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The Numbers Behind Investing in Office Design

 

The Numbers Behind Investing in Office DesignI get it. An office is a place where people come to work.  As long as everyone has a Desk, a Chair, and access to Power & Data, they should have no problem doing their job.  Well, I’m going to throw some numbers out that are going to show that might not be the way to look at an office space.

According to studies by Gensler, a well designed office can increase productivity by 20%. What CEO wouldn’t be interested in improving output by that much?

I’m sure you executives out there are wondering: Is the investment worth it? What’s the ROI?   I’d like to answer those questions with some simple math.

Let’s say you have 50 office employees with an average salary of $50,000 per employee.

How about we invest $100,000 in office design and improvements to help those 50 employees feel more engaged and motivated at work.

To give us a more conservative number let’s take that productivity increase of 20% and cut it in half to 10%.

Your 50 employees are now working at 110%, which is the equivalent of 5 new employees (cost of $250,000) worth of work.

So, is the investment worth it? The answer: YES.   We just increased output for 40% of what it would cost to get the same results from 5 new hires. Those numbers are hard to ignore.

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