I recently caught up on an ongoing study by Gallup about employee engagement and workplace culture, and how they relate to a company’s performance. The study was started in 1998 with roughly 2,500 businesses and now, 26 years later, over 183,000 business units have been surveyed and is considered the largest ongoing study of its kind.

Gallup’s Q12 Meta-Analysis survey (Q12) is a widely recognized tool for measuring employee engagement and driving organizational performance. By focusing on 12 core workplace experiences identified in the study and identified in the accompanying article, Q12 provides a comprehensive framework for understanding and improving the factors that matter most to employees. The Q12 not only assesses these aspects but links them to critical performance outcomes, such as productivity, retention, profitability, and customer satisfaction but finds when organizations leverage the Q12 to identify gaps and foster improvement, they’re often achieve measurable gains in employee well-being and organizational effectiveness, reinforcing its role as a high-value metric in modern workplaces.

I’ve often referred to the Q12 when assessing the office needs of CARMEN clients. You might be asking what a study about employee engagement and workplace culture has to do with a company’s office space. A lot! According to the HR solutions provider Paycor, employee compensation (pay and benefits) can account for as much as 70% of a company’s total costs. With the cost of labor playing such a significant role in shaping a company’s overall cost, it’s obvious why a business wants to maximize the engagement of its employees: highly engaged employees are likely to be much more productive, not to mention happier, than 100 employees with low engagement to the business and their jobs.

Considering Gallup’s research, I’ve suggested that businesses that are dependent upon employee productivity (almost every company) and yet considers very basic utilitarian office space as an acceptable means to saving money, reconsider their perspective. If a business owner or manager is trying to boost morale and nurture a positive workplace culture, sending employees to a circa 1960’s office is probably going about it all wrong. My suggestion: spend a few more dollars per square foot to lease better office space with amenities and a pleasant environment that will cause employees to enjoy, or at least not mind coming to work.

Maybe more important than wanting your employees to be happy with their workplace, you won’t have to continually replace employees that can’t stand to show up daily at their grandfather’s workplace.

I believe the study, directly and indirectly, makes a case for investing in modern, high-quality office spaces that align with the principles of employee engagement and workplace culture. The connection I’ve drawn between Gallup’s Q12 research and office environments reinforces the idea that the physical workspace is a critical driver of organizational performance, not just a backdrop for it.

The cost of disengagement—lower productivity, higher turnover, and diminished morale—far outweighs the incremental expense of an engaging office environment. Modern workplaces with amenities, natural light, and thoughtful layouts located in amenities rich office parks not only enhance employee satisfaction but also signal that the company values its workforce, which can be a key factor in retention and recruitment.

Yes, I’m advocating for a smarter approach to real estate decisions—one that sees the office as a strategic asset. This perspective undoubtedly positions you as a forward-thinking advisor in your field. Let me know if you’d like to explore specific examples or data to support your approach further!

In case you don’t get a chance to read the study in its entirety, here are the key takeaways from your article:

1. Gallup’s Q12 Survey Framework
   • The Q12 survey focuses on 12 core workplace experiences that drive employee engagement.
   • It links these experiences to critical performance outcomes such as productivity, retention, profitability, and customer satisfaction.
2. Scale and Impact of Gallup’s Research
   • Gallup’s ongoing study, started in 1998, is the largest of its kind, with over 183,000 business units surveyed.
   • This long-term data establishes a strong correlation between employee engagement and organizational performance.
3. The Importance of Employee Engagement
   • Employee compensation is a significant cost (up to 70% of total expenses), making employee engagement a critical factor in optimizing this investment.
   • Engaged employees are more productive, satisfied, and less likely to leave, reducing costly turnover.
4. Office Space and Workplace Culture Connection
   • The quality of office space plays a crucial role in fostering employee engagement and workplace culture.
   • Companies that rely on employee productivity should reconsider utilitarian, outdated office spaces in favor of modern, amenity-rich environments.
5. Office Space as an Investment in People
   • Upgrading office spaces may require higher upfront costs but can yield substantial benefits in employee morale, retention, and overall productivity.
   • A pleasant and engaging workspace signals to employees that their presence and contributions are valued, reducing turnover and disengagement.
6. Practical Advice for Businesses
   • Companies should view office space as an investment in their workforce rather than just a cost-saving opportunity.
   • Nicer office spaces with modern amenities can help retain and attract talent while enhancing organizational effectiveness.