4 Takeaways From FM:Systems’ 2025
Inside the Workplace Report
For much of the past five years, organizations have weathered major disruptions, from the Great Resignation to sky-high inflation. By 2024, that volatility and uncertainty subsided, with inflation normalizing, interest rates down from last year’s highs and the labor market cooling. At the start of 2025, this new stability that began to take shape in 2024 has solidified — allowing companies to focus more of their effort and resources on their core business.
In November, FM:Systems surveyed 750 U.S. business leaders in HR, finance, facilities and real estate to find out how they’re taking advantage of this firmer ground to deliver the right spaces and experiences for employees, the role technology is playing in making this possible and how they’re prioritizing sustainability efforts. We also surveyed 1,000 U.S.-based employees to gain some insight into how they feel about their employer’s efforts in these areas.
1. Workplace management technology evolves from survival tool to strategic investment
In the wake of the pandemic, organizations embraced technology to help them overcome a series of challenges. From ensuring the safety of returning employees to cutting costs in the face of high inflation, these systems have been an essential survival tool for many companies. While one might expect that the rate of adoption of workplace management technologies would decrease now that macroeconomic conditions are improving, our survey found that’s not the case.
In just the past year, the share of organizations using a workplace management solution has increased by 23% — from 69% to 85%.
82% of business leaders plan to implement a workplace management solution in the next year.
2. Organizations are reprioritizing business goals over employee preferences
A year ago, reducing commute times and providing employees with better access to amenities were the top priorities for business leaders 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.
48% of business leaders cited the need to reduce overhead costs as the main driver behind plans to relocate or open a new office location within the next year.
The share of respondents attributing relocation plans to the need to reduce commute times and provide better access to amenities for employees was down 22 percentage points and 9 percentage points, respectively.
3. Businesses and employees agree, collaboration is the primary purpose of the office
As work models have solidified and uncertainties have eased, organizations have taken the opportunity to shift their focus on defining and measuring the workplace’s role in their business. Most 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.
4. Sustainability remains a high priority, and most employees are on board with that
As the largest contributor to greenhouse gas emissions, the built environment holds unmatched potential to drive change in the fight against climate change. Real estate stakeholders have made significant progress in reducing buildings’ environmental impact, accelerated with the help of workplace management tools and smart building technologies. Recently, stricter legislation — along with the risk of penalties and negative publicity for non-compliance — has further reinforced the business case for prioritizing sustainability.
Two-thirds of business leaders said sustainability is a higher priority than it was a year ago. That’s 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.
