employee retention

How better space utilization and design improve employee retention

By Harrison Katzman

Reconfiguring office space with occupancy data improves productivity and employee retention and satisfaction

As companies grapple with designing a hybrid work model that meets their needs, it is important for them to concurrently adapt their work culture to ensure employee retention. This may involve making changes to the way that work is structured and managed, as well as providing support and resources to ensure that employees understand what is behind the changes and are able to work effectively and efficiently in this new environment.

Helping work culture adapt to new realities is something of an art form for Human Resources professionals charged with change management and is pivotal to employee retention. In an evolving hybrid setting, this requires an even more proactive and flexible approach that actively solicits opinion and involvement from staff so that a strong sense of employee ownership develops. Companies around the world are establishing new best practices to engage employees and embedding new technologies to collaborate remotely. The whole effort is breaking new ground, and no one has all the answers.

A lasting change

The hybrid work model has been forced on many firms by shifting labor force dynamics, the global pandemic, and the inflated cost of housing that is pushing workers beyond commuting distance in many markets. Whatever you may think of it, hybrid appears to be here to stay.

What’s more, the labor force in Europe, the US and other developed economies will tighten further as the Baby Boom generation retires and the workforce shrinks and ages. This will give workers greater leverage over conditions of employment and has already been proven to influence retention rates.

For all these reasons, it’s vital that businesses adapt both their work culture and physical workspace. This may involve reducing the amount of space allocated to individual employees or departments or redesigning the layout of an office to make better use of available space. Often bolstered by occupancy monitoring data, such changes will lead to savings on leasing costs, energy and other operating expenses.

The benefits of rightsizing
Right-sizing office space can lower overhead and free up resources for other purposes, too. It is one of the fastest ways for companies to lower their carbon footprint, and it can help to improve the overall efficiency and productivity of the organization. Technologies like occupancy and people counting can help by showing usage and traffic patterns, pointing out variations by time, date and season. By integrating this data into building and office operations, companies can create a more cohesive and efficient work environment.

Knowing precisely how a space is used can also inform redesign plans aimed at creating an office environment that promotes collaboration and teamwork, which in turn boosts employee morale and engagement. All of this, combined with technology that ensures healthy air quality, and proper density, noise and lighting levels, will also drive productivity gains.

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READ MORE: this report outlines how occupancy data can be collected, what it can do to help a building be managed better, and how it can impact the profitability and valuations of the property.

Measuring space utilization

CBRE’s annual Global Occupancy Insights report notes that 74% of companies track office space utilization/occupancy to inform decisions and planning for office real estate.

There are several steps that companies can take to right-size their offices. One approach is to conduct a manual space utilization study, which involves analyzing how the current space is being used and identifying areas where space could be better utilized. Factors include the number of employees in each department, the types of tasks performed in different areas of the office and the amount of time that employees spend at their desks.

A more precise way to collect such data is to deploy occupancy sensors like those integrated into Microshare’s EverSmart Space solution. This not only provides much more granular data on these issues, but it also makes this available in real time so that historical patterns can be studied. And, as mentioned above, it also creates data correlations with costly resources like lighting, heating and cooling that will lead to significant cost savings.

Ultimately, right-sizing office space requires a data-driven approach that considers the needs and preferences of employees, as well as the goals and objectives of the organization. By carefully considering these factors, companies can create a more efficient and effective work environment that helps foster productivity and engagement among employees and put an end to the high employee turnover.

Harrison Katzman

Harrison Katzman | Senior Sales Executive – Real Estate | HKatzman@microshare.io

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