Why Workspace Rationalization Is Fundamental to Organizational Success?
Change is the only constant; especially in a dynamic corporate landscape. To be relevant and progressive, businesses need to be on par with the evolving market conditions. Today, flexibility and agility have become the key attributes of successful business models, operation models, and workspace models alike. In a shifting marketplace climate, companies need to rethink and rationalize their office culture, space, and engagement. This will enable organizations to optimize and realign their effort toward achieving their long-term goals.
The Impact of the COVID-19 Pandemic
The idea of multi-purpose and adaptable workspaces has been gaining prominence for a long time. But, the outburst of the COVID-19 pandemic has accelerated the adoption of these concepts. With remote and hybrid working established as the new normal, organizations are re-evaluating the role of their workspaces. A research by CBI and PwC states that about 75% of city-based firms are reviewing their office space requirements following the rise of remote working.
Post the COVID-19 pandemic, every sector of the economy is experiencing a variable growth pattern that is impacting their workspace usage. Based on this, organizations are pursuing either of the three modules to optimize their workspace:
Staying put: Some businesses are choosing to remain in their current space to keep up with social distancing norms and their future expansion plans.
Reducing space: Certain organizations that have permanently adapted remote working are choosing to shift to a smaller workplace to cut down the costs of their real estate investment.
Increasing space: Rapidly growing companies are choosing to shift to larger workspaces to provide their employees with sufficient scope for growth.
What is Workspace Rationalization?
The process of space rationalization entails examining your present office space needs and matching them with your company’s overall objectives. This process involves assessing the operational models and integrating information on how space is utilized and the occupants’ views to identify any existing inefficiencies in the space’s functioning. The aim is to boost productivity, creativity, and profitability by creating purpose-built environments that enhance efficiencies. The space rationalization process will lead to one of two outcomes: remaining in and updating your current space, or moving to a new location.
Why Should Organizations Consider Workspace Rationalization?
Space rationalization at the workplace should be considered a continuous process to perennially monitor the organization’s return on productivity, innovation, and investments. Therefore, it must be non-negotiable for companies, irrespective of their scale. According to a survey by the Human Resources Professionals Association, 76% of employers who underwent workplace rationalization reported that it had a positive impact on their organization’s financial performance. Below are the key reasons why businesses must consider workplace rationalization:
Cost Savings
Workspace rationalization can help organizations reduce their real estate costs by minimizing unused or underutilized spaces. This can lead to significant cost savings in terms of rent, utilities, and maintenance expenses.
A study by PwC found that companies that implemented workplace rationalization measures, such as reducing real estate costs, saw an average savings of 20% on their real estate expenses.
Improved Productivity
It can also enhance employee output by creating a more collaborative and flexible work environment. This can lead to improved employee satisfaction, engagement, and retention.
Environmental Sustainability
It can also contribute to environmental sustainability by reducing spatial usage, regulating energy consumption, and minimizing carbon emissions.
Design Flexibility
Rationalized workspaces can be more easily adapted to changes in business needs, such as growth, downsizing, or restructuring.
Enhanced Communication
Workspace rationalization can facilitate better communication and collaboration between employees, departments, and teams, leading to improved decision-making and problem-solving.
How to Approach Workplace Rationalization?
For optimizing a workspace, organizations need to develop a consolidated work plan to attain greater efficiency, productivity, and employee satisfaction. Here is a strategic way that companies can embrace to begin their workplace rationalization:
Identify Your Objectives
Before making any changes to their workplace, companies must identify their goals and how their workplace strategy aligns with them. This could involve identifying Key Performance Indicators (KPIs) that reflect their business objectives, such as reducing functional costs and enhancing employee outcomes. Organizations must also make a note of their values, beliefs, and culture to develop an in-depth understanding of themselves.
Data Collection and Analysis
Collating and assessing data through digital tools can help in creating a formidable ground for workplace rationalization. Organizations can accumulate data on:
Space utilization: How is your current workspace being used? What is the occupancy ratio? Are there areas that are consistently empty or overcrowded?
