Should HR Merge with RE?

Google and Facebook are both known for their innovative workplace policies on everything from hiring to parental leave.

A new post on JLL, however, offers those two organizations as a model for something else entirely: blending an organization’s HR and corporate real estate functions.

Google is already known for turning established thinking on its head when it comes to workplace design and policies, says Marie Puybaraud, global head of workplace research at JLL. “Its new £1 billion London campus features sports facilities some gyms can only dream of with a rooftop running track and a half Olympic sized swimming pool which act as a prime attraction for recruiting new talent, not to mention retaining existing employees.”

“Google’s high-end facilities are a physical demonstration that the organization is focused on looking after its staff,” continues Puybaraud. “Job-seekers will start to see such facilities as a benchmark —and all employers will put greater thought into how they use the quality of life at work as a way or recruiting and motivating staff.”

Meanwhile, the piece notes, Facebook’s new corporate village will include 1,500 apartments as well as a grocery store and offices. “The company is using its physical facilities to provide for its staff in ways which clearly go far deeper than the normal working relationship,” explains Puybaraud. “It is only when Real Estate and HR work seamlessly together that they can deliver such projects.”

Indeed, real estate teams suggesting such recreational facilities may well struggle to get them past the board without the backing of their HR colleagues. Equally, HR teams may be looking for new ways to increase engagement among staff yet may struggle with the practicalities of developing ambitious plans that require a rethink of current office space while working in a silo.

According to Puybaraud, if an organization’s workers are more engaged and fulfilled at work, they’re more likely to develop better relationships with colleagues and put more into their work. For companies, it equates to better productivity and lower turnover of staff., which is a key reason why more companies will merge their HR and Real Estate teams in the coming years.

“More businesses will realize how closely productivity follows on from deep level employee satisfaction,” Puybaraud says. “We predict that joint HR / Real Estate teams will be commonplace within a decade.”

Is your organization planning on merging HR with its real-estate functions? If so, we’d love to hear from you about the challenges and benefits of such a move.