The costs of inefficient office design are many, but they’re best understood in two categories: financial costs and employee impact.
Financial costs are the literal and direct expenses of maintaining the office space and keeping the lights on, but employee impact shows up in indirect costs, like reduced productivity and higher employee turnover.
To uncover the real costs of inefficient office design, we’ve explained common design issues and analyzed their impact on your company’s bottom line.
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The Real Costs of Inefficient Office Design |
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Issues |
Impact |
Dollars and Cents |
What to Do |
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Wasted Space |
It’s estimated that about a quarter of the square footage in most office spaces is underutilized, which means you're paying for space you’re not using. |
Average cost per square foot in NYC: $60–$100 annually Cost of 20 square feet of wasted space per year: $120–$2,000 |
-Keep track of what space you are utilizing and what you aren’t -Consider downsizing or reconfiguring the layout |
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Increased Utility and Maintenance Expenses |
Larger spaces and those with inefficient layouts have more maintenance and utility costs, such as heating, cleaning, and lighting. |
Average utility and maintenance expenses per square foot in NYC: $2-$5 per month Cost of 20 square feet of wasted space in terms of utility and maintenance expenses per year: $480–$1,200 |
- Conduct energy audits -Make efficiency upgrades (lighting, HVAC systems, IoT controls) |
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Lower Output |
Offices with many distractions or poor supply distribution can drastically decrease productivity and reduce focus. |
Percentage of employees who say bad office design lowers their productivity: 55% of office workers feel distracted in the office Cost per hour of lowered productivity: Varies by industry and company size, but as much as $9,000 per minute across the IT industry |
- Optimize the environment for productivity with natural light, comfortable furniture, and sound-dampening features - Make sure supplies are accessible and well-stocked to reduce inefficiencies |
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Decreased Morale |
When employees don’t feel comfortable or supported in the space, they’re less likely to bring their best selves to work. |
Cost of employee turnover per employee: About one-half of the employee’s salary Cost of decreased morale per year: $1 trillion globally |
-Encourage employee participation in office design decisions -Use light, color, fabrics, and ergonomic furniture to create an office that employees love |
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Reduced Collaboration Opportunities |
If workstations block or otherwise discourage connections between employees, they’re less likely to collaborate on projects, problem-solve together, and share resources. |
Collaboration contributes to at least 20% of lead generation income That’s revenue that you might be missing out on with an inefficient office design |
- Create a variety of spaces that offer different functions: meeting rooms, quiet zones, and collaboration zones - Ensure spaces are accessible and well-equipped -Make sure seating is comfortable to encourage longer collaboration sessions |
Creative Solutions for Efficient Office Spaces
Inefficient office spaces are a solvable problem. Here are some of our practical solutions to tackle the cost of inefficient office design before it further impacts your business.
- Invest in technology: Because space usage is a science, many tools are available to track space management, conference room bookings, and office attendance.
- Focus on employee needs: Prioritize ergonomic workstations, sound-dampening acoustics, and multi-purpose spaces that support your employees’ comfort and productivity throughout the workday.
- Optimize space usage: Use technology and interior design expertise to assess underutilized space and tackle it head-on with improvement strategies, like hot desking.
- Improve layout: Efficient office spaces thoughtfully balance collaboration with deep focus. Heed expert advice on strategies for improving collaboration without sacrificing focus.
Check out more office space optimization best practices.
R-Zero Reduces the Costs of Inefficient Office Design
Space optimization is an art and a science, so the most effective projects combine data-driven tools with human creativity to bring your office to life.
At Benhar Office Interiors, we are experts in workplace optimization strategies that keep operational costs in check, employees happy, and workplaces highly efficient and functional. We are proud to partner with R-Zero, a cutting-edge space optimization tool that harnesses occupancy sensors to deliver dynamic insights you can use to analyze your workspace and adjust as needed.
Ask about R-Zero for more support in optimizing your workspace. The team at Benhar will help you minimize the cost of inefficient office design and create a space that works for everyone.