OFFICE landlords will have a critical role to play to ease the information technology-business process management (IT-BPM) companies’ return to office on April 1, 2022.
Property research firm Colliers International Philippines, in its latest market outlook, said office landlords will have to keep in mind that employee experience now matters in addressing the reservations of workers returning to work onsite.
Office landlords should highlight buildings’ new safety and health measures that will give employees the confidence that their overall wellness, specifically physical and mental health, is of utmost priority.
They should also assist tenants on their renovations to maintain social distancing requirements as well as provide additional fitted office spaces that can handle the inflow of employees by partnering with service office providers or leasing out vacated spaces even for short periods.
Landlords are also encouraged to give incentives to tenants who are returning to physical offices by providing rental concessions such as reduced rental rates or suspended rental escalations.
“These are just some creative ways landlords can help jumpstart recovery,” Colliers said.
Amid the return-to-office order of the government, Colliers believes “the work-from-home (WFH) setup is here to stay.”
The IT and Business Process Association of the Philippines, along with the Philippine Economic Zone Authority have lobbied for the extension of the WFH until September 2022.
Unfortunately, the Fiscal Incentives Review Board under the Department of Finance (DOF) has denied the request to extend the arrangement any further. Business Process Management under Peza are now required to go back to their offices by April 1, 2022.
These companies, according to Colliers, are now scrambling to transition employees and equipment back onsite.
While some have started their back-to-office plans earlier anticipating a non-approval of the extension, Colliers noted, others are willing to bear the brunt of penalties rather than increase attrition within their organizations.
Colliers said the report onsite order has prompted a number of IT-BPM workers to consider leaving their jobs and transfer to other industries that allow for the permanent WFH setup. This is further compounded now by the rise in fuel cost that will greatly reduce disposable income of employees.
If, however, employees start going back to work, other businesses will thrive, Colliers said. Public transport will again flourish. Restaurants and other auxiliary businesses will once again see an influx of customers.
“Whether mandated or not, the pandemic has shown that technology and the private sector’s sheer resourcefulness can meet the requirements of remote work,” said Colliers.
Earlier, the DOF said IT-BPM firms that are keen on continuing the WFH setup may do so but they must be willing to give up the tax incentives they are currently enjoying.