Session 7 11:00am-12:00nn

Physical Return to the Office and Work Reimagined by Ernst & Young

Cathy Goonetilleke

Ryan Farias

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Zoom Session Link for December 8

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© 2020 Ernst & Young LLP. Published in the UK.All Rights Reserved.

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While ensuring a safe transition of people back to the physical workplace, many organizations are simultaneously looking to reimagine the work of the future. This means there is an opportunity to capitalize on this moment to reimagine your organization and redefine the way you operate.

Customer, employee and societal

behaviors and expectations have shifted

Work, as both a place and an activity, has

changed

Transformation is now about revolution, not

evolution

Leadership has never been more needed or so

remote

COVID-19 impacts on the workplace and workforce

HR’s role is now broader, more important and

more digital

Organizational resilience is no longer being measured by traditional financial metrics alone -people, culture and enabling technology are also key factors to consider.

The role of HR has broadened as new ways of supporting employees and their families are required. This, along with hybrid workforce models will challenge HR’s target operating model.

Over a process of weeks, and in some cases days, our definition of work has shifted to a more digital, flexible version with impacts on every aspect of the employee lifecycle.

As new forms of hybrid work models increasingly become the norm work experience will also be re-shaped to reflect these changes.

COVID-19 responses have demonstrated the potential for scaled transformation at speed.

New conceptions of resilience and agility combined with the prevailing economic conditions will influence the boldness of future decisions.

The agility required to simultaneously return to work and transform work will continue as COVID-19 evolves.

A framework for returning to and reimagining work

Work ReimaginedHow we adapt and transform work for the new working world

Leadership needs to be authentic and visible to build trust, confidence and model new behaviors and ways of working.

Leaders will need to balance a culture of care with the need to make bold, touch decisions on the future.

Their ability to navigate uncertainty, communicate and lead virtually will be tested and require new capability development.

All aspects of work and life are being impacted as fresh customer expectations drive different behaviors, employee expectations broaden (including changes in what they value), and new societal expectations regarding the role of government, businesses and leaders shift.

These shifting expectations and behaviors will influence what should remain for the longer term.

EY EMEIA Workforce Advisory Leader

T: + 44 20 7806 9375

E: dstorey@uk.ey.com

EY EMEIA Digital HR Leader

T: + 44 77641 32243

E: andy.lomas@uk.ey.com

Step 1: Scan

Step 2: Focus

Step 3: Act

Agile organizations recognize that the Future of Work was always going to arrive; however COVID-19 has catapulted it into the now. Leaders who seize

this opportunity to accelerate their transformation will follow an iterative cycle of scenario planning, experimentation and employee listening to define

the ‘new normal’.

► Worst case scenario

► Best case scenario

► Most likely case scenario

► Provoke thinking on key socioeconomic, sector and work reimagined trends to challenge assumption

► Explore what shifts you have made that you want to keep, where you need to initiate change and where to pull back

► Crowd source insights, feelings and responses

► Nurture an open dialogue

► Enable data-led decisions informed by shifting perceptions

EY’s Future Work Now model enables structured, collaborative engagement to answer the key ‘next normal’ questions in addition to exploring how employee personas will ‘move through this world’. This identifies where differentiation is required to attract, motivate and retain key talent.

Develop a new people agenda and transformation roadmap, with actions that put humans-at-the-centre, including:

► Frame your new or revised people agenda that addresses the beyond COVID-19 world

► Agree and execute a 100 day plan with your team to create momentum and accountability

Actions organizations are taking

Illustrative ‘next normal’ questions can include:

1. How will employment models and reward approaches evolve to facilitate greater productivity, agility and resilience?

2. How do we virtually identify, cultivate and develop new leaders in this environment?

3. What will new employee expectations mean for employee value propositions?

4. How will HR functions adapt to lead the transformation of the organization?

As we emerge out of lockdown, companies have focused on the risks associated with a trusted transition back to physical operations, but companies can also explore wider opportunities to transform work for the better. Acting now will enable some companies to gain a first mover advantage as well as improving resilience for any future waves or shocks.

EY teams have a three step approach to help companies more easily tackle how to reimagine work: scan, focus and act.

