FM:Systems released its annual 2025 Inside the Workplace Report, revealing that nearly five years after COVID-19 was declared a pandemic, 81% of business leaders say they have finally achieved or are close to achieving a “new normal” that balances business priorities and employee needs. This year’s report, based on a survey of 750 U.S. business leaders in HR, finance, facilities, and real estate, along with 1,000 U.S.-based employees, offers a comprehensive look at both leadership and employee perspectives on work models, the evolving purpose of the office, and the growing importance of sustainability.

Despite the challenges and uncertainty of recent years, workplace management technology adoption continues to accelerate

The 2025 Inside the Workplace Report shows that the share of organizations using a workplace management solution rose from 69% to 85% in just the past year. Now, with inflation back below 3%, interest rates down from last year’s highs and work models solidifying, 82% of business leaders plan to implement at least one workplace management solution this year. Meanwhile, nearly three-quarters (74%) of employees surveyed report feeling secure in their jobs, signaling a shift toward more stable work environments.

HR Technology Insights: Airbyte Launches Enterprise-Grade Data Connectors for Oracle Databases and Workday

“There was a long period of time when organizations were forced to play whack-a-mole with issues like high employee turnover, supply chain constraints, underutilized office space, and soaring inflation,” said Brian Haines, Chief Strategy Officer, FM:Systems. “To navigate these disruptions, many turned to workplace management solutions to get the reliable data and insights needed to make smarter real estate decisions. And the data shows organizations are increasingly prioritizing workplace management technology, recognizing its essential role in optimizing space in a way that strengthens their bottom line, enhances the employee experience and delivers on sustainability goals.”

Workplace management solutions pave the way for generative artificial intelligence and machine learning

The report also highlights how businesses are deploying workplace management solutions not only to benefit from the capabilities they provide, but also to lay the groundwork for rapidly advancing innovations like generative artificial intelligence (GenAI), machine learning and automation. More than three quarters (76%) of business leader respondents plan to use GenAI to assist with workplace operations and maintenance in 2025, up from 58% last year. Meanwhile, 46% of organizations plan to implement automation within the next year.

HR Technology Insights: Workday Unveils Illuminate Capabilities for Peakon Employee Voice to Unlock Faster AI Insights

Additional key findings include:

1. Organizations are balancing business goals with employee preferences
   Business leaders responding to last year’s Inside the Workplace survey indicated reduced commute times and better access to amenities for employees as their top priorities when selecting a new office location. Now, with the unemployment rate up from its 2023 lows, according to the U.S. Bureau of Labor Statistics, organizations are rebalancing business needs with employee preferences:
   • Among business leaders planning to relocate or open a new office location in the next year, 48% cited the need to reduce overhead costs as the main driver.
   • The share of respondents attributing relocation plans to the need to reduce commute times and provide better access to amenities for employees was down from last year by 22 and 9 percentage points, respectively.
2. Businesses and employees agree collaboration is the primary purpose of the office
   As variability in work models and volatility in other areas have subsided, organizations have focused on defining and quantifying the role the workplace plays in their business. A majority of business leaders surveyed pointed to collaboration-related functions as the primary benefit of bringing employees together:
   
   • 67% of business leaders cited team and client meetings, innovation through spontaneous interactions and socializing opportunities as key reasons to co-locate employees.
   • 48% of employee respondents who are hybrid working indicated they go to the office mainly to meet with colleagues or clients, network or catch up with their team and to share project updates.
3. Sustainability remains a high priority, and most employees are on board with that
   Real estate stakeholders have worked for decades to mitigate the environmental impact of buildings, but recent legislation has made these efforts more urgent. The penalties and potential negative publicity associated with failing to comply with these laws are strengthening the business case for prioritizing sustainability:
   • Two-thirds of business leaders said sustainability is a higher priority than it was a year ago, up from 57% last year.
   • 75% of employees said it’s important for their organization to commit to sustainability. Just under two-thirds (63%) feel their organization is doing well in this area.

“While businesses and employees feel like the dust from the pandemic has largely settled, new pressures such as environmental regulations, sustainability initiatives and cost-cutting measures continue to emerge,” said Haines. “Our survey results show that companies understand advanced workplace technology isn’t just a tool for addressing today’s needs — it’s an investment in their ability to continue delivering high-performing workplaces and buildings that can adapt to future changes.”

HR Technology Insights: SixFifty’s New AI Search Delivers Instant Answers on Employment Law for HR Teams

Source – PR Newswire

To share your insights, please write to us at news@intentamplify.com