Workplace evolution

What’s inside:

| Generation gap: Which age groups value the office most—and why.

| 88% worry about remote work’s long-term impact—discover key concerns.

| Case spotlight: How Danske Bank’s flexible work strategy boosts engagement.

Office space remains critical piece in the current evolution of workplace

Due to arrangements shifting beyond traditional office-centric models towards hybrid and remote setups, the strategic importance of physical office space has become increasingly evident. Hybrid working models are the new normal, with 81% of employees currently engaged in a hybrid work setup. Among these hybrid arrangements, working from home one or two days per week is the most popular (42%).

88%

of employee responses identify risks with working from home a lot long-term.

Looking ahead, a substantial portion of the workforce anticipates little change in their habits. Almost half of employees (47%) expect their remote workdays to remain unchanged in the next five years.

Insight reveals employees value the workplace despite remote working options

Despite the increasing prevalence of hybrid working, office space continues to play a critical role in fostering a sense of belonging. A significant 71% of employees recognise the importance of the office, and this sentiment

43%

of responses see diminished relationships as main risk
of long-term home working.

is particularly strong in the APAC region (77%). While Generation Z (75%) and Millennials (72%) are both more likely than average to see the office as important, it is also important to 67% of Gen X and 60% of Baby Boomers, suggesting that companies should consider all these generations when enhancing the workplace. Similarly, while 74% of respondents in big cities see the office to be important, it is also the case for 65% of respondents in small cities.

The experience of returning to offices after the pandemic underscored a critical point: existing office spaces often did not align with the new working methods and needs that had developed during the period of remote work. For instance, meeting rooms were frequently found to be ill-suited for meetings with a mix of in-person and remote participants, with too few small rooms available for digital meetings and many meeting rooms being too large.

Workplace is important for all generations, particularly Gen Z and Millennials

While the benefits of working from home are clear for many employees, a significant number of responses (88%) identify risks with doing it a lot long-term. Over four in ten (43%) employee survey responses cite the potential impact of diminished relationships with their colleagues, and how it could reduce their personal or professional networks and career possibilities. A reduction in networks is in fact the biggest concern overall, particularly in the Nordics.

Another clear theme from the research is that 35% of responses say working from home a lot long-term could put their physical or mental health at risk of worsening.

The office is viewed not just as a physical location where work is carried out, but also as a crucial element for connecting with colleagues and maintaining company culture and employee connections, especially in a hybrid environment. Ultimately, our research suggests that most employees do not wish to work solely from home, indicating a continued need for and value placed on the physical office space.

Risks of working from home frequently in the long-term

81%

of employees hybrid work, and the most common is to work from home 1-2 days per week (42%).

How concerned are you about the impact of home working on your relationship with colleagues?

Very concerned
Somewhat concerned
Neither concerned nor not concerned
Not concerned
I don’t work from home often

Workplace Strategy at Danske Bank

"We provide high-level guidance while allowing flexibility based on different roles and functions. Our general recommendation is for employees to work three to four days per week in the office. This flexible approach ensures that we can adapt to the varying needs of different teams and individuals across the organisation.

We also have clear standards for remote working. It's essential that employees have the right tools and support to be productive, whether they're working from home or in the office. We focus on creating a seamless experience, enabling employees to transition smoothly between different work environments. This includes providing training and resources to help them make the most out of digital collaboration tools."

Why have you chosen such a broad approach to workplace strategy?

“It’s not a one-size-fits-all solution. We need to understand and respect the diversity of roles across the organisation. Our strategy is intentionally broad and adaptable to meet the varied needs of our workforce.

This approach helps us foster a more inclusive and effective work environment. By taking into account the specific requirements of each role, we can provide tailored support and resources that enhance productivity and job satisfaction. It also allows us to remain resilient and responsive to ongoing changes in the world of work.”

Can you provide examples of what you’ve done to attract talent?

“In Lithuania, for instance, we opened one of the first truly appealing workplace canteens for employees. We also introduced a gym, several game rooms, and other facilities. These amenities enhanced the working environment and supported employee well-being, which was particularly important when we were new to that market.

Creating spaces where employees can relax and connect with their colleagues is essential for attracting and retaining top talent. Furthermore, we focus on fostering a positive and inclusive workplace culture, which plays a crucial role in attracting new employees. Offering flexible work arrangements and opportunities for professional development are also vital elements of our talent strategy.”

What do you believe will be the most significant changes in the workplace in the next 5 to 10 years?

“Offices won’t disappear, but they will evolve and need to be more purpose-driven. The pace of change is accelerating, and we must be prepared to adapt more frequently and quickly.

AI and other technological advancements will continue to reshape work patterns and the role of the office. We expect to see a stronger focus on flexibility and adaptability in workplace design. Smart technologies will enable more efficient use of space and resources, while workplaces will increasingly shift toward collaborative and dynamic environments. Additionally, employee well-being and mental health will remain a key priority, influencing how workplaces are designed and managed.”

How important is sustainability in your workplace strategy?

“It’s a fundamental consideration. We pay close attention to the environmental impact throughout the entire life cycle of our buildings and the way we deliver our projects.

Sustainable practices are central to reducing our environmental footprint. We are committed to using recycled materials, optimising energy efficiency, and minimising waste in our operations. We also run specific initiatives to demonstrate concrete sustainability outcomes. For example, in one project, by choosing refurbished furniture over new, we reduced emissions equivalent to 600 flights between Copenhagen and Stockholm.

Our sustainability efforts extend to promoting green commuting options and raising environmental awareness among our employees. By embedding sustainability in our workplace strategy, we aim to have a positive environmental impact and lead by example.”

How do you see the role of data and analytics today and in the future?

“Data and analytics are critical. We need accurate data to make fact-based decisions and to support our arguments. Understanding and optimising workplace utilisation through data-driven insights is essential.

We recognise that workplace behaviour is fragmented and varies significantly across different roles and locations. By leveraging data and analytics, we can make informed decisions and improve operational efficiency.

Looking ahead, we expect data and analytics to play an even greater role in shaping workplace strategies. Advanced analytics and AI will offer deeper insights into employee behaviours, preferences, and productivity, allowing us to create more personalised and effective work environments. Data-driven decision-making will also help us identify emerging trends and adapt proactively to a rapidly changing work landscape.”