Employee behavior: How do your employees interact with their workspace? Are there any patterns or trends that could be leveraged to improve productivity or collaboration?
Energy usage: How much energy is being used to power your workplace? Are there any opportunities to reduce energy consumption and save costs?
Workplace technology: What types of technology are currently being used in your workplace? Are there any opportunities to optimize or streamline technology usage to improve efficiency?
Evaluate Inefficiencies
With your data in hand, organizations can evaluate their spatial and functional inefficiencies. They can question the quantitative and qualitative use of spaces based on employee feedback and usage patterns. Companies can then consider alternative workspace designs that better align with their long-term vision. For example, businesses might implement flexible workspace designs to accommodate different work styles and tasks, or they might consider implementing agile workstations that allow employees to move around freely and work collaboratively.
Key Design Considerations for Workplace Rationalization
In a survey by Towers Watson, 82% of employers reported that workplace rationalization initiatives had a positive impact on their organization’s ability to attract and retain talent. Workplace rationalization can be done by incorporating the following design ideas:
Workplace Agility
Agile workspaces are designed to be flexible and adaptable, allowing employees to work in a variety of settings based on their needs and preferences. When developing an agile workspace, some key design considerations include:
● Providing a variety of workstations, such as standing desks, sit-stand desks, and traditional desks to provide employees with the freedom to choose their work setting.
● Creating collaborative spaces such as huddle rooms, meeting areas, and co-working desks to encourage sharing of ideas through cross-pollination.
● Designing private spaces such as individual work pods, call booths, and cubicles for focused work and confidential conversations.
● Providing technology that supports mobility and flexibility, such as wireless networks and cloud-based storage to make workplace communications easier.
Mobile and Adjustable Furniture
Ergonomic furniture is designed to promote good posture, reduce the risk of injury, and increase comfort and productivity. When incorporating ergonomic furniture into a workplace, some key design considerations include:
● Providing adjustable chairs and desks that can be customized to the user’s height and preferences for providing flexibility to the workforce.
● Incorporating footrests and keyboard trays to reduce strain on the back, neck, and arms to allow employees to focus on work for longer hours.
● Using anti-fatigue mats in areas where employees stand for long periods. Additionally, providing monitor arms that can be adjusted to the user’s eye level can help in improving concentration.
● Bringing moveable chairs and tables can empower employees to customize their workplace as per their needs.
Adaptable Design
By including flexibility in workplace design, organizations can adapt to changing business and employee needs over time. When designing for flexibility, some key considerations include:
● Creating modular workstations that can be easily reconfigured as per work requirements and purpose.
● Incorporating moveable walls and partitions that can be adjusted to change the size and layout of spaces.
● Using furniture that is easy to move and rearrange, such as lightweight chairs, tables, and pods.
● Designing spaces that can be repurposed for different functions, such as conference rooms that can also be used as training rooms.
Healthy Work Environment
Creating a health-centric workplace can improve employee well-being and productivity. When designing for a healthy work environment, some key considerations include:
● Incorporating natural light and ventilation to promote a connection with the outdoors and reduce reliance on artificial lighting and heating/cooling.
● Providing access to plants and greenery, which can improve air quality and reduce stress.
● Reducing exposure to noise by using sound-absorbing materials and designing spaces that minimize noise transmission.
● Creating spaces that encourage physical activity, such as providing standing desks or exercise equipment.
Performance Monitoring
Performance monitoring can help you identify areas where your workplace design may need to be adjusted to improve productivity and efficiency. Some key design considerations for performance monitoring include:
● Providing technology that allows for easy monitoring of workflow and productivity, such as project management software or task tracking apps.
● Using data analytics to analyze workplace metrics, such as occupancy rates, energy usage, and space utilization, to identify areas where improvements can be made.
In Conclusion
In today’s rapidly changing business environment, workplace rationalization is more important than ever before, and organizations that take the time to optimize their workspace will be better positioned for long-term success.
