11 Mar Proving The ROI of Your Office Space
Proving The ROI of Your Office Space
Great offices can go beyond simply providing workplace to employees if you understand how space affects your bottom line. Business leaders struggle with the decision when it comes to office design – how will the investment in workplace features impact human capital benefits?
When considering office design and its impacts you must include the following:
- Business Process Efficiency (time)
- Work Accuracy (rework time)
- Employee Retention (replacement cost)
Your workplace is full of moving parts (people, workstations, technology, equipment, spaces, and utilities) and the better those parts are organized, managed and maintained, the smoother the overall operation runs. If those parts aren’t well-aligned, managed and maintained, it can’t operate to its fullest potential or deliver true ROI.
All manner of design factors can contribute to improved employee productivity, innovation and collaboration, these include providing a range of areas and places to work, creating a bright and airy office filled with plenty of plants and greenery, a good balance of refreshment and relaxation areas, innovation zones to spark creativity, choice of technology and optimum building services such as temperature. This is just to mention a few.
Space Utilization
According to Elizabeth Dukes, Co-founder of iOffice Corp, “Under- and over-utilized office space can cause serious issues with workflow, productivity, and employee satisfaction. When office spaces are unorganized, things like empty coffee bars or overbooked conference rooms obstruct your employees’ ability to work efficiently.
Close working quarters also can be distracting and cause employees to disengage. Likewise, too much space can lead to silos among employees and departments, which inhibits collaboration and can cost your organization a small fortune in wasted utilities.
Fact: Organizations that are successful at keeping employees engaged see almost 150 percent higher earnings per share compared with those who don’t.
Office Layout Types
Leaders have long argued over which office type is best, but the correct answer is all of them. By keeping employees satisfied with their work environment, you can reduce turnover and increase productivity.
Fact: A Harvard Business Review study found that “employees who have the choice in when, where and how to work have higher levels of satisfaction, innovation, and job performance.”
Driving Productivity
Each year actively disengaged employees cost U.S. companies between $450-$550 billion in lost productivity. Making sure that employees are engaged in the job that they do, will have a big impact on your business.
There is already strong evidence behind the relationship between office design and productivity, and there are many ways you can optimize a space to improve office output. Companies can improve creativity and wellness by adding natural light or biophilic design to their space, which has been linked to a higher cognitive function in employees. Providing opportunities for personal customization in the office can also boost overall productivity and sense of autonomy.
Real Estate
As you work to optimize your workplace, you may discover a substantial percentage of space that isn’t used or isn’t necessary. Given the rise of telecommuting, it’s more common than you may expect.
You can transform unused space into something useful — or turn off energy-sucking equipment and lights to restrict utility consumption in the area. You may be able to downsize your real estate and reduce your rent, which will decrease your utility costs and radically lower your cost of operation.
Reducing Waste
Running an office can be costly. Equipment must be maintained, rent must be paid and resources like energy must consistently be used. Thankfully there are many opportunities to minimize the impact these costs have on your bottom line. Using data and visuals from a workplace management system can help you understand where your office can reduce internal costs.
Fact: Energy accounts for an average of 29 percent of total office expenditures.
A Sustainable Workspace
Sustainability is a huge factor to consider when designing your office, by specifying and utilizing green and sustainable resources, techniques and practices, you reduce your annual office energy costs by between 30-50%. Looking at how you can provide factors such as heating, lighting, and cooling in a sustainable way will not only deliver long-term ROI but also ensure that your company is doing its bit for the environment.
Company Culture
Your office can be used as an asset for attracting and retaining clients. Designing your space to reflect your company’s core values will consistently support employee engagement.
Recruit Top Talent
Talent scarcity is one of the most prominent challenges facing workplaces around the world today. Younger generations in the workforce have a new set of needs, and many of them are opting for jobs that promise flexibility, strong culture, and alignment with their personal values.
Where to Begin
To achieve the biggest ROI in 2019, you must update building systems and processes, and evaluate how your workplace supports employee workflows, productivity, collaboration and comfort.
- Start by observing how your physical workplace is used
- Adjust floor plans to eliminate bottlenecks and give employees equal access to shared resources
- Provide employees with options regarding the type of workplaces they can use to stay productive, including quiet and collaborative zones
- Transform wasted space into useful space
- Reduce energy consumption in unused areas by unplugging equipment and turning off lights
- Ensure your employees have the resources and technologies they need to stay engaged and efficient
- Make simple updates to workplace lighting, decor and wall color to energize and motivate your staff
Most businesses are pretty conservative when it comes to design spending, but when you strategically plan your design, not only will you see a big return, but you will maximize productivity, increase competitiveness and achieve your corporate goals.
As experts in space planning, office design, and smart-working, the team here at RI Group can advise, guide and support your next office design. Do you have an upcoming office project?
Call us at 800.427.5811 or email: info@rigroup-us.com.
Sources:
- https://www.iofficecorp.com/blog/want-to-improve-roi-in-2017-heres-where-to-invest
- https://www.pmc.rocks/followus/2018/3/27/humanspace-roi-measuring-the-human-capital-in-the-workplace
- https://www.inc.com/elizabeth-dukes/want-to-see-huge-roi-in-2017-heres-where-to-invest.html
- https://www.officespacesoftware.com/blog/understanding-the-roi-of-your-office-space
- https://wolfcre.com/improve-roi-utilizing-office-space/
- https://www.cmiworkplace.co.uk/how-your-office-redesign-or-move-can-deliver-roi/