Scenario plan to anticipate anddefine the ‘next normal’ based on 3 economic scenarios:

Inject external thought leadership and EY insight to challenge your assumptions

Accelerated employee, customer and stakeholder listening

David Storey Andy Lomas

Strategy

Orgdesign

Governance

Physicalenvironment

Peoplecapabilities

Purposeand values

Talent plan and alignment

Leadershipand teaming

Technology

Process

Businesscapabilities

Operating model

Operating environment

EY future work

now

EY | Assurance | Tax | Transactions | Advisory

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services toclients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. For more information about our organization, please visit ey.com.

© 2020 EYGM Limited.

All Rights Reserved.

EYG No. 004039-20Gbl

EY-000121252-01 (UK) 06/20. CSG London.

ED None

This material has been prepared for general informational purposes only and is not intended to be relied upon as legal, accounting, tax or other professional advice. Please refer to your advisors for specific advice.

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Ways of working

Workplace & Employment Law Update

Physical Return to the Office and Work Reimagined

November 2020

Page 2

Today’s speakers18 November 2020Presentation titlePage 2

Cathy Goonetilleke

Partner, People Advisory Services

Los Angeles, CA

Email: cathy.goonetilleke@ey.com

Mobile: (214) 695-8198

Ryan Farias

Manager, People Advisory Services

Los Angeles, CA

Email: ryan.farias@ey.com

Mobile: (818) 400-2708

Page 3

Discussion agenda

1 Transition versus transformation

2 Key considerations

3 Return to the office playbooks

4 Reimagining work

5 Remote working

6 Other areas of transformation

7 Q&A

18 November 2020Presentation titlePage 3

Page 4

Transition versus transformationTwo-gear approach to physical return and work reimagined

Physical vs. digital

Data and technology

Strategy totransition and

transform

Gear 1

Physical return(transition)

Gear 2

Work reimagined(transform)

Physical return

journey

Readiness assessment

Workplace

health and safety

Health and safety

data and technology capabilities

Real estate optimization

Medical surveillance:

identify, trace and respond

Transition and transformation

road map

Phased physical return approach to

ensure trust

Employee and employer

Experience transformed

ExperienceWell-being

andcapabilities

Reimagination design session

Experience reimagined journey

Training, upskilling and remote

teaming

Data strategy, digital, IT infrastructure and

analytics

Realization of business

transformation

How do we use what we have learned

during the pandemic to

transform our business and

workforce for a better future?

Are we ready to create a human-centered work

experience that recognizes

preferences across roles and

generations?

Can we maximize all four dimensions of well-being including

the physical, emotional and

social elements?

What is our future optimized and flexible hybrid

working model that has a mix of on-site and remote work?

Which digital technology

solutions will ensure collaboration as well as our data

privacy and security?

How do we create a results-oriented workforce that

measures productivity with an

“always-on” approach to

employee listening?

Page 5

Key considerationsEffective planning across repopulation phases

EY’s return to work approach is straightforward to implement in today’s complex and dynamic employment environment.

• Before Day 1 – What does the company need to be doing prior to workers returning?

• Phase 1 and 2 – How do company policies and behaviors change to accommodate the ‘new normal’ and proactively address worker fears?

• Phase 3 and 4 – What should the company invest in to enhance workforce experience, economic effect, and continue to prioritize health and safety? How will you transform while you transition?

In an effort to evaluate your return to office plans, we recommend that you consider each of the levers of this framework to provide your company with comprehensive approach to prepare your organization to navigate ongoing uncertainty.

Crisis management and change

Health and screening

requirements

Data and analytics / reporting

Technology enablers

Government and scientific

indicators

Facilities management

Business continuity

plans

Policies and protocols

Legal and privacy

concerns

Work environment,

health and safety

Mobilization and support

Sustaining the ‘new normal’

The ‘new normal’

Emotional well-being

Physical work place readiness

Workforce readiness evaluation

Security & Wellness protocols

Employer support

for worker concerns

Policy updates to

support the ‘new normal’

Shift in mindset &

trust

Addressing the

operating model

Page 6

Developing your pandemic playbook Analysis and scope recommendations

Your initial efforts to ensure that all critical areas are flagged will be critical to reducing risk and preparing the company and employees to smoothly transition across each phase.

