The future of workplace design: Exclusive interview with XY Sense

As Head of Americas Sales at XY Sense, Jess Horne approaches customer relationships by starting with their “why.” Why are customers seeking to collect this specific piece of workplace data and how will they action the insight? What’s the end goal?

Jess sat down with Appspace to discuss the increasing focus on data-driven workplace design and drive towards truly autonomous smart building goals in the industry. Jess also discussed the importance of partnerships in the XY Sense business model and how a collaboration with Appspace is driving incredible returns on investments for joint customers.

1. XY Sense publishes a quarterly report called the Workplace Utilization Index which documents trends in workplace attendance and space insights. What does your most recent report reveal about the state of return to office?

Office occupancy has surged to its highest level in four years, with a 36% increase reported in Q1 2024. After three-quarters of stagnation, utilization jumped from 28% in January to 44% in March, driven by economic uncertainty, changing worker attitudes, and increased company incentives for teams to return to offices. Offices haven’t been this busy in years.

Our research shows the shift in how and where work is conducted continues, as does the need for a more dynamic approach to office space utilization. You don’t want to mandate employees back to the office only to have them waste time looking for somewhere to work once they’re there.
Today’s workplaces require a more agile and data-driven approach to occupancy planning. Organizations leverage technology, like occupancy sensors and space reservation, to create dynamic and connected work environments that meet the evolving needs of employees and other stakeholders alike.

2. How far out can and should organizations look to make decisions impacting space utilization? Are there any new best practices for using your data for long-term planning?

Regarding the planning horizon, organizations should look beyond short-term fixes and consider a multi-year outlook when leveraging occupancy data for decision-making. While immediate needs may drive some adjustments, such as implementing flexible work policies or reconfiguring office layouts, organizations should also consider how broader trends in work patterns and employee preferences may evolve. By taking a strategic approach and looking several years ahead, organizations can better anticipate future needs and ensure that their real estate strategies align with their long-term business objectives.

Another best practice is integrating occupancy data with other relevant systems and datasets, such as employee productivity metrics or workplace satisfaction surveys. This integration can provide a more holistic view of how space utilization impacts overall business performance, allowing organizations to make more informed and cost-saving decisions. One organization used its occupancy data to inform HVAC decisions, saving millions of dollars.

3. What other trends do you anticipate shaping the “new workplace normal” and how can organizations leverage occupancy data to stay ahead?

XY Sense reporting shows significantly higher office utilization midweek, with 84% greater space utilization on Tuesdays -Thursdays when compared to utilization rates at the beginning and end of the week. While it’s clear that workers overwhelmingly prefer the so-called (Tuesday, Wednesday, Thursday) ‘TWT working week’ can create substantial issues for workplace leaders and the CRE community at large.

On busy days, floors may be crowded, making it frustrating for workers who have come into the office to find a seat, meeting space, or quiet space away from Zoom-calling neighbors. On quieter days, there is not enough “vibe” on quiet floors to warrant the commute, i.e., “What’s the point in coming in?”

This isn’t a productive or sustainable work model. Organizations will increase their use of occupancy data to arrange flexible seating arrangements, designate hot-desking areas, and manage space reservations more efficiently. As Appspace knows, the goal is to create a seamless transition between in-office and remote work.

Additionally, there’s a growing focus on employee well-being and experience in the workplace. Occupancy data can help organizations create environments that promote collaboration, productivity, and overall satisfaction by identifying areas for improvement in the space design and fitout. For instance, identifying the most in-demand meeting room type, desk fitout (screens, sit/stand etc) or team collaboration space. So, leveraging occupancy data isn’t just about optimizing space utilization; it’s about creating an adaptable workplace centered around the needs of employees.

4. Amid growing emphasis on sustainability, how can occupancy intelligence platforms like XY Sense help organizations reach environmental goals and reduce their carbon footprint?

Operational expenditures and carbon emissions from heating, cooling, powering, and cleaning mostly empty office towers worldwide account for 27% of annual global Co2 emissions. This is an enormous problem and one of the key reasons why XY Sense was founded. Our ultimate mission is to leverage data to create a more human-centric, environmentally friendly, and productive built environment.

More and more US-based companies are establishing environmental, social, and governance (ESG) standards to set more responsible and ethical business practices. Reducing carbon footprint is often a core element of these plans. Sensor insights help companies reduce their carbon footprint by informing better decisions on how much office space they retain (or build), how they moderate utility and other energy expenditures, and how they match incidental operational consumption; food, cleaning, office supplies & furniture, transport services based on actual team needs. Overall, the data XY Sense and Appspace provide organizations is valuable in helping organizations optimize their physical spaces, reduce resource consumption, and create more sustainable workplaces that align with their environmental objectives.

5. How does XY Sense’s approach to open data platforms and API integrations facilitate seamless collaboration with platforms like Appspace?

XY Sense’s approach to open data platforms and API integrations is pivotal in fostering seamless collaboration with Appspace. By embracing open data standards and offering robust API integrations, XY Sense enables easy access to its real-time occupancy data and insights. This interoperability allows Fortune 500 companies and organizations to seamlessly integrate XY Sense’s occupancy data into their existing workplace management platform, like Appspace, without requiring complex customizations or manual data transfers.

Together, XY Sense and Appspace’s real-time integration enables workplace teams to ‘close the loop’ on desk and room bookings by comparing a space’s booking status with its physical occupancy status, which sensors report. Joint customers can configure Appspace to either automatically reserve a space once the sensor detects it’s occupied or release a booking if it is not occupied within five or ten minutes of the start time.

This live space availability integration makes finding, booking, and checking into spaces a truly seamless experience for our mutual customers. It eliminates one of the biggest problems plaguing workplace teams in the hybrid era: the phenomenon of ‘ghost bookings’, where rooms and desks are booked and marked as unavailable but not actually occupied.

6. Is there anything else you’d like to share?

I’m thrilled about the opportunities ahead as I step into my new role at XY Sense. Getting to know XY Sense’s globally dispersed team has been fantastic, but I’m even more excited about our growing US team and presence. XY Sense is a known market leader throughout Asia-Pacific, the United Kingdom, and Europe, and I’m excited to show our US enterprise customers what’s possible with this new technology. The real-time accuracy has to be seen to be believed.

We are forging close partnerships with Appspace and other technology partners. Delivering transformative outcomes for our clients’ workplaces is almost always a team sport, and we couldn’t ask for a higher-performing teammate than Appspace. Our joint efforts to deliver data-driven solutions for smarter, more collaborative workplaces are incredibly promising. I recently dove into in-person meetings and events with Tom Penella and Mary Hitchcock on the Appspace team at a NYC workplace community dinner and InfoComm in Las Vegas.

XY Sense already has an amazing U.S. customer base. I’m dedicated to maintaining those relationships and expanding this customer base by going above and beyond to ensure their success with XY Sense. I’ve led enterprise GTM teams in workplace technology for 10 years, but this is just the beginning of what I know will be an exciting journey at XY Sense, and I can’t wait to see where it takes us.