’s organizations with the best people managers that will ultimately prevail. Organizations will place an increased focus on leadership development as a retention strategy – especially as Millennials assume middle management positions – and measuring manager effectiveness will be HR’s top challenge in 2019. If we’re right about prediction 1 above, then as AI and machine learning take over mundane managerial tasks, deficits in leadership competencies will be more readily exposed if managers aren’t using that extra time to support and develop workers.
  3. The changing face of education redefines trades and challenges traditional hiring practices. As the student loan debt crisis furthers the debate about the value of a college education and credentialing programs for job-specific skills emerge, tomorrow’s best employees may take an unconventional path to employment. Competencies that once required a degree – such as coding, robotics, and data analytics – are being redefined as skilled trades with the rise of certificate and micro-credential programs. As yesterday’s jobs become augmented by automation, new skills will be required for traditionally “blue-collar” roles. Employers need to revamp their hiring profiles and recruiting practices to tap into this new pool of qualified candidates who will staff the shop floor, store floor, hospital floor, and top floor of the future. Millennial parents, may urge their school-aged children to take an alternative educational path for a brighter financial future.
  4. Further fracturing of employment laws globally, nationally, and at the local level strain organizations. From minimum wage to sick pay, to fair scheduling proposals to the right to disconnect, governments around the world will continue to evolve employment laws. Ever-changing regulations around the world will put increased strain on organizations to avoid sanctions, fines, class action lawsuits, and reputation-damaging headlines. Technology will be vital for organizations to manage scheduling-related mandates, ensure unbiased practices, monitor fatigue and overtime management, and ensure employees are paid accurately and fairly – all while providing analytical insights that surface risky managerial practices otherwise buried in a sea of employment data.
  5. Employee-agnostic flexibility, consumer-grade tech, and the rise of the occasional time worker redefine “work your way.” All employees – salaried, hourly, and gig – crave control over when, where, and how they work. While employers have put more focus on flexibility and alternative work schedules, most have been slow to reengineer processes that underpin how the organization runs. Tools must meet employees where they naturally work – such as on their mobile phone, tablet, or favorite social networking platforms. The gig economy and emergence of the “occasional-time worker” will force organizations to replace traditional hiring and scheduling processes with systems that enable workers to choose when, where, and how long they work. Mobile-friendly processes, self-service features, and immediate access to real-time data in a consumer-grade technology wrapper will help drive the next iteration of the flexibility phenomenon, as predictability of anytime work will empower employees to be more productive, make more intelligent decisions, and be more engaged.
  6. Greater emphasis on disaster preparedness as part of a holistic human capital management strategy. Disasters large and small, natural and man-made, have unfortunately become the norm. Organizations worldwide have been challenged to respond effectively to increasingly frequent crises, with HR, operations, and payroll forced to take center stage in the lives of affected employees. With more emphasis on company culture, caring, and “doing what’s right” in a world where disasters – and a company’s response to them – are frequently in the news, there is a new level of expectation for an organization’s response, responsibility, and employee benefits. Organizations of all sizes must take a hard look at disaster policies, processes, and capabilities – including both taking care of employees in the moment and rebuilding in the wake of disaster, which will be near impossible for those operating on a DIY workforce management, HR, and payroll system. Sustainability plans that today primarily account for company assets and data will need to incorporate employees and their families.

FM sector increases hourly pay for skills-short roles as Brexit looms

Facilities management firms are turning to financial incentives to lure top contract talent as the Brexit vote drives EU citizens out of the UK, according to new data.

Engage Technology Partners says its pay data has revealed that since the vote to leave the Bloc in 2016, hourly pay for skills-short roles has increased, with maintenance positions in particular noting an uptick in money.

Handymen and mechanical maintenance professionals reported the greatest increase in the three years since the vote at 13% and 10% respectively, while electricians saw a 5% rise in hourly rates.

