Workplace Efficiency and Effectiveness: New Directions

Market conditions – the lingering aftereffects of the global recession, skilled labor shortages, stock market volatility, to name a few – continue to put pressure on organizations to maximize the efficiency and effectiveness of their real estate portfolios. In addition, changes in work, technology, social norms and the workforce are changing the way workers use the workplace.

These changes in turn have reduced workplace utilization (the number of people physically using a building), but not necessarily the potential occupancy (the number of workstations and offices built out in a given square footage). For many organizations, average utilization – the percentage of individual workspaces being used at any given time – is 40%. As a result, continuing to measure efficiency by looking at seat count per square footage is misleading. Organizations are looking for new ways to understand and measure efficiency by understanding utilization rather than focusing on the density of available seats.