Companies resort to 'office peacocking' to retain, lure employees: Report

Companies resort to 'office peacocking' to retain, lure employees: Report
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Mumbai: To retain employees and bring them back to office, many companies are resorting to 'Office Peacocking', which involves creating a swanky or fancy work space, and spending huge amounts of their budget on attractive designs, says industry experts.
The 'Office Peacocking' concept gained significant traction in India post-Covid, as companies sought to entice employees back to the office following the remote work shift induced by the pandemic in order to compete with the comfort of home offices, human resource service provider TeamLease Services CEO-Staffing Kartik Narayan told PTI.
Peacocking involves redesigning office spaces with stylish decor, trendy furniture, cosy corners, natural light, and well-stocked pantries to create an inviting and vibrant work environment. The goal is to make the office more attractive and enjoyable for employees, enhancing their willingness to return to in-person work.
"Companies are allocating a substantial portion of their budgets for office redesigns. Although specific figures vary, investments in office aesthetics are seen as strategic moves to improve employee morale and productivity. For instance, large tech companies might spend millions on such initiatives to ensure their offices are attractive to top talent," Narayan stated.
Technology, finance, and consulting sectors are particularly keen on office peacocking as these sectors face higher competition for talent and a greater need to entice employees back to physical workspaces, he said.
When asked if this trend is a temporary phenomenon, Narayan said that it is likely to grow as hybrid work models persist. "Companies find that creating an attractive work environment is crucial for employee retention and satisfaction. As hybrid work remains popular, the need to offer a compelling reason for employees to return to the office will drive further investment in office peacocking," he added.
Echoing the view, staffing firm CIEL HR Director and CEO Aditya Narayan Mishra said over the past 2-3 years, 'Office Peacocking' has seen remarkable growth, with an estimated 25-30 per cent surge in investment in office aesthetics and interior design.
Major metropolitan cities like Bengaluru, Mumbai, Delhi NCR, and Hyderabad are leading in 'Office Peacocking' as these cities host many multinational corporations and start-ups, which have been at the forefront of adopting such trends, Mishra told PTI.
He said, "on an average, companies allocate approximately 5-10 per cent of their total office budget for 'Office Peacocking'. However, this allocation can fluctuate significantly based on the company's size and the magnitude of the redesign project."
The IT and technology sector followed by the finance and consulting sectors, are more inclined towards 'Office Peacocking' as these sectors often have the budget and the need to create an attractive work environment to retain talent and impress clients, he noted.
Mishra said, Office Peacocking has demonstrated a notable decrease of around 15-20 per cent in turnover intentions when compared to standard office environments.
"This shows attractive office spaces have had a positive impact on reducing attrition rates. Employees tend to stay longer at companies that invest in creating enjoyable and stimulating work environments," he added.
Workplace design firm Space Matrix Global Managing Director Titir Dey said, the term 'Office Peacocking' recently gained prominence as companies sought ways to attract employees back to the office post-pandemic, focusing heavily on aesthetic and technological enhancements.
"By creating empathetic spaces that address both functional and emotional requirements, organisations can foster a more engaged and productive workforce," she stated.
She told PTI that in today's competitive landscape, relegating workplace design to a mere cost centre is a strategic misstep.
"Forward-thinking organisations understand that their physical environment is a powerful tool for shaping brand identity, attracting and retaining top talent, and fuelling future growth. The C-suite is increasingly viewing the workplace as a dynamic asset, not a static expense," Dey added.