21st Century WorkplaceAssociation of Commuter Transportation

2014 Conference

Workplace is now...everywhere

• Employee desks are empty 30% - 50% of the work day

• 53% of small business run from home

• 1.5B mobile workers

• Boundaries• True productivity• Isolation• Distractions• Efficient/

ergonomic workspace

The Challenges

2006 Telework Survey:

42% prefer working near home, not in home

0% 13% 25% 38% 50%

11%

11%

16%

21%

29%

43%

44% Distrac/onsBusiness-­‐Quality  EquipProfessional  EnvironmentHigh-­‐speed  BroadbandOnsite  tech  supportKeep  home/work  separateIsola/on

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• 12,000 - 16,000 Executive Suites worldwide, and growing

• 2,500 cowork spaces today

• Doubled each year from 2006 - 2012, 42% growth in 2013 -- but membership doubled

• 4 new centers opening each day

• Corporations moving to flexible, drop-in, touch-down and remote workforce.

• 30% of employees in industrialized nations will telecommute by 2019 at least 2 - 3 days / week.

Flexible Workspaces

0%

12.5%

25%

37.5%

50%

Overall Incubators Office Centers Other Coworking

43.2%

38.7%

11.3%8.3%

15.4%

Workspace-as-a-ServiceEstimated 2013 Revenue Growth

Who Uses Flexible Workspace Centers?

• Home-based businesses• Consultants• Writers / Academics / Tutors• Telecommuters• Startups• Salespeople• Attorneys / Court Reporters• Real Estate Agents• Event Based Projects• Film Production / Creative Services• Traveling Professionals• In fact, most knowledge workers

AND...Corporate employers for distributed

workforce

Different Workers, Similar Needs

Home-based businessperson

Consultant

Grad Student

Telecommuter

Startup

Salesperson

Attorney/Court Reporter

Professional meeting spaceFull-time OfficeOccasional Workspace/OfficeHigh speed broadbandPhoneFlexible timeFlexible growthBusiness presenceMail serviceCommunityClassesDrop-in workspaceStorage24/7 accessLow commitmentVideoconference

General Knowledge Worker needs...

• Flexible space

• Comfortable, ergonomic space

• Good broadband

• 24/7 access

• Quiet v. Phones

• Print/Copy/Fax/Scan

• Community

• Opportunity for collaboration

• Admin Services & Assistance

• Mail services

• Varying Commitment Levels

• Videoconference

• WORKING FROM HOME + - WORKING FROM HOME + -

• Cheap• Private• Work in PJs

• Not a “business quality”environment• Distractions/Isolation• Can’t separate work/home life

• CO-WORKING SPACE + - CO-WORKING SPACE + -

• Social interaction• Sharing of ideas• Hip, trendy• Membership model

• Typically just for startups• Not designed for security• Typically not 24/7

• EXECUTIVE SUITES + - EXECUTIVE SUITES + -

• Executive Presentation• Medium Investment • Medium Commitment

• Limited types of plans• Not 24/7 unless full-time space• Not community-based or focused

Types of Workspace

Our communities

Companies

• Workstations empty half the workday • No need for employees to be tied to station• Agile facility contracts needed for flexibility • FASBE rule changes wreaking havoc on balance sheets• Lost productivity from absenteeism not necessary• Younger employees want better work/life balance• Flexible work arrangements significant retention draw

THE CHANGING CORPORATE WORKPLACE

• 90% of employee carbon footprint is commute• 56% (19,000) telecommute 1 day/wk or more• Shrank real estate holdings 15% in 2007• Expenses for telecommuters 30 – 70% less

• Corporate office power consumption = 2x telecommuters’

Sun Microsystems Study

PRODUCTIVITY GAINS ~ 27%

REAL ESTATE / UTILITY ~ 18%

ATTRACTION / RETENTION 25%

ABSENTEEISM SAVINGS ~ 3.7 days / year per teleworker

TOTAL ANNUAL SAVINGS / 50 employees telecommuting 1/2 time: $534,768

Workshifting Benefits: The Bottom Line, by Kate Lister, May 2010

CORPORATE BENEFITS OF FLEXIBLE WORK

0 75150

0 50100

0 50100

ATTRITION REDUCTION

SAVINGS

Corporate Savings with Use of Telework Center

• More employees can telecommute: employees with young children, inadequate space, distractions at home.

• Assume 30% more telecommute (50 employees increased to 65)

• Corporate gross savings increased by 30% = $160,430

• Corporate cost of center = $3,000/employee = $45,000/yr.

• $115,430 additional savings for 15 employees who can now telework and couldn’t without center.

• $7,695 savings per employee using center at least 1/2 time.

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Value  for  Employee Value  for  Employer

Reduced  Commute  costs Reduced  facili/es  cost

Tax  savings Reduced attrition and absenteeism

Increased  produc/vity Increased productivity

Professional  environment Emissions tracking, Green branding

Near  kids,  community Operational -- not capital --expense

Quality  of  life Triple bottom line

↓CO2 1 million metric tons / year

↑ Telecommuting 1%

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Quality of

Life

IncreasedProductivity

Reduced Carbon

Footprint

Enhanced Community/

Local Business

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Barbara SprengerTheSatelliteCenters.com

831.222.2100bsprenger@thesatelliteinc.com