INTEGRATING FLEXIBLE WORK ARRANGEMENTS FEATURES INTO BANKING OFFICE ENVIRONMENTS: EVIDENCE FROM KUALA LUMPUR CITY CENTRE

Abstract

The rapid adoption of Flexible Work Arrangements (FWAs) has transformed workplace planning and office design, requiring organisations to develop work environments that better support evolving employee needs. Although the banking sector has increasingly embraced hybrid and flexible working models, limited research has examined the integration of FWAs features within urban banking offices. This study investigates the implementation of FWAs features in commercial banking offices in Kuala Lumpur, Malaysia, to identify workplace characteristics associated with employee satisfaction and inform future workplace planning strategies. A quantitative approach was adopted using a structured questionnaire survey administered to 250 employees working in commercial bank headquarters located in Kuala Lumpur City Centre. Descriptive statistics were used to evaluate employees' perceived satisfaction and expectations, followed by gap analysis to identify discrepancies between current workplace provision and employee expectations. Pearson correlation analysis was subsequently conducted to examine the relationships between FWAs features and employee satisfaction, followed by multiple linear regression analysis to identify the unique predictive contribution of individual FWAs features. The findings indicate that although FWAs features are moderately available, employees consistently reported higher expectations than their current workplace experiences. Substantial expectation–experience gaps were identified across all six FWAs features, particularly in smart workplace technologies, wellness spaces, collaboration zones, and privacy and focus areas. Furthermore, all FWAs features demonstrated significant positive relationships with employee satisfaction, while multiple regression analysis showed that Smart Tools and Technology Support, Flexible Workstations, Privacy and Focus Areas, and Remote Work Support were significant positive predictors of employee satisfaction. This study contributes to workplace planning and office design literature by providing empirical evidence on the FWAs features associated with and significantly predicting employee satisfaction in the Malaysian banking sector. The findings offer practical guidance for office designers, facilities managers, HR departments and banking organisations in developing more flexible, employee-centred, and hybrid work supportive office environments through closer alignment between physical workplace design and FWA policies.