New ISS Global Research Finds Balancing Cost and Experience Is Defining the Next Phase of Workplace Performance

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New ISS Global Research Finds Balancing Cost and Experience Is Defining the Next Phase of Workplace Performance

Report finds 83% of leaders see the workplace as a performance driver, yet many are still working to align that with cost priorities

NEW YORK (MAY 6, 2026) — Organizations are under increasing pressure to balance cost discipline with rising expectations around workplace experience and performance. New global research from workplace experience and facility management firm ISS shows that while 83% of leaders believe the workplace plays a critical role in organizational performance, many are still working to align that ambition with the financial and operational realities shaping decision-making – revealing a “workplace performance gap.”

Drawing on insights from nearly 3,000 business leaders across 28 countries and 24 industries, the ISS Facilities Management Outlook highlights an opportunity for organizations to more closely connect how the workplace is managed, measured and experienced with broader business and asset outcomes. For facilities management (FM) and corporate real estate (CRE) leaders, this represents a shift toward more integrated, performance-oriented approaches.

“Organizations aren’t choosing between cost and experience – they’re being asked to deliver both in a much more complex environment,” said Steve Quick, CEO, Americas at ISS. “The reality is, most organizations are still not structured to capture the full value of the workplace, creating a significant opportunity for FM and CRE leaders to unlock additional value. We’re working with clients to better connect efficiency, experience and performance in a way that delivers measurable value.”

The Workplace as a Lever for Performance

Organizations increasingly recognize that the workplace matters but are challenged with how to unlock its value in a complex, cost-sensitive environment. As occupiers place greater emphasis on employee experience, flexibility and productivity, operational decisions are increasingly tied to leasing performance, retention and long-term valuation.

Cost control remains at the center of that decision-making. Many organizations are working to balance efficiency goals with investments that support experience and performance outcomes – a dynamic that can be complex to navigate across portfolios and operating models. This can create a missed opportunity: buildings optimized for efficiency, but not always for performance.

“Cost discipline remains essential, and organizations are right to stay focused on it,” adds Quick. “The opportunity is in how that discipline is applied – connecting operational decisions more directly to employee experience, tenant demand and long-term asset performance.”

The report finds that the workplace can serve as a connective layer between operations and asset strategy, translating day-to-day service delivery into measurable outcomes for both occupiers and investors.

The Workplace Performance Gap
New global data highlights the tension organizations are managing:

• 83% believe the workplace drives performance
• 60% prioritize cost optimization
• 68% cite economic pressure as the primary industry force

This gap reflects not a lack of awareness, but the realities of operating in an environment shaped by economic pressure, evolving expectations and the need for clearer measurement frameworks. Many organizations are working to better align intent with execution while maintaining financial discipline. 

At the same time, FM teams are taking on broader responsibilities. Nearly half of leaders say they need support delivering wellbeing (45%) and employee experience (35%), signaling a shift from operational execution to experience and performance enablement.

Cost Pressure Is Reshaping Transformation
Rather than limiting progress, economic pressure is prompting organizations to look for more effective ways to deliver greater value, optimize operations and maximize the impact of existing resources.

Short-term cost decisions – such as deferred maintenance or reduced service levels – can have broader implications for workplace experience, tenant satisfaction and long-term asset performance. Leading organizations are beginning to reframe cost discipline within a broader performance context, aligning efficiency with measurable business outcomes rather than viewing it in isolation. 

Without Proof, Digitalization Is Stalling
Nearly half of leaders (46%) identify digitalization as a key disruptor, yet only 20% prioritize it within their FM strategy, pointing to a persistent “proof gap.”

The issue is confidence: organizations recognize the potential of data, smart buildings and digital tools, but many are still working to establish the measurement frameworks needed to confidently scale these investments. This creates a reinforcing cycle: limited data visibility can constrain investment confidence, which in turn slows digital adoption and broader data maturity.

For CRE leaders, this gap extends to asset strategy. Without reliable data linking workplace experience to performance metrics like retention, utilization and revenue, it remains difficult to justify investment at scale.

From Operations to Experience and Value Leadership
Both FM and CRE functions are continuing to evolve, with growing expectations to align operational decisions with broader business and investment strategies. This convergence is reshaping the workplace as a system where service delivery, experience design and asset performance are increasingly interconnected.

ISS’s report points to a clear path forward centered on stronger alignment between strategy and execution, clearer measurement of performance outcomes, and more integrated operating models. For FM and CRE leaders alike, the opportunity lies in treating the workplace not just as a cost center or a set of services, but as a lever that can support efficiency and long-term performance.