FM:Systems Study Finds 81% of Business Leaders Have Reached or Are Nearing a "New Normal" Five Years After COVID-19, Balancing Business Priorities and Employee Needs
FM:Systems 2025 Inside the Workplace Report Highlights:
- 76% of organizations are preparing to deploy generative artificial intelligence (GenAI) and 46% plan to implement automation to assist with workplace operations and maintenance over the next year
- 82% of business leaders plan to deploy one or more workplace management solutions in the next year
- Employees and employers agree on the primary function and value of the workplace and the importance of sustainability initiatives.
RALEIGH, N.C., Feb. 5, 2025 /PRNewswire/ -- FM:Systems today 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.
"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 today, 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.
Additional key findings include:
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.
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.
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."
For the full 2025 Inside the Workplace Report from FM:Systems, visit here.
Methodology
This research was conducted by PureSpectrum on behalf of FM:Systems between Oct. 30 and Nov. 6, 2024. The study comprised an online survey of 750 U.S. business leaders in HR, finance, facilities, and real estate, as well as 1,000 U.S.-based employees. All respondents work for organizations that have 200 or more employees and maintain at least one physical workplace that is used by employees at least one day per week. The overall margin of error for the findings is ±2.8% percentage points at a 95% confidence level.
About FM:Systems
FM:Systems offers scalable and intuitive workplace management solutions that empower organizations with data-backed insights to enhance occupant experiences, optimize space, and reduce the environmental impact of buildings. Part of Johnson Controls OpenBlue, the leading smart building technology ecosystem, FM:Systems solutions make it possible for organizations to create spaces that drive efficiency, wellbeing and productivity. With our full suite of configurable solutions designed to meet the specific needs of organizations, we help facilities managers on their path toward an autonomous building future — transforming buildings from physical structures into smart, living entities that are responsive to the changing needs of employees, the building itself and the environment. For more information about FM:Systems, please visit www.fmsystems.com.
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