This data has been revealed amid news from the CIPD that talent shortages are already being felt ahead of the UK’s exit from the EU next year. According to its latest Labour Market Outlook report, a third of employers of EU citizens have reported that the Brexit decision has led to an exodus of these professionals from their UK base.

Drey Francis, Director at Engage, said: “For Facilities management firms, maintaining reliable access to a team of maintenance professionals was already an issue before the Brexit vote. Since the decision was made to exit the EU, this issue has deteriorated further, with many of the FM firms we have a relationship with reporting that availability of these professionals is one of their biggest concerns going in to 2019.

“Given how sparse some of the talent for these roles is in general, it’s perhaps no wonder that employers are turning to financial incentives to attract staff. However, this isn’t a sustainable approach. Of course, we still need to wait and see what happens in terms of the agreement on the Freedom of Movement for the UK, but action can be taken now to improve staffing efficiencies in order to better cope with the expected upheaval in Spring 2019. For example, where FM businesses have widespread operations, there are often resources that can be utilised in other locations, but a lack of visibility of this information is preventing hiring managers from tapping into these staffing pools.”

Global corporates ‘want flexible office space’

Two thirds of global corporates plan to increase their use of flexible co-working and collaborative space over the next three years, according to new research.

Knight Frank’s ‘Your Space’ report polled senior executives at 120 global companies which collectively employ in excess of 3.5 million people worldwide and occupy an estimated 233 million sq ft of office space, equivalent to the total amount of office space in Central London.

The reports shows global corporates intend to operate increasingly from flexible, serviced and co-working spaces, which, they says, create a more collaborative working environment and offer the freedom to expand and contract quickly according to market conditions.

The reports says that despite the proliferation of co-working and serviced office operators the majority of global corporates still occupy office space on a traditional lease model. Two thirds of companies surveyed reported that co-working, serviced and flexible office space comprise 5 per cent or less of their current office space. A small minority, less than 7 per cent, said that flexible workspace exceeds a fifth of their total workspace.

However, Knight Frank’s research reveals that the proportion of flexible space within companies’ portfolios is set to increase dramatically. Over two thirds, 69 per cent, of global corporates plan to increase their utilisation of co-working spaces, and 80 per cent expect to grow the amount of collaborative space they use over the next three years.

Furthermore, almost half (44 per cent), stated that flexible space will constitute up to a fifth of all office space in the next three years. An additional 16 per cent estimated that as much as half of their workspace globally would be flexible space within the same time period.

Over half of companies (55 per cent) identified increased flexibility as the main driver of this change, with a significant proportion (11 per cent) stating that the sense of community fostered among workers was the key benefit. A further 11 per cent stated that the greater speed to becoming operational was the primary reason for selecting co-working or serviced office space ahead of more conventional office space.

75 per cent of respondents stated that personal productivity linked to wellbeing and happiness, would increase as they shift towards a new flexible and collaborative model of occupancy that is more in keeping with today’s business structures and working styles.

Dr Lee Elliott, Global Head of Occupier Research at Knight Frank, said: “This research underlines that a decade of global economic uncertainty has reshaped how many of the world’s largest companies view workspace. Shorter business planning horizons, together with the emergence of new, more agile corporate structures has driven demand for flexible space which enables companies to react to change quickly.”

“While co-working and serviced office operators have grown rapidly over the past five years, driven largely by start-ups and the freelance economy, this is only the tip of the iceberg with latent demand from global companies set to emerge over the next three years.”

William Beardmore-Gray, Global Head of Occupier Services and Commercial Agency at Knight Frank, added: “The demand for flexibility is the single biggest threat – and opportunity – to owners of office space. The recent boom in co-working is indicative of a structural change within commercial real estate whereby companies desire space that is flexible, highly serviced and aligned within the realities of doing business in an age of disruption. Some co-working operators have capitalised on this already, but it is imperative that owners and developers react to the new reality where customer is king.”