Corporate Spend Measures in the Workplace Environment The Employer Perspective on Location, Building, and Design Ana Chadburn June 2014

Aim The purpose of this paper is to investigate the emphasis placed on creating a workplace environment that is “Right” measured through levels of spend on a range of property attributes thought to contribute to business productivity. Property Attributes for a Corporation: Location The Building Internal Design

View from St. Botolph building in the City of London

Relocation/Refurbishment Where to spend.. Location The Building Workplace design Focus: Levels of Turnover Corporate Image Ability to attract staff Staff retention Staff sickness

Location

The Building

Importance of Work place Design

Ranking Winners: Corporate Image Ability to attract quality Staff Staff retention Losers Profitability Staff Sickness/Absenteeism

Workplace Design Priority

Workplace Priority Qualitative

Main corporate themes: Corporate Image Staff Wellbeing Connectivity & Collaboration Fit-for-purpose Sustainability

Professional Consulting Architect Terence Brown AAdipl, RIBA, ACArch, FRSA Consultant Architect & RIBA Client Advisor British. Professional experience: 41 years He has a broad range of experience in leading the design team, often on complex projects in sensitive settings and incorporating historic buildings. He takes a personal and active interest in conceptual design, design management, sustainable urbanism, and Town Planning matters. Committed to an ecological design approach, he continues to take an interest in design activities, writing and speaking.

SPEND ON REFURBISHMENT/REDEVELOPMENT COSTS

Redevelopment or Total Refurbishment Shell and Core & Demolition – 60% Fit-out & All Other – 40% Fit-out & All Other Fit-out – HVC, IT, Floors Ceilings, Carpets, & Lighting, Furniture & Work Stations Well Being –, Energy Efficiency, Noise reduction, Creative/meeting Security, Sustainability & Corporate Image

SPEND ON REFURBISHMENT (EXCLUDING SHELL AND CORE) COSTS

FIT OUT Percentage of CostsComment Heating/Ventilation/Cooling25 IT13 (inc cabling and patch & server rooms, but not business equipment and PCs, etc) Raised floors & suspended ceilings carpets and finishes9 Lighting10 Well Being (Design, Social& Business) Furniture & WS25Design Energy efficiency5Business Noise reduction measures2WB Creative/meeting areas1.5 WB Social These three facilities are important for staff well being and operational effectiveness of offices. Low costs but high Area ie Rental impact Social interaction areas1 Rest/quiet areas0.5 Security Sustainability & Corporate Image Décor of public areas5Corporate Image Security2.5Security Recycling facilities/waste handling0.5 Sustainability: Facilities Cheap, Getting people to do Hard

CONCLUSIONS

Conclusion Main corporate themes: Corporate Image (External) Staff Wellbeing Connectivity & Collaboration Fit-for-purpose Sustainability

Spend on Refurbishment Greatest spend 82% is on Classical Fit-out or what could be termed as Fit-for-purpose Spend on Well Being is low but large amounts of floor area are required with an impact on Rent Sustainability measures (app. 5.5%) are typically low in cost but the difficulty lies with training and co-operation of staff. Corporate Image 5%

Overall Conclusions Corporate Image is the first ranking Priority and the main focus of a company whether pubic or private. In essence it tells the world who and what the company is. Costs typically associated to this are only 5% but only app. 2% of the a whole project cost. To get this right even low in cost, implies the selection of the correct image consultant or Architect. Staff Wellbeing is invariably second. Here space is needed as costs associated to these are fairly low but requirements in space is high. Companies who prioritise this element may need to select offices with lower rent and greater provision of space. This might mean a less prime location or the fringe of a prime location.

Overall Conclusions Location is paramount as well but it is mainly a function of the company’s corporate Image and the ability to attract and retain staff Research suggests that Sickness and Staff Absenteeism measures are required within corporations for good levels of productivity. This does not seem to be a priority for corporations. It is suggested therefore that this element still needs to carry through from theory into practice. Staff interaction reflected as connectivity & collaboration can be reflected through the designed space Sustainability measures are high on the agenda for Corporations. This is mainly delegated to Management. Fit-for-purpose is the greatest cost and can be seen as the nuts and bolts of a Refurbishment or Redevelopment cost (excluding Shell and Core).