When young soon-to-be professional people join the workforce, they are inundated with tips on what to wear to an interview to get an edge over other applicants. Advice such as “dress for success” and “you only have one chance to make a great first impression” might have been given freely by family and friends. Surprisingly, the advice is pretty much the same as it relates to how you outfit your company’s office space.
Good people are hard to find and money is one way to recruit and retain employees, but it’s not the only way. Environment is very important too, so you have to be mindful of that.
Although today’s job market favors employers, this market, like all markets—good and bad—will turn. And when it does, employers could find themselves scrambling to not only fill newly created jobs, but also to fill newly vacated ones.
According to a recent survey by The Conference Board, a nonprofit organization that conducts research and tracks trends for business executives, only 45 percent of employees surveyed say that they are satisfied with their jobs. Furthermore, according to the website CareerBuilder, one in five employee’s plan to leave his or her current job sometime in 2010. Should this “Great Employee Exodus” (as it’s been dubbed in the media) occur, it could affect a business’ bottom line. On average, it’s estimated that it costs a company one-third of a new hire’s annual salary to replace an existing employee. For a minimum-wage job, that cost is estimated to be approximately $5,026.
Today, employee retention is more of an issue than it has been for past generations. There is more mobility in terms of job changes for anyone in the workforce under the age of 40. Turnover means extra costs for a company. Companies are using their office space to recruit and retain top talent.
Shared Environment
To attract employees who share your company’s values, it’s important to create a work environment that rings true for your company’s culture. There always seem to be those companies out there who want to be the most posh. However, there are companies that have consciously gone the other way. They want their offices to be easy on the eyes, but not over-the-top opulent.
Many companies want to create an environment where, regardless of your position, you can feel comfortable talking with a partner at the firm. So anyone who walks into their offices should get the impression that they are practical and efficient. The space shouldn’t leave guests intimidated.
You can tell a lot about the spirit of a company by its office design. Most people don’t want to be in a closed-off organization; they want transparency. They want a friendly, efficient work environment. People work in places because they like the culture and the collegiality.
Some want the workspace environment to deliver a positive, uplifting response when their employees come to work. What matters most to them besides working for a great company is a good work?place environment.
When I am out with clients finding the new space, employee recruitment and retention is always at the top of the list.
The move is a part of many companies recruiting strategy, and the space they chose reflects their creative culture. Designing workspaces that foster a team-oriented culture and attract, motivate and retain top talent by providing a workplace equal to what they would find in New York or London.
Many college graduates entering the workforce today are placing more value on a company’s commitment to social responsibility. In a 2009 study by the Harvard Business Review, it was found that 75 percent of U.S. workforce entrants saw social responsibility and environmental commitment as important criteria in selecting employers. More and more companies are taking note of this trend when selecting new offices.
Many choose a building with a LEED (Leadership in Energy and Environmental Design) -certified shell and core. They are interested in sustainable design and want to see what could be more environmentally sensitive.
Location, Location, Location
An office’s address is another factor that potential employees take into account, considering transportation options and nearby amenities like shops, services and restaurants (more about the future tends with CRE is in my special report “Real Estate Outlook: 2010 and Beyond“). This will allow them to increase their overall connectivity to the city and recruit employees from the entire metropolitan area.
Some companies are choosing to relocate to areas that are untried, but promising. With their new offices in an emerging mixed-use neighborhood. In addition to office, there will be residential and entertainment components as well.
Non Traditional
When designing a new space or redesigning an old space, there are certain elements that employers should take into account that boost productivity and creativity—such as natural daylight and common areas for staff to relax or collaborate. For example, a “touch-down” area for employees dropping into the office and an oasis space that replaces the traditional coffee room, as well as an exclusive staff training rooms and an outdoor urban forest.
Many are going with a high ratio of conference and “huddle” rooms, as well as an expansive, 3,000-square foot decks—complete with glass canopy and fireplaces, again creating a comfortable work environment.
You listen to all of the HR studies and the differences between a [baby] boomer and someone just graduating from the university. New graduates want a professional environment, with the opportunity to grow. If they don’t have that opportunity they won’t stay. So you need to have a perceived order to your professional space. It’s a bit of a road map—how you lay out your space should indicate how things are done in your office, who employees can go to for assistance, and how employees can advance in their careers. And take into account the differences between generational work styles. Adding elements to the workspace that may seem insignificant can be very effective.
The average workforce today is about 35 to 40 years of age, and they are used to multitasking. That’s the environment they’re comfortable in, for instance, you might add a flat screen T.V. in view of your associates’ desks that continually displays stock pricing.
In the end, designing or choosing office space really comes down to creating an environment that attracts the type of employees you want to attract, and then keeps those employees happy and productive.
Employers need to establish a social fabric internally. It helps to connect people and makes a company more comfortable to stay with.