Employee centered support to help balance evolving priorities and needs, including:

• Workforce segmentation and scenario planning (productivity/absence management)• Workforce engagement and leadership readiness • Change management, communication and training• Policy enforcement for non-compliance

Comprehensive plan with technology enablers to monitor health and safety and optimize facility needs, including:

• Local area transit and other external safety considerations

• PPE and Self-attestations • Tracking and monitoring • Benefits to support employee and family well-being (e.g. mental health, remote work)

Workforce Readiness

Health, Safety and Wellness

Clear and effective policies and guidelines supporting employees as they return to the office, including:

• Visitor, vendor, and customer protocols• Facility capacity planning • Workspace layout, seating plans and other potential workplace risk concerns• Maintenance and supplies

Workplace Readiness

Page 7

The playbooks should be detailed accounts and will consider timing and specific plans by segment across your workforce, which will include workers returning to physical spaces, some remaining remote and some that will flex between both. Each phase needs to define the population, the timing and the method/gates for returning.

Who? When? How?

Not all workers need to physically return to work at once. The playbook should include a plan for who needs to be on-site, and consider the possibility that workers who have made remote work successful, may not need to physically return at all. Scenario planning is key.

A potential phasing could be:

1. Facilities and Support Team personnel

• Workers who prepare or clean the facility for the larger workforce (facilities management, janitorial staff, mail room attendants, reception, IT, etc.)

2. Business-critical and/or on-site workers

• Workers who are critical to production or customer support

3. Workers who prefer to be on-site

• Workers who are more comfortable or more productive in an on-site work environment

4. Successful remote workers

• Workers who have been successful and productive working remotely

Additional planning will need to be considered for visitors, vendors, recruiting candidates, etc.

The playbook should determine ideal segmentation that is in line with federal, state, and local guidelines and available scientific guidance.

The playbook should also include indicators/triggers for moving to the next phase. For example:

• There is a significant reduction in state-wide confirmed COVID-19 cases for 14 days

• Local hospitals are able to accommodate and treat all patients

• Everyone who has COVID-19 symptoms is able to access testing

• Confirmed cases are low enough that health officials are able to track each case

The playbook provides the steps to manage a seamless return:

Create an accessible, clean, and safe environment

• Clear steps, review process, and routine schedule implemented

• Checklists of steps required to re-open

• Appropriate inventory of masks, hand sanitizer, cleaning wipes, etc.

Take health and wellness precautions

• Determine how the company will institute health screenings and precautions (e.g. temperature screening, wearing masks) in a way that communicates safety and not an invasion of rights)

Determine new workspace configuration

• Altering the workspace to require social distancing (i.e. distance between working stations, separate break areas, etc.)

Design appropriate protocols/policies

• Distribute guidance on conducting meetings and greeting one another

• Develop flexible remote work policies

Developing your pandemic playbook Defining your phases

Page 8

Developing your pandemic playbook Sample of the level of detail: Facilities

Facilities management

✓ Work with service providers to implement daily / ad-hoc processes for sanitization of common areas, surfaces,

workstations and equipment

✓ Stock sanitary supplies in self-help stations (wipes, hand sanitizer, cleaning products and PPE)

✓ Work with food service providers to reconfigure cafeteria spaces

✓ Implement occupant and visitor screening protocols potentially including thermal imaging

✓ Develop strategy for improved air filtration, increased humidity (40-60%) and fresh air exchange

✓ Deploy building signage with health and wellness instructions, potentially including foot traffic “lanes” for dense

areas

Occupancy planning and

space management

✓ Consider reconfiguration of bench-style seating for 6- foot social distancing

✓ Consider circulation patterns and reorientation of desks to reduce face-to-face seating

✓ Reduce maximum occupancy of conference rooms and group areas; remove seats to increase personal space

✓ Update enterprise reservation systems

✓ Remove high-touch items (e.g., trash cans, phones and keyboards)

✓ Introduce hands-free, automated and voice-activated tools

✓ Explore digital and sensor technology to track employee movements and support predicative occupancy

Workplace strategy

✓ Consider staggering teams across the work week to reduce density by 20-30%

✓ Work with BUs on staggering plan to ensure adequate coverage and cross-functional adjacencies

✓ Transition to full free addressing, allowing employees greater flexibility to set their own boundaries

✓ Update alternative workplace strategies (AWS) policies and procedures for remote and mobile working

The playbook should include detailed facilities considerations, customized for your need. See the sample below.

