Corporate Spend Measures in the
Workplace Environment
The Employer Perspective on
Location, Building, and Design
Ana Chadburn
June 2014
Aim
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.
Property Attributes for a Corporation:
• Location
• The Building
• Internal Design
View from
St. Botolph building in the City of London
Company Acivity
Staff
Fee earning
Area
Spend on Rent
Last Move Fit Out
How often to refit
Insurance.
Fringe of acceptable walking
distance to Lloyds London
850
10%
8,400 sq m
£200,000 pa
£55/sq ft
10 years +
Decisions on spend Effective Open Space
on workplace design Removal of Cellular Offices
in last 10 years
Chartered Institute
Wimbledon
350
10%
5,000 sq m
Owned
£100/sq ft
10 years
Complete Refurbishment and
Redevelopment of site
Sustainable Internal Design
Professional
Companies
Chartered Architects
Accountants
Staff
Fee earning
Area
Spend on Rent
Last Move Fit Out
How often to refit
Decisions on spend
on workplace design
in last 10 years
44
286
34
234
500 sq m
3,000 sq m
11% of Spend
1.9% of Spend
£160,000
£75/sqft
5 years
10 years
Focus: Collaboration, Adaptability, Focus: Sustainability, Flexible
Image
working, Employee satisfaction &
engagement
Real Estate Investment Advisory
(Boutique)
Mayfair London
37
27%
200 sq m
5-8%
£20,000
10 years
Protracted – new move bigger
premises
Relocation/Refurbishment
Where to spend..
• Location
• The Building
• Workplace design
•
•
•
•
•
•
Focus:
Levels of Turnover
Corporate Image
Ability to attract staff
Staff retention
Staff sickness
Location
The Building
Importance of Work place
Design
Ranking
•
•
•
•
Winners:
Corporate Image
Ability to attract quality Staff
Staff retention
• Losers
• Profitability
• Staff Sickness/Absenteeism
Workplace Design Priority
1
•Creative/meeting areas
Energy Efficiency
2
Social interaction areas
HVC
3
4
5
Décor of public areas
6
7
8
9
10
11
12
Unique
Features
Furniture and Workstation
design
Décor of public areas
Lighting
Security
IT
Furniture and workstation
Furniture and workstation
design
design
Lighting
Social interaction areas
Heating/Ventilation/Cooling Recycling facilities/ waste
Energy efficiency
Rest/Quiet areas
Security
Creative/meeting areas
Creative/meeting areas
Social Interaction Areas
Rest/Quiet areas
Rest/quiet areas
Noise reduction measures
Recycling facilities/waste
handling
Connectivity - Construction
of internal staircase
between floors
Décor of public areas
IT
Noise reduction
HVC
Security
Noise reduction
Sustainability of building
design and interior design
Collaboration &
Connectivity, Adaptability,
Image
Fit for Purpose - Overall
building design and
workplace design being
Collaboration
Lighting
IT
Energy efficiency
Recycling/Waste
Furniture and
Workstation design
Décor of public areas
Noise reduction
measures
Quiet space in open
plan
Lighting
Kitchen
IT
Open windows
HVC
Recycling facilities/
waste handling
Creative/meeting areas IT
Social Interaction Areas HVC
Recycling /Waste
Rest quiet areas
Security
Creative / Meeting
areas
Noise Reduction
Energy Efficiency
Rest/Quiet areas
Sustainability, Flexible
working, Employee
satisfaction &
engagement
New Move
Workplace Priority Qualitative
Fit-Out
Well Being (Design, Social & Business)
Sustainability
Security & Corporate Image
Main corporate themes:
• Corporate Image
• Staff Wellbeing
• Connectivity & Collaboration
• Fit-for-purpose
• Sustainability
Professional Consulting
Architect
Terence Brown
AAdipl, RIBA, ACArch, FRSA
Consultant Architect
&
RIBA Client Advisor
British.
Professional experience: 41 years
• He has a broad range of
experience in leading the design
team, often on complex projects in
sensitive settings and
incorporating historic buildings.
• He takes a personal and active
interest in conceptual design,
design management, sustainable
urbanism, and Town Planning
matters.
• Committed to an ecological design
approach, he continues to take an
interest in design activities, writing
and speaking.
COSTS
SPEND ON
REFURBISHMENT/REDEVELOPMENT
Redevelopment or
Total Refurbishment
• Shell and Core & Demolition – 60%
• Fit-out & All Other – 40%
• Fit-out & All Other
• Fit-out – HVC, IT, Floors Ceilings, Carpets, & Lighting, Furniture
& Work Stations
• Well Being –, Energy Efficiency, Noise reduction,
Creative/meeting
• Security, Sustainability & Corporate Image
COSTS
SPEND ON REFURBISHMENT
(EXCLUDING SHELL AND CORE)
FIT OUT
Percentage
of Costs
Heating/Ventilation/Cooling
25
Comment
(inc cabling and patch & server rooms, but not
business equipment and PCs, etc)
IT
13
Raised floors & suspended ceilings carpets and finishes
Lighting
9
10
Well Being (Design, Social& Business)
Furniture & WS
Energy efficiency
25
5
Design
Business
Noise reduction measures
2
WB
WB Social
Creative/meeting areas
1.5
Social interaction areas
1
Rest/quiet areas
0.5
These three facilities are important for staff
well being and operational effectiveness of
offices. Low costs but high Area ie Rental
impact
Security Sustainability & Corporate Image
Décor of public areas
Security
5
2.5
Recycling facilities/waste handling
0.5
Corporate Image
Security
Sustainability:
Facilities Cheap, Getting people to do Hard
CONCLUSIONS
Conclusion
Main corporate themes:
• Corporate Image (External)
• Staff Wellbeing
• Connectivity & Collaboration
• Fit-for-purpose
• Sustainability
Spend on Refurbishment
• Greatest spend 82% is on Classical Fit-out or what could be
termed as Fit-for-purpose
• Spend on Well Being is low but large amounts of floor area
are required with an impact on Rent
• Sustainability measures (app. 5.5%) are typically low in cost
but the difficulty lies with training and co-operation of staff.
• Corporate Image 5%
Overall Conclusions
• Corporate Image is the first ranking Priority and the main
focus of a company whether pubic or private. In essence it
tells the world who and what the company is. Costs typically
associated to this are only 5% but only app. 2% of the a whole
project cost. To get this right even low in cost, implies the
selection of the correct image consultant or Architect.
• Staff Wellbeing is invariably second. Here space is needed as
costs associated to these are fairly low but requirements in
space is high. Companies who prioritise this element may
need to select offices with lower rent and greater provision of
space. This might mean a less prime location or the fringe of a
prime location.
Overall Conclusions
• Location is paramount as well but it is mainly a function of the
company’s corporate Image and the ability to attract and
retain staff
• Research suggests that Sickness and Staff Absenteeism
measures are required within corporations for good levels of
productivity. This does not seem to be a priority for
corporations. It is suggested therefore that this element still
needs to carry through from theory into practice.
• Staff interaction reflected as connectivity & collaboration can
be reflected through the designed space
• Sustainability measures are high on the agenda for
Corporations. This is mainly delegated to Management.
• Fit-for-purpose is the greatest cost and can be seen as the
nuts and bolts of a Refurbishment or Redevelopment cost
(excluding Shell and Core).