Are your employees too dense?
April 18, 2019
Of course, I’m referring to density in terms of office space allocation. (Any other interpretation is outside of my expertise!)
In my decades in the commercial real estate world, I’ve observed that trends tend to move to extremes, then moderate themselves when the return on investment produced declines. In recent years, history has been repeating itself as the trend toward increased office density has produced less return on investment.
In the aftermath of what came to be known as the Great Recession (2007-2009) office space density increased as the space allocation per employee shrank. However, the trend has reversed. In 2016, space allocation began to inch back up.
Why? Because when workers have less than a desirable minimum threshold of personal space, productivity starts to decline. For business owners and managers, it’s important to pinpoint the ideal density that manages CRE costs and maximizes worker efficiency. While it is possible to reduce square footage and lower expenses, there is a diminishing return at a certain point.
Last year, Work Design Magazine published a report by Jacobs Design Strategies that revealed the results of their extensive research to determine the ideal density that balances commercial real estate costs and worker productivity.
Here’s an excerpt from the Jacobs Design Strategies study and what their research determined. There is:
...”a tipping point for density beyond which it is very difficult to provide adequate individual, group and community space. We defined the tipping point as 125 to 135 usable square feet per work seat. It is based on a minimum of 25 to 36 net square feet for individual work seats, [and] providing a five-foot work surface minimum for adequate personal space and space planning flexibility with 55 percent of usable square feet allocated to individual seats and 45 percent allocated to group and community space. Proportionally more circulation is needed for smaller workstations in denser environments. We recommend a minimum circulation factor of 45 to 50 percent circulation (add-on factor of 1.8 to 2.0) for dense workplaces of 125 to 135 usable square feet per work seat.”
When workers perceive that others are encroaching too far into their personal space, productivity suffers because they will devise behaviors to make them feel more in control. For example, in an open plan office space with high density, worker engagement and collaboration plummet. Ironically, increased collaboration is one of the ideas behind the open plan office.
What is your current worker density? Do you suspect that your quest to reduce your commercial real estate costs has caused a decline in productivity?
Here at Bayshore Partners, we are committed to helping you find that ideal place where your workers thrive, and your business prospers. Give us a call to discuss your current situation and how we can be of service.
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