British Companies are losing thousands of pounds each year through staff churn and reduced profitability as a result of poor office design, according to a new survey from specialist fit-out contractor, Wates Interiors.
The survey found that nearly a third of people (30%) would leave their job due to the physical office environment and a further 23% have turned down a job offer due to a companyís physical environment. This has significant implications for the bottom line.
The Chartered Institute for Personnel and Development reports that staff churn at UK companies is 15.7% and that the estimated direct cost of replacing an employee is 50% of their starting salary (once advertising, training, administration and management time is taken into account). With an average salary of 22,000, a business of 250 staff could lose 430,000 a year simply due to dissatisfaction with the office environment. In the financial or legal sectors, where recently qualified employees can average salaries nearer 50,000, the cost is closer to 1 million.
ìWith 34% of people spending more time in the office today than they did three years ago, getting the work environment right is a priority,î says Dean Manning, managing director of Wates Interiors. ìRecruitment costs are an unwelcome but significant overhead, and loss of experienced staff can be an indirect drain on the bottom line. Add in a failure to attract high calibre replacements and the quality of a companyís office interior has never been more important.î
When asked to rank common grievances about the office environment in order of importance, the results were as follows:
Noise - 40% of people cite this as having the most negative impact on their ability to do a job (new legislation comes in on 6th April - lowering acceptable levels of noise at work from 85 to 80dBLs)
Extremes of temperature - 33% of people cite this as having the most negative impact on their ability to do a job
Insufficient space - 16% of people cite this as having the most negative impact on their ability to do a job
Uncomfortable furniture - 15% of people cite this as having the most negative impact on their ability to do a job
However, when asked to decide which elements were most important in creating a high quality work environment, natural light was a clear favourite for employees, scoring 37% of the vote and highlighting the importance of allowing for windows in the design process.
Over a third of office workers (38%) said that they would work most productively in a small-shared office, with only a quarter (26%) choosing open plan. With the majority of offices re-fitted today favouring an open-plan design, this is a feature that businesses could address in order to improve staff retention rates and raise productivity.
Dean Manning commented: ìA well designed and ergonomic office has a beneficial effect on staff morale and profitability and this survey shows just how dramatic that effect can be.
ìToday people are increasingly health and style conscious and those companies that invest in the quality of their premises gain a distinct commercial advantage by retaining key staff and attracting the best recruits.î
Wates Interiors is looking for examples of peopleís experiences. If you have turned a job opportunity down or ever left a company or due to the officeís physical environment, please email your story to: watesreport@wates.co.uk
My office depresses me!
New research by Wates Interiors highlights the effect of poor design on staff churn and employeesí attitudes
