Priorities in Workplace Performance: a measure of spend and design

Abstract

Background: The highest cost to any business is labour and in the UK this is typically followed by real estate (Bootle, 2002). How property affects business performance has been the focus of academic study for some time. Generally well procured and well managed space is thought to bring increased productivity, flexibility and enhanced corporate image (Krumm and De Vries (2003)). Occupiers’ response to a more competitive business environment has perhaps foremost been focused on attempts to save on real estate costs by occupying space more efficiently. Generally buildings now have to work harder with the allowance of space per worker is reported to have decreased from 12-17 sq m per work station to 8-13 sq m (BCO, 2013). Arguably we are only beginning to understand the impact that the office environment can have on business performance. Recent research has focused on the impact that the working environment is having on employees’ health and wellbeing measured through levels of employee satisfaction (Leaman, 1994), absenteeism (Preller, 1990), staff turnover (CABE, 2001) and the ability of the workplace to support different activities (CABE, 2001). This paper intends to measure annual spend on office occupancy based on rent, fitting out cost and maintenance and will investigate which property attributes that are prioritised in terms of spend amongst employers. Purpose: The purpose of this paper is to investigate the emphasis placed on creating a workplace environment that is ‘right’ measured through levels of spend on a range of property attributes thought to contribute to business productivity.Method: The paper will be based on survey of three categories of employers, namely professional services firms, financial services firms and media firms, whose working practices and culture are significantly different. The survey will be supported by a literature review of publications to date which considers employee satisfaction, productivity and workplace design.Results/conclusion: The paper will highlight employers’ awareness of office design features and their perception of their relative importance in terms of supporting business success and productivity. Results will also highlight the spend and design priorities and enable an analysis of the correlation between these and the attributes perceived to enhance the office environment and supporting business performance and productivity.