This State of Work Report was presented to me as a generational difference finding. You know the drill, there’s aging Baby Boomers who had certain expectations, Gen X “slackers” (I have two kids who reveal the lie about that—a mental health therapist and a commercial airline pilot), Millennial, Gen Z, and the like. This report takes a different look at the workplace from the Hexagon report I posted yesterday.
I told the publicist that I was not interested in the whole compare the generations thing. I think that is just marketing BS. People are people. Not all Boomers are alike. Not all Gen Z are alike.
She said, don’t worry, this report does not pit one generation versus another. But it sort of does, but really it’s more about youth entering the workforce and older people leaving. It’s also opinions. I’d take some of these with a grain (or spoonful) of salt. It is interesting to see what people think, even if it is mere uninformed speculation.
The company behind the research is Envoy, whose tag line is, “Connecting people, space, and data to make workplaces better.”
Generations and AI stuff aside, there are nuggets of insight within.
Key findings:
- More than half (57%) of professionals say they come to the office for company culture and team engagement, making it clear that strong social connections are what’s drawing employees back.
- 73% of professionals believe Gen Z will push companies to ditch rigid in-office policies in favor of more flexible work options.
- Organizations are not stuck in neutral: 66% of them are already making workplace flexibility a top priority for 2025.
- 76% of professionals say AI will have the biggest impact on how we work in 2025. Companies aren’t waiting around either: 65% have already increased their workplace budgets, and 69% plan to invest in AI solutions.
- It’s a real head-scratcher: 91% of business leaders claim that workplace design delivers ROI, yet only 49% are measuring how their space is being used.
Envoy partnered with Hanover Research, an independent research firm, to survey 495 U.S. executives and managers across Workplace and Facilities Management, Physical Security, IT, Finance, and HR. The study explores the key workplace trends shaping 2025, from return-to-office (RTO) policies and Gen Z’s impact to artificial intelligence (AI) adoption and workplace design.
Organizations are grappling with shifting employee expectations, emerging technology, and the challenges of hybrid work—with mixed success. The survey reveals a workplace in flux. Gen Z is challenging traditional office norms. Meanwhile, AI adoption is accelerating, completely changing how companies get work done.
Business leaders need insights into how their workplaces are being used or risk wasting resources, stifling productivity, and leaving employees feeling disconnected. Today’s office needs to be efficient, adaptable, and designed around people. For that to happen, workplace data (and the insights they provide) has to be the focal point of that process. The companies that act on complete information—not guesswork will lead the way in 2025.
Across industries, business leaders and employees alike are redefining what the workplace means to them. It’s no longer just a place where people clock in and out—it’s an asset, a collaboration hub, and a key driver of business success. With the high cost of real estate, companies can’t afford to assume their office spaces serve a single, narrow purpose. Instead, they’re getting creative: hosting large-scale events, repurposing underutilized spaces, and setting up satellite offices to better support a distributed workforce.
While organizations experiment with how to maximize their real estate investments, many are still struggling to implement return-to-office policies that actually work. Even enterprise giants like Amazon and AT&T have had to delay their RTO plans in multiple cities because their workplaces simply weren’t prepared. The problem? Not enough desks, not enough data, and not enough planning to accommodate a full-scale return. Could this have been avoided? Absolutely. But in a rapidly shifting landscape, planning ahead without complete information is easier said than done.
The only way forward is through flexibility, insights, and reliability.
Companies that embrace flexibility can adapt to challenges, expected or not. Those who prioritize data-rich workplace insights will make smarter decisions that drive efficiency and engagement. And without reliable tools, processes, and infrastructure, even the best strategies may fall short. The workplace is evolving—and the organizations that anticipate, adjust, and act will stay ahead. Nobody has a crystal ball, but in uncertain times, a little due diligence can go a long way.
But this rigidity isn’t always intentional. It’s often the result of unreliable (or nonexistent) workplace data that forces business leaders to create policies based purely on gut feelings. Without data, any change, even incremental, feels risky, and rigid policies become the default.
No data? No visibility. No visibility? No real way to adapt the workplace to what the moment requires.
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