Government employs nearly 23.5 million people at local, state, and federal levels, and is a sector that stands to gain much from effective workplace strategy and planning. In addition to using taxpayer funds prudently, government agencies face a unique balancing act in fostering productive work environments while providing appropriate security, complying with shifting policy mandates, and addressing employee needs with the aim of successfully fulfilling their responsibilities to the public.

These constant pressures are considerable yet offer possibilities for resourceful and pragmatic workplace solutions. Below, we explore the complexities of workplace strategy in government contexts, highlighting challenges and opportunities that lie ahead.

Maintaining fiscal responsibility to taxpayers

Efficient use of taxpayer funds is a central driver of any government expenditure, not least for office environments. Federal government debt stands at nearly $36 million, while the budget deficit recently hit $1.8 trillion, a three-year high. This mounting debt underscores the urgent need for government agencies to optimize their operations, minimize waste, and prioritize essential services.

In this context, agency leaders must navigate competing demands for funding while ensuring that workplace facilities are both functional and cost effective. The challenge lies in setting a strategy and establishing an environment that can adapt to evolving work patterns, such as hybrid and remote work, against the backdrop of tight budgets.

Adjusting to hybrid work

Like many industries in the private sector, federal government is also experiencing an ongoing adjustment – and debate – around hybrid working. The pandemic dramatically increased the numbers of federal employees working remotely. The impact on facilities was significant. In 2023, the Government Accountability Office found that almost three-quarters of agencies surveyed were only using 25% or less of their available office space.

As more agencies began to adjust their in-office requirements at the start of 2024, proposals on what to do with under-utilized facilities have varied. Most recently, in August, the OMB issued Management Procedures Memorandum No. 2024-01, mandating that federal agencies update their office space design standards to not exceed 150 USF per person. The memo further requires that agencies monitor and report occupancy in all office space exceeding 50,000 USF to track compliance with a 60 percent average annual occupancy target. While this directive is definitive in its terms, the incoming Republican administration and Congress will undoubtedly influence how this issue is resolved in the near future.

Reconciling RTO mandates with regulatory standards and stakeholder requests

At local, state, and federal levels, different regulatory bodies and other stakeholders, such as unions, impact how workplace strategy is implemented. Return to Office (RTO) mandates also continue to influence and change standards for office space. Finding alignment between all these factors can be complicated, requiring careful negotiation and strategic planning.

For example, in New York City, as Mayor Adams initially issued an RTO mandate for five days a week after the pandemic, he met with opposition from some unions requesting three days a week. Either scenario could change how office space is planned and used. But space standards for government workers in New York City are also governed by the Office of Management and Budget and Department of Citywide Administrative Services, which may lag changing mandates. The challenge for any consistent and effective workplace strategy is to find creative ways to address all requirements, even if in flux, making in-person time at the office valuable and productive for employees while ensuring optimal efficiency in space use.

Prioritizing security and confidentiality

Confidentiality and security are of utmost importance for government workplaces, especially at the federal level. Work environments must address a wide range of needs, from controlled building access and space surveillance to secure IT infrastructure and communications. These features must also be flexible, scalable, and compliant with the relevant regulations, including FISMA, NIST, and GDPR.

To use taxpayer funds efficiently, government agencies are working to find creative solutions that achieve the necessary high standards on a budget. One such strategy is sharing SCIF (sensitive compartmented information facility) rooms. These spaces are essential for any agency involved in national security, defense, or intelligence and are built for processing sensitive classified information. When SCIFs are planned and designed to accommodate use by different groups, multiple agencies get the secure space they need for a fraction of the cost.

Implementing technologies to support new ways of working

Staying current with design and technology that supports new ways of working is a substantial challenge in government. Slow procurement processes, limited budgets, and complying with complex regulations and security protocols can impact how quickly an agency is able to adapt to shifting needs.

In particular, the prevalence of remote work has forced agencies to adopt more creative and nimble solutions. From the full suite of cybersecurity measures, including cloud-based platforms for secure file sharing, to customized hybrid meeting rooms, strategies are increasingly accommodating a workforce that is both on- and off-site. Microsoft studio boards, touchscreens, and digital whiteboards are enhancing collaboration processes in these hybrid settings as the need for standard desktop equipment decreases. But for those jurisdictions able to implement such tools and technologies, integration with legacy systems can also prove challenging.

Staying focused on the mission

Developing an effective workplace strategy for government offices, when taking all stakeholders and regulations into account, can be a complex practice. As federal, state, and local governments continue to grapple with the realities of hybrid work, what to do with underutilized space, and finding the best fit with in-office policies, many changes in the government workplace are yet to come. Although timelines may be long and outcomes uncertain, one thing must never fall out of focus: the need for the government agencies and workers to be able to deliver on their missions to the public. With strategic thinking that always keeps efficiency and fiscal restraint in mind, government work environments can support these mission-driven initiatives successfully.