Page 9

Reimagining work Our research highlights six major “resets” in key areas of the work experience

Determine need of real estate footprint for each market and use of space for meetings,

interaction, collaboration, ideation and work with customer. Validate location

needs, design and expected usage of on-site space

1. Real estate footprint

Employers are planning moderate to extensive changes in real estate

74%

Create work-from-home and flexibility approach including

percent in/out of office hubs, schedules, approach to childcare,

reimbursement for home office expenses (phone, headset, seating,

webcam) and well-being

6. Flexibility and well-being policies

Employers are planning moderate to extensive changes to remote work strategies with associated policy changes

78%

Establish needed home technology including internet standards, laptops, headsets and associated software for

planning, collaboration, file sharing, and video/audio conference and training

5. Remote work enablement and tech

Employers are looking for better digital tools to enable a mix of on-site and remote work

79% Establish ways to measure remote productivity, including identifying

processes/tools to ensure engagement and well-being

4. Workforce planning and analytics

Employers are looking to change how they measure productivity at work

49%

Develop a learning platform to enhance use of remote

technology and effectiveness of remote leaders, managers, and

ability to support customers

3. Learning and culture

Employers are looking at moderate to extensive changes in learning and skills

75%

Reevaluate mobility strategies and assess business travel

requirements for client meetings, internal trainings, external events

and global assignments

2. Business travel and mobility

Employers expect to make either moderate or extensive changes to business travel and mobility

74%

The global pandemic has reset the workforce and the workplace experience, shifting from “return to office” to “reimagining work.”

Companies are reimagining work and establishing a new hybrid approach to working that supports their people today and into the future.

EY is working with leading global organizations to support a range of transformations related to reimagining work.

How can we set a new hybrid work

model with greater degrees of remote and flexible work empowered by technology?

How do we improve the employee experience,

accelerating organizational agility and reducing costs?

Page 10

However, the level of willingness to commit varies across industries

• The Technology and Banking industries appear to demonstrate the most willingness to commit to radical change. However, within the Technology sector, 15% of organizations indicate a “wait-and-watch” attitude.

• Many organizations within the Insurance, Professional Services and Other sectors are opting for a “watch-and-wait” approach for a longer period before committing to anything beyond minimal “no-regret” decisions.

Question: As you consider your approach to post-COVID-19 transformation to a “new normal,” how would you describe the attitude of your executive team?

15%

5%

11%

17%

16%

6%

8%

15%

42%

31%

27%

35%

31%

20%

15%

16%

27%

21%

23%

29%

16%

54%

37%

31%

35%

26%

33%

56%

0% 20% 40% 60% 80% 100%

Technology

Retail

Professional Services

Others

Insurance

Healthcare

Banking

Committed to radical change in order to survive and thrive

Likely watch-and-wait

Note: The summary excludes Life Sciences, Media/Entertainment, Oil and Gas, and Utilities due to small sample sizes.

Page 11

• Working and collaborating with others remains a key element of the employee experience.

• Employees are missing the social aspect of being in the office.

• When we break this down between generations, all have similar concerns.

• However, Gen Z would like to return to build and maintain mentoring relationships and have better access to working resources.

• A potential reason for a lesser proportion of Gen Z and millennials wanting to return to work for collaboration with colleagues could be that younger generations comprise the majority of the junior individual contributor roles, which are less likely to be required to return to the office to collaborate more.

Question: Why would you like to return to the office?

Reason Baby Boomer Gen X Millennial Gen Z

I want to stay socially connected 3 1 1 1

The role/nature of my work requires me to be with others

1 3 2 2

I collaborate with my colleagues 1 1 3 5

I would like access to better working resources (network, tech support, office workspace)

5 4 4 3

I want to build and maintain mentoring relationships*

5 5 4

My manager expects me to be in the office** 4

Employees broadly want to return to the office for social contact and collaboration, although motivations for doing so vary across generations...

Note: Numbers in the grid represent the rank of response for each of the respondent group; Only the top 5 responses have been included in this table. If a response was not amongst the top 5 selected by a particular respondent group, the corresponding cell has been shaded black * Ranked 7th by Baby Boomer respondents; ** Ranked 6th by Gen X and Millennial respondents and ranked 8th by Gen Z respondents

Page 12

… but looking to the future, employees do not view working at the office and working remotely as a binary choice; rather, they want both

* Mix of on-site and remote work refers to working remotely for either one, two, three or four days.

Post-COVID-19 split for people who worked 0 days before COVID-19

• Remote work is here to stay —employees express interest in maintaining some level of remote work when they return to the office, even though that was not the case pre-COVID-19. ~63% of employees who did not work remotely before COVID-19 want to work remotely for at least one day a week.

• However, ~36% of respondents who worked remotely full time before COVID-19 indicated they want a mix of remote and on-site work.*

• Both Gen X and millennials are similar in their indication of interest; ~60% indicated interest in a mix of remote and on-site work. Only 10% of Gen Z respondents want to work full time in an office.

How many days per week did you work remotely before COVID-19?

How many days per week would you like to work remotely when you return to the office?

43%

11%8%

7%

6%

24%

0 days

1 day2 days

3 days

4 days

5+ days

12% 5% 15% 20% 12% 37%

5+ days 4 days 3 days 2 days 1 day 0 days

Page 13

Remote work considerations

Productivity

How can you measure and enhance productivity?

Employment law

What local legislation do you need to

consider and with which must it enable

compliance?

Culture

Can your culture thrive with a partially

flexed workforce?

Total rewards

How will increasing flexible work

arrangements impact compensation decisions and

benefits?

Organization

Do roles and skills need

adjustment?

Risks

What risks do you need to consider and

mitigate?

Well-being

How do you support physical, emotional, financial and social

well-being virtually?

Taxes

How well do you understand the tax implications of a new

policy and have you determined where you are required to withhold taxes?

A flexible work arrangement policy is most effective when you consider and integrate a range of strategic workforce questions

Technology

What tools and processes do we need to support

remote working

Page 14

45% 19% 26% 10%49% 21% 21% 10%0%

10%

20%

30%

40%

50%

60%

None/ Limited Moderate Extensive Full-time

Pre-COVID Post-COVID

Employees retain a willingness to travel, although employers are currently planning for significant change to business travel post-COVID-19

Em

plo

ye

rsE

mp

loye

es

24% 25% 35% 37% 38%

No travel Opportunities forglobal assignments

External events thatcompany will pay for

Internal travel forcompany meetings

and training

Meeting withcustomers face to

face

40% 44% 47% 51% 59%

Set policies/ tech toidentify who/when to

travel

Redefine healthand safety policies

associated withtravel

Remix in-person vs.remote client visits

Significantlyreduce

external events

Significantlyreduce

internal events

55%

19%

26%

Extensive Moderate Limited

What is the amount of change planned by employers for future business travel and mobility?

Proportion of employees by actual and expected frequency of travel pre- and post-COVID-19

Where would you like to see your employer continue to allow business travel and associated processes? (top five choices)

Which of the following actions are you considering as part of a new approach to business travel and mobility? (top five choices)

74% Extensive/ moderate

change planned

Page 15

Nearly three-quarters of employers surveyed plan to make either extensive or moderate changes to their workplace real estate strategies post-COVID-19

48%

26%

26%

Extensive Moderate Limited

1%

6%

19%

29%

30%

45%

48%

48%

49%

51%

Other changes

No real estate changes

Consider use of temporary officespace vs. renewing leases

Evaluate suburban satellites toavoid mass transit

Closing similar offices

Reduce overall footprint/ look tosubject properties

Significantly shift proportion ofremote vs. in-office work

Giving employee choice in remotevs. in-office work

Measure productivity of remotework

Redesign offices/ re-evalutepolicies on shared workspaces

Employer

74% plan extensive or moderate change

• COVID-19 has engendered further workplace change, with most employers surveyed embracing remote work during the pandemic and several highlighting significant change to their real estate strategies after the pandemic is over.

• 74% of employers plan to make either significant or moderate changes to their workplace real estate strategies.

• Key areas of change highlighted by employers include redesigning offices/reevaluating policies on shared workspaces, giving more choice to employees to remotely work, reducing the overall footprint at workplaces and closing similar properties.

Please select the areas of change planned to the real estate strategy

How much change is planned to the workplace real estate strategy?

Page 16

Questions

EY | Assurance | Tax | Transactions | Advisory

About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. For more information about our organization, please visit ey.com.

Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US.

© 2020 Ernst & Young LLP.All Rights Reserved.

2004-3470818ED None

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice.

ey.com