QUIT BEING CHEAP: WHY A BETTER OFFICE SPACE IS WORTH THE INVESTMENT
As the world begins to return to a sense of normalcy, companies are looking to bring their employees back to the office. However, many companies are still struggling to find ways to retain their top talent. It’s no secret that employees today are looking for more than just a paycheck; they want to work for a company that values their well-being and invests in their future.
That’s why we’re here to tell you that if you want to save money in the long run, you need to spend MORE on your office space. Yes, you read that right. Spend more. We know it sounds counterintuitive, but trust us on this one.
One of the biggest costs to a company is employee turnover. Not only does it cost money to recruit and train new employees. In fact, studies have shown that the cost of recruiting and training a new employee can range from 6 to 9 months of the employee’s salary, and in some cases even higher. But employee turnover also results in lost productivity and loss in knowledge transfer.
Don’t think knowledge transfer equates to dollars? Think again. When your employees leave without transferring their knowledge, you’re screwed. You’re left with a knowledge gap that’s hard to fill, and it can cost you big time. You’ll experience delays, mistakes, and a decline in quality that can hurt your bottom line. In fact, research shows that the loss of knowledge transfer can cost companies millions of dollars in lost productivity and revenue.
But here’s the thing: you can prevent this from happening. By investing in your employees and providing them with a top-notch work environment, a/k/a office space, you can keep them happy, engaged, and motivated. This investment pays off in the long run, as your employees stay put and pass on their knowledge to new hires.
So don’t be a penny-pincher when it comes to your office space. The cost of losing your top talent is way higher than the cost of a few extra dollars per square foot. Invest in your employees and watch your company thrive.
Motivated and Engaged Workers
Listen up, people! If you want to get the most out of your employees, you need to give them a workspace that rocks their world. A boring, uninspiring office is a productivity killer. But when you invest in a high-quality office space, you give your employees a reason to come to work fired up and ready to crush it.
A comfortable and happy work environment is key to motivating and engaging your workers. When your employees feel at ease in their workspace, they’re less likely to be distracted by discomfort or annoyances. Plus, a happy work environment makes employees feel appreciated and valued by their employer, driving them to work harder and produce better results. But don’t just take our word for it. Research shows that companies that invest in their office design see a 27% increase in revenue per employee. That’s right, 27%! So why are you still putting up with a drab and uninspiring workspace?
If you want to attract and retain top talent, you need to give them a workspace that inspires and motivates them. A high-quality office space not only boosts productivity and performance, but it also shows your employees that you value their well-being and are invested in their success. So go ahead, invest in your office space and watch your business thrive like never before!
More Collaboration and Synergy
Collaboration – it’s the secret sauce to success. And a high-quality office space is just the place to get your team collaborating like never before. When your employees are working in a space that encourages teamwork and communication, they’re more likely to work together on projects, generate new ideas, and innovate like champions. Plus, collaboration fosters a sense of community and shared purpose, which is essential for a high-performing team.
And let’s not forget about the elephant in the room: remote work. While working from home has its perks, it can also lead to isolation, disconnection, and a lack of collaboration among employees. But when your team returns to the office, they’ll be able to feed off each other’s energy, bounce ideas around, and collaborate in real-time. That’s where the magic happens! Collaboration not only benefits your team but also contributes to the success of your company. When employees work together effectively, they can accomplish more in less time, avoid mistakes, and achieve better results. So, if you want your company to soar to new heights, invest in a high-quality office space that fosters collaboration, communication, and synergy. Your employees (and your bottom line) will thank you for it.
Human Resource Related Costs
It’s also worth noting that human resource related costs make up a significant portion of a company’s overhead. In fact, on average, these costs can range from 70-90% of a company’s overhead. Office space, on the other hand, is typically only around 4-8% of a company’s overhead. This means that spending a few extra dollars per square foot on a high-quality office space is a minimal cost compared to the cost of not being able to retain your top talent.
Let’s put it in dollars and cents: say you have an 8,000 square foot office space that costs $22 per square foot, for a total annual cost of $176,000. If you were to upgrade to a high-quality office space at $26 per square foot, your total annual cost would be $208,000 – an increase of $32,000. While this may seem like a significant increase in cost, consider the cost of losing just one top-performing employee, which could easily exceed $50,000 when you factor in recruitment, training, and lost productivity costs. Further, as noted above, what if you gained an additional 27% in revenue (or anywhere near that increase) per employee and that 8,000 square feet of office space accommodated a minimum of 20-people…. yeah, that increase in revenue alone will offset the increase in office rent X-times over. As you can see – investing in high-quality office space may seem like a luxury, but it’s actually a smart business decision. And the proof is in the statistics: the office market trend throughout the U.S. shows that companies are not heading for the hills, but vacating old drab office space and moving to the top-end of the market…..which we call a “flight to quality and experience”.
At CARMEN Commercial Real Estate, we believe that your office space is more than just a place to work; it’s a reflection of your company’s values and culture. By investing in a high-quality office space, you are not only showing your employees that you care about their well-being, but you are also investing in the future success of your company. So, the next time you’re thinking about cutting costs and settling for a subpar office space, remember that you could be sacrificing the future success of your company.