The real cost of space management

The real cost of space management.

The need for space:

Human beings need space. We all have an amount of personal space that we require in order to thrive, and this differs slightly from person to person and between cultures. However, despite these slight individual differences, the need for personal space is one of the things all people have in common.

When a sample were asked ‘what environmental workplace design factor is the most important for worker happiness?’ The answer was…. Space! (Kim & Dear, 2013). Closely followed by noise and privacy. And both of these secondary factors worsen as work space is squeezed.

So, it would make sense to create open, airy, roomy offices wouldn’t it?

Well maybe not? There are other pressures on businesses. Office space is costly. Fitting more people into a smaller space saves office rental bills.  And open plan offices use up less space needed for walls and doors. When hot desking first showed up in the U.K. in the 1980’s, the savings were shown to be even greater. Facilities costs for a business is second only to staff costs. The temptation for management is to squeeze the space.

However, not all assets should be managed the same way. People are a static cost but not a static value. When people are squeezed in, they feel it, and productivity, engagement, a sense of belonging, commitment, creativity and productivity all start to slide. 

Personal space:

How much personal space do people need to feel comfortable? According to Edward T Hall, an anthropologist who coined the term proxemics in the 1960’s, personal space is like an invisible bubble and there are 4 sizes.

1.       0 - 1.5 feet            (0 – 0.45m)            intimate

2.       1.5 – 4 feet            (0.45 – 1.2m)        personal, close friends, colleagues

3.       4 – 12 feet             (1.2 – 4m)              social distance, more formal

4.       12+ feet                 (4m+)                     speaking to audience

At work we operate at levels 2 and 3, so a decent desk space and freedom to move around and not have our personal space invaded is pretty important at a fundamental level.

What happens when our personal space is invaded? When we are not given enough ‘space’ to work in? The symptoms will vary, but you will recognise them; irritability, stress, inability to concentrate and the desire to escape which is characterised by illness and absenteeism. Inevitably, the business suffers a reduction in creativity and productivity, but may not understand why.

Modern office design trends:

What does this mean for office design? How can we manage this desire for ‘densification’ without damaging productivity and well-being? Changes in technology where people can ‘plug in anywhere’ means it makes sense to look more flexibly at the way space is used and maximise the usability of the space. This leads to a variety of space type options through the office: hot desking, agile working, shared spaces, social spaces, varying meeting spaces (formal and informal), quiet spaces, project spaces are some examples.

What’s missing with this approach in my opinion is an understanding of human nature and individual differences. Some personalities like sameness and predictability, whereas others prefer new experiences and variety. So, if you design a workspace that has some stand up desks and a soft seating area and maybe a quiet space, some will use it and be boosted by it. Don’t be disappointed by the person that stays at their desk though. They do that because it suits them to.

Productivity factors:

Of course, the physical environment isn’t the only thing that affects employee effectiveness. Good management, strong company culture, clear goals, regular feedback, fair rewards, challenge and development are major factors. Achieve these and add a workplace environment that is conducive to concentration, privacy and personal space and you’re onto a winner.

Numbers:

A recent report from the BCO on ‘The Proportion of Underlying Business Costs Accounted For By Real Estate’ calculated that staff and equipment costs, including salaries and benefits, typically account for around 85% of operating costs in offices, with the remaining 15% attributable to rent and operating expenses. Therefore “A modest improvement or deterioration in staff productivity can have a significant impact on the bottom line of a business”.

Office space is a fraction of the costs of human cost. The average salary in UK is currently £29,588 basic. When NI, pension, hols & sick ben is added the cost to the business is = £38,500 (ONS 2018). If employee productivity is reduced by just 10% that loss of value is worth £3,850. Depending on office costs and rentals, that’s 6-8 times the cost of the space they use.

Why does densification happen?

So why do we try and cram people into space? There are a number of reasons. The main ones are:

1.       Lack of planning ahead

2.       To save money (by not understanding the impact of lost productivity)

3.       Rapid growth of the business and running out of room

4.       Rising rental costs and shortage of options.

Balancing Act:

Businesses have been allocating less space per employee in recent years. Currently though, the mood is changing as employee well-being becomes a ‘hot topic’ and businesses work on creating great work spaces in order to attract and retain talent. Business managers are now working with designers to create the right balance of personal, private, communal, and break out space to suit the employees that work for them.

This balancing act will hopefully result in more emphasis on the productivity, usability and well-being within the office space as well as attention on cost of square footage/meterage per employee.

Resources:

Kim and Dear (2013) “The privacy communication trade off in open plan office” CBE Research, Berkeley

Edward T Hall ‘A system for the notation of proxemic behaviour’ 1963 American Anthropologist

British Council of Offices report “Wellness Matters” 2019

About the author:

Michelle Armitage from Light and Frank understands personality and design. She helps individuals and companies design spaces to suit the needs of inhabitants to create optimum mood, performance and well-being. www.lightandfrank.com

Would you like to audit your work space? Get in